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DEPARTMENT OF THE INTERIOR

Minerals Management Service

Docket ID: [Docket No. MMS-2007-OMM-0078]

NOTICE: NOTICES

DOCUMENT ACTION: Notice of extension of an information collection (1010-0041).

SUBJECT CATEGORY: MMS Information Collection Activity: 1010-0041 Oil and Gas Production Rates, Extension of a Collection; Submitted for Office of Management and Budget (OMB) Review; Comment Request

DATES: Submit written comments by July 30, 2008.

DOCUMENT SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), we are notifying the public that we have submitted to OMB an information collection request (ICR) to renew approval of the paperwork requirements in the regulations under 30 CFR part 250, subpart K, Oil and Gas Production Rates, and related documents. This notice also provides the public a second opportunity to comment on the paperwork burden of these regulatory requirements.

SUMMARY: Agency Information Collection Activities; Proposals, Submissions, and Approvals,


SUPPLEMENTAL INFORMATION

Title: 30 CFR part 250, subpart K, Oil and Gas Production Rates.

Forms: MMS126, MMS127, MMS128, and MMS140.

OMB Control Number: 10100041.

Abstract: The Outer Continental Shelf (OCS) Lands Act, as amended (43 U.S.C. 1331 et seq. and 43 U.S.C. 1801 et seq.), authorizes the Secretary of the Interior (Secretary) to prescribe rules and regulations to administer leasing of the OCS. Such rules and regulations will apply to all operations conducted under a lease. Operations on the OCS must preserve, protect, and develop oil and natural gas resources in a manner that is consistent with the need to make such resources available to meet the Nation's energy needs as rapidly as possible; to balance orderly energy resource development with protection of human, marine, and coastal environments; to ensure the public a fair and equitable return on the resources of the OCS; and to preserve and maintain free enterprise competition.

Section 5(a) of the OCS Lands Act requires the Secretary to prescribe rules and regulations ``to provide for the prevention of waste, and conservation of the natural resources of the Outer Continental Shelf, and the protection of correlative rights therein'' and to include provisions ``for the prompt and efficient exploration and development of a lease area.''

Section 1334(g)(2) states `` * * * the lessee shall produce such oil or gas, or both, at rates * * * to assure the maximum rate of production which may be sustained without loss of ultimate recovery of oil or gas, or both, under sound engineering and economic principles, and which is safe for the duration of the activity covered by the approved plan.''

In addition, MMS also issues various Notices to Lessees (NTLs) and Operators to clarify and provide additional guidance on some aspects of the regulations, as well as various forms to capture the data and information. The current subpart K regulations specify the use of forms MMS126 (Well Potential Test Report), MMS127 (Sensitive Reservoir Information Report), MMS128 (Semiannual Well Test Report) and form MMS140 (Bottomhole Pressure Survey Report). Form MMS140 is used in the Gulf of Mexico OCS Region (GOMR) for submitting the results of static bottomhole pressure surveys required under Sec. 250.1104(c).

Regulations implementing these responsibilities are under 30 CFR part 250. Responses are mandatory or are required to obtain or retain a benefit. No questions of a ``sensitive'' nature are asked. The MMS protects information considered proprietary under the Freedom of Information Act (5 U.S.C. 552) and its implementing regulations (43 CFR 2), and under regulations at 30 CFR part 250.197, ``Data and information to be made available to the public or for limited inspection,'' 30 CFR part 252, ``OCS Oil and Gas Information Program.'' Proprietary information concerning geological and geophysical data will be protected according to 43 U.S.C. 1352.

The information collected under subpart K is used in our efforts to conserve natural resources, prevent waste, and protect correlative rights, including the Government's royalty interest. Specifically, MMS uses the information to:

  • Evaluate requests to burn liquid hydrocarbons and vent and flare gas to ensure that these requests are appropriate;
  • To determine if a maximum production or efficient rate is required; and,
  • To review applications for downhole commingling to ensure that action does not result in harm to ultimate recovery.

