[Federal Register: March 7, 2007 (Volume 72, Number 44)]
[Notices]
[Page 10244-10255]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07mr07-154]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Agency Information Collection Activities: Proposed Collection,
Comment Request
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of a revision of a currently approved information
collection (OMB Control Number 1010-0120).
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SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we
are inviting comments on a collection of information that we will
submit to the Office of Management and Budget (OMB) for review and
approval. The title of this information collection request (ICR) is
``30 CFR Part 206--Product Valuation, Subparts F and J; Part 210--Forms
and Reports, Subparts E and H; and Part 218--Collection of Royalties,
Rentals, Bonuses and Other Monies Due the Federal Government, Subpart
E.'' We changed the title of this ICR to clarify the regulatory
language we are covering under 30 CFR parts 206, 210, and 218 and to
reflect OMB consolidation approval of two solid mineral-related ICRs.
Those ICRs were titled:
1010-0074: 30 CFR Part 206--Product Valuation, Subpart J--
Indian Coal (Forms MMS-4292, Coal Washing Allowance Report, and MMS-
4293, Coal Transportation Allowance Report); and
1010-0120: 30 CFR Part 206, Subpart F--Federal Coal and
Subpart J--Indian Coal; Part 210, Subpart B--Oil, Gas, and OCS Sulfur--
General, Subpart E--Solid Minerals, General, Subpart H--Geothermal
Resources; Part 218, Subpart B--Oil and Gas, General, Subpart E--Solid
Minerals--General (Form MMS-4430, Solid Minerals Production and Royalty
Report).
In the two ICRs, much of the general information was repeated and
cross referenced. This consolidated ICR 1010-0120 eliminates that
duplication of effort and redundancy of data and also provides for
review of all solids and geothermal information collection requirements
on a MMS Solids and Geothermal Compliance and Asset Management program-
wide basis. The current ICR does not expire until October 31, 2007 and
has a total of 1,751 burden hours as of OMB Notice of Change dated
December 9, 2005, which consolidated the burden hours from ICRs 1010-
0074 and 1010-0120.
DATES: Submit written comments on or before May 7, 2007.
ADDRESSES: Submit written comments to Sharron L. Gebhardt, Lead
Regulatory Specialist, Minerals Management Service, Minerals Revenue
Management, P.O. Box 25165, MS 302B2, Denver, Colorado 80225. If you
use an overnight courier service or wish to hand-carry your comments,
our courier address is Building 85, Room A-614, Denver Federal Center,
West 6th Ave. and Kipling Blvd., Denver, Colorado 80225. You may also
e-mail your comments to us at mrm.comments@mms.gov. Include the title
of the information collection and the OMB control number in the
``Attention'' line of your comment. Also include your name and return
address. If you do not receive a confirmation that we have received
your e-mail, contact Ms. Gebhardt at (303) 231-3211.
[[Page 10245]]
FOR FURTHER INFORMATION CONTACT: Sharron L. Gebhardt, telephone (303)
231-3211, FAX (303) 231-3781, or e-mail sharron.gebhardt@mms.gov.
SUPPLEMENTARY INFORMATION: Title: 30 CFR Part 206--Product Valuation,
Subparts F and J; Part 210--Forms and Reports, Subparts E and H; and
Part 218--Collection of Royalties, Rentals, Bonuses and Other Monies
Due the Federal Government, Subpart E.
OMB Control Number: 1010-0120.
Bureau Form Numbers: Forms MMS-4430, MMS-4292, and MMS-4293.
Abstract: The Secretary of the U.S. Department of the Interior is
responsible for collecting royalties from lessees who produce minerals
from leased Federal and Indian lands. The Secretary is required by
various laws to manage mineral resources production on Federal and
Indian lands, collect the royalties due, and distribute the funds in
accordance with those laws. The Secretary also has a trust
responsibility to manage Indian lands and seek advice and information
from Indian beneficiaries. The MMS performs the royalty management
functions and assists the Secretary in carrying out the Department's
trust responsibility for Indian lands.
Minerals produced from Federal and Indian leases vary greatly in
the nature of occurrence, production and processing methods, and
markets served. Also, lease terms, statutory requirements, and
regulations vary significantly among the different minerals.
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 (royalty)
of the value received from production from the leased lands. The lease
creates a business relationship between the lessor and the lessee. The
lessee is required to report various kinds of information to the lessor
relative to the disposition of the leased minerals. Such information is
similar to data reported to private and public mineral interest owners
and is generally available within the records of the lessee or others
involved in developing, transporting, processing, purchasing, or
selling of such minerals. The information collected includes data
necessary to ensure that the royalties are accurately valued and
appropriately paid.
Applicable citations of the laws pertaining to mineral leases on
Federal and Indian lands include: 25 U.S.C. 2103, Indian Mineral
Development Act of 1982; 30 U.S.C. 189, Leases and Prospecting Permits;
30 U.S.C. 359, Lease of Mineral Deposits within Acquired Lands; 25
U.S.C. 396d, Chapter 12--Lease, Sale, or Surrender of Allotted or
Unallotted Lands; 30 U.S.C. 1001, 1002, Geothermal Steam and Associated
Steam Resources; and 43 U.S.C. 1334, Outer Continental Shelf Lands Act.
