Electronic Reporting

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 210 and 216

RIN 1010-AC40

Electronic Reporting

AGENCY: Minerals Management Service, Interior.

ACTION: Proposed rulemaking.

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SUMMARY: The Minerals Management Service (MMS) proposes to amend its

regulations to require reporters to submit royalty and production

reports electronically. This change is necessary to comply with various

mandates to use new technologies to improve the productivity,

efficiency, and effectiveness of Government programs. Additional

amendments would extend the due date for production reports filed

electronically and eliminate the reporting of most wells that are in

drilling status. These changes will reduce administrative costs and

increase operating efficiencies for industry and MMS.

DATES: Submit comments on or before June 8, 1998.

ADDRESSES: Send comments to David S. Guzy, Chief, Rules and

Publications Staff, Royalty Management Program, Minerals Management

Service, PO Box 25165, Mail Stop 3021, Denver, Colorado 80225-0165;

courier delivery to Building 85, Denver Federal Center, Denver,

Colorado 80225; or E-mail RMP.[email protected].

FOR FURTHER INFORMATION CONTACT: David S. Guzy, Chief, Rules and

Publications Staff, Royalty Management Program, Minerals Management

Service; telephone (303) 231-3432; fax (303) 231-3385; E-mail

David__G[email protected]. Contact Ralph Spencer at (303) 231-3095 for

further information about being added to the list of MMS-approved

electronic reporting services.

SUPPLEMENTARY INFORMATION: The principal authors of this proposed

rulemaking are Mary Williams, Ralph Spencer, Barbara Lambert, Gail

Solaas of the Accounting and Reports Division, and Tim Allard of the

Systems Management Division, Royalty Management Program, MMS.

I. Background

Congress and the President have mandated that Federal agencies use

new technologies to improve Government operations. For example, the

Paperwork Reduction Act of 1995, Public Law 104-13, and the Information

Technology Management Reform Act of 1996, Public Law 104-106, authorize

the use of new technologies to improve the productivity, efficiency,

and effectiveness of Government programs. Executive Order 13011

requires Government agencies to use information technology to improve

productivity and increase efficiencies. To meet these legislative and

executive mandates and take advantage of rapidly improving

technologies, MMS proposes to amend its regulations to require

reporters to report electronically.

MMS has been successfully developing and using electronic

information collection alternatives for many years. Electronic reports

produce more timely and accurate reporting at significantly less cost

than paper reports. For example, electronically-submitted Reports of

Sales and Royalty Remittance, Form MMS-2014, have an average error rate

of 1 percent compared to paper reports that have an 8 percent error

rate.

Electronic reports also streamline the error correction process. We

can quickly notify a reporter of any problems discovered during our

edit processes. The reporter can make his/her own corrections and

quickly resubmit the reports to us. This automated process reduces the

exchange of paper and the attendant confusion.

Electronic reporting, along with other streamlining and process

improvements, has reduced our error correction costs by 20 percent, our

manual data entry costs by 60 percent, and our file maintenance costs

by 24 percent. Many reporters using an electronic reporting option have

experienced up to a 50 percent reduction in resources needed to comply

with our reporting requirements.

An additional advantage of electronic reporting is the expanded

time to report. If a reporter uses E-mail or Electronic Data

Interchange (EDI), he/she can transmit reports to us on the due date

rather than several days before the due date to allow for manual

delivery. This additional time allows a reporter to collect more

accurate and complete data, thereby reducing the need for amended

reports. We can also process the reports faster because electronic

reports do not require manual data entry.

We offer various electronic reporting options and means of

transmission for different reporters. We will work closely with all

reporters to provide advice on the best electronic reporting options.

Large reporters may use standards approved by the American National

Standards Institute, Accredited Standards Committee X12, for sending

data via EDI. Small to medium reporters may use a template software

version we offer at no cost and transmit their reports to us by

diskette or E-mail. We provide detailed electronic reporting guidelines

to reporters converting to electronic reporting media. These guidelines

consist of a variety of record layout specifications and template

software with appropriate user's guides from which the reporter can

select the option best suited to his/her needs.

