Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Civil Penalties, 38294-38296 [2011-16288]
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Federal Register / Vol. 76, No. 126 / Thursday, June 30, 2011 / Rules and Regulations
will require substantial effort.13 SIFMA
and WMBA requested that the
compliance date for these provisions be
extended until November 30, 2011, and
FIF requested an extension until January
2012.
The Commission believes that
providing a limited extension of the
compliance date to November 30, 2011,
for (1) all of the requirements of Rule
15c3–5 for fixed income securities, and
(2) the requirements of Rule 15c3–
5(c)(1)(i) for all securities, is reasonable
to assure market participants have
sufficient time to develop and
implement the required risk
management controls for activities
where the application of these types of
controls may not be widespread.
Accordingly, the Commission is
extending the compliance date to
November 30, 2011, for (1) all of the
requirements of Rule 15c3–5 for fixed
income securities, and (2) the
requirements of Rule 15c3–5(c)(1)(i) for
all securities.
II. Conclusion
For the reasons cited above, the
Commission, for good cause, finds that
notice and solicitation of comment
regarding the extension of the
compliance date set forth herein are
impractical, unnecessary, or contrary to
the public interest.14 The Commission
notes that the compliance date is
quickly approaching, and that a limited
extension of the compliance date for the
reasons cited above will facilitate the
orderly implementation of Rule 15c3–5.
In light of time constraints, full notice
and comment could not be completed
prior to the July 14, 2011 compliance
date. Broker-dealers with market access
will have additional time to comply
with the provisions of Rule 15c3–5
discussed above beyond the compliance
date originally set forth in the Rule
15c3–5 Adopting Release. Further, the
Commission recognizes that it is
imperative for broker-dealers with
market access to receive notice of the
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13 Id.
14 See Section 553(b)(3)(B) of the Administrative
Procedure Act (5 U.S.C. 553(b)(3)(B)) (stating that
an agency may dispense with prior notice and
comment when it finds, for good cause, that notice
and comment are ‘‘impractical, unnecessary, or
contrary to the public interest’’). This finding also
satisfies the requirements of 5 U.S.C. 808(2),
allowing the rules to become effective
notwithstanding the requirement of 5 U.S.C. 801 (if
a Federal agency finds that notice and public
comment are ‘‘impractical, unnecessary or contrary
to the public interest,’’ a rule ‘‘shall take effect at
such time as the Federal agency promulgating the
rule determines’’). Also, because the Regulatory
Flexibility Act (5 U.S.C. 601—612) only requires
agencies to prepare analyses when the
Administrative Procedures Act requires general
notice of rulemaking, that Act does not apply to the
actions that we are taking in this release.
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extended compliance date, and
providing immediate effectiveness upon
publication of this release will allow
them to adjust their implementation
plans accordingly.15
The Commission identified certain
costs and benefits associated with the
Rule in the Rule 15c3–5 Adopting
Release. The extension of the
compliance date for Rule 15c3–5 will
delay benefits of the Rule, but the
Commission believes that the limited
extension is necessary and appropriate
because it will provide broker-dealers
with market access additional time to
develop, test, and implement certain of
the required risk management controls
and supervisory procedures under the
Rule. The extension also will delay the
costs of complying with the Rule.16 The
Commission believes that the extension
does not impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Exchange Act, because
the extension will give broker-dealers
with market access additional time to
develop, test, and implement certain of
the risk management controls and
supervisory procedures that are required
under the Rule.
Dated: June 27, 2011.
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011–16467 Filed 6–29–11; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management,
Regulation and Enforcement
30 CFR Parts 250 and 253
[Docket ID: BOEM–2010–0070]
RIN 1010–AD74
Oil and Gas and Sulphur Operations in
the Outer Continental Shelf—Civil
Penalties
Bureau of Ocean Energy
Management, Regulation and
Enforcement (BOEMRE), Interior.
AGENCY:
15 The compliance date extensions set forth in
this release are effective upon publication in the
Federal Register. Section 553(d)(1) of the
Administrative Procedure Act allows effective dates
that are less than 30 days after publication for a
‘‘substantive rule which grants or recognizes an
exemption or relieves a restriction.’’ 5 U.S.C.
