Oil and Gas and Sulphur Operations in the Outer Continental Shelf and Oil Spill Financial Responsibility for Offshore Facilities-Civil Penalties, 8897-8899 [E7-3427]

Download as PDF Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Rules and Regulations presence, in addition to greater difficulty in apprehending perpetrators who have not been registered and tracked as provided by SORNA. This would thwart the legislative objective of ‘‘protect[ing] the public from sex offenders and offenders against children’’ by establishing ‘‘a comprehensive national system for the registration of those offenders,’’ SORNA § 102, because a substantial class of sex offenders could evade the Act’s registration requirements and enforcement mechanisms during the pendency of a proposed rule and delay in the effectiveness of a final rule. It would accordingly be contrary to the public interest to adopt this rule with the prior notice and comment period normally required under 5 U.S.C. 553(b) or with the delayed effective date normally required under 5 U.S.C. 553(d). Regulatory Flexibility Act The Attorney General, in accordance with the Regulatory Flexibility Act (5 U.S.C. 605(b)), has reviewed this regulation and by approving it certifies that this regulation will not have a significant economic impact on a substantial number of small entities for the purposes of that Act because the regulation concerns the application of the requirements of the Sex Offender Registration and Notification Act to certain offenders. Executive Order 12866 This regulation has been drafted and reviewed in accordance with Executive Order 12866, ‘‘Regulatory Planning and Review,’’ section 1(b), Principles of Regulation. The Department of Justice has determined that this rule is a ‘‘significant regulatory action’’ under Executive Order 12866, section 3(f), and accordingly this rule has been reviewed by the Office of Management and Budget. erjones on PRODPC74 with RULES Executive Order 13132 This regulation will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. There has been substantial consultation with state officials regarding the interpretation and implementation of the Sex Offender Registration and Notification Act. Therefore, in accordance with Executive Order 13132, it is determined that this rule does not have sufficient federalism implications to warrant the preparation of a federalism assessment. VerDate Aug<31>2005 15:10 Feb 27, 2007 Jkt 211001 8897 Executive Order 12988—Civil Justice Reform prior to its enactment under sections 112(b) and 113(d) of the Act. This regulation meets the applicable standards set forth in sections 3(a) and 3(b)(2) of Executive Order 12988. § 72.2 Unfunded Mandates Reform Act of 1995 This rule will not result in the expenditure by State, local and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year, and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995. Small Business Regulatory Enforcement Fairness Act of 1996 This rule is not a major rule as defined by section 251 of the Small Business Regulatory Enforcement Fairness Act of 1996. 5 U.S.C. 804. This rule will not result in an annual effect on the economy of $100 million or more; a major increase in costs or prices; or significant adverse effects on competition, employment, investment, productivity, or innovation, or on the ability of United States-based companies to compete with foreignbased companies in domestic and export markets. List of Subjects in 28 CFR Part 72 Crime, Information, Law enforcement, Prisons, Prisoners, Records, Probation and parole. I For the reasons stated in the preamble, part 72 of chapter I of Title 28 of the Code of Federal Regulations is added to read as follows: PART 72—SEX OFFENDER REGISTRATION AND NOTIFICATION Sec. 72.1 72.2 72.3 § 72.3 Applicability of the Sex Offender Registration and Notification Act. The requirements of the Sex Offender Registration and Notification Act apply to all sex offenders, including sex offenders convicted of the offense for which registration is required prior to the enactment of that Act. Example 1. A sex offender is federally convicted of aggravated sexual abuse under 18 U.S.C. 2241 in 1990 and is released following imprisonment in 2007. The sex offender is subject to the requirements of the Sex Offender Registration and Notification Act and could be held criminally liable under 18 U.S.C. 2250 for failing to register or keep the registration current in any jurisdiction in which the sex offender resides, is an employee, or is a student. Example 2. A sex offender is convicted by a state jurisdiction in 1997 for molesting a child and is released following imprisonment in 