We are requesting specific comments from reporters who do not

currently report to us electronically on their capability (hardware,

software, knowledgeable personnel, etc.) to convert to electronic

reporting.

[[Page 17134]]

Conversion to electronic reporting is typically not time-consuming and

does not require an extensive knowledge of computer programming. For

example, if a reporter is currently using an electronic spreadsheet

such as Microsoft Excel to produce a paper report, we can provide a

record layout for converting to a Comma Separated Values format which

can be transmitted electronically. Reporters who use electronic reports

experience few problems with converting or submitting their monthly

reports.

For those reporters who do not have computers, there are numerous

reporting services that can provide electronic reporting at a

reasonable cost. We can provide a list of reporting services that have

MMS-approved electronic reporting formats. Any other reporting service

not currently using an MMS-approved electronic reporting format can

contact us for approval and be added to this list. Please contact Ralph

Spencer at (303) 231-3095 for further information.

As an added incentive to report electronically, we are proposing to

extend the due date for production reports submitted electronically by

10 days. In a recent pilot program, we tested this concept by extending

the due date 10 days for production reports filed using any of our

electronic reporting options. We were able to process electronic

production reports and provide corrected data to users, such as the

Bureau of Land Management (BLM), with no delay.

Because the pilot results were favorable, we are incorporating the

extended due date for production reports in this proposed rule. This

extension would not apply to the Form MMS-2014 Report of Sales and

Royalty Remittance. The royalty payment due date would not change.

Through this rulemaking, we also are proposing to eliminate the

requirement to report most wells that are in drilling status.

Currently, operators must report drilling wells on Form MMS-3160,

Monthly Report of Operations, or Form MMS-4054, Oil and Gas Operations

Report, to MMS, and on other reports to either BLM or Offshore Minerals

Management in MMS. We propose to amend our regulations to require Forms

MMS-3160 and MMS-4054 only on completed wells, unless otherwise

directed by MMS. Generally, operators would report wells when drilling

is concluded, that is, when the well status changes to completed,

temporarily abandoned, or abandoned. We would continue to require

reports for the months drilling wells have test production and in some

unique or unusual situations on specific leases or agreements. We would

notify operators when reporting is required on drilling wells.

These proposed amendments, when adopted, would be effective

December 31, 1998, to allow sufficient time for reporters to convert to

electronic reporting.

II. Section-by-Section Analysis

PART 210--FORMS AND REPORTS

Section 210.10(c)(1), (2), and (7) Information collection

We would amend these paragraphs to reflect the reduced monthly

reporting burden associated with electronic reporting. We estimate

reporting electronically would reduce your monthly reporting burden by

50 percent or more if you do not now report electronically. Although

converting to electronic reporting would require a resource investment,

your monthly benefits would ultimately offset initial conversion costs.

Section 210.10(d) Information Collection

We would amend this paragraph to reflect changes required by the

Paperwork Reduction Act of 1995 and to provide updated addresses for

commenting on information collections.

Section 210.20 Electronic reporting

This section would require you to submit the following three

reports electronically:

Report of Sales and Royalty Remittance, Form MMS-2014.

Monthly Report of Operations, Form MMS-3160.

Oil and Gas Operations Report, Form MMS-4054.

This section would also contain the following provisions:

Several electronic reporting options, and their order of

preference, would be identified.

You would have to obtain MMS electronic reporting

guidelines and arrange to have an electronic sample reviewed and

approved by MMS before submitting your first official electronic

report.

You would have to sign an electronic commerce agreement

when transmitting your reports by E-mail or EDI.

Certain security measures would apply to EDI formats and

E-mail transmissions.

A new reporter would have to begin reporting

electronically within 90 days from the day its first report is due.

We will assess you a fee per report line for failure to

report electronically under this part after the 90-day period to

compensate the Government for the increased costs incurred as a result

of a reporter's non-compliance. We will accept your manual reports

after the 90-day period to assure that royalties collected are

distributed to the proper recipient. However, you will be assessed a

fee for failure to report electronically after the 90-day grace period.