553(d)(1).
16 The Commission identified in the Rule 15c3–
5 Adopting Release certain ongoing costs associated
with Rule 15c3–5. Because of the extension of the
compliance date, certain costs may be avoided from
July 14, 2011 to November 30, 2011.
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Fmt 4700
Sfmt 4700
ACTION:
Final rule.
The Outer Continental Shelf
Lands Act (OCSLA) requires the Bureau
of Ocean Energy Management,
Regulation and Enforcement (BOEMRE)
to review the maximum daily civil
penalty assessment for violations of
regulations implementing the OCSLA at
least once every 3 years (43 U.S.C.
1350). Similarly, a review and
adjustment process is required at least
once every 4 years for the maximum
daily civil penalty assessment allowable
under the Oil Pollution Act (OPA) of
1990 for violations of regulations
governing financial responsibility (28
U.S.C. 2461). These reviews ensure that
the maximum penalty assessments
reflect any increases in the Consumer
Price Index (CPI) as prepared by the
Bureau of Labor Statistics, U.S.
Department of Labor, and therefore keep
up with inflation. BOEMRE conducted
these reviews in October 2010 for the
OCSLA regulations and in January 2011
for the OPA regulations. BOEMRE
determined that the maximum daily
civil penalty assessment for violations
of its OCSLA regulations should be
increased to $40,000, and the maximum
daily civil penalty assessment for
violations of its financial responsibility
regulations should be increased to
$30,000.
DATES: Effective Date: This rule becomes
effective on August 1, 2011.
FOR FURTHER INFORMATION CONTACT:
Joanne McCammon, Safety and
Enforcement Branch at (703) 787–1292
or email at
Joanne.McCammon@boemre.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The goal of BOEMRE’s Outer
Continental Shelf (OCS) Civil Penalty
Program is to help promote safe and
environmentally sound operations on
the OCS. The program is designed to
encourage compliance with statutes and
regulations that apply to activities on
the OCS by facilitating the assessment
and collection of civil penalties. OCSLA
authorizes the Secretary of the Interior
to assess civil penalties under certain
conditions for violations of any
provision of OCSLA; any term of a lease,
license, or permit; or any regulation or
order implementing OCSLA.
Not all violations warrant a review to
initiate civil penalty proceedings.
Review is only triggered by violations
that an operator fails to correct after
notice and an opportunity to correct, or
violations that constitute a threat of
serious, irreparable, or immediate harm
or damage to life, property, any mineral
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30JNR1
mstockstill on DSK4VPTVN1PROD with RULES
Federal Register / Vol. 76, No. 126 / Thursday, June 30, 2011 / Rules and Regulations
deposit, or the marine, coastal, or
human environment. The Secretary of
the Interior delegated the authority to
assess civil penalties to BOEMRE.
OCSLA directs the Secretary of the
Interior to adjust the maximum civil
penalty amount at least once every 3
years to reflect any increase in the CPI
prepared by the U.S. Department of
Labor (43 U.S.C. 1350). The purpose of
this adjustment is to ensure that
punitive assessments keep up with
inflation. If an adjustment is necessary,
BOEMRE informs the public through the
Federal Register of the new maximum
civil penalty amount. BOEMRE uses
Office of Management and Budget
(OMB) guidelines for determining how
penalty amounts should be rounded and
when an adjustment is necessary.
In August 2009, BOEMRE performed
computations to determine if it should
increase the current maximum civil
penalty amount of $35,000 per violation
per day. After running the
computations, BOEMRE determined
that the CPI did not increase enough to
warrant raising the maximum civil
penalty amount at that time. BOEMRE
has been monitoring the CPI, and the
computations now justify raising the
maximum civil penalty amount.
In computing the new maximum civil
penalty amount, BOEMRE divided the
October 2010 CPI of 218.9 by the
previously used August 2006 CPI of
203.7. This resulted in a multiplying
factor of 1.075. The previous maximum
amount of $35,000 per violation per day
was multiplied by the 1.075 factor and
resulted in a new maximum penalty
amount of $37,625. This amount is
rounded to $40,000 as per OMB
guidelines. The new maximum civil
penalty amount is now $40,000 per
violation per day.
