renewal monthly for a new 9-month period. The purchaser or its surety company may elect not to renew the letter of credit at any monthly anniversary date, but must notify MMS of its intent not to renew at least 30 days prior to the anniversary date. The MMS may grant the purchaser 45 days to obtain a new surety. If no replacement surety is provided, MMS will terminate the contract effective at least 6 months prior to the expiration date of the letter of credit. Notwithstanding the above provisions, the letter of credit also may contain a clause providing for automatic termination 6 months after the royalty oil contract terminates.

(c) All sureties must be in a form acceptable to MMS and must include such other specific requirements as MMS may require to adequately protect the Government's interests.

(d) Sureties under this section must be either surety bonds or irrevocable letters of credit from financial institutions acceptable to MMS.

§ 208.12 Payment requirements.

(a) All payments to MMS by a purchaser of royalty oil will be due on the date and at the location specified in the contract, or, if there is no contractual provision, as specified by MMS. The purchaser shall tender all payments to MMS in accordance with 30 CFR 218.51. Payments made by a payor pursuant to the requirements of paragraph (b) of this section and § 208.13(b) also shall be tendered in accordance with 30 CFR 218.51.

(b)(1) Payments from a purchaser of royalty oil not received by MMS when due, or that portion of the payment less than the full amount due, will be subject to a late payment charge equivalent to an interest assessment on the amount past due for the number of days that the payment is late at the underpayment rate applicable under section 6621 of the Internal Revenue Code of 1954.

(2) The MMS may assess interest to a payor for any underpayments which are the result of the payor's late or underreporting, or for adjustments reported by the payor, or made as a result of audit, reconciliation, or other procedures. The interest for late pay

ment and underpayment will be assessed pursuant to 30 CFR 218.54.

(c) If payment for royalty oil is not received by the due date specified in the contract, a notice of nonreceipt will be sent to the purchaser by certified mail. If payment is not received by MMS within 15 days from the date of such notice, MMS may cancel the contract and collect under the surety.

(d) If the purchaser disagrees with the amount of payment due, it must pay the amount due as computed by MMS, unless the purchaser appeals the

amount and posts acceptable surety pursuant to the provisions of 30 CFR part 243. The MMS may, at its discretion, waive the appeal surety requirements if it determines that the contract surety is sufficient protection for an amount under appeal.

§ 208.13 Reporting requirements.

(a) In addition to any other applicable royalty reporting requirements, the lessee/operator shall use Form MMS-4071, Semiannual Report of Royalty-In-Kind (RIK) Oil Entitlements, to provide MMS a semiannual report, by lease, of the monthly entitlements of royalty oil delivered by lease operators to purchasers.

(b) If MMS underbills a purchaser under a royalty oil contract because of a payor's underreporting or failure to report on Forms MMS-2014 pursuant to 30 CFR 210.52, the payor will be liable for payment of such underbilled amounts, plus interest, if they are unrecoverable from the purchaser or the surety related to the contract.

[52 FR 41913, Oct. 30, 1987, as amended at 53 FR 34739, Sept. 8, 1988]

§ 208.14 Civil and criminal penalties.

Failure to abide by the regulations in this part may result in civil and criminal penalties being levied on that person as specified in sections 109 and 110 of the Federal Oil and Gas Royalty Management Act of 1982, 30 U.S.C. 1719-20, and regulations at 30 CFR part 241. Civil penalties applicable under the OCSLA and the Mineral Leasing Act of 1920 may also be imposed.

341-117 0-93--4

MMS-2014-Report of Sales and Royalty Remittance-Oil and Gas-Due by the end of first month following production month for royalty payment and for rentals no later than anniversary date of the lease... MMS-3160-Monthly Report of OperationsDue by the 15th day of the second month following the production month.. MMS-4025-Oil and Gas Payor Information Form-Due 30 days after issuance of a new lease or change to an existing lease... MMS-4030-Solid Minerals Payor Information Form-Due 30 days after issuance of a new lease or change to an existing account established by an earlier form..

OMB No.

1010-0022

1010-0040

1010-0033

1010-0064

Form No., name, and filing date

MMS-4051-Facility and Measurement Information Form and Supplement-Due at the request of MMS during the initial conversion of the facility and measurement device opera

tors..