Applicable Code of Federal Regulations (CFR) include 30 CFR part
206, subparts F and J; part 210, subparts E and H; and part 218,
subpart E. Forms associated with this ICR are Forms MMS-4430, Solid
Minerals Production and Royalty Report; MMS-4292, Coal Washing
Allowance Report; and MMS-4293, Coal Transportation Allowance Report.
Governing citations require the lessees, operators, or other
directly involved persons to accurately submit solid minerals royalty
and production data and provide additional reasonable information as
defined by the Secretary regarding solid minerals production. This ICR
provides for the collection of solid minerals royalty and production
information on Form MMS-4430 and on other associated data formats such
as associated sales summaries, facility data, sales contracts, payment
information, as well as additional documents described below. The
current information collection requirements (1) Provide MMS with the
ability to verify that revenue due the Federal Government is accurately
reported and correctly paid under applicable laws, regulations, and
lease terms; and (2) support the fulfillment of our trust, financial
and compliance mission requirements. It also provides MMS with the
ability to timely disburse mineral revenues to the correct recipients.
We encourage electronic submission by way of attachments to e-mail
messages from Federal reporters only; however, hard-copy submissions
are allowed from both Federal and Indian reporters. \
Specific lease language varies. However, respondents agree by the
lease terms to furnish statements providing the details of all solid
minerals operations conducted on a Federal or Indian lease and the
quantity and quality of all production from the lease at such times and
in such form as the Secretary may prescribe.
The MMS, acting for the Secretary, uses all of the collected
information to support the Compliance and Asset Management (CAM) and
Financial Management (FM) processes, and to assure that royalties
reported and paid are based upon correct product valuation. The MMS
uses the collected information, as do other Federal Government, state
and tribal entities, for audit purposes and to evaluate the
reasonableness of product valuation or allowance claims submitted by
lessees. Specifically, MMS provides the Bureau of Land Management (BLM)
and the Bureau of Indian Affairs (BIA) access to this information,
which they use to conduct production verification, ensure lease
diligence, and monitor plant efficiencies and inventories for maximum
recovery, and secondary products. The determination of the appropriate
product value or allowance rate directly affects the royalties due.
Failure to collect such data would prevent the Secretary from
accomplishing statutory and trust responsibilities.
Form MMS-4430, Solid Minerals Production and Royalty Report--
Producers of coal and other solid minerals from Federal and Indian
leases electronically file this form monthly. The form contains basic
lease-level volume and valuation information. Additionally, the form
collects non-Federal production information from mines.
Contracts and Contract Amendments--Coal and metal
producers submit sales contracts, agreements, and contract amendments
semi-annually. Sodium, potassium, phosphate, and other solid mineral
producers, with leases containing ad valorem royalty terms, submit the
required documents only if specifically requested to do so by MMS.
Sales Summary--The CAM process compares sales summary
information from purchasers to Form MMS-4430 and facility data.
Facility Data--Operators of wash plants and of refining,
ore concentration, or other processing facilities for any coal, sodium,
potassium, metals, or other solid minerals submit facility data
information for months in which they process or carry an inventory.
Additional Documents or Evidence--The MMS requests
detailed statements, documents, or other evidence supporting our CAM
responsibilities under Federal and Indian lease terms. Spot sale
invoices, weigh tickets, laboratory quality reports, transportation
contracts, and service contracts are all examples of additional
documents we might request. The information might further define a cost
or verify a claim made by the producer.
Payment Information--The MMS collects payment data to use
in the Financial Management process.
Form MMS-4292--Coal Washing Allowance Report and Form MMS-4293--
Coal Transportation Allowance
[[Page 10246]]
Report--This ICR also provides for the collection of coal washing and
transportation information for Indian leases. The information collected
is essential for the royalty valuation process.
We developed Forms MMS-4292, Coal Washing Allowance Report, and
MMS-4293, Coal Transportation Allowance Report, for industry to
complete when reporting or requesting a washing or transportation
allowance.
Summary--The information we collect under this ICR is essential for
the royalty valuation process. Not collecting this information would
limit the Secretary's ability to discharge fiduciary duties and may
also result in the inability to confirm the accurate royalty value.
Proprietary information submitted to MMS under this collection is
protected. No items of a sensitive nature are collected. The
requirement to respond is mandatory for Form MMS-4430. A response is
required to obtain benefits for Forms MMS-4292 and MMS-4293.
Frequency of Response: On occasion, annually, monthly.
Estimated Number and Description of Respondents: 149 reporters.
Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 1,778
hours.
We are revising this ICR to include reporting requirements from
part 206 citations that were overlooked in the previous renewal and
reporting requirements for ICR 1010-0074 that were added to this
information collection. 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:
Respondents' Estimated Annual Burden Hours
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Reporting &
Citation 30 CFR recordkeeping Hour burden Average No. Annual burden
requirement annual responses hours
----------------------------------------------------------------------------------------------------------------
Part 206--Product Valuation
Subpart F--Federal Coal
----------------------------------------------------------------------------------------------------------------
206.253(c)..................... Coal subject to Hour burden covered under Sec. 206.254.
royalties--general
provisions.
(c) * * * The lessee
shall maintain
accurate records to
determine to which
individual Federal
lease coal in the
waste pit or slurry
pond should be
allocated * * *.
