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Docket ID: [Docket No. MMS-2007-OMM-0075]

NOTICE: NOTICES

DOCUMENT ACTION: Notice of extension of an information collection (1010-0068).

SUBJECT CATEGORY: MMS Information Collection Activity: 1010-0068--30 CFR Part 250, Subpart M, Unitization, Extension of a Collection; Submitted for Office of Management and Budget (OMB) Review; Comment Request

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 250, Subpart M, Unitization. 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 250, Subpart M, Unitization.

OMB Control Number: 10100068.

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 [[Page 37473]]
ensure the public a fair and equitable return on the resources of the OCS; and to preserve and maintain free enterprise competition. Section 1334(a) specifies that the Secretary ``provide for the prevention of waste and conservation of the natural resources of the [O]uter Continental Shelf, and the protection of correlative rights therein'' and include provisions for ``unitization, pooling, and drilling agreements.''

Regulations implementing these responsibilities are under 30 CFR Part 250, Subpart M, Unitization. Responses are mandatory and generally on occasion or they are required to obtain or retain a benefit. No questions of a ``sensitive'' nature are asked. The MMS protects information considered proprietary according to the Freedom of Information Act (5 U.S.C. 552) and its implementing regulations (43 CFR 2), and 30 CFR 250.197, ``Data and information to be made available to the public or for limited inspection,'' and 30 CFR Part 252, ``OCS Oil and Gas Information Program.''

The MMS Regional Supervisor must approve any lessee's proposal to enter an agreement to unitize operations under two or more leases. We must also approve modification of a unit agreement when changes in circumstances warrant. We encourage unitization of operations on OCS leases where unitized operations will further exploration of prospective geological structures; increase the ultimate recovery of oil and gas or sulphur reserves; lead to more efficient operation of leases and reservoirs; and/or is necessary to protect correlative rights. Unitization can be particularly beneficial in highcost, high risk OCS areas. Lessees submit consolidated Exploration Plans and Development and Production Plans for a unit area. We use the information to ensure that operations under the proposed unit agreement will result in preventing waste, conserving natural resources, and protecting correlative rights including the government's interests. We need to review all pertinent data before determining competitiveness of a reservoir or deciding that compelling unitization will achieve the desired results.

Frequency: On occasion.

Estimated Number and Description of Respondents: Approximately 130 respondents (Federal oil and gas OCS lessees).

Estimated Reporting and Recordkeeping ``Hour'' Burden: The estimated annual ``hour'' burden for this information collection is a total of 4,913 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.
Average number Annual burden Citation 30 CFR 250 Subpart M Reporting requirement Hour burden annual responses hours Nonhour cost burdens Requests 1301(d), (f)(3), (g)(1), Request suspension of Burden covered in 10100114. 0 (g)(2)(ii). production or
operations.
1302(b).......................... Request preliminary 39 1 request.......... 39 determination on
competitive reservoir.
1304(b).......................... Request compulsory 161 1 request.......... 161 unitization, including
submitting unit
agreement, unit
operating agreement,
initial plan of
operation, and
supporting data;
serving nonconsenting
lessees with documents. 1304(d).......................... Request hearing on 1 1 request.......... 1 required unitization.

Subtotal..................... ........................ .............. 3 responses........ 201 Submittals 1302(b).......................... Submit concurrence or 39 1 request.......... 39 objection on
competitiveness with
supporting evidence.
1302(c), (d)..................... Submit joint plan of 39 1 plan............. 39 operations,
supplemental plans, or
a separate plan if
agreement cannot be
reached.
1303; 1304....................... *Submit revisions or 8 54 revs/mods....... 432 modifications to unit
agreement, unit
operating agreement,
plan of operation,
change of unit
operator, etc.
$760 fees x 54 revisions/modifications = $41,040. 1303; 1304....................... *Submit initial, and 48 24 submissions..... 1,152 revisions to,
participating area.
1304(e).......................... Submit statement at 5 1 statement........ 5 hearing on compulsory
unitization.
1304(e).......................... Pay for and submit three 1 1 submission....... 1 copies of verbatim
transcript of hearing.
Court reporter and 3 transcript copies for 1 hearing = $500.

Subtotal..................... ........................ .............. 82 responses....... 1,668 $41,540 nonhour cost burdens [[Page 37474]]
General 1301............................. General description of Burden included in the following 0 requirements. sections. 1303............................. Apply for voluntary 169 18 apps/plans...... 3,042 unitization, including
submitting unit
agreement, unit
operating agreement,
initial plan of
operation, and
supporting data;
request for variance
from model agreement
and other related
requirements.
$10,700 fee x 18 applications/plans = $192,600. Due to ongoing litigation in the Pacific Region, respondents did not submit burden data. 1304(f).......................... Appeal final order of Exempt as defined in 5 CFR 0 compulsory unitization. 1320.4(a)(2), (c). 13001304........................ General departure and 1 2 requests......... 2 alternative compliance
requests not
specifically covered
elsewhere in subpart M

regulations.

Subtotal..................... ........................ .............. 20 responses....... 3,044 $192,600 nonhour cost burden

Total Burden................. ........................ .............. 105 responses...... 4,913 $234,140 NonHour Cost Burdens

Estimated Reporting and Recordkeeping ``NonHour Cost'' Burden: There are three nonhour costs associated with this information collection. The estimated nonhour cost burden is $234,140. Section 250.1303 has two fees requiring respondents to pay a filing fee when applying for a voluntary unitization proposal or unit expansion, and a fee for unitization revision. The filing fees are required to recover the Federal Government's processing costs. Section 250.1304(d) provides an opportunity for parties notified of compulsory unitization to request a hearing; therefore, section 250.1304(e) requires the party seeking the compulsory unitization to pay for the court reporter and copies of the verbatim transcript of the hearing. It should be noted there have been no such hearings in the recent past, and none are expected in the near future. We estimate that the burden would be less than $500 to reproduce the copies and hire the reporter. 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 December 26, 2007, we published a Federal Register notice (72 FR 73041) 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 250 regulations. 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 received one comment in response to these efforts from a private citizen, B. Sachau, and the comment was not germane to the paperwork burden of this collection.

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 31, 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.
[[Page 37475]]

April 23, 2008.
E.P. Danenberger,
Chief, Office of Offshore Regulatory Programs.
[FR Doc. E814892 Filed 63008; 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 that require the subject collection of information.