2000. The sex offender initially registers as required, but disappears after a couple of years and does not register in any other jurisdiction. Following the enactment of the Sex Offender Registration and Notification Act, the sex offender is found to be living in another state and is arrested there. The sex offender has violated the requirement under the Sex Offender Registration and Notification Act to register in each state in which he resides, and could be held criminally liable under 18 U.S.C. 2250 for the violation because he traveled in interstate commerce. Dated: February 16, 2007. Alberto R. Gonzales, Attorney General. [FR Doc. E7–3063 Filed 2–27–07; 8:45 am] BILLING CODE 4410–18–P Purpose. Definitions. Applicability of the Sex Offender Registration and Notification Act. Authority: Pub. L. 109–248, 120 Stat. 587. § 72.1 Frm 00019 Fmt 4700 DEPARTMENT OF THE INTERIOR Minerals Management Service 30 CFR Parts 250 and 253 Purpose. This part specifies the applicability of the requirements of the Sex Offender Registration and Notification Act to sex offenders convicted prior to the enactment of that Act. These requirements include registering and keeping the registration current in each jurisdiction in which a sex offender resides, is an employee, or is a student. The Attorney General has the authority to specify the applicability of the Act’s requirements to sex offenders convicted PO 00000 Definitions. All terms used in this part that are defined in section 111 of the Sex Offender Registration and Notification Act (title 1 of Pub. L. 109–248) shall have the same definitions in this part. Sfmt 4700 RIN 1010–AD39 Oil and Gas and Sulphur Operations in the Outer Continental Shelf and Oil Spill Financial Responsibility for Offshore Facilities—Civil Penalties Minerals Management Service (MMS), Interior. ACTION: Final rule. AGENCY: SUMMARY: The MMS is required to review the maximum daily civil penalty E:\FR\FM\28FER1.SGM 28FER1 erjones on PRODPC74 with RULES 8898 Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Rules and Regulations assessment allowable under 43 U.S.C. 1350 at least once every 3 years for the purpose of adjusting this amount in accordance with the Consumer Price Index (CPI) as prepared by the Bureau of Labor Statistics, Department of Labor. The same review and adjustment process is required every 4 years for the maximum daily civil penalty assessment allowable under 33 U.S.C. 2716a. The intended effect is for punitive assessments to keep up with inflation. EFFECTIVE DATE: This final rule becomes effective on March 30, 2007. FOR FURTHER INFORMATION CONTACT: Joanne McCammon, Safety and Enforcement Branch at (703) 787–1292 or e-mail Joanne.McCammon@mms.gov. SUPPLEMENTARY INFORMATION: Background: The Oil Pollution Act of 1990 (OPA 90) (Pub. L. 101–380) expanded and strengthened MMS’s authority to impose penalties for violating regulations promulgated under the Outer Continental Shelf (OCS) Lands Act. Section 8201 of OPA 90 (43 U.S.C. 1350) authorizes the Secretary of the Interior (Secretary) to assess a civil penalty without providing notice and time for corrective action where a failure to comply with applicable regulations results in a threat of serious, irreparable, or immediate harm or damage to human life or the environment. The goal of the MMS OCS Civil Penalty Program is to ensure safe and clean operations on the OCS. By pursuing, assessing, and collecting civil penalties, the program is designed to encourage compliance with OCS statutes and regulations. Not all regulatory violations warrant a review to initiate civil penalty proceedings; however, violations that cause injury, death, or environmental damage, or pose a threat to human life or the environment, will trigger such review. Every 3 years, in accordance with OPA 90 (43 U.S.C. 1350(b)(1)), MMS analyzes the civil penalty maximum amount in conjunction with the CPI prepared by the U.S. Department of Labor. If an adjustment is necessary, MMS informs the public through the Federal Register of the new maximum amount. MMS uses Office of Management and Budget (OMB) guidelines for determining how penalty amounts should be rounded. In computing this new civil penalty maximum amount, MMS divided the August 2006 CPI of 203.9 by the previously used August 2002 CPI of 180.7. This resulted in a multiplying factor of 1.13. The previous maximum amount of $30,000 per violation per day VerDate Aug<31>2005 15:10 Feb 27, 2007 Jkt 211001 was multiplied by the 1.13 factor and resulted in a new maximum penalty amount of $33,900. This amount was rounded to $35,000 as per OMB guidelines. The new civil penalty maximum amount is now $35,000 