----------------------------------------------------------------------------------------------------------------
206.254........................ Quality and quantity .4166 816 340
measurement standards
for reporting and
paying royalties.
* * * Coal quantity
information shall be
reported on
appropriate forms
required under 30 CFR
part 216 and on the
Solid Minerals
Production and
Royalty Report, Form
MMS-4430, as required
under 30 CFR part 210.
----------------------------------------------------------------------------------------------------------------
206.257(b)(1).................. Valuation standards AUDIT PROCESS See Note.
for ad valorem leases.
(b)(1) * * * The
lessee shall have the
burden of
demonstrating that
its contract is arm's-
length * * *.
----------------------------------------------------------------------------------------------------------------
206.257(b)(3).................. (b)(3) * * * When MMS AUDIT PROCESS See Note.
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 reported
coal value.
----------------------------------------------------------------------------------------------------------------
206.257(b)(4).................. (b)(4) The MMS may AUDIT PROCESS See Note.
require a lessee to
certify that its
arm's-length contract
provisions include
all of the
consideration to be
paid by the buyer,
either directly or
indirectly, for the
coal production.
----------------------------------------------------------------------------------------------------------------
206.257(d)(1).................. (d)(1) Where the value Hour burden covered under Sec. 206.254.
is determined
pursuant to paragraph
(c) of this section,
that value does not
require MMS's prior
approval. However,
the lessee shall
retain all data
relevant to the
determination of
royalty value.
----------------------------------------------------------------------------------------------------------------
206.257(d)(2).................. (d)(2) Any Federal AUDIT PROCESS See Note.
lessee will make
available upon
request to the
authorized MMS or
State
representatives, to
the Inspector General
of the Department of
the Interior or other
persons authorized to
receive such
information, arm's-
length sales value
and sales quantity
data for like-quality
coal sold, purchased,
or otherwise obtained
by the lessee from
the area.
----------------------------------------------------------------------------------------------------------------
[[Page 10247]]
206.257(d)(3).................. (d)(3) A lessee shall 2 1 2
notify MMS if it has
determined value
pursuant to
paragraphs
(c)(2)(ii), (iii),
(iv), or (v) of this
section * * *. The
letter shall identify
the valuation method
to be used and
contain a brief
description of the
procedure to be
followed. The
notification required
by this section is a
one-time notification
due no later than the
month the lessee
first reports
royalties on the Form
MMS-4430 * * * and
each time there is a
change * * *.
----------------------------------------------------------------------------------------------------------------
206.257(f)..................... (f) The lessee may 5 1 5
request a value
determination from
MMS. In that event,
the lessee shall
propose to MMS a
value determination
method, and may use
that method in
determining value for
royalty purposes
until MMS issues its
decision. The lessee
shall submit all
available data
relevant to its
proposal * * *.
----------------------------------------------------------------------------------------------------------------
206.257(i)..................... (i) * * * Contract 2 1 2
revisions or
amendments shall be
in writing and signed
by all parties to an
arm's-length
contract, and may be
retroactively applied
to value for royalty
purposes for a period
not to exceed two
years, unless MMS
approves a longer
period * * *.
----------------------------------------------------------------------------------------------------------------
206.259(a)(1).................. Determination of AUDIT PROCESS See Note.
washing allowances.
(a) Arm's-length
contracts. (1) * * *
The lessee shall have
the burden of
demonstrating that
its contract is arm's-
length * * *.
----------------------------------------------------------------------------------------------------------------
206.259(a)(1).................. (a)(1) * * * the .34 12 4
washing allowance
shall be the
reasonable actual
costs incurred by the
lessee for washing
the coal * * *.
----------------------------------------------------------------------------------------------------------------
206.259(a)(3).................. (a)(3) * * * When MMS AUDIT PROCESS See Note.
determines that the
value of the washing
may be unreasonable,
MMS will notify the
lessee and give the
lessee an opportunity
to provide written
information
justifying the
lessee's washing
costs.
----------------------------------------------------------------------------------------------------------------
206.259(b)(1).................. (b) Non-arm's-length .75 48 36
or no contract. (1) *
* * the washing
allowance will be
based upon the
lessee's reasonable
actual costs * * *.
----------------------------------------------------------------------------------------------------------------
206.259(b)(2)(iv).............. (b)(2)(iv) A lessee 1 1 1
may use either
paragraph
(b)(2)(iv)(A) or (B)
of this section.
After a lessee has
elected to use either
method for a wash
plant, the lessee may
not later elect to
change to the other
alternative without
approval of the MMS.
----------------------------------------------------------------------------------------------------------------
206.259(b)(2)(iv)(A)........... (b)(2)(iv)(A) To 1 1 1
compute depreciation,
the lessee may elect
to use either a
straight-line
depreciation method
based on the life of
equipment or on the
life of the reserves
which the wash plant
services, whichever
is appropriate, or a
unit of production
method. After an
election is made, the
lessee may not change
methods without MMS
approval.
----------------------------------------------------------------------------------------------------------------
206.259(c)(1)(i)............... (c) Reporting Hour burden covered under Sec. 210.201.
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-4430.
----------------------------------------------------------------------------------------------------------------
206.259(c)(1)(ii).............. (c)(1)(ii) The MMS may AUDIT PROCESS See Note.
require that a lessee
submit arm's-length
washing contracts and
related documents * *
*.