    Forms are also submitted to MMS and their purposes are:

    Form 126Well Potential Test ReportThe MMS uses this information for reservoir, reserves, and conservation analyses, including the determination of maximum production rates (MPRs) when necessary for certain oil and gas completions. This requirement implements the conservation provisions of the OCS Lands Act and 30 CFR part 250. The information obtained from the well potential test is essential to determine if an MPR is necessary for a well and to establish the appropriate rate. It is not possible to specify an MPR in the absence of information about the production rate capability (potential) of the well.

    Form MMS127, Sensitive Reservoir Information ReportThe MMS uses this information to determine whether a ratesensitive reservoir is being prudently developed. This represents an essential control mechanism that MMS may use to regulate production rates from sensitive reservoirs. Occasionally, the information available on a reservoir, early in its producing life, may indicate it to be nonsensitive, while later and more complete information would establish the reservoir as being sensitive. Production from a well completed in the gas cap of a sensitive reservoir requires approval from the Regional Supervisor. The information submitted on this form provides reservoir parameters that are revised at least annually or sooner if reservoir development results in a change in reservoir interpretation. The engineers and geologists use the information for rate control and reservoir studies

    Form MMS128, Semiannual Well Test ReportThe MMS uses this information to evaluate the results of well tests to determine if reservoirs are being depleted in a manner that will lead to the greatest ultimate recovery of hydrocarbons. This information is collected to determine the capability of hydrocarbon wells and to evaluate and verify an operator's approved maximum production rate if assigned. The form was designed to present current well data on a semiannual basis to permit the updating of permissible producing rates, and to provide the basis for estimates of currently remaining recoverable gas reserves.

    Form MMS140, Bottomhole Pressure Survey ReportThe MMS uses the information to effectively manage reservoirs in our efforts to conserve natural resources, prevent waste, and protect correlative rights, including the Government's royalty interest. Specifically, MMS uses the information in reservoir evaluations to determine maximum production and efficient rates; and to review applications for downhole commingling to ensure that action does not result in harm to ultimate recovery or undervalued royalties.

    Frequency: On occasion, monthly, semiannually, annually, and as a result of situations encountered.

    Estimated Number and Description of Respondents: Approximately 130 Federal oil and gas lessees.

    Estimated Reporting and Recordkeeping ``Hour'' Burden: The estimated annual ``hour'' burden for this information collection is a total of 41,511 hours. The following chart details the individual components and estimated hour burdens. In calculating the burdens, we assumed that respondents perform certain requirements in the normal course of their activities. We consider these to be usual and customary and took that into account in estimating the burden.
    [[Page 36896]]
    Reporting and
    Citation 30 CFR 250 Subpart K recordkeeping Hour burden Average No. of Annual burden requirement annual responses hours NonHour cost burdens Requests
    1101(b).......................... Request approval to 5 33 requests........ 165 produce within 500 feet of a lease line.
    $3,300 fee x 33 requests = $108,900 1101(c).......................... Request approval to 12 51 requests........ 612 produce gas cap of a
    sensitive reservoir.
    $4,200 fee x 51 requests = $214,200 1102(b)(6)....................... Request extension of .5 37 requests........ 19 time to submit results
    of semiannual well test. 1103(a).......................... Request approval of test .5 37 requests........ 19 periods of less than 4
    hours and pretest
    stabilization periods
    of less than 6 hours.
    1105(a), (b)..................... Request special approval .5 1,007 requests..... 504 to flare or vent oil
    well gas.
    1105(c).......................... Request approval to burn .5 60 requests........ 30 produced liquid

    hydrocarbons.