BOEMRE is also authorized to impose
civil penalties for failure to comply with
financial responsibility regulations that
implement OPA. OPA sets the
maximum civil penalty amount per day
per violation at $25,000. However, the
Federal Civil Penalties Inflation
Adjustment Act, as amended,
established a 4-year cycle for review and
adjustment of federally imposed civil
monetary penalties to maintain the
deterrent effect of such penalties and
promote compliance with the law (28
U.S.C. 2461 note). The CPI adjustment
for these penalties is calculated in the
same manner as the CPI adjustment for
the OCSLA penalties.
The OPA maximum civil penalty
amount was last raised in 2006 to
$27,500. In computing the new OPA
maximum civil penalty amount,
BOEMRE divided the June 2010 CPI of
216.9 by the previously used August
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Jkt 223001
2006 CPI of 203.7. This resulted in a
multiplying factor of 1.065. The
previous maximum amount of $27,500
per violation per day was multiplied by
the 1.065 factor and resulted in a new
maximum penalty amount of $29,287.
This amount is rounded to $30,000 as
directed by the Federal Civil Penalties
Inflation Adjustment Act. The new
maximum civil penalty amount is now
$30,000 per violation per day.
BOEMRE finds that good cause exists
under the Administrative Procedure
Act, 5 U.S.C. 553(b)(B), to implement
this final rule without prior notice and
comment for these mandatory
adjustments. The periodic adjustments
to the maximum penalty amount
reflected in this final rule are required
by statute and OMB guidelines.
Similarly, the calculation of these
adjustments follows the mathematical
formulas set forth in OCSLA and the
requirements of the Federal Civil
Penalties Inflation Adjustment Act, as
amended, so that the amount of the
adjustment is not within BOEMRE’s
discretion. Accordingly, notice and
comment procedures are unnecessary
and contrary to the public interest.
Procedural Matters
Regulatory Planning and Review
(Executive Order 12866)
OMB has not designated this final
rule as significant under Executive
Order 12866.
(1) These amendments are
administrative and procedural. This rule
would not have an effect of $100 million
or more on the economy. It would 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. A costbenefit and economic analysis is not
required.
(2) This rule would not create a
serious inconsistency or otherwise
interfere with an action taken or
planned by another agency.
(3) This rule would not alter the
budgetary effects of entitlements, grants,
user fees, or loan programs or the rights
or obligations of their recipients.
(4) This rule does not raise novel legal
or policy issues.
Regulatory Flexibility Act
The Department of the Interior
certifies that this final 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.).
The changes in the rule will affect
lessees and operators of leases and
PO 00000
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Fmt 4700
Sfmt 4700
38295
pipeline right-of-way holders in the
OCS. This could include about 130
active Federal oil and gas lessees. Small
lessees that operate under this rule fall
under the Small Business
Administration’s (SBA) North American
Industry Classification System (NAICS)
codes 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 65 percent of these companies
are considered small. This final rule,
therefore, will affect a substantial
number of small entities, but it will not
have a significant economic effect on
those entities.
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 1.075 amounts to an
increase of less than $241,000 spread
over an average of 32 cases per year or
slightly over $15,500 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 relatively insignificant
as compared to the considerable
operational costs and liability risks
associated with activities 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 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 actions of
BOEMRE, call 1–888–734–3247. You
may comment to the Small Business
Administration without fear of
retaliation. Allegations of
discrimination/retaliation filed with the
Small Business Administration will be
investigated for appropriate action.
Small Business Regulatory Enforcement
Fairness Act
This rule is not a major rule under the
Small Business Regulatory Enforcement
Fairness Act (5 U.S.C. 804(2)). This rule:
a. Will 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.
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Federal Register / Vol. 76, No. 126 / Thursday, June 30, 2011 / Rules and Regulations
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.
The requirements will apply to all
entities operating on the OCS.
required. Therefore, an information
collection request is not being submitted
to OMB for review and approval under
the PRA (44 U.S.C. 3501 et seq.).