----------------------------------------------------------------------------------------------------------------
[[Page 10248]]
206.259(c)(2)(i)............... (c) Reporting Hour burden hours covered under Sec. 210.201.
requirements--* * *
(2) Non-arm's-length
or no contract. (i)
The lessee must
notify MMS of an
allowance based on
the incurred costs by
using a separate line
entry on the Form MMS-
4430.
----------------------------------------------------------------------------------------------------------------
206.259(c)(2)(iii)............. (c)(2) Non-arm's- AUDIT PROCESS See Note.
length or no contract
* * * (iii) Upon
request by MMS, the
lessee shall submit
all data used to
prepare the allowance
deduction* * *.
----------------------------------------------------------------------------------------------------------------
206.259(e)(2).................. (e) Adjustments. (2) Hour burden covered under Sec. 210.201.
The lessee must
submit a corrected
Form MMS-4430 to
reflect actual costs,
together with any
payment, in
accordance with
instructions provided
by MMS.
----------------------------------------------------------------------------------------------------------------
206.262(a)(1).................. Determination of AUDIT PROCESS See Note.
transportation
allowances.
(a) Arm's-length
contracts. (1) * * *
The lessee shall have
the burden of
demonstrating that
its contract is arm's-
length* * *.
----------------------------------------------------------------------------------------------------------------
206.262(a)(1).................. (a)(1) * * * the .34 240 82
transportation
allowance shall be
the reasonable,
actual costs incurred
by the lessee for
transporting the coal
* * *.
----------------------------------------------------------------------------------------------------------------
206.262(a)(3).................. (a)(3) * * * When MMS AUDIT PROCESS See Note.
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.
----------------------------------------------------------------------------------------------------------------
206.262(b)(1).................. (b) Non-arm's-length .75 24 18
or no contract.--(1)
* * * the
transportation
allowance will be
based upon the
lessee's reasonable
actual costs * * *.
----------------------------------------------------------------------------------------------------------------
206.262(b)(2)(iv).............. (b)(2)(iv) * * * After 1 1 1
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.
----------------------------------------------------------------------------------------------------------------
206.262(b)(2)(iv)(A)........... (b)(2)(iv)(A) * * * 1 1 1
After an election is
made, the lessee may
not change methods
without MMS approval
* * *.
----------------------------------------------------------------------------------------------------------------
206.262(b)(3).................. (b)(3) A lessee may 1 1 1
apply to MMS for
exception from the
requirement that it
compute actual costs
in accordance with
paragraphs (b)(1) and
(b)(2) of this
section * * *.
----------------------------------------------------------------------------------------------------------------
206.262(c)(1)(i)............... (c) Reporting Hour burden covered under Sec. 210.201.
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-4430.
----------------------------------------------------------------------------------------------------------------
206.262(c)(1)(ii).............. (c)(1)(ii) The MMS may AUDIT PROCESS See Note.
require that a lessee
submit arm's-length
transportation
contracts, production
agreements, operating
agreements, and
related documents * *
*.
----------------------------------------------------------------------------------------------------------------
206.262(c)(2)(i)............... (c)(2) Non-arm's- Burden hours covered under Sec. 210.201.
length or no
contract. (i) The
lessee must notify
MMS of an allowance
based on the incurred
costs by using a
separate line entry
on Form MMS-4430.
----------------------------------------------------------------------------------------------------------------
206.262(c)(2)(iii)............. (c)(2)(iii) Upon AUDIT PROCESS See Note.
request by MMS, the
lessee shall submit
all data used to
prepare the allowance
deduction * * *.
----------------------------------------------------------------------------------------------------------------
[[Page 10249]]
206.262(e)(2).................. (e) Adjustments * * * Hour burden covered under Sec. 210.201.
(2) The lessee must
submit a corrected
Form MMS-4430 to
reflect actual costs,
together with any
payments, in
accordance with
instructions provided
by MMS.
----------------------------------------------------------------------------------------------------------------
206.264........................ In-situ and surface 1 1 1
gasification and
liquefaction
operations.
If an ad valorem
Federal coal lease is
developed by in-situ
or surface
gasification or
liquefaction
technology, the
lessee shall propose
the value of coal for
royalty purposes to
MMS. The MMS will
review the lessee's
proposal and issue a
value determination.
The lessee may use
its proposed value
until MMS issues a
value determination.
----------------------------------------------------------------------------------------------------------------
206.265........................ Value enhancement of 1 1 1
marketable coal.
If, prior to use,
sale, or other
disposition, the
lessee enhances the
value of coal after
the coal has been
placed in marketable
condition in
accordance with Sec.
206.257(h) of this
subpart, the lessee
shall notify MMS that
such processing is
occurring or will
occur.
----------------------------------------------------------------------------------------------------------------
Subpart J--Indian Coal
----------------------------------------------------------------------------------------------------------------
206.452(c)..................... Coal subject to Hour burden covered under Sec. 206.453.
royalties--general
provisions.
(c) * * * The lessee
shall maintain
accurate records to
determine to which
individual Indian
lease coal in the
waste pit or slurry
pond should be
allocated * * *.
----------------------------------------------------------------------------------------------------------------
206.453........................ Quality and quantity .42 48 20
measurement standards
for reporting and
paying royalties.