Section 210.52 Report of Sales and Royalty Remittance

This section would be amended to remove the references to magnetic

tape as the only alternative to a paper Form MMS-2014. Specific

reference to payments by electronic funds transfer would also be

removed because electronic funds transfer is not the only option for

electronic payments. Information on electronic payments is contained in

30 CFR 218.51.

PART 216--PRODUCTION ACCOUNTING

Section 216.11 Electronic reporting

This new section in Subpart A--General Provisions would require

electronic submission of Forms MMS-3160 and MMS-4054. Specific

requirements for electronic reporting would be located in 30 CFR

210.20.

Section 216.50 Monthly Report of Operations

This section would be amended to require reports only on completed

wells unless otherwise directed by MMS. We would also extend the due

date from the 15th to the 25th day of the second month following the

month of production when your Monthly Report of Operations, Form MMS-

3160, is filed electronically.

Section 216.53 Oil and Gas Operations Report

This section would be modified to require reports only on completed

wells unless otherwise directed by MMS. We would also extend the due

date from the 15th to the 25th day of the second month following the

month of production when your Oil and Gas Operations Report, Form MMS-

4054, is filed electronically.

Section 216.55 Gas Plant Operations Report

We have no electronic reporting options for the Gas Plant

Operations Report, Form MMS-4056. However, this section would be

modified to extend the due date for Form MMS-4056 from the 15th to the

25th day of the second month following the month of production when

your Form MMS-3160

[[Page 17135]]

or Form MMS-4054 is filed electronically.

Section 216.56 Production Allocation Schedule Report

We have no electronic reporting options for the Production

Allocation Schedule Report, Form MMS-4058. However, this section would

be modified to extend the due date for the Form MMS-4058 from the 15th

to the 25th day of the second month following the month of production

when your Form MMS-4054 is filed electronically.

III. Procedural Matters

The Regulatory Flexibility Act

The Department certifies that this rule will not have a significant

economic effect on a substantial number of small entities under the

Regulatory Flexibility Act (5 U.S.C. 601 et seq.). This rule will have

no effect on tribal governments or other small governmental

jurisdictions. Approximately 2,000 entities who pay royalties and 2,750

entities who report production from Federal and Indian lands will be

impacted, and the majority of these entities are small businesses

because they employ 500 or less employees. However, the economic impact

to these small businesses will not be significant because one-time

monetary outlays to convert to electronic reporting will be offset by

reduced monthly costs to report to MMS.

Estimated outlays for equipment or contracted services necessary to

submit electronic reports to MMS vary widely depending on the number of

properties reported, the electronic reporting option selected, and the

reporter's access to a computer.

Costs for reporters who have computers. Converting to a

Comma Separated Values (CSV) format or template software, which does

not require professional programmers, may require 10 hours depending on

the number of properties reported. Additional time to maintain the

software may require 10 hours per year. Using a cost of $35 per hour,

reporters who have computers will incur a one-time cost of $350 and an

annual cost to maintain the software of $350. We estimate that 80

percent of reporters not currently reporting to us electronically will

use the CSV or template option to comply with this rule.

Costs for reporters who do not have computers. Reporters

who do not have computers may choose to contract with an electronic

reporting service or may choose to purchase a computer and/or a

software package from an electronic reporting service. These reporters

may incur average capital/startup costs of $2,000 and subsequent

annually operating and maintenance costs of $350.

Your comments are important. The Small Business and

Agriculture Regulatory Enforcement Ombudsman and 10 Regional Fairness

Boards were established to receive comments from small businesses about

Federal agency enforcement actions. The Ombudsman will annually

evaluate the enforcement activities and rate each agency's

responsiveness to small business. If you wish to comment on the

enforcement actions in this proposed rule, call 1-888-734-3247.

Executive Order 12866

This rule is not a significant rule subject to Office of Management

and Budget review under Executive Order 12866.