MMS-4052-Well Information Form-Due at the request of MMS during the initial conversion of the lease and agreement operators... MMS-4053-First Purchaser Report-Due at the request of MMS.. MMS-4054-Oil and Gas Operations ReportDue by the 15th day of the second month following the production month.... MMS-4055-Gas Analysis Report-Due by the 15th day of the second month following the production month.... MMS-4056-Gas Plant Operations ReportDue by the 15th day of the second month following the production month..... MMS-4057-Fractionation

Plant Operations

Report-Due by the 15th day of the second month following the production month MMS-4058-Production Allocation Schedule Report-Due by the 15th day of the second month following the production month MMS-4059-Solid Minerals Operation ReportDue by the 15th day of the second month following the production month..... MMS-4060-Solid Minerals Facility ReportDue by the 15th day of the second month following the production month.. MMS-4061-API Well Number Change Report-Due 10 days prior to submission of Form MMS-4054..

MMS-4070-Application of the Purchase of Royalty Oil-Due prior to the date of sale in accordance with the instructions in the Notice of Availability of Royalty Oil... MMS-4071-Semiannual Report of Royalty-inKind Oil Entitlements-Due from the lease operator by March 1 and September 1 each year for the prior 6-month period ending December 31 and June 30.. MMS-4109-Gas Processing Allowance Summary Report-Initial report due within 3 months following the last day of the month for which an allowance is first claimed, unless a longer period is approved by MMS..... MMS-4110-Oil Transportation Allowance Report-Initial report due within 3 months following the last day of the month for which an allowance is first claimed, unless a longer period is approved by MMS. MMS-4280-Application for Reward for Original Information-Due when a reward is claimed for information provided which may lead to the recovery of royalty or other payments owed to the United States... MMS-4292-Coal Washing Allowance ReportDue prior to or at the same time that the allowance is first reported on Form MMS2014 and annually thereafter if the allowance does not change..

the

The information required on forms identified in the table above is being collected by the Department of the Interior to meet its congressionally mandated accounting and auditing responsibilities relating to Federal and Indian mineral royalty management. The purpose of the forms and the estimated public reporting burden associated with each form are described in paragraph (c) of this section. With the exception of Forms MMS-4109, MMS4110, MMS-4280, MMS-4292, MMS4293, and MMS-4295, the forms are mandatory. Information on Forms MMS-4109, MMS-4110, MMS-4292, MMS-4293, and MMS-4295 is required to receive a benefit. Information required on Form MMS-4280 must be provided voluntarily to claim a reward. Information collected relative to production, royalties, and other payments due the Government from activities on leased Federal or Indian land is authorized by the Federal Oil and Gas Royalty Management Act of 1982, 30 U.S.C. 1701 et seq. for oil and gas production, and by 30 U.S.C. 189, 30 U.S.C. 359, and 30 U.S.C. 396d for solid mineral production.

(b) MMS mailing addresses-This paragraph identifies the MMS address(es) to be used for requesting forms and/or for mailing completed forms to MMS.

(1) Requests for Forms MMS-2014, MMS-4070, or MMS-4071 should be addressed to the Minerals Management Service, Royalty Management Program, Fiscal Accounting Division, P.O. Box 5760, MS 3200, Denver, Colorado 80217-5760. Completed Forms MMS-4071 should be mailed to the same address. The completed Forms MMS-2014 should be mailed to the Minerals Management Service, Royalty Management Program, P.O. Box 5810, Denver, Colorado 80217-5810. The address to which a completed Form MMS-4070 should be mailed will be identified in a FEDERAL REGISTER

and

MMS-4293, or MMS-4295) should be addressed to the Minerals Management Service, Royalty Management Program, Royalty Valuation Standards Division, P.O. Box 25165, MS 3500, Denver, Colorado 802250165. The completed allowance forms should be mailed to the Minerals Management Service, Royalty Management Program, P.O. Box 5200, Denver, Colorado 80217-5200.

(5) Requests for Form MMS-4280 should be addressed to the Minerals Management Service, Royalty Management Program, Royalty Compliance Division, P.O. Box 25165, MS 3600, Denver, Colorado 80225-0165. The completed form should be mailed to the same address. (See 30 CFR 218.57(b)).

(6) Reports delivered to MMS by special couriers or overnight mail shall be addressed as follows: Minerals Management Service, Royalty Management Program, Building 85, Denver Federal Center, room A-212, Revenue and Document Processing, Denver, Colorado 80225.

(c) Purpose of forms and estimated public reporting burden-This paragraph describes the purpose of the information being collected and the estimated public reporting burden associated with the OMB approved forms identified in paragraph (a) of this section.