* * * Coal quantity
information shall be
reported on
appropriate forms
required under 30 CFR
part 216 and on the
Solid Minerals
Production and
Royalty Report, Form
MMS-4430, as required
under 30 CFR part 210.
----------------------------------------------------------------------------------------------------------------
206.456(b)(1).................. Valuation standards AUDIT PROCESS See Note.
for ad valorem leases.
(b)(1) * * * The
lessee shall have the
burden of
demonstrating that
its contract is arm's-
length * * *.
----------------------------------------------------------------------------------------------------------------
206.456(b)(3).................. (b)(3) * * * When MMS AUDIT PROCESS See Note.
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 reported
coal value.
----------------------------------------------------------------------------------------------------------------
206.456(b)(4).................. (b)(4) MMS may require AUDIT PROCESS See Note.
a lessee to certify
that its arm's-length
contract provisions
include all of the
consideration to be
paid by the buyer,
either directly or
indirectly, for the
coal production.
----------------------------------------------------------------------------------------------------------------
206.456(d)(1).................. (d)(1) Where the value Hour burden covered under Sec. 206.453.
is determined
pursuant to paragraph
(c) of this section,
that value does not
require MMS' prior
approval. However,
the lessee shall
retain all data
relevant to the
determination of
royalty value.
----------------------------------------------------------------------------------------------------------------
206.456(d)(2).................. (d)(2) An Indian AUDIT PROCESS See Note.
lessee will make
available upon
request to the
authorized MMS or
Indian
representatives, or
to the Inspector
General of the
Department of the
Interior or other
persons authorized to
receive such
information, arm's-
length sales and
sales quantity data
for like-quality coal
sold, purchased, or
otherwise obtained by
the lessee from the
area.
----------------------------------------------------------------------------------------------------------------
[[Page 10250]]
206.456(d)(3).................. (d)(3) A lessee shall 1 1 1
notify MMS if it has
determined value
pursuant to
paragraphs
(c)(2)(ii),
(c)(2)(iii),
(c)(2)(iv), or
(c)(2)(v) of this
section * * *. The
letter shall identify
the valuation method
to be used and
contain a brief
description of the
procedure to be
followed.
----------------------------------------------------------------------------------------------------------------
206.456(f)..................... (f) The lessee may 1 1 1
request a value
determination from
MMS. In that event,
the lessee shall
propose to MMS a
value determination
method, and may use
that method in
determining value for
royalty purposes
until MMS issues its
decision. The lessee
shall submit all
available data
relevant to its
proposal.
----------------------------------------------------------------------------------------------------------------
206.456(i)..................... (i) * * * Contract 1 1 1
revisions or
amendments shall be
in writing and signed
by all parties to an
arm's-length
contract, and may be
retroactively applied
to value for royalty
purposes for a period
not to exceed two
years, unless MMS
approves a longer
period.
----------------------------------------------------------------------------------------------------------------
206.458(a)(1).................. Determination of 2 1 2
washing allowances.
(a) Arm's-length
contracts. (1) * * *
the washing allowance
shall be the
reasonable actual
costs incurred by the
lessee for washing
the coal * * *.
However, before any
deduction may be
taken, the lessee
must submit a
completed page one of
Form MMS-4292, Coal
Washing Allowance
Report, in accordance
with paragraph (c)(1)
of this section. A
washing allowance may
be claimed
retroactively for a
period of not more
than 3 months prior
to the first day of
the month that Form
MMS-4292 is filed
with MMS, unless MMS
approves a longer
period upon a showing
of good cause by the
lessee.
----------------------------------------------------------------------------------------------------------------
206.458(a)(3).................. (a)(3) When MMS AUDIT PROCESS See Note.
determines that the
value of the washing
may be unreasonable,
MMS will notify the
lessee and give the
lessee an opportunity
to provide written
information
justifying the
lessee's washing
costs.
----------------------------------------------------------------------------------------------------------------
206.458(b)(1).................. (b) Non-arm's-length Hour burden covered under Sec. 206.458(a)(1).
or no contract. (1) *
* * the washing
allowance will be
based upon the
lessee's reasonable
actual costs * * *.
However, before any
estimated or actual
deduction may be
taken, the lessee
must submit a
completed Form MMS-
4292 in accordance
with paragraph (c)(2)
of this section. A
washing allowance may
be claimed
retroactively for a
period of not more
than 3 months prior
to the first day of
the month that Form
MMS-4292 is filed
with MMS, unless MMS
approves a longer
period upon a showing
of good cause by the
lessee * * *.
----------------------------------------------------------------------------------------------------------------
206.458(b)(2)(iv).............. (b)(2)(iv) * * * After 1 1 1
a lessee has elected
to use either method
for a wash plant, the
lessee may not later
elect to change to
the other alternative
without approval of
MMS.
----------------------------------------------------------------------------------------------------------------
206.458(b)(2)(iv)(A)........... (b)(2)(iv)(A) To 1 1 1
compute depreciation,
the lessee may elect
to use either a
straight-line
depreciation method
based on the life of
equipment or on the
life of the reserves
which the wash plant
services, whichever
is appropriate, or a
unit of production
method. After an
election is made, the
lessee may not change
methods without MMS
approval.