    Subtotal..................... ........................ .............. 1,225 responses.... 1,349
    $323,100 nonhour cost burden Submittals 1102............................. Submit form MMS126..... 3 1,325 forms........ 3,975
    Submit form MMS127..... 2.2 2,189 forms........ 4,816
    Submit form MMS128 *... 0.53 13,000 forms in GOM 1,336 * 1,336 *. 600 forms in POCS.. .............. 1102(a)(5)....................... Submit alternative plan 1 1 plan............. 1 for overproduction
    statusMMS is not
    currently collecting
    this informationthis
    is minimal burden
    requirement.
    1103(c).......................... Provide advance notice .5 10 notices......... 5 of time and date of
    well tests.
    1104(c).......................... Submit results of all 14 1,270 surveys...... 17,780 static bottomhole
    pressure surveys
    obtained by lessee.
    Information is
    submitted on form MMS
    140 in the Gulf of
    Mexico Region.
    1105(f).......................... Submit monthly reports 2 3 operators x 12 72 of flared or vented gas mos. = 36. containing H2S.
    1105(f).......................... H2S Contingency, Exploration, or Development and Production 0 Plansburden covered under 10100141 and 10100049 1106............................. Submit application to 6 48 applications.... 288 downhole commingle
    hydrocarbons.
    $4,900 fee x 48 applications = $235,200 1107(b).......................... Submit proposed plan for 12 14 plans........... 168 enhanced recovery
    operations.
    1107(c).......................... Submit periodic reports 2 77 reports......... 154 of volumes of oil, gas, or other substances
    injected, produced, or
    reproduced.
    11001107........................ General departure or 1 120 survey waivers. 120 alternative compliance
    requests not
    specifically covered
    elsewhere in subpart K, including bottomhole
    pressure survey waivers and reservoir
    reclassification
    requests.
    [[Page 36897]]
    6 20 requests........ 120

    Subtotal..................... ........................ .............. 18,710 responses... 28,835 $235,200 nonhour cost burden Recordkeeping 1105(d), (e)..................... Maintain records for 2 13 869 platforms...... 11,297 years detailing gas
    flaring or venting.
    1105(d), (e)..................... Maintain records for 2 .5 60 occurrences..... 30 years detailing liquid

    hydrocarbon burning.

    Subtotal..................... ........................ .............. 929 responses...... 11,327

    Total Burden................. ........................ .............. 20,864 responses... 41,511 $558,300 NonHour Cost Burdens *Reporting burden for this form is estimated to average 0.5 to 3 hours per form depending on the number of well tests reported, including the time for reviewing instructions, gathering and maintaining data, and completing and reviewing the form. See breakdown for form MMS128 above.

    Estimated Reporting and Recordkeeping ``NonHour Cost'' Burden: We have identified three nonhour cost burdens. Section 250.1101(b) requires a fee for a gas cap production request. Section 250.1101(c) requires a fee to produce within 500 feet of a lease line. Section 250.1106 requests a fee for a downhole commingling request. We estimate a total reporting ``nonhour cost'' burden of $558,300 and we have not identified any other ``nonhour cost'' burdens associated with this collection of information.

    Public Disclosure Statement: The PRA (44 U.S.C. 3501, et seq.) provides that an agency may not conduct or sponsor a collection of information unless it displays a currently valid OMB control number. Until OMB approves a collection of information, you are not obligated to respond.

    Comments: Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3501, et seq.) 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.

    To comply with the public consultation process, on January 15, 2008, we published a Federal Register notice (73 FR 2522) announcing that we would submit this ICR to OMB for approval. The notice provided the required 60day comment period. In addition, Sec. 250.199 provides the OMB control number for the information collection requirements imposed by the 30 CFR part 250 regulations and forms. The regulation also informs the public that they may comment at any time on the collections of information and provides the address to which they should send comments. We have received no comments in response to these efforts.

    If you wish to comment in response to this notice, you may send your comments to the offices listed under the ADDRESSES section of this notice. The OMB has up to 60 days to approve or disapprove the information collection but may respond after 30 days. Therefore, to ensure maximum consideration, OMB should receive public comments by July 30, 2008.

    Public Availability of Comments: 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 informationmay 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.

    MMS Information Collection Clearance Officer: Arlene Bajusz (202) 2087744.

    Dated: June 16, 2008.
    E.P. Danenberger,
    Chief, Office of Offshore Regulatory Programs.
    [FR Doc. E814768 Filed 62708; 8:45 am]
    BILLING CODE 4310MRP

    FOR FURTHER INFORMATION CONTACT Cheryl Blundon, Regulations and Standards Branch, (703) 7871607. You may also contact Cheryl Blundon to obtain a copy, at no cost, of the regulations and forms that require the subject collection of information.


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