Daily Rules, Proposed Rules, and Notices of the Federal Government


Minerals Management Service

Agency Information Collection Activities: Proposed Collection, Comment Request

AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of an extension of a currently approved information collection (OMB Control Number 1010-0113).
SUMMARY: To comply with the Paperwork Reduction Act (PRA) of 1995, 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 information collection request (ICR) is titled "30 CFR part 206, Subpart B, Indian Oil (Form MMS-4416, Indian Crude Oil Valuation Report)."
DATES: Submit written comments on or before February 7, 2003.
ADDRESSES: Submit written comments to Sharron L. Gebhardt, Regulatory Specialist, Minerals Management Service, Minerals Revenue Management, PO Box 25165, MS 320B2, Denver, Colorado 80225. If you use an overnight courier service, our courier address is Building 85, Room A-614, Denver Federal Center, Denver, Colorado 80225. You may also e-mail your comments to us 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. Submit electronic comments as an ASCII file avoiding the use of special characters and any form of encryption. If you do not receive a confirmation we have received your e-mail, contact Ms. Gebhardt at (303) 231-3211.
FOR FURTHER INFORMATION CONTACT: Sharron L. Gebhardt, telephone (303) 231-3211, FAX (303) 231-3385 or

Title:30 CFR 206, Subpart B, Indian Oil (Form MMS-4416, Indian Crude Oil Valuation Report).

OMB Control Number:1010-0113.

Bureau Form Number:Form MMS-4416.

Abstract:The Department of the Interior (DOI) is responsible for matters relevant to mineral resource development on Federal and Indian lands and the Outer Continental Shelf (OCS). The Secretary of the Interior (Secretary) is responsible for managing the production of minerals from Federal and Indian lands and the OCS, collecting royalties from lessees who produce minerals, and distributing the funds collected in accordance with applicable laws. The Secretary has an Indian trust responsibility to manage Indian lands and seek advice and information from Indian beneficiaries. MMS performs the royalty management functions and assists the Secretary in carrying out DOI's Indian trust responsibility.

Section 101(a) of the Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA), as amended, requires the Secretary to “establish a comprehensive inspection, collection, and fiscal and production accounting and auditing system to provide the capability to accurately determine oil and gas royalties, interest, fines, penalties, fees, deposits, and other payments owed, and collect and account for such amounts in a timely manner.” To accomplish these tasks more effectively, MMS published a proposed rule in theFederal Registeron February 12, 1998 (63 FR 7089) and a supplementary proposed rule onJanuary 5, 2000 (65 FR 403). The rules proposed add more certainty to valuation of oil produced from Indian lands and eliminate any direct reliance on posted prices by, among other provisions, requiring Indian lessees and purchasers to submit certain contract information to MMS.

MMS awaited the Solicitor General's approval of the appeal in the Federal Energy Regulatory Commission 636 case regarding duty to market before publishing a final rule. MMS intends to publish a final rule in Fiscal Year 2003. Because OMB approval of this information collection expires February 28, 2003, we are seeking OMB approval to renew these reporting requirements until a final rule is published.

Not collecting this information would limit the Secretary's ability to discharge his/her duties and may also result in loss of royalty payments to the Indian lessor due to royalties not being collected on prices received under higher priced long-term sales contracts. Proprietary information submitted is protected, and there are no questions of a sensitive nature included in this information collection.

We have also changed the title of this ICR from “Indian Crude Oil Valuation Report (Form MMS-4416)” to “30 CFR part 206, Subpart B, Indian Oil (Form MMS-4416, Indian Crude Oil Valuation Report)” to clarify the regulatory language we are covering under 30 CFR part 206.


Estimated Number and Description of Respondents:225 payors-purchasers.

Estimated Annual Reporting and Recordkeeping “Hour” Burden:2,362 hours.

The following chart shows the breakdown of the burden hours by CFR section and paragraph:

Proposed 30 CFR section Reporting requirement Burden hours per response Annual number of responses Annual burden hours § 206.61(d)(5) You must submit information on Form MMS-4416 related to all of your crude oil production from Indian leases. You must initially submit FormMMS-4416 no later than [insert the date 2 months after the effective date of this rule] and then by October 31 [insert the year this regulation takes effect], and by October 31 of each succeeding year .1667 12,025 337.5 In addition to the annual requirement to file this form, you must file a new form each time you execute a new exchange or sales contract involving the production of oil from an Indian lease. However, if the contract merely extends the time period a contract is in effect without changing any other terms of the contract, this requirement to file does not apply. All other purchasers of crude oil from designated areas likewise are subject to the requirements of this paragraph (d)(5) .5 24,050 2,025 Total 6,075 2,363 11,350 payor-purchaser agreements or contracts plus 675 non-payor-purchaser agreements or contracts. 2225 payor-purchasers X 6 agreements or contracts per payor X1/2hour per submission X 2 submissions per year plus 675 agreements or contracts submitted by non-payor-purchasers X1/2hour per submission X 2 submissions per year.

Estimated Annual Reporting and Record keeping “Non-hour Cost” Burden:We have identified no “non-hour” cost burdens.

Comments:The PRA (44 U.S.C. 3501,et seq.) provides 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. 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 record keepers resulting from the collection of information. We have not identified non-hour cost burdens for this information collection. 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, 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 and the ICR will also be posted on our Web site at

Public Comment Policy:We will post all comments in response to this notice on our Web site at will also 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. Individual respondents may request we withhold their home address from the publicrecord, which we will honor to the extent allowable by law. There also may be circumstances in which we would withhold from the rulemaking record a respondent's identity, as allowable by law. If you request that we withhold your name and/or address, state this 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:Jo Ann Lauterbach, (202) 208-7744.

Dated: December 4, 2002. Lucy Querques Denett, Associate Director for Minerals Revenue Management.