----------------------------------------------------------------------------------------------------------------
[[Page 10251]]
206.458(c)(1)(i)............... (c) Reporting Hour burden covered under Sec. 206.458(a)(1).
requirements. (1)
Arm's-length
contracts. (i) With
the exception of
those washing
allowances specified
in paragraphs
(c)(1)(v) and
(c)(1)(vi) of this
section, the lessee
shall submit page one
of the initial Form
MMS-4292 prior to, or
at the same time, as
the washing allowance
determined pursuant
to an arm's-length
contract is reported
on Form MMS-4430,
Solid Minerals
Production and
Royalty Report * * *.
----------------------------------------------------------------------------------------------------------------
206.458(c)(1)(iii)............. (c)(1)(iii) After the Hour burden covered under Sec. 206.458(a)(1).
initial reporting
period and for
succeeding reporting
periods, lessees must
submit page one of
Form MMS-4292 within
3 months after the
end of the calendar
year, or after the
applicable contract
or rate terminates or
is modified or
amended, whichever is
earlier, unless MMS
approves a longer
period (during which
period the lessee
shall continue to use
the allowance from
the previous
reporting period).
----------------------------------------------------------------------------------------------------------------
206.458(c)(1)(iv).............. (c)(1)(iv) MMS may AUDIT PROCESS See Note.
require that a lessee
submit arm's-length
washing contracts and
related documents * *
*.
----------------------------------------------------------------------------------------------------------------
206.458(c)(2)(i)............... (c)(2) Non-arm's- Hour burden covered under Sec. 206.458(a)(1).
length or no
contract. (i) With
the exception of
those washing
allowances specified
in paragraphs
(c)(2)(v) and
(c)(2)(vii) of this
section, the lessee
shall submit an
initial Form MMS-4292
prior to, or at the
same time as, the
washing allowance
determined pursuant
to a non-arm's-length
contract or no
contract situation is
reported on Form MMS-
4430, Solid Minerals
Production and
Royalty Report * * *.
----------------------------------------------------------------------------------------------------------------
206.458(c)(2)(iii)............. (c)(2)(iii) For Hour burden covered under Sec. 206.458(a)(1).
calendar-year
reporting periods
succeeding the
initial reporting
period, the lessee
shall submit a
completed Form MMS-
4292 containing the
actual costs for the
previous reporting
period. If coal
washing is
continuing, the
lessee shall include
on Form MMS-4292 its
estimated costs for
the next calendar
year * * *. Form MMS-
4292 must be received
by MMS within 3
months after the end
of the previous
reporting period,
unless MMS approves a
longer period (during
which period the
lessee shall continue
to use the allowance
from the previous
reporting period).
----------------------------------------------------------------------------------------------------------------
206.458(c)(2)(vi).............. (c)(2)(vi) Upon AUDIT PROCESS See Note.
request by MMS, the
lessee shall submit
all data used by the
lessee to prepare its
Forms MMS-4292 * * *.
----------------------------------------------------------------------------------------------------------------
206.458(c)(4).................. (c)(4) Washing Hour burden covered under Sec. 210.201.
allowances must be
reported as a
separate line on the
Form MMS-4430, unless
MMS approves a
different reporting
procedure.
----------------------------------------------------------------------------------------------------------------
206.458(e)(2).................. (e) Adjustments. (2) Hour burden covered under Sec. 210.201.
The lessee must
submit a corrected
Form MMS-4430 to
reflect actual costs,
together with any
payment, in
accordance with
instructions provided
by MMS.
----------------------------------------------------------------------------------------------------------------
[[Page 10252]]
206.461(a)(1).................. Determination of 2 1 2
transportation
allowances.
(a) Arm's-length
contracts. (1) * * *
the transportation
allowance shall be
the reasonable,
actual costs incurred
by the lessee for
transporting the coal
* * *. However,
before any deduction
may be taken, the
lessee must submit a
completed page one of
Form MMS-4293, Coal
Transportation
Allowance Report, in
accordance with
paragraph (c)(1) of
this section. A
transportation
allowance may be
claimed retroactively
for a period of not
more than 3 months
prior to the first
day of the month that
Form MMS-4293 is
filed with MMS,
unless MMS approves a
longer period upon a
showing of good cause
by the lessee.
----------------------------------------------------------------------------------------------------------------
206.461(a)(3).................. (a) Arm's-length AUDIT PROCESS See Note.
contracts. (3) * * *
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.
----------------------------------------------------------------------------------------------------------------
206.461(b)(1).................. (b) Non-arm's-length Hour burden covered under Sec. 206.461(a)(1).
or no contract. (1) *
* * the
transportation
allowance will be
based upon the
lessee's reasonable
actual costs * * *.
However, before any
estimated or actual
deduction may be
taken, the lessee
must submit a
completed Form MMS-
4293 in accordance
with paragraph (c)(2)
of this section. A
transportation
allowance may be
claimed retroactively
for a period of not
more than 3 months
prior to the first
day of the month that
Form MMS-4293 is
filed with MMS,
unless MMS approves a
longer period upon a
showing of good cause
by the lessee * * *.
----------------------------------------------------------------------------------------------------------------
206.461(b)(2)(iv).............. (b)(2)(iv) * * * After 1 1 1
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
MMS.
