Oil, Gas, and Sulphur Operations and Leasing in the Outer Continental Shelf (OCS)-Waiver of Fees, 61891-61893 [05-21281]

Agencies

• DEPARTMENT OF THE INTERIOR
• Minerals Management Service

[Federal Register Volume 70, Number 207 (Thursday, October 27, 2005)]
[Rules and Regulations]
[Pages 61891-61893]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-21281]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 250 and 256

RIN 1010-AD27


Oil, Gas, and Sulphur Operations and Leasing in the Outer 
Continental Shelf (OCS)--Waiver of Fees

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule; waiver of fees.

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SUMMARY: In light of the interruption of operations of the MMS Gulf of 
Mexico Region (GOMR) in the wake of Hurricanes Katrina and Rita, this 
rule waives until January 3, 2006, the payment of certain existing cost 
recovery fees that would be paid to MMS.

EFFECTIVE DATE: This regulation is effective on October 27, 2005.

FOR FURTHER INFORMATION CONTACT: Angela Mazzullo, Offshore Minerals 
Management (OMM) Budget Office at (703) 787-1691.

SUPPLEMENTARY INFORMATION:

Background

    MMS regulations currently charge cost recovery fees to lessees of 
Federal offshore oil and gas leases to offset the bureau's operating 
costs for specific administrative services provided to a particular 
lessee. These include pipeline right-of-way (ROW) grant applications, 
conversion of lease term pipelines to ROW pipelines, pipeline ROW 
assignments, record title/operating rights transfers, and filing of 
non-required documents.
    Under current rules, these fees are established at the following 
rates under the following regulations:

 
 
 
Pipeline ROW grant application.................       $2,350  30 CFR 250.1015(a).
Conversion of lease term pipeline to ROW                 300  30 CFR 250.1015(a).
 pipeline.
Pipeline ROW assignment........................           60  30 CFR 250.1018(b).
Record title/operating rights transfer.........          185  30 CFR 256.64(a)(8).
Non-required document filing...................           25  30 CFR 256.64(a)(8).
 

    On August 29, 2005, Hurricane Katrina came ashore on the Gulf of 
Mexico coast. The resultant flood of the City of New Orleans, 
Louisiana, forced the evacuation of the city and areas in the immediate 
vicinity. The evacuation area included MMS' GOMR office in Metairie, 
Louisiana. MMS has not been able to re-occupy the GOMR office and will 
not be able to do so for some time. While MMS GOMR personnel have 
resumed certain essential operations and services at a new temporary 
location in Houston, Texas, it is not possible to restore all functions 
and systems in that location in the immediate future. In addition, many 
MMS employees in the GOMR office have suffered severe property loss and 
personal and family dislocation, and will not be able to return to work 
immediately. When Hurricane Rita struck the Louisiana/Texas coast in 
September 2005, it further exacerbated these problems.
    Among the operations that have been disrupted as a result of the 
hurricanes and the closure of the GOMR office in Metairie, is the 
collection and disposition of, and proper accounting for, cost recovery 
fees, including the fees identified above. Because very few of the 
documents identified are filed in either MMS' Pacific Region office or 
MMS' Alaska Region office, the computers that handle these payments are 
integrated with the GOMR office computers. Consequently MMS is 
temporarily unable to process payments that would be made to those 
offices.

Immediate Final Rule

    Because the MMS presently cannot receive or handle cost recovery 
fee payments from lessees until it is able to restore or replace that 
part of its operations, MMS is suspending the operation of the 
provisions identified above until January 3, 2006.
    The Administrative Procedure Act, at 5 U.S.C. 553(b), requires an 
agency to publish a proposed rule and seek public comment before 
promulgating a final rule, except

    (B) when the agency for good cause finds (and incorporates the 
finding and a brief statement of reasons therefor in the rules 
issued) that notice and public procedure thereon are impracticable, 
unnecessary, or contrary to the public interest.

    Under this provision, MMS for good cause finds that notice and 
public comment on this rulemaking is impracticable, unnecessary, and 
contrary to the public interest. The GOMR office's current situation 
cannot be changed or affected through public comment, and the need to 
suspend the operation of the cost recovery provisions is immediate.
    The Administrative Procedure Act, at 5 U.S.C. 553(d) further 
provides:

    (d) The required publication or service of a substantive rule 
shall be made not less than 30 days before its effective date, 
except--
    (1) A substantive rule which grants or recognizes an exemption 
or relieves a restriction;
    (2) Interpretative rules and statements of policy; or
    (3) As otherwise provided by the agency for good cause found and 
published with the rule.