Executive Order 12988

The Department has certified to the Office of Management and Budget

that this proposed regulation meets the applicable civil justice reform

standards provided in sections 3(a) and 3(b)(2) of Executive Order

12988.

Unfunded Mandates Reform Act of 1995

The Department has determined and certifies according to the

Unfunded Mandates Reform Act, 2 U.S.C. 1502 et seq., that this rule

will not impose a cost of $100 million or more in any given year on

local, tribal, or State governments, or the private sector.

Paperwork Reduction Act

This proposed rule does contain information collection

requirements. These requirements have been approved by the Office of

Management and Budget (OMB) and assigned OMB Control Numbers 1010-0022

and 1010-0040.

As discussed below, this proposed rule impacts two existing

collections of information which have been submitted to the Office of

Management and Budget (OMB) for review and approval under section

3507(d) of the Paperwork Reduction Act of 1995. As part of our

continuing effort to reduce paperwork and respondent burden, MMS

invites the public and other Federal agencies to comment on any aspect

of the reporting burden. Submit your comments to the Office of

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

Department of the Interior, Washington, DC 20503. Send copies of your

comments to: Minerals Management Service, Royalty Management Program,

Rules and Publications Staff, PO Box 25165, MS 3021, Denver, Colorado

80225-0165; courier address is: Building 85, Denver Federal Center,

Denver, Colorado 80225; e-Mail address is: RMP.[email protected].

OMB may make a decision to approve or disapprove this collection of

information after 30 days from receipt of our request. Therefore, your

comments are best assured of being considered by OMB if OMB receives

them within that time period. However, MMS will consider all comments

received during the comment period for this notice of proposed

rulemaking.

The burden hours associated with two existing information

collections titled Report of Sales and Royalty Remittance (Form MMS-

2014), OMB Control Number 1010-0022, and Production Accounting and

Auditing System (PAAS) Reports [Facility and Measurement Information

Form (FMIF), Form MMS-4051; Oil and Gas Operations Report (OGOR), Form

MMS-4054; Gas Analysis Report (GAR), Form MMS-4055; Gas Plant

Operations Report (GPOR), Form MMS-4056; Monthly Report of Operations

(MRO), Form MMS-3160; Production Allocation Schedule Report (PASR),

Form MMS-4058], OMB Control Number 1010-0040, will be reduced by this

proposed rulemaking.

MMS estimates that 275,000 lines will be submitted on Form MMS-2014

each month by 2,000 payors. We estimate that a payor will complete a

line on the Form MMS-2014 in 2 minutes and that each payor will spend

10 hours on related recordkeeping. The annual burden for reporting

electronically under this information collection will be 134,000 hours

under this proposed rulemaking.

MMS estimates that the total annual burden for reporting

electronically all PAAS reports will be 53,030 hours. Approximately

290,000 Form MMS-3160 reports will be submitted annually, and we

estimate that the operator will take \1/8\ hour to complete the report

or 36,250 burden hours annually. Approximately 59,000 Form MMS-4054

reports will be submitted annually, and we estimate that the operator

will take \1/4\ hour to complete the report or 14,750 burden hours

annually. Approximately 7,200 Form MMS-4058 reports will be submitted

annually, and we estimate that the operator will take \1/4\ hour to

complete the report manually or 1,800 burden hours annually.

Approximately 450 Form MMS-4056 reports will be submitted annually, and

we estimate that the operator will take \1/2\ hour to complete the

report manually or 225 burden hours. Approximately 10 Form

[[Page 17136]]

MMS-4055 reports will be submitted annually, and we estimate that the

operator will take \1/4\ hour to complete the report manually or 2.5

burden hours. Approximately 8 Form MMS-4051 reports will be submitted

annually by telephone, and we estimate that the operator will take \1/

4\ hour to complete this report for 2 burden hours.