per violation per day. It must be remembered that this is a maximum amount and is only used when a noncompliance issue warrants it. OPA 90 also established civil penalties for failure to comply with financial responsibility regulations. Section 4303 of OPA 90 (33 U.S.C. 2716a) authorized the President (and, by delegation, the Secretary) to assess a civil penalty of up to $25,000 per day for each violation. The Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101–410) established a 4year cycle for review and adjustment of all federally imposed civil monetary penalties in order to maintain the deterrent effect of such penalties, and promote compliance with the law. The cost-of-living adjustment process (set out in a note to 28 U.S.C. 2461) is the same as that described above. Applying the multiplying factor of 1.13 to the previous maximum amount of $25,000, results in a new maximum civil penalty of $28,250 per violation per day. However, Section 3720E of the Omnibus Appropriations Act of 1996 (Pub. L. 104–134) included a provision limiting the first adjustment of any civil penalty pursuant to the 1990 Act to 10 percent. This is the first adjustment of 33 U.S.C. 2716a. The new civil penalty maximum amount under 33 U.S.C. 2716a is therefore $27,500 per violation per day. Procedural Matters Regulatory Planning and Review (Executive Order (E.O.) 12866) This final rule is not a significant rule as determined by the OMB and is not subject to review under E.O. 12866. (1) This final 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 final rule simply adjusts the maximum civil penalty amount using the CPI. (2) This final rule will not create a serious inconsistency or otherwise interfere with action taken or planned by another agency because the rule only adjusts the civil penalty maximum. (3) This final rule will not alter the budgetary effects of entitlements, grants, user fees or loan programs, or the rights or obligations of their recipients. The PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 changes in this final rule simply adjust the civil penalty maximum. (4) This final rule will not raise novel legal or policy issues. Regulatory Flexibility Act (RFA) The Department of the Interior (DOI) certifies that this final 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 final rule applies to all lessees that operate on the OCS. Generally, lessees that operate under this rule would fall under the Small Business Administration’s (SBA) North American Industry Classification System Codes 211111, Crude Petroleum and Natural Gas Extraction and 213111, Drilling Oil and Gas Wells. Under these codes, the SBA considers all companies with fewer than 500 employees to be a small business. We estimate that of the 130 lessees that explore for and produce oil and gas on the OCS, approximately 90 are small businesses (70 percent). The primary effect of the final rule is the increase in civil penalties assessed only for those operators that do not comply with Federal OCS regulations. This rule will have no impact on the oil and gas industry operators that comply with Federal OCS regulations. For those operators whose noncompliance results in a civil penalty, the increase resulting from the inflation factor of 1.13 amounts to an increase of less than $170,000 spread over an average of 39 cases per year or slightly under $4,400 additional per case. This is using data over the past 10 years and averaging civil penalties paid and number of cases paid per year. This dollar amount is minor considering the substantial costs of operations on the OCS. This is true for even the smallest of OCS operators. Your comments are important. The Small Business and Agriculture 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. E:\FR\FM\28FER1.SGM 28FER1 Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Rules and Regulations Small Business Regulatory Enforcement Fairness Act (SBREFA) This final rule is not a major rule under the SBREFA (5 U.S.C. 804(2)). This final rule: a. Will not have an annual effect on the economy of $100 million or more. As described above, we estimate an annual increase of $4,400 per civil penalty case. b. Will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions. The minor increase in cost will not change the way the oil and gas industry conducts business, nor will it affect regional oil and gas prices. Therefore, it will not cause major cost increases for consumers, the oil and gas industry, or any Government agencies. 