(1) MMS-2014-Used monthly to report lease-related transactions essential for royalty management to determine the correct royalty amount due, reconcile or audit data, and distribute payments to appropriate accounts. Public reporting burden is estimated to average 9 minutes to complete each line item on the form, including the time necessary to assemble data, calculate value and royalty, and enter data on the form. Companies with equipment enabling them to report using tape media may average 3 minutes to complete each line item on the form. Comments submitted relative to this information collection should reference Paperwork Reduction Project 1010-0022.

(2) MMS-3160-Used by onshore oil and gas lease operators to report monthly oil and gas production to MMS. Public reporting burden is estimated to average 30 minutes per form including time spent reading instructions, completing, and mailing the form. Comments submitted relative to this information collection should reference Paperwork Reduction Project 1010-0040.

(3) MMS-4025-This form is used to establish a data base of payor accounts for oil and gas leases on Federal or Indian lands, reporting changes in payor accounts, and notifying MMS of the products on which royalties will be paid. Public reporting burden is estimated to average 30 minutes per form, including time spent reading instructions, completing, and mailing the form. Comments submitted relative to this information collection should reference Paperwork Reduction Project 1010-0033.

(4) MMS-4030-This form is used to establish a data base of payor accounts for solid mineral leases on Federal or Indian lands, reporting any changes to the accounts, and identifying the type of mine and product produced. Public reporting burden is estimated to average 30 minutes per form, including time spent reading instructions, completing, and mailing the form. Comments submitted relative to this information collection should reference Paperwork Reduction Project 1010-0064.

(5) MMS-4051-Used to establish a reference data base identifying the facilities where oil and gas production is stored or processed and the metering points where production is measured for sale or transfer. Public reporting burden is estimated to average 30 minutes per form for facility operators to review and update the data base. Comments submitted relative to this information collection should reference Paperwork Reduction Project 1010-0040.

(6) MMS-4052-The form is used to provide data from lease operators identifying all wells not permanently plugged or abandoned. It is used only once, during conversion to the Production Accounting and Auditing System. Public reporting burden is estimated to average 30 minutes per form, including time spent reading instructions, completing, and mailing the form. Comments submitted relative to this information collection should reference Paperwork Reduction Project 1010-0040.

(7) MMS-4053-Designed as an audit tool to be used to confirm sales data. Public reporting burden is estimated to average 30 minutes per form, including time spent reading instructions, completing, and mailing the form. Comments submitted relative to this information collection should reference Paperwork Reduction Project 1010-0040.

(8) MMS-4054-This three-part form identifies all oil and gas lease production from Federal and Indian lands. The MMS uses information from this form to track oil and gas from the point of production to the point of first sale or other disposition. Respondents will generally not use all three parts of the form. Public reporting burden is estimated to average 1 hour per month, including time gathering data, completing, and mailing the form. Comments submitted relative to this information collection should reference Paperwork Reduction Project 1010-0040.

(9) MMS-4055-This report identifies the separate components of natural gas production. It is submitted quarterly or semiannually by lease operators when gas production is processed before royalty value has been determined. Public reporting burden is esti

mated to average 30 minutes per form including time required gathering data, completing, and mailing the form. Comments submitted relative to this information collection should reference Paperwork Reduction Project 1010-0040.

(10) MMS-4056-Submitted monthly by gas plant operators to identify components and disposition of natural gas from Federal and Indian leases. Public reporting burden is estimated to average 30 minutes per form, including time required gathering data, completing, and mailing the form. Comments submitted relative to this information collection should reference Paperwork Reduction Project 1010-0040.

(11) MMS-4057-This form is submitted monthly by fractionation plant operators to identify the volume of raw material transferred to the plant and the volume of natural gas liquids produced. Public reporting burden is estimated to average 30 minutes per report, including time required gathering data, completing, and mailing the form. Comments submitted relative to this information collection should reference Paperwork Reduction Project 1010-0040.

(12) MMS-4058-Submitted monthly by operators of the facilities and measurement points where production from a Federal or Indian lease is commingled with production from other sources before it is measured for royalty determination. The data reported is used to determine whether sales reported by lessees are reasonable. Public reporting burden is estimated to average 1 hour per form, including time required gathering data, completing, and mailing the form. Comments submitted relative to this information collection should reference Paperwork Reduction Project 1010-0040.

(13) MMS-4059-This form consists of parts A and B. It is submitted by all operators of Federal or Indian solid mineral leases on a schedule established on the lease. Public reporting burden is estimated to range from 30 minutes per form for the majority of operators who submit only part A to report production and disposition of raw materials, to 11⁄2 hours for operators submitting both parts A and B to report sales of mine production from a