Agency Information Collection Activities: Submission for Office of Management and Budget Review; Comment Request

DEPARTMENT OF THE INTERIOR

Minerals Management Service

Agency Information Collection Activities: Submission for Office

of Management and Budget Review; Comment Request

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of a new information collection.

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SUMMARY: As required by the Paperwork Reduction Act of 1995 (Act), the

Department of the Interior has submitted the new collection of

information discussed below to the Office of Management and Budget

(OMB) for approval. The Act 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.

DATES: Submit written comments by August 27, 1998.

ADDRESSES: Submit comments and suggestions directly to the Office of

Information and Regulatory Affairs, OMB, Attention: Desk Officer for

the Department of the Interior (1010-NEW), 725 17th Street, NW,

Washington, DC 20503. Send a copy of your comments to the Minerals

Management Service, Attention: Rules Processing Team, Mail Stop 4024,

381 Elden Street, Herndon, Virginia 20170-4817.

FOR FURTHER INFORMATION CONTACT: Alexis London, Engineering and

Operations Division, Minerals Management Service, telephone (703) 787-

1600. You may obtain copies of the supporting statement and collection

of information by contacting MMS's Information Collection Clearance

Officer at (202) 208-7744.

SUPPLEMENTARY INFORMATION:

Title: Survey--Testing and Calibrating the Measurement of Nonmarket

Values for Natural Resources via the Contingent Valuation Methods.

Abstract: The Outer Continental Shelf (OCS) Lands Act, as amended,

directs the Secretary of the Interior to prepare a ``5-Year Program''

that specifies the schedule of offshore natural gas and oil lease sales

for the 5-year period covered by the document. The MMS prepares the 5-

Year Program for the Secretary. The key analytical support for the

Secretary's decision is a cost-benefit analysis of all size, timing,

and location alternatives for all lease sales being considered. The

MMS's 5-year cost-benefit analysis is an almost complete accounting of

all the costs and benefits attributable to the offshore natural gas and

oil leasing and development process. However, the cost-benefit analysis

has one major exclusion. MMS does not account fully for the existence

values (also called passive enjoyment values) of resources that might

be damaged or lost through offshore activities. Existence values

include the values people might place on a resource just by knowing it

exists, or by having the option of using it at some future date, or by

being able to bequeath it to future generations.

The only way currently available to measure existence values is

through the use of the contingent valuation method (CVA). CVA consists

of carefully constructed questionnaires which are used in interviews

that elicit from people their estimate of what they would be willing to

pay to avoid the loss or damage. The MMS has two major reasons why it

has not funded CVA studies to provide estimates of existence values to

complete its cost-benefit analysis: First, the methodology for CVA

studies is stillsomewhat controversial in the economics profession.

Second, CVA studies for a program covering as vast an array of

environmental resources across the entire outer continental shelf would

be prohibitively expensive.

The proposed survey is part of a research plan designed to come to

grips with both of these problems. This project focuses on improving

the methodology of CVA and its acceptance by the economics profession.

A follow-on project would build on the results of this project to test

a less expensive way of gathering estimates of peoples'

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willingness to pay for environmental resource protection. This new

approach is expected to cut the cost of CVA studies to one-third the

present cost. With these improvements, MMS should be able to complete

its 5-year cost-benefit analysis using methodology acceptable to a

majority of the economics profession.

Frequency: This is a one-time voluntary survey.

Estimated number and description of respondents and reporting and

recordkeeping ``hour'' burden: Approximately 1,200 American adults will

be asked four questions, averaging about 5 minutes per respondent.

There is no recordkeeping burden.

Estimated reporting and recordkeeping ``cost'' burden: This is a

one time survey with no cost burden on the respondents to provide this

collection of information.

Comments: Section 3506 (c)(2)(A) of the Paperwork Reduction Act

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.

Send your comments directly 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 August 27, 1998.

MMS Information Collection Clearance Officer: Jo Ann Lauterbach,

(202) 208-7744.

Dated: June 17, 1998.

E. P. Danenberger,

Chief, Engineering and Operations Division.

[FR Doc. 98-20047 Filed 7-27-98; 8:45 am]

BILLING CODE 4310-MR-P