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 final rule will not change that requirement. Unfunded Mandates Reform Act (UMRA) This final 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 final 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 UMRA (2 U.S.C. 1531 et seq.) is not required. This is because the final rule will not affect State, local, or tribal governments, and the effect on the private sector is small. erjones on PRODPC74 with RULES Takings Implication Assessment (Executive Order 12630) The final rule is not a governmental action capable of interference with constitutionally protected property rights. Thus, MMS did not need to prepare a Takings Implication Assessment according to E.O. 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. Federalism (Executive Order 13132) With respect to E.O. 13132, this final rule will not have federalism implications. This final rule 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 final rule will not affect that role. VerDate Aug<31>2005 15:10 Feb 27, 2007 Jkt 211001 Civil Justice Reform (Executive Order 12988) With respect to E.O. 12988, The Office of the Solicitor has determined that the final rule does not unduly burden the judicial system and does meet the requirements of sections 3(a) and 3(b)(2) of the Order. Paperwork Reduction Act (PRA) of 1995 This final rule does not contain any information collection subject to the PRA, and does not require a submittal to OMB for review and approval under section 3507(d) of the PRA. National Environmental Policy Act (NEPA) of 1969 The final rulemaking does not introduce requirements that would cause lessees or operators to perform or change any activities on the OCS which would result in environmental impacts beyond those addressed in the NEPA documents associated with the OCS plans. MMS has analyzed this final rule according to the criteria of the NEPA and 516 Department Manual 6, Appendix 10.4C(1), ‘‘Issuance and/or modification of regulations.’’ This final rule does not constitute a major Federal action significantly affecting the quality of the human environment and falls within the categorical exclusion of Appendix 10.4C(1) because the impact of the final rule will be limited to administrative and economic effects. A detailed statement under the NEPA is not required. Energy Supply, Distribution, or Use (Executive Order 13211) Executive Order 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 final rule is not a significant energy action, and therefore would not require a Statement of Energy Effects because it: a. Is not a significant regulatory action under E.O. 12866, b. Is not likely to have a significant adverse effect on the supply, distribution, or use of energy, and c. Has not been designated by the Administrator of the Office of Information and Regulatory Affairs, OMB, as a significant energy action. Consultation With Indian Tribes (Executive Order 13175) Under the criteria in E.O. 13175, we have evaluated this final rule and determined that it has no potential effects on federally recognized Indian tribes. There are no Indian or tribal lands on the OCS. PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 8899 List of Subjects in 30 CFR Part 250 Administrative practice and procedure, Continental shelf, Environmental protection, Investigations, Oil and gas exploration, Penalties, Reporting and recordkeeping requirements. 30 CFR Part 253 Continental shelf, Environmental protection, Oil and gas exploration, Penalties, Reporting and recordkeeping requirements. Dated: February 5, 2007. C. Stephen Allred, Assistant Secretary—Land and Minerals Management. For the reasons stated in the preamble, Minerals Management Service (MMS) amends 30 CFR parts 250 and 253 as follows: I PART 250—OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER CONTINENTAL SHELF 1. Authority citation for part 250 continues to read as follows: I Authority: 43 U.S.C. 1331 et seq., 31 U.S.C. 9701. 2. Revise § 250.1403 to read as follows: I § 250.1403 penalty? What is the maximum civil The maximum civil penalty is $35,000 per day per violation. PART 253—OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE FACILITIES 3. Authority citation for part 253 is amended to read as follows: I Authority: 33 U.S.C. 2701 et seq., 28 U.S.C. 2461 (note) 4. In § 253.51, revise paragraph (a) to read as follows: I § 253.51 What are the penalties for not complying with this part? (a) If you fail to comply with the financial responsibility requirements of OPA at 33 U.S.C. 2716 or with the requirements of this part, then you may be liable for a civil penalty of up to $27,500 per COF per day of violation (that is, each day a COF is operated without acceptable evidence of OSFR). * * * * * [FR Doc. E7–3427 Filed 2–27–07; 8:45 am] BILLING CODE 4310–MR–P E:\FR\FM\28FER1.SGM 28FER1