    As explained above, the need to suspend the operation of the cost 
recovery provisions is immediate and arises in much less than 30 days. 
MMS operations would be unnecessarily hindered if MMS were not to make 
this rule effective immediately. Therefore, MMS for good cause finds 
that this rule should take effect immediately.
    If the GOMR office is not able to restore normal operations by 
January 3, 2006, MMS may consider extending the suspension of the cost 
recovery provisions.

[[Page 61892]]

Procedural Matters

Regulatory Planning and Review (Executive Order (E.O.) 12866)

    This document is not a significant rule as determined by the Office 
of Management and Budget (OMB) and is not subject to review under E.O. 
12866.
    (1) This rule will not have an annual effect of $100 million or 
more on the economy. It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities. This rule waives for a limited time certain fees 
previously established based on cost recovery principles.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency because the 
costs incurred are for specific MMS services and other agencies are not 
involved in these aspects of the OCS program.
    (3) This rule will not alter the budgetary effects of entitlements, 
grants, user fees, or loan programs or the rights or obligations of 
their recipients. This change will have no effect on the rights of the 
recipients of entitlements, grants, user fees, or loan programs. The 
fees waived by this rule are service fees based on cost recovery, and 
not user fees.
    (4) This rule will not raise novel legal or policy issues.

Regulatory Flexibility Act (RFA)

    MMS certifies that this rule will not have a significant economic 
effect on a substantial number of small entities under the RFA (5 
U.S.C. 601 et seq.).
    This change will affect lessees and operators of leases in the OCS. 
This includes about 130 Federal oil and gas lessees and 115 holders of 
pipeline rights-of-way. Small lessees that operate under this rule will 
fall under the Small Business Administration's (SBA) North American 
Industry Classification System Codes (NAICS) 211111, Crude Petroleum 
and Natural Gas Extraction and 213111, Drilling Oil and Gas Wells. For 
these NAICS code classifications, a small company is one with fewer 
than 500 employees. Based on these criteria, an estimated 70 percent of 
these companies are considered small. This rule, therefore, affects a 
substantial number of small entities.
    This rule will not materially affect entitlements, grants, user 
fees, loan programs, or the rights and obligations of their recipients. 
MMS is simply waiving certain service-based fees, not increasing them. 
The total estimated fee revenue MMS would waive until January 3, 2006 
is between $400,000 and $500,000.
    Comments are important. The SBA Regulatory Enforcement Ombudsman 
and 10 Regional Fairness Boards were established to receive comments 
from small business 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 actions of MMS, call 1-888-734-3247. You may comment to the SBA 
without fear of retaliation. Disciplinary action for retaliation by an 
MMS employee may include suspension or termination from employment with 
the DOI.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This is not a major rule under the SBREFA (5 U.S.C. 804(2)). This 
rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    (c) Will not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises. 
Leasing on the U.S. OCS is limited to residents of the U.S. or 
companies incorporated in the U.S. This rule does not change that 
requirement.

Unfunded Mandates Reform Act (UMRA) of 1995

    This rule will not impose an unfunded mandate on State, local, or 
tribal governments or the private sector of more than $100 million per 
year. The rule will not have a significant or unique effect on State, 
local, or tribal governments or the private sector. A statement 
containing the information required by the UMRA (2 U.S.C. 1531 et seq.) 
is not required. This is because the rule will not affect State, local, 
or tribal governments, and the effect on the private sector is small.

Takings Implication Assessment (Executive Order 12630)

    With respect to E.O. 12630, the rule will not have significant 
takings implications. A Takings Implication Assessment is not required. 
The rulemaking is not a governmental action capable of interfering with 
constitutionally protected property rights.

Federalism (Executive Order 13132)

    With respect to E.O.13132, the rule will not have Federalism 
implications. It will not substantially and directly affect the 
relationship between the Federal and State governments. To the extent 
that State and local governments have a role in OCS activities, this 
change will not affect that role.

Civil Justice Reform (Executive Order 12988)

    With respect to E.O. 12988, the Office of the Solicitor has 
determined that this rule will not unduly burden the judicial system, 
and meets the requirements of Sections 3(a) and 3(b)(2) of the E.O.

Paperwork Reduction Act (PRA) of 1995

    This rulemaking relates to 30 CFR part 250, subpart J and to 30 CFR 
part 256, subpart J. The rulemaking affects the information collections 
for these regulations but will not change the approved burden hours, 
just the associated fees. Therefore, OMB has determined that there is 
no change in the information collection and that MMS does not need to 
make a formal submission by Form OMB 83-I for this rulemaking.
    OMB has approved the information collections for the affected 
regulations as 30 CFR part 250, subpart J, 1010-0050 and 30 CFR part 
256, subpart J, 1010-0006. 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 (NEPA) of 1969

    The MMS has determined that this rule is administrative and 
involves changes addressing fee requirements. Therefore, it is 
categorically excluded from environmental review under section 
102(2)(C) of the NEPA, pursuant to 516 DM 2.3A and 516 DM 2, Appendix 
1, Item 1.10.
    In addition, the rule does not meet any of the 10 criteria for 
exceptions to categorical exclusions listed in 516 DM 2, Appendix 2. 
Pursuant to Council on Environmental Quality regulations (40 CFR 
1508.4) and the environmental policies and procedures of the Department 
of the Interior, the term ``categorical exclusions'' means categories 
of actions which do not individually or cumulatively have a significant 
effect on the human environment and which have no such effect in 
procedures adopted by a Federal agency and therefore require neither an 
environmental assessment nor an environmental impact statement.