In compliance with the Paperwork Reduction Act of 1995, section

3506 (c)(2)(A), we are notifying you, members of the public and

affected agencies, of this collection of information, and are inviting

your comments. For instance your comments may address the following

areas. Is this information collection necessary for us to properly do

our job? Have we accurately estimated the industry burden for

responding to this collection? Can we enhance the quality, utility, and

clarity of the information we collect? Can we lessen the burden of this

information collection on the respondents by using automated collection

techniques or other forms of information technology?

The Paperwork Reduction Act of 1995 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.

National Environmental Policy Act of 1969

We have determined that this rulemaking is not a major Federal

action significantly affecting the quality of the human environment,

and a detailed statement under section 102(2)(C) of the National

Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is not

required.

List of Subjects

30 CFR Part 210

Coal, Continental shelf, Geothermal energy, Government contracts,

Indian lands, Mineral royalties, Natural gas, Petroleum, Public lands--

mineral resources, Reporting and recordkeeping requirements.

30 CFR Part 216

Coal, Continental shelf, Geothermal energy, Government contracts,

Indian lands, Mineral royalties, Natural gas, Penalties, Petroleum,

Public lands--mineral resources, Reporting and recordkeeping

requirements.

Dated: March 13, 1998.

Bob Armstrong,

Assistant Secretary for Land and Minerals Management.

For the reasons stated in the preamble, MMS proposes to amend 30

CFR parts 210 and 216 as follows:

PART 210--FORMS AND REPORTS

1. The authority citation for part 210 is revised to read as

follows:

Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396, 2107; 30 U.S.C.

189, 190, 359, 1023, 1751(a); 31 U.S.C. 3716, 9701; 43 U.S.C. 1334,

1801 et seq.; and 44 U.S.C. 3506(a).

2. Amend Sec. 210.10 by revising paragraphs (c)(1), (c)(2), (c)(7),

and (d) to read as follows:

Sec. 210.10 Information collection.

* * * * *

(c) * * *

(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 for paper submission is

estimated to average 7 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 reporting electronically

may average 2 minutes to complete each line item on the form. Comments

submitted relative to this information collection should reference the

information collection titled Report of Sales and Royalty Remittance,

OMB Control Number 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 for

paper submission is estimated to average 15 minutes per form, including

the time necessary to assemble data, ensure that production and

disposition numbers are accurate, and enter data on the form. Companies

reporting electronically may average 7.5 minutes per month to complete

the form. Comments submitted relative to this information collection

should reference the information collection titled PAAS Oil and Gas

Reports, OMB Control Number 1010-0040.

* * * * *

(7) MMS-4054--This three-part form identifies all oil and gas lease

production from Federal and Indian lands. MMS uses information from

this form to track oil and gas from the point of first sale or other

disposition. Respondents will generally not use all three parts of the

form. Public reporting burden for paper submission is estimated to

average 30 minutes per month, including the time necessary to assemble

data, ensure that production and disposition numbers are accurate, and

enter data on the form. Companies reporting electronically may average

15 minutes per month to complete the form. Comments submitted relative

to this information collection should reference the information

collection titled PAAS Oil and Gas Reports, OMB Control Number 1010-

0040.

* * * * *

(d) Comments on burden estimates. Send comments on the accuracy of

this burden estimate or suggestions on reducing this burden to the

Information Collection Clearance Officer, MS 4230, MMS, 1849 C Street,

NW., Washington, DC 20240 and to the Office of Management and Budget,

Office of Information and Regulatory Affairs, Attention: Desk Officer

for the U.S. Department of the Interior, OMB Control Number 1010-XXXX,

Washington, DC 20503. 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.

3. Add Sec. 210.20 to subpart A to read as follows:

Sec. 210.20 Electronic reporting.

(a) You must submit Forms MMS-2014, MMS-3160, and MMS-4054 to MMS

electronically.