Agencies

[Federal Register Volume 72, Number 39 (Wednesday, February 28, 2007)]
[Rules and Regulations]
[Pages 8897-8899]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-3427]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 250 and 253

RIN 1010-AD39


Oil and Gas and Sulphur Operations in the Outer Continental Shelf 
and Oil Spill Financial Responsibility for Offshore Facilities--Civil 
Penalties

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The MMS is required to review the maximum daily civil penalty

[[Page 8898]]

assessment allowable under 43 U.S.C. 1350 at least once every 3 years 
for the purpose of adjusting this amount in accordance with the 
Consumer Price Index (CPI) as prepared by the Bureau of Labor 
Statistics, Department of Labor. The same review and adjustment process 
is required every 4 years for the maximum daily civil penalty 
assessment allowable under 33 U.S.C. 2716a. The intended effect is for 
punitive assessments to keep up with inflation.

EFFECTIVE DATE: This final rule becomes effective on March 30, 2007.

FOR FURTHER INFORMATION CONTACT: Joanne McCammon, Safety and 
Enforcement Branch at (703) 787-1292 or e-mail Joanne.McCammon@mms.gov.

SUPPLEMENTARY INFORMATION:

    Background: The Oil Pollution Act of 1990 (OPA 90) (Pub. L. 101-
380) expanded and strengthened MMS's authority to impose penalties for 
violating regulations promulgated under the Outer Continental Shelf 
(OCS) Lands Act. Section 8201 of OPA 90 (43 U.S.C. 1350) authorizes the 
Secretary of the Interior (Secretary) to assess a civil penalty without 
providing notice and time for corrective action where a failure to 
comply with applicable regulations results in a threat of serious, 
irreparable, or immediate harm or damage to human life or the 
environment. The goal of the MMS OCS Civil Penalty Program is to ensure 
safe and clean operations on the OCS. By pursuing, assessing, and 
collecting civil penalties, the program is designed to encourage 
compliance with OCS statutes and regulations.
    Not all regulatory violations warrant a review to initiate civil 
penalty proceedings; however, violations that cause injury, death, or 
environmental damage, or pose a threat to human life or the 
environment, will trigger such review.
    Every 3 years, in accordance with OPA 90 (43 U.S.C. 1350(b)(1)), 
MMS analyzes the civil penalty maximum amount in conjunction with the 
CPI prepared by the U.S. Department of Labor. If an adjustment is 
necessary, MMS informs the public through the Federal Register of the 
new maximum amount. MMS uses Office of Management and Budget (OMB) 
guidelines for determining how penalty amounts should be rounded. In 
computing this new civil penalty maximum amount, MMS divided the August 
2006 CPI of 203.9 by the previously used August 2002 CPI of 180.7. This 
resulted in a multiplying factor of 1.13. The previous maximum amount 
of $30,000 per violation per day was multiplied by the 1.13 factor and 
resulted in a new maximum penalty amount of $33,900. This amount was 
rounded to $35,000 as per OMB guidelines. The new civil penalty maximum 
amount is now $35,000 per violation per day. It must be remembered that 
this is a maximum amount and is only used when a non-compliance issue 
warrants it.
    OPA 90 also established civil penalties for failure to comply with 
financial responsibility regulations. Section 4303 of OPA 90 (33 U.S.C. 
2716a) authorized the President (and, by delegation, the Secretary) to 
assess a civil penalty of up to $25,000 per day for each violation. The 
Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-
410) established a 4-year cycle for review and adjustment of all 
federally imposed civil monetary penalties in order to maintain the 
deterrent effect of such penalties, and promote compliance with the 
law. The cost-of-living adjustment process (set out in a note to 28 
U.S.C. 2461) is the same as that described above. Applying the 
multiplying factor of 1.13 to the previous maximum amount of $25,000, 
results in a new maximum civil penalty of $28,250 per violation per 
day. However, Section 3720E of the Omnibus Appropriations Act of 1996 
(Pub. L. 104-134) included a provision limiting the first adjustment of 
any civil penalty pursuant to the 1990 Act to 10 percent. This is the 
first adjustment of 33 U.S.C. 2716a. The new civil penalty maximum 
amount under 33 U.S.C. 2716a is therefore $27,500 per violation per 
day.

Procedural Matters

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

    This final rule is not a significant rule as determined by the OMB 
and is not subject to review under E.O. 12866.
    (1) This final 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 final rule simply adjusts the maximum civil penalty 
amount using the CPI.
    (2) This final rule will not create a serious inconsistency or 
otherwise interfere with action taken or planned by another agency 
because the rule only adjusts the civil penalty maximum.
    (3) This final rule will not alter the budgetary effects of 
entitlements, grants, user fees or loan programs, or the rights or 
obligations of their recipients. The changes in this final rule simply 
adjust the civil penalty maximum.
    (4) This final rule will not raise novel legal or policy issues.

Regulatory Flexibility Act (RFA)

    The Department of the Interior (DOI) certifies that this final 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 final rule 
applies to all lessees that operate on the OCS. Generally, lessees that 
operate under this rule would fall under the Small Business 
Administration's (SBA) North American Industry Classification System 
Codes 211111, Crude Petroleum and Natural Gas Extraction and 213111, 
Drilling Oil and Gas Wells. Under these codes, the SBA considers all 
companies with fewer than 500 employees to be a small business. We 
estimate that of the 130 lessees that explore for and produce oil and 
gas on the OCS, approximately 90 are small businesses (70 percent). The 
primary effect of the final rule is the increase in civil penalties 
assessed only for those operators that do not comply with Federal OCS 
regulations.
    This rule will have no impact on the oil and gas industry operators 
that comply with Federal OCS regulations. For those operators whose 
non-compliance results in a civil penalty, the increase resulting from 
the inflation factor of 1.13 amounts to an increase of less than 
$170,000 spread over an average of 39 cases per year or slightly under 
$4,400 additional per case. This is using data over the past 10 years 
and averaging civil penalties paid and number of cases paid per year. 
This dollar amount is minor considering the substantial costs of 
operations on the OCS. This is true for even the smallest of OCS 
operators.
    Your comments are important. The Small Business and Agriculture 
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.