Unfunded Mandates Reform Act of 1995
This final rule does not constitute a
major Federal action significantly
affecting the quality of the human
environment. BOEMRE has analyzed
this proposed rule under the criteria of
the National Environmental Policy Act
(NEPA) and the Department’s
regulations implementing NEPA. This
proposed rule meets the criteria set forth
at 43 CFR 46.210(i) for a Departmental
Categorical Exclusion in that this
proposed rule is ‘‘* * * of an
administrative, financial, legal,
technical, or procedural nature * * *’’
Further, BOEMRE has analyzed this
proposed rule to determine if it meets
any of the extraordinary circumstances
that would require an environmental
assessment or an environmental impact
statement as set forth in 43 CFR 46.215
and concluded that this proposed rule,
being purely procedural, does not meet
any of the criteria for extraordinary
circumstances.
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 the Unfunded Mandates
Reform Act (2 U.S.C. 1501 et seq.) is not
required.
Takings Implication Assessment
(Executive Order 12630)
According to Executive Order 12630,
the rule does not have significant
takings implications. The rulemaking is
not a governmental action capable of
interfering with constitutionally
protected property rights. A Takings
Implication Assessment is not required.
Federalism (Executive Order 13132)
Under the criteria in E.O. 13132, this
final rule does 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. A Federalism
Assessment is not required.
Civil Justice Reform (Executive Order
12988)
This rule complies with the
requirements of E.O. 12988.
Specifically, this rule:
(a) Meets the criteria of section 3(a)
requiring that all regulations be
reviewed to eliminate errors and
ambiguity and be written to minimize
litigation; and
(b) Meets the criteria of section 3(b)(2)
requiring that all regulations be written
in clear language and contain clear legal
standards.
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Consultation and Coordination With
Indian Tribal Governments (E.O. 13175)
Under the criteria in E.O. 13175, we
evaluated this final rule and determined
that it has no substantial effects on
federally recognized Indian tribes.
Paperwork Reduction Act (PRA) of 1995
This final rule does not contain new
information collection requirements,
and a submission under the PRA is not
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16:53 Jun 29, 2011
Jkt 223001
National Environmental Policy Act of
1969
In developing this rule, we did not
conduct or use a study, experiment, or
survey requiring peer review under the
Data Quality Act (Pub. L. 106–554, app.
C § 515, 114 Stat. 2763, 2763A–153–
154).
Effects on the Nation’s Energy Supply
(E.O. 13211)
This rule is not a significant energy
action under the definition in E.O.
13211. A Statement of Energy Effects is
not required.
List of Subjects
Continental shelf, Investigations,
Penalties, Public lands—mineral
resources, Public lands—rights-of-way,
Reporting and recordkeeping
requirements, Sulphur development and
production.
30 CFR Part 250
Administrative practice and
procedure, Continental shelf,
Environmental impact statements,
Environmental protection, Government
contracts, Investigations, Oil and gas
exploration, Penalties, Pipelines, Public
lands—mineral resources, Public
lands—rights-of-way, Reporting and
recordkeeping requirements, Sulfur.
Fmt 4700
Dated: June 22, 2011.
Wilma A. Lewis,
Assistant Secretary—Land and Minerals
Management.
For the reasons stated in the
preamble, Bureau of Ocean Energy
Management, Regulation and
Enforcement (BOEMRE) amends 30 CFR
parts 250 and 253 as follows:
PART 250—OIL AND GAS AND
SULPHUR OPERATIONS IN THE
OUTER CONTINENTAL SHELF
1. The authority citation for part 250
continues to read as follows:
■
Authority: 31 U.S.C. 9701, 43 U.S.C. 1334.
2. Revise § 250.1403 to read as
follows:
■
What is the maximum civil
The maximum civil penalty is
$40,000 per day per violation.
PART 253—OIL SPILL FINANCIAL
RESPONSIBILITY FOR OFFSHORE
FACILITIES
3. The authority citation for part 253
is revised to read as follows:
■
Authority: 28 U.S.C. 2461 note, 33 U.S.C.
2716.
4. In § 253.51, revise paragraph (a) to
read as follows:
■
§ 253.51 What are the penalties for not
complying with this part?