(b) You may use any of the following electronic media types, unless

MMS instructs you differently:

(1) Electronic Data Interchange (EDI)--The inter-organizational,

computer-to-computer exchange of structured information in a standard,

machine-processable format;

(2) Electronic Mail (E-mail)--Any communications service used to

electronically transmit and store messages and attach files. MMS has

three file options:

(i) Template--MMS-provided software that generates blank forms on a

personal computer to assist companies in preparing MMS regulatory

reports (this option is not available for Form MMS-4054);

(ii) Comma Separated Values (CSV)--A file format where attribute

fields are separated by commas; and

(iii) American Standard Code for Information Interchange (ASCII)--A

file format of fixed-length records with fixed-length attribute fields;

(3) Reporter-Prepared Diskette (3\1/2\ inch)--A data storage medium

used to transmit report data using one of the following file options:

(i) Template;

(ii) CSV; and

(iii) ASCII;

(4) Magnetic or Cartridge Tape--A data storage medium used to

transmit report data in an ASCII file format.

(c) MMS prefers that you use the media types in the order presented

in Sec. 210.20(b) to the extent it is cost

[[Page 17137]]

effective and practical. As technology changes, MMS will consider other

media types and the order of MMS preference may change. Refer to our

electronic commerce brochure for the most current reporting options.

You can receive a copy of our brochure by calling your MMS

representative.

(d) Before you begin reporting electronically:

(1) You must submit an electronic sample of your report for MMS

approval using the MMS-supplied electronic reporting guidelines;

(2) If you choose to use EDI or E-mail, you must sign an electronic

commerce agreement (ECA). An ECA is an agreement between you and MMS

that sets forth the terms and conditions for sending and receiving your

electronic report data transactions or funds. This agreement ensures

that your report data transactions or funds transfer are legally valid

and enforceable;

(3) If you choose to use EDI, MMS must verify your sender

identification numbers and security code before you may begin reporting

electronically; and

(4) If you choose to use the E-mail interchanges, MMS must verify

your originating address and compression software passwords before you

may begin reporting electronically.

(e) When MMS approves your sample, we will notify you to begin

reporting electronically.

(f) If you are a new reporter to MMS, you have 90 days from the day

your first report is due to begin reporting electronically.

(g) After 90 days, we will assess you a fixed fee per report line

if you report other than electronically. We will assess you a fixed fee

per report line if you do not report electronically. MMS will calculate

a reasonable fee in light of the increased costs to the Government of a

reporter's non-compliance, and will publish the per line fee rate in

the Federal Register. MMS may change the per line fee as circumstances

warrant by publishing notice in the Federal Register.

4. Section 210.52 is revised to read as follows:

Sec. 210.52 Report of sales and royalty remittance.

You must submit a completed Report of Sales and Royalty Remittance

(Form MMS-2014) with all payments to MMS for royalties and, where

specified, for rents on nonproducing leases. When you submit Form MMS-

2014 data electronically, you are not required to submit the form

itself. Completed Form MMS-2014's for royalty payments are due by the

end of the month following the production month. Where applicable,

completed Form MMS-2014's for rental payments are due no later than the

anniversary date of the lease. This section does not prohibit you from

making early payments voluntarily.

PART 216--PRODUCTION ACCOUNTING

5. The authority citation for part 216 is revised to read as

follows:

Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 396, 2107; 30 U.S.C.

189, 190, 359, 1023, 1751(a); 31 U.S.C. 3716, 9701; 43 U.S.C. 1334,

1801 et seq.; and 44 U.S.C. 3506(a).

Subpart A--General Provisions

6. Add Sec. 216.11 to subpart A to read as follows:

Sec. 216.11 Electronic reporting.

You must submit your Monthly Report of Operations, Form MMS-3160,

or the Oil and Gas Operations Report, Form MMS-4054, electronically.

Specific requirements are located in 30 CFR 210.20.

Subpart B--Oil and Gas, General

7. Amend Sec. 216.50, by redesignating paragraphs (b) through (d)

as paragraphs (f) through (h), revising paragraph (a), and adding new

paragraphs (b) through (e) to read as follows:

Sec. 216.50 Monthly report of operations.

(a) You must submit a Monthly Report of Operations, Form MMS-3160,

if you operate either an onshore Federal or Indian lease or an onshore

federally-approved agreement that contains one or more wells that are

not permanently plugged and abandoned.