[[Page 8899]]

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This final rule is not a major rule under the SBREFA (5 U.S.C. 
804(2)). This final rule:
    a. Will not have an annual effect on the economy of $100 million or 
more. As described above, we estimate an annual increase of $4,400 per 
civil penalty case.
    b. Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions. The minor increase in cost will not 
change the way the oil and gas industry conducts business, nor will it 
affect regional oil and gas prices. Therefore, it will not cause major 
cost increases for consumers, the oil and gas industry, or any 
Government agencies.
    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 final rule will not change that 
requirement.

Unfunded Mandates Reform Act (UMRA)

    This final 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 final 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 UMRA (2 U.S.C. 1531 et 
seq.) is not required. This is because the final rule will not affect 
State, local, or tribal governments, and the effect on the private 
sector is small.

Takings Implication Assessment (Executive Order 12630)

    The final rule is not a governmental action capable of interference 
with constitutionally protected property rights. Thus, MMS did not need 
to prepare a Takings Implication Assessment according to E.O. 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights.

Federalism (Executive Order 13132)

    With respect to E.O. 13132, this final rule will not have 
federalism implications. This final rule 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 final rule 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 the final rule does not unduly burden the judicial 
system and does meet the requirements of sections 3(a) and 3(b)(2) of 
the Order.

Paperwork Reduction Act (PRA) of 1995

    This final rule does not contain any information collection subject 
to the PRA, and does not require a submittal to OMB for review and 
approval under section 3507(d) of the PRA.

National Environmental Policy Act (NEPA) of 1969

    The final rulemaking does not introduce requirements that would 
cause lessees or operators to perform or change any activities on the 
OCS which would result in environmental impacts beyond those addressed 
in the NEPA documents associated with the OCS plans.
    MMS has analyzed this final rule according to the criteria of the 
NEPA and 516 Department Manual 6, Appendix 10.4C(1), ``Issuance and/or 
modification of regulations.'' This final rule does not constitute a 
major Federal action significantly affecting the quality of the human 
environment and falls within the categorical exclusion of Appendix 
10.4C(1) because the impact of the final rule will be limited to 
administrative and economic effects. A detailed statement under the 
NEPA is not required.

Energy Supply, Distribution, or Use (Executive Order 13211)

    Executive Order 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 final rule is not a significant 
energy action, and therefore would not require a Statement of Energy 
Effects because it:
    a. Is not a significant regulatory action under E.O. 12866,
    b. Is not likely to have a significant adverse effect on the 
supply, distribution, or use of energy, and
    c. Has not been designated by the Administrator of the Office of 
Information and Regulatory Affairs, OMB, as a significant energy 
action.

Consultation With Indian Tribes (Executive Order 13175)

    Under the criteria in E.O. 13175, we have evaluated this final rule 
and determined that it has no potential effects on federally recognized 
Indian tribes. There are no Indian or tribal lands on the OCS.

List of Subjects in

30 CFR Part 250

    Administrative practice and procedure, Continental shelf, 
Environmental protection, Investigations, Oil and gas exploration, 
Penalties, Reporting and recordkeeping requirements.

30 CFR Part 253

    Continental shelf, Environmental protection, Oil and gas 
exploration, Penalties, Reporting and recordkeeping requirements.

     Dated: February 5, 2007.
C. Stephen Allred,
Assistant Secretary--Land and Minerals Management.

0
For the reasons stated in the preamble, Minerals Management Service 
(MMS) amends 30 CFR parts 250 and 253 as follows:

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

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

    Authority: 43 U.S.C. 1331 et seq., 31 U.S.C. 9701.

0
2. Revise Sec.  250.1403 to read as follows:


Sec.  250.1403  What is the maximum civil penalty?

    The maximum civil penalty is $35,000 per day per violation.

PART 253--OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE 
FACILITIES

0
3. Authority citation for part 253 is amended to read as follows:

    Authority: 33 U.S.C. 2701 et seq., 28 U.S.C. 2461 (note)

0
4. In Sec.  253.51, revise paragraph (a) to read as follows:


Sec.  253.51  What are the penalties for not complying with this part?

    (a) If you fail to comply with the financial responsibility 
requirements of OPA at 33 U.S.C. 2716 or with the requirements of this 
part, then you may be liable for a civil penalty of up to $27,500 per 
COF per day of violation (that is, each day a COF is operated without 
acceptable evidence of OSFR).
* * * * *
 [FR Doc. E7-3427 Filed 2-27-07; 8:45 am]
BILLING CODE 4310-MR-P

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