[Federal Register Volume 70, Number 223 (Monday, November 21, 2005)]
[Notices]
[Pages 70095-70096]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-22954]


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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 an extension of a currently approved information 
collection (OMB Control Number 1010-0162).

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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. This information collection request (ICR) is based on the 
Chief Financial Officers Act of 1990 (CFO Act) and is titled ``Accounts 
Receivable Confirmations.''

DATES: Submit written comments on or before January 20, 2006.

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 [email protected]. 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. 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 that 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) 231-3781, or e-mail [email protected].

SUPPLEMENTARY INFORMATION: Title: Accounts Receivable Confirmations.
    OMB Control Number: 1010-0162.
    Bureau Form Number: None.
    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 MMS performs the royalty management 
functions and assists the Secretary in carrying out the Department's 
trust responsibility for Indian lands.
    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 paid appropriately.
    The Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA), 30 
U.S.C. 1701 et seq., states in Section 101(a) that the Secretary `` * * 
* shall 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.'' The persons or entities 
described at 30 U.S.C. 1713 are required to make reports and provide 
reasonable information as defined by the Secretary.
    Every year, under the CFO Act, the Department's Office of Inspector 
General, or its agent (agent), audits all Department bureaus' financial 
statements. The Department's goal is for every bureau to receive an 
unqualified opinion. Accounts receivable confirmations are a common 
practice in the audit business. Due to continuously increasing scrutiny 
on financial audits, third-party confirmation on the validity of MMS 
financial records is necessary. Companies submit financial information 
on Form MMS-2014, Report of Sales and Royalty Remittance (OMB Control 
Number 1010-0140, expires October 31, 2006) and on Form MMS-4430, Solid 
Minerals Production and Royalty Report (OMB Control Number 1010-0120, 
expires October 31, 2007).
    As part of the CFO Act audits, the agent requests third-party 
confirmation responses, by a specified date, that MMS accounts 
receivable records agree with royalty payor records, for the following 
items: customer identification; royalty/invoice number; payor-assigned 
document number; date received; original amount reported; and remaining 
balance due MMS as of a specified date. In order to meet this 
requirement, MMS must mail letters on MMS letterhead, signed by the 
Deputy Associate Director for Minerals Revenue Management, to royalty 
payors selected at random, asking them to confirm back to the agent the 
accuracy and/or validity of selected royalty receivable items and 
amounts. Verifying the amounts reported and the balances due will 
require time for research and analysis by payors. The MMS will send 
confirmation letters to all payors selected by the agent. The payors 
will be asked to submit confirmation information directly to the agent.

Applicable Citations

    Applicable citations include: Public Law 101-576--Nov. 15, 1990, 
CFO Act; 30 U.S.C. 1701 et seq., FOGRMA; 30 U.S.C. 189 pertaining to 
Public Lands; 30 U.S.C. 359 pertaining to Acquired Lands; 25 U.S.C. 
396d pertaining to Indian Lands; 43 U.S.C. 1334 pertaining to Outer 
Continental Shelf Lands; 30 U.S.C. 1713 pertaining to solid minerals, 
and revised geothermal regulations at 30 CFR 210.354. Relevant Minerals 
Revenue Management (MRM) regulations are codified at 30 CFR subchapter 
A, part 201 et seq., and Sec. Sec.  210.52 and 210.53; and part 206, 
subparts F and J; part 210, subparts B, E, and H; and part 218, 
subparts B and E. Applicable public laws pertaining to mineral leases 
on Federal and Indian lands are located on our Web site at http://www.mrm.mms.gov/Laws_R_D/PublicLawsAMR.htm.
    This collection does not require proprietary, trade secret, or 
other confidential information not protected by agency procedures, and 
no items of

[[Page 70096]]

a sensitive nature are collected. The requirement to respond is 
voluntary.
    Frequency of Response: Annually.
    Estimated Number and Description of Respondents: 125 Federal and 
Indian oil and gas and solid mineral royalty payors.
    Estimated Annual Reporting and Recordkeeping ``Hour'' Burden: 32 
hours. We estimate that each response will take 15 minutes.
    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.

Cathy J. Hamilton,
Acting Associate Director for Minerals Revenue Management.
[FR Doc. 05-22954 Filed 11-18-05; 8:45 am]
BILLING CODE 4310-MR-P