----------------------------------------------------------------------------------------------------------------
206.461(b)(2)(iv)(A)........... (b)(2)(iv)(A) To 1 1 1
compute depreciation,
the lessee may elect
to use either a
straight-line
depreciation method
based on the life of
equipment or on the
life of the reserves
which the
transportation system
services, whichever
is appropriate, or a
unit of production
method. After an
election is made, the
lessee may not change
methods without MMS
approval.
----------------------------------------------------------------------------------------------------------------
206.461(b)(3).................. (b)(3) A lessee may 1 1 1
apply to MMS for
exception from the
requirement that it
compute actual costs
in accordance with
paragraphs (b)(1) and
(b)(2) of this
section.
----------------------------------------------------------------------------------------------------------------
206.461(c)(1)(i)............... (c) Reporting Hour burden covered under Sec. 206.461(a)(1).
requirements. (1)
Arm's-length
contracts. (i) With
the exception of
those transportation
allowances specified
in paragraphs
(c)(1)(v) and
(c)(1)(vi) of this
section, the lessee
shall submit page one
of the initial Form
MMS-4293 prior to, or
at the same time as,
the transportation
allowance determined
pursuant to an arm's-
length contract is
reported on Form MMS-
4430, Solid Minerals
Production and
Royalty Report.
----------------------------------------------------------------------------------------------------------------
[[Page 10253]]
206.461(c)(1)(iii)............. (c)(1)(iii) After the Hour burden covered under Sec. 206.461(a)(1).
initial reporting
period and for
succeeding reporting
periods, lessees must
submit page one of
Form MMS-4293 within
3 months after the
end of the calendar
year, or after the
applicable contract
or rate terminates or
is modified or
amended, whichever is
earlier, unless MMS
approves a longer
period (during which
period the lessee
shall continue to use
the allowance from
the previous
reporting period).
Lessees may request
special reporting
procedures in unique
allowance reporting
situations, such as
those related to spot
sales.
----------------------------------------------------------------------------------------------------------------
206.461(c)(1)(iv).............. (c)(1)(iv) MMS may AUDIT PROCESS See Note.
require that a lessee
submit arm's-length
transportation
contracts, production
agreements, operating
agreements, and
related documents * *
*.
----------------------------------------------------------------------------------------------------------------
206.461(c)(2)(i)............... (c)(2) Non-arm's- Hour burden covered under Sec. 206.461(a)(1).
length or no
contract. (i) With
the exception of
those transportation
allowances specified
in paragraphs
(c)(2)(v) and
(c)(2)(vii) of this
section, the lessee
shall submit an
initial Form MMS-4293
prior to, or at the
same time as, the
transportation
allowance determined
pursuant to a non-
arm's-length contract
or no contract
situation is reported
on Form MMS-4430,
Solid Minerals
Production and
Royalty Report * * *.
----------------------------------------------------------------------------------------------------------------
206.461(c)(2)(iii)............. (c)(2)(iii) For Hour burden covered under Sec. 206.461(a)(1).
calendar-year
reporting periods
succeeding the
initial reporting
period, the lessee
shall submit a
completed Form MMS-
4293 containing the
actual costs for the
previous reporting
period * * *. Form
MMS-4293 must be
received by MMS
within 3 months after
the end of the
previous reporting
period, unless MMS
approves a longer
period (during which
period the lessee
shall continue to use
the allowance from
the previous
reporting period).
----------------------------------------------------------------------------------------------------------------
206.461(c)(2)(vi).............. (c)(2)(vi) Upon AUDIT PROCESS See Note.
request by MMS, the
lessee shall submit
all data used to
prepare its Form MMS-
4293 * * *.
----------------------------------------------------------------------------------------------------------------
206.461(c)(4).................. (c)(4) Transportation Hour burden covered under Sec. 210.201.
allowances must be
reported as a
separate line item on
Form MMS-4430, unless
MMS approves a
different reporting
procedure.
----------------------------------------------------------------------------------------------------------------
206.461(e)(2).................. (e) Adjustments. (2) Hour burden covered under Sec. 210.201.
The lessee must
submit a corrected
Form MMS-4430 to
reflect actual costs,
together with any
payment, in
accordance with
instructions provided
by MMS.
----------------------------------------------------------------------------------------------------------------
206.463........................ In-situ and surface 1 1 1
gasification and
liquefaction
operations.
If an ad valorem
Federal coal lease is
developed by in-situ
or surface
gasification or
liquefaction
technology, the
lessee shall propose
the value of coal for
royalty purposes to
MMS * * *.
----------------------------------------------------------------------------------------------------------------
206.464........................ Value enhancement of 1 1 1
marketable coal.
If, prior to use,
sale, or other
disposition, the
lessee enhances the
value of coal after
the coal has been
placed in marketable
condition in
accordance with Sec.
206.456(h) of this
subpart, the lessee
shall notify MMS that
such processing is
occurring or will
occur * * *.
----------------------------------------------------------------------------------------------------------------
[[Page 10254]]
Part 210--Forms and Reports
Subpart E--Solid Minerals, General
----------------------------------------------------------------------------------------------------------------
210.201(a)(1).................. How do I submit Form .5 1,668 834
MMS-4430, Solid
Minerals Production
and Royalty Report?
(a) What to submit.
(1) You must submit a
completed Form MMS-
4430 for * * *.