30 CFR Part 250
Frm 00010
Continental shelf, Environmental
protection, Intergovernmental relations,
Oil and gas exploration, Oil pollution,
Penalties, Pipelines, Public lands—
mineral resources, Reporting and
recordkeeping requirements, Surety
bonds.
§ 250.1403
penalty?
Data Quality Act
PO 00000
30 CFR Part 253
Sfmt 9990
(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
$30,000 per COF per day of violation
(that is, each day a COF is operated
without acceptable evidence of OSFR).
*
*
*
*
*
[FR Doc. 2011–16288 Filed 6–29–11; 8:45 am]
BILLING CODE 4310–MR–P
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]]>Agencies
[Federal Register Volume 76, Number 126 (Thursday, June 30, 2011)]
[Rules and Regulations]
[Pages 38294-38296]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16288]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management, Regulation and Enforcement
30 CFR Parts 250 and 253
[Docket ID: BOEM-2010-0070]
RIN 1010-AD74
Oil and Gas and Sulphur Operations in the Outer Continental
Shelf--Civil Penalties
AGENCY: Bureau of Ocean Energy Management, Regulation and Enforcement
(BOEMRE), Interior.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Outer Continental Shelf Lands Act (OCSLA) requires the
Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE)
to review the maximum daily civil penalty assessment for violations of
regulations implementing the OCSLA at least once every 3 years (43
U.S.C. 1350). Similarly, a review and adjustment process is required at
least once every 4 years for the maximum daily civil penalty assessment
allowable under the Oil Pollution Act (OPA) of 1990 for violations of
regulations governing financial responsibility (28 U.S.C. 2461). These
reviews ensure that the maximum penalty assessments reflect any
increases in the Consumer Price Index (CPI) as prepared by the Bureau
of Labor Statistics, U.S. Department of Labor, and therefore keep up
with inflation. BOEMRE conducted these reviews in October 2010 for the
OCSLA regulations and in January 2011 for the OPA regulations. BOEMRE
determined that the maximum daily civil penalty assessment for
violations of its OCSLA regulations should be increased to $40,000, and
the maximum daily civil penalty assessment for violations of its
financial responsibility regulations should be increased to $30,000.
DATES: Effective Date: This rule becomes effective on August 1, 2011.
FOR FURTHER INFORMATION CONTACT: Joanne McCammon, Safety and
Enforcement Branch at (703) 787-1292 or email at
Joanne.McCammon@boemre.gov.
SUPPLEMENTARY INFORMATION:
Background
The goal of BOEMRE's Outer Continental Shelf (OCS) Civil Penalty
Program is to help promote safe and environmentally sound operations on
the OCS. The program is designed to encourage compliance with statutes
and regulations that apply to activities on the OCS by facilitating the
assessment and collection of civil penalties. OCSLA authorizes the
Secretary of the Interior to assess civil penalties under certain
conditions for violations of any provision of OCSLA; any term of a
lease, license, or permit; or any regulation or order implementing
OCSLA.
Not all violations warrant a review to initiate civil penalty
proceedings. Review is only triggered by violations that an operator
fails to correct after notice and an opportunity to correct, or
violations that constitute a threat of serious, irreparable, or
immediate harm or damage to life, property, any mineral
[[Page 38295]]
deposit, or the marine, coastal, or human environment. The Secretary of
the Interior delegated the authority to assess civil penalties to
BOEMRE.
OCSLA directs the Secretary of the Interior to adjust the maximum
civil penalty amount at least once every 3 years to reflect any
increase in the CPI prepared by the U.S. Department of Labor (43 U.S.C.
1350). The purpose of this adjustment is to ensure that punitive
assessments keep up with inflation. If an adjustment is necessary,
BOEMRE informs the public through the Federal Register of the new
maximum civil penalty amount. BOEMRE uses Office of Management and
Budget (OMB) guidelines for determining how penalty amounts should be
rounded and when an adjustment is necessary.
In August 2009, BOEMRE performed computations to determine if it
should increase the current maximum civil penalty amount of $35,000 per
violation per day. After running the computations, BOEMRE determined
that the CPI did not increase enough to warrant raising the maximum
civil penalty amount at that time. BOEMRE has been monitoring the CPI,
and the computations now justify raising the maximum civil penalty
amount.