(b) You must submit a Form MMS-3160 for each well for each calendar

month, beginning with the month in which you complete drilling, unless

you have only test production from a drilling well or MMS tells you in

writing to do otherwise.

(c) MMS must receive your completed Form MMS-3160 on or before:

(1) The 25th day of the second month following the month for which

you are reporting; or

(2) The 15th day of the second month following the month for which

you are reporting, if you are a new reporter and not yet converted to

electronic reporting.

(d) You must continue reporting until either:

(1) BLM approves all wells as permanently plugged or abandoned and

you dispose of all inventory; or

(2) The lease or agreement is terminated.

(e) You do not have to submit Form MMS-3160 if:

(1) You are authorized to submit an Oil and Gas Operations Report,

Form MMS-4054, instead of a Form MMS-3160; or

(2) You operate a gas storage agreement. You must report gas

storage agreements to the appropriate BLM office.

* * * * *

8. Section 216.53 is revised to read as follows:

Sec. 216.53 Oil and gas operations report.

(a) You must file an Oil and Gas Operations Report, Form MMS-4054,

if you operate either an OCS lease or federally-approved agreement; or

an onshore Federal or Indian lease or federally-approved agreement for

which you elected to report on a Form MMS-4054 instead of a Form MMS-

3160, that contains one or more wells that are not permanently plugged

and abandoned.

(b) You must submit a Form MMS-4054 for each well for each calendar

month, beginning with the month in which you complete drilling, unless

you have only test production from a drilling well or MMS tells you in

writing to do otherwise.

(c) MMS must receive your completed Form MMS-4054 on or before:

(1) The 25th day of the second month following the month for which

you are reporting; or

(2) The 15th day of the second month following the month for which

you are reporting, if you are a new reporter and not yet converted to

electronic reporting.

(d) You must continue reporting until either:

(1) BLM or MMS approves all wells as permanently plugged or

abandoned and you dispose of all inventory; or

(2) The lease or agreement is terminated.

9. Section 216.55 is revised to read as follows:

Sec. 216.55 Gas plant operations report.

(a) You must submit a Gas Plant Operations Report, Form MMS-4056,

if you operate either:

(1) A gas plant that processes gas originating from an OCS lease or

federally-approved agreement before the point of final royalty

determination; or

(2) A gas plant that processes gas from an onshore Federal or

Indian lease or federally-approved agreement before the point of final

royalty determination and MMS has asked you to submit a Form MMS-4056.

(b) You must submit a Form MMS-4056 for each calendar month

beginning with the month gas processing is initiated.

(c) MMS must receive your completed Form MMS-4056 on or before:

[[Page 17138]]

(1) The 25th day of the second month following the month for which

you are reporting; or

(2) The 15th day of the second month following the month you for

which are reporting, if you are a new reporter and not yet converted to

electronic reporting for Forms MMS-3160 and MMS-4054.

(d) Your report must show 100 percent of the gas.

(e) If your plant has not processed gas that originated from a

Federal onshore, OCS, or Indian lease, or federally-approved agreement

before the point of final royalty determination for 6 months or more,

then:

(1) You must notify MMS in writing; and

(2) You are not required to file a Form MMS-4056 until your plant

resumes processing such gas.

10. Amend Sec. 216.56 to revise paragraph (b) and add paragraph (c)

to read as follows:

Sec. 216.56 Production allocation schedule report.

* * * * *

(b) You must submit a Production Allocation Schedule Report, Form

MMS-4058, for each calendar month beginning with the month in which you

first handle production covered by this section.

(c) MMS must receive your Form MMS-4058 on or before the following

dates:

(1) The 25th day of the second month following the month for which

you are reporting; or

(2) The 15th day of the second month following the month for which

you are reporting, if you are a new reporter and not yet converted to

electronic reporting for Form MMS-4054.

[FR Doc. 98-9109 Filed 4-7-98; 8:45 am]

BILLING CODE 4310-MR-P