[[Page 61893]]

Effects on the Nation's Energy Supply (Executive Order 13211)

    E.O. 13211 requires the agency to prepare a Statement of Energy 
Effects when it takes a regulatory action that is identified as a 
significant energy action. This rule is not a significant energy 
action, and therefore does not require a Statement of Energy Effects, 
because it:
    (1) Is not a significant regulatory action under E.O. 12866,
    (2) Is not likely to have a significant adverse effect on the 
supply, distribution, or use of energy, and
    (3) Has not been designated by the Administrator of the OIRA, OMB, 
as a significant energy action.

Consultation and Coordination With Indian Tribal Governments (Executive 
Order 13175)

    In accordance with E.O. 13175, this rule will not have tribal 
implications that impose substantial direct compliance costs on Indian 
tribal governments.

Clarity of This Regulation

    E.O. 12866 requires each agency to write regulations that are easy 
to understand. We invite your comments on how to make this rule easier 
to understand, including answers to questions such as the following:
    (1) Are the requirements in the rule clearly stated?
    (2) Does the rule contain technical language or jargon that 
interferes with its clarity?
    (3) Does the format of the rule (grouping and order of sections, 
use of headings, paragraphing, etc.) aid or reduce its clarity?
    (4) Is the description of the rule in the SUPPLEMENTARY INFORMATION 
section of this preamble helpful in understanding the rule? What else 
can we do to make the rule easier to understand?
    Send a copy of any comments that concern how we could make this 
rule easier to understand to: Office of Regulatory Affairs, Department 
of the Interior, Room 7229, 1849 C Street, NW., Washington, DC 20240. 
You may also e-mail the comments to this address: Exsec@ios.doi.gov.

List of Subjects in 30 CFR Part 250

    Continental shelf, Environmental impact statements, Environmental 
protection, Government contracts, Investigations, Oil and gas 
exploration, Penalties, Pipelines, Public lands--mineral resources, 
Public lands--right-of-way, Reporting and recordkeeping requirements, 
Sulphur.

List of Subjects in 30 CFR Part 256

    Administrative practice and procedure, Continental shelf, 
Environmental protection, Government contracts, Intergovernmental 
relations, Oil and gas exploration, Public lands--mineral resources, 
Public lands--rights-of-way, Reporting and recordkeeping requirements, 
Surety bonds.

    Dated: October 17, 2005.
Chad Calvert,
Acting Assistant Secretary--Land and Minerals Management.


0
For the reasons explained in the preamble, MMS amends 30 CFR parts 250 
and 256 as follows:

PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

0
1. The authority citation for part 250 continues to read as follows:

    Authority: 43 U.S.C. 1331 et seq.


0
2. Section 250.1015 is amended by adding a new paragraph (e) as 
follows:


Sec.  250.1015  Applications for pipeline rights-of-way grants.

* * * * *
    (e) Notwithstanding the provisions of paragraph (a) of this 
section, the requirements to pay filing fees under that paragraph are 
suspended until January 3, 2006.

0
3. Section 250.1018 is amended by adding a new paragraph (c) as 
follows:


Sec.  250.1018  Assignment of pipeline right-of-way grants.

* * * * *
    (c) Notwithstanding the provisions of paragraph (b) of this 
section, the requirement to pay a filing fee under that paragraph is 
suspended until January 3, 2006.

PART 256--LEASING OF SULPHUR OR OIL AND GAS IN THE OUTER 
CONTINENTAL SHELF

0
4. The authority for part 256 continues to read as follows:

    Authority: 43 U.S.C. 1331 et seq., 42 U.S.C. 6213.


0
5. Section 256.64 is amended by adding a new paragraph (a)(9) as 
follows:
* * * * *
    (a) * * *
    (9) Notwithstanding the provisions of paragraph (a)(8) of this 
section, the requirements to pay a filing fee in connection with any 
application for approval of any instrument of transfer and to pay a fee 
in connection with documents not required to be filed are suspended 
until January 3, 2006.
* * * * *
[FR Doc. 05-21281 Filed 10-26-05; 8:45 am]
BILLING CODE 4310-MR-P