In computing the new maximum civil penalty amount, BOEMRE divided
the October 2010 CPI of 218.9 by the previously used August 2006 CPI of
203.7. This resulted in a multiplying factor of 1.075. The previous
maximum amount of $35,000 per violation per day was multiplied by the
1.075 factor and resulted in a new maximum penalty amount of $37,625.
This amount is rounded to $40,000 as per OMB guidelines. The new
maximum civil penalty amount is now $40,000 per violation per day.
BOEMRE is also authorized to impose civil penalties for failure to
comply with financial responsibility regulations that implement OPA.
OPA sets the maximum civil penalty amount per day per violation at
$25,000. However, the Federal Civil Penalties Inflation Adjustment Act,
as amended, established a 4-year cycle for review and adjustment of
federally imposed civil monetary penalties to maintain the deterrent
effect of such penalties and promote compliance with the law (28 U.S.C.
2461 note). The CPI adjustment for these penalties is calculated in the
same manner as the CPI adjustment for the OCSLA penalties.
The OPA maximum civil penalty amount was last raised in 2006 to
$27,500. In computing the new OPA maximum civil penalty amount, BOEMRE
divided the June 2010 CPI of 216.9 by the previously used August 2006
CPI of 203.7. This resulted in a multiplying factor of 1.065. The
previous maximum amount of $27,500 per violation per day was multiplied
by the 1.065 factor and resulted in a new maximum penalty amount of
$29,287. This amount is rounded to $30,000 as directed by the Federal
Civil Penalties Inflation Adjustment Act. The new maximum civil penalty
amount is now $30,000 per violation per day.
BOEMRE finds that good cause exists under the Administrative
Procedure Act, 5 U.S.C. 553(b)(B), to implement this final rule without
prior notice and comment for these mandatory adjustments. The periodic
adjustments to the maximum penalty amount reflected in this final rule
are required by statute and OMB guidelines. Similarly, the calculation
of these adjustments follows the mathematical formulas set forth in
OCSLA and the requirements of the Federal Civil Penalties Inflation
Adjustment Act, as amended, so that the amount of the adjustment is not
within BOEMRE's discretion. Accordingly, notice and comment procedures
are unnecessary and contrary to the public interest.
Procedural Matters
Regulatory Planning and Review (Executive Order 12866)
OMB has not designated this final rule as significant under
Executive Order 12866.
(1) These amendments are administrative and procedural. This rule
would not have an effect of $100 million or more on the economy. It
would 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. A cost-benefit and
economic analysis is not required.
(2) This rule would not create a serious inconsistency or otherwise
interfere with an action taken or planned by another agency.
(3) This rule would not alter the budgetary effects of
entitlements, grants, user fees, or loan programs or the rights or
obligations of their recipients.
(4) This rule does not raise novel legal or policy issues.
Regulatory Flexibility Act
The Department of the Interior certifies that this final 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.).
The changes in the rule will affect lessees and operators of leases
and pipeline right-of-way holders in the OCS. This could include about
130 active Federal oil and gas lessees. Small lessees that operate
under this rule fall under the Small Business Administration's (SBA)
North American Industry Classification System (NAICS) codes 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 65 percent of these companies are considered small. This
final rule, therefore, will affect a substantial number of small
entities, but it will not have a significant economic effect on those
entities.
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 1.075 amounts to an increase of less than
$241,000 spread over an average of 32 cases per year or slightly over
$15,500 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 relatively insignificant as compared to the
considerable operational costs and liability risks associated with
activities 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 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 actions of BOEMRE, call 1-888-
734-3247. You may comment to the Small Business Administration without
fear of retaliation. Allegations of discrimination/retaliation filed
with the Small Business Administration will be investigated for
appropriate action.
Small Business Regulatory Enforcement Fairness Act
This rule is not a major rule under the Small Business Regulatory
Enforcement Fairness Act (5 U.S.C. 804(2)). This rule:
a. Will 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.
[[Page 38296]]
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. The
requirements will apply to all entities operating on the OCS.