----------------------------------------------------------------------------------------------------------------
210.202(a)(1) and (c)(1)....... How do I submit sales .25 1,140 285
summaries?.
(a) What to submit.
(1) You must submit
sales summaries for
all coal and other
solid minerals
produced from Federal
and Indian leases and
for any remote
storage site from
which you sell
Federal or Indian
solid minerals * * *
(c) How to submit.
(1) You should
provide the sales
summary data via
electronic mail where
possible. We will
provide instructions
and the proper e-mail
address for these
submissions * * *.
----------------------------------------------------------------------------------------------------------------
210.203(a)..................... How do I submit sales 1 30 30
contracts?.
(a) What to submit.
You must submit sales
contracts,
agreements, and
contract amendments
for the sale of all
coal and other solid
minerals produced
from Federal and
Indian leases with ad
valorem royalty terms
* * *.
----------------------------------------------------------------------------------------------------------------
210.204(a)(1).................. How do I submit .25 360 90
facility data?.
(a) What to submit.
(1) You must submit
facility data if you
operate a wash plant,
refining, ore
concentration, or
other processing
facility for any
coal, sodium,
potassium, metals, or
other solid minerals
produced from Federal
or Indian leases with
ad valorem royalty
terms * * *.
----------------------------------------------------------------------------------------------------------------
210.205........................ Will I need to submit AUDIT PROCESS See Note.
additional documents
or evidence to MMS?
(a) Federal and Indian
lease terms allow us
to request detailed
statements,
documents, or other
evidence necessary to
verify compliance * *
*.
(b) We will request
this additional
information as we
need it * * *.
----------------------------------------------------------------------------------------------------------------
Subpart H--Geothermal Resources
----------------------------------------------------------------------------------------------------------------
210.351........................ Required recordkeeping Hour burden covered under OMB 1010-0140.
* * * [Geothermal]
Records may be
maintained on
microfilm,
microfiche, or other
recorded media that
are easily
reproducible and
readable * * *.
----------------------------------------------------------------------------------------------------------------
210.352........................ Payor information This form is no longer used by MMS. The CFR is
forms [geothermal]. currently under revision to eliminate this citation.
The Payor Information
Form (Form MMS-4025)
must be filed for
each Federal lease on
which geothermal
royalties (including
byproduct royalties)
are paid * * *.
----------------------------------------------------------------------------------------------------------------
210.353........................ Special forms and 1 1 1
reports [geothermal].
The MMS may require
submission of
additional
information on
special forms or
reports* * *.
----------------------------------------------------------------------------------------------------------------
210.354........................ Monthly report of Hour burden covered by OMB Control Number 1010-0140.
sales and royalty.
A completed Report of
Sales and Royalty
Remittance (Form MMS-
2014) must be
submitted each month
once sales or
utilization of
[geothermal]
production occur, * *
*.
----------------------------------------------------------------------------------------------------------------
[[Page 10255]]
Part 218--Collection of Royalties, Rentals, Bonuses and Other Monies Due the Federal Government
Subpart E--Solid Minerals--General
----------------------------------------------------------------------------------------------------------------
218.201(b)..................... Method of payment..... .0055 1,368 8
You must tender all
payments * * * except
as follows: * * * (b)
For Form MMS-4430
payments, include
both your customer
identification and
your customer
document
identification
numbers on your
payment document * *
*.
----------------------------------------------------------------------------------------------------------------
Total Burden.......................................................... 5,777 1,778
----------------------------------------------------------------------------------------------------------------
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 ``non-hour 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: Before submitting an ICR to OMB, PRA Section
3506(c)(2)(A) requires each agency ``* * * to provide notice * * * and
otherwise consult with members of the public and affected agencies
concerning each proposed collection of information * * *.'' Agencies
must specifically solicit comments to: (a) Evaluate whether the
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 to be collected; 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 ``non-hour cost'' burden to respondents or recordkeepers
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 you use to estimate major cost factors, including
system and technology acquisition, expected useful life of capital
equipment, discount rate(s), and the period over which you incur costs.
Capital and startup costs include, among other items, computers and
software you purchase to prepare for collecting information;
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 collection; (iii) for
reasons other than to provide information or keep records for the
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. The ICR also will be posted on our
Web site at http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm.
Public Comment Policy: We will post all comments in response to
this notice on our Web site at http://www.mrm.mms.gov/Laws_R_D/FRNotices/FRInfColl.htm.
We also will make copies of the comments
available for public review, including names and addresses of
respondents, during regular business hours at our offices in Lakewood,
Colorado. Upon request, we will withhold an individual respondent's
home address from the public record, as allowable by law. There also
may be circumstances in which we would withhold a respondent's
identity, as allowable by law. If you request that we withhold your
name and/or address, state your request prominently at the beginning of
your comment. However, we will not consider anonymous comments. We will
make all submissions from organizations or businesses, and from
individuals identifying themselves as representatives or officials of
organizations or businesses, available for public inspection in their
entirety.
MMS Information Collection Clearance Officer: Arlene Bajusz (202)
208-7744.
Dated: February 13, 2007.
Steven D. Textoris,
Acting Associate Director for Minerals Revenue Management.
[FR Doc. E7-3737 Filed 3-6-07; 8:45 am]
BILLING CODE 4310-MR-P