Unfunded Mandates Reform Act of 1995
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 the Unfunded Mandates
Reform Act (2 U.S.C. 1501 et seq.) is not required.
Takings Implication Assessment (Executive Order 12630)
According to Executive Order 12630, the rule does not have
significant takings implications. The rulemaking is not a governmental
action capable of interfering with constitutionally protected property
rights. A Takings Implication Assessment is not required.
Federalism (Executive Order 13132)
Under the criteria in E.O. 13132, this final rule does 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. A
Federalism Assessment is not required.
Civil Justice Reform (Executive Order 12988)
This rule complies with the requirements of E.O. 12988.
Specifically, this rule:
(a) Meets the criteria of section 3(a) requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation; and
(b) Meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.
Consultation and Coordination With Indian Tribal Governments (E.O.
13175)
Under the criteria in E.O. 13175, we evaluated this final rule and
determined that it has no substantial effects on federally recognized
Indian tribes.
Paperwork Reduction Act (PRA) of 1995
This final rule does not contain new information collection
requirements, and a submission under the PRA is not required.
Therefore, an information collection request is not being submitted to
OMB for review and approval under the PRA (44 U.S.C. 3501 et seq.).
National Environmental Policy Act of 1969
This final rule does not constitute a major Federal action
significantly affecting the quality of the human environment. BOEMRE
has analyzed this proposed rule under the criteria of the National
Environmental Policy Act (NEPA) and the Department's regulations
implementing NEPA. This proposed rule meets the criteria set forth at
43 CFR 46.210(i) for a Departmental Categorical Exclusion in that this
proposed rule is ``* * * of an administrative, financial, legal,
technical, or procedural nature * * *'' Further, BOEMRE has analyzed
this proposed rule to determine if it meets any of the extraordinary
circumstances that would require an environmental assessment or an
environmental impact statement as set forth in 43 CFR 46.215 and
concluded that this proposed rule, being purely procedural, does not
meet any of the criteria for extraordinary circumstances.
Data Quality Act
In developing this rule, we did not conduct or use a study,
experiment, or survey requiring peer review under the Data Quality Act
(Pub. L. 106-554, app. C Sec. 515, 114 Stat. 2763, 2763A-153-154).
Effects on the Nation's Energy Supply (E.O. 13211)
This rule is not a significant energy action under the definition
in E.O. 13211. A Statement of Energy Effects is not required.
List of Subjects
30 CFR Part 250
Continental shelf, Investigations, Penalties, Public lands--mineral
resources, Public lands--rights-of-way, Reporting and recordkeeping
requirements, Sulphur development and production.
30 CFR Part 250
Administrative practice and procedure, Continental shelf,
Environmental impact statements, Environmental protection, Government
contracts, Investigations, Oil and gas exploration, Penalties,
Pipelines, Public lands--mineral resources, Public lands--rights-of-
way, Reporting and recordkeeping requirements, Sulfur.
30 CFR Part 253
Continental shelf, Environmental protection, Intergovernmental
relations, Oil and gas exploration, Oil pollution, Penalties,
Pipelines, Public lands--mineral resources, Reporting and recordkeeping
requirements, Surety bonds.
Dated: June 22, 2011.
Wilma A. Lewis,
Assistant Secretary--Land and Minerals Management.
For the reasons stated in the preamble, Bureau of Ocean Energy
Management, Regulation and Enforcement (BOEMRE) amends 30 CFR parts 250
and 253 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: 31 U.S.C. 9701, 43 U.S.C. 1334.
0
2. Revise Sec. 250.1403 to read as follows:
Sec. 250.1403 What is the maximum civil penalty?
The maximum civil penalty is $40,000 per day per violation.
PART 253--OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE
FACILITIES
0
3. The authority citation for part 253 is revised to read as follows:
Authority: 28 U.S.C. 2461 note, 33 U.S.C. 2716.
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 $30,000 per
COF per day of violation (that is, each day a COF is operated without
acceptable evidence of OSFR).
* * * * *
[FR Doc. 2011-16288 Filed 6-29-11; 8:45 am]
BILLING CODE 4310-MR-P
