Onshore Oil and Gas Operations-Civil Penalties Inflation Adjustments, 41860-41862 [2016-15129]
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41860
Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Rules and Regulations
a. In paragraph (g)(2) introductory
text, remove ‘‘$5,000’’ and add in its
place ‘‘$6,428’’.
■ b. In paragraph (g)(3), remove
‘‘$1,000’’ and add in its place ‘‘$1,268’’.
■
Dated: June 8, 2016.
Michael Bean,
Principal Deputy Assistant Secretary for Fish
and Wildlife and Parks.
[FR Doc. 2016–15168 Filed 6–27–16; 8:45 am]
BILLING CODE 4310–EJ–P
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
43 CFR Part 3160
[16X.LLWO310000.L13100000.PP0000]
RIN 1004–AE46
Onshore Oil and Gas Operations—Civil
Penalties Inflation Adjustments
Bureau of Land Management,
Interior.
ACTION: Interim final rule.
AGENCY:
This rule adjusts the level of
civil monetary penalties contained in
the Bureau of Land Management’s
regulations governing onshore oil and
gas operations as required by the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (the ‘‘Act’’). The adjustments made
by this interim final rule constitute the
initial catch-up adjustments
contemplated by the Act, and are
consistent with applicable Office of
Management and Budget (OMB)
guidance.
DATES: As required by the Act, this rule
is effective on July 28, 2016. Comments
will be accepted until August 29, 2016.
ADDRESSES: You may submit comments
by any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Search for 1004–
SUMMARY:
AE46 and follow the instructions for
submitting comments.
• Mail: Director (630), Bureau of Land
Management, U.S. Department of the
Interior, 1849 C St. NW., Washington,
DC 20240, Attention: 1004–AE46.
• Hand Delivery, or Courier: U.S.
Department of the Interior, Bureau of
Land Management, 20 M St. SE., Room
2134LM, Attention: Regulatory Affairs,
Washington, DC 20003.
FOR FURTHER INFORMATION CONTACT:
Steven Wells, Division Chief, Fluid
Minerals Division, 202–912–7143, for
information regarding the BLM’s Fluid
Minerals Program. For questions
relating to regulatory process issues,
please contact Jennifer Noe, Division of
Regulatory Affairs, at 202–912–7442.
Persons who use a telecommunications
device for the deaf (TDD) may call the
Federal Information Relay Service
(FIRS) at 1–800–877–8339, 24 hours a
day, seven days a week to contact the
above individuals.
SUPPLEMENTARY INFORMATION:
I. Background
II. Calculation of Adjustment
III. Procedural Requirements
A. Regulatory Planning and Review (E.O.
12866 and 13563)
B. Regulatory Flexibility Act
C. Small Business Regulatory Enforcement
Fairness Act
D. Unfunded Mandates Reform Act
E. Takings (E.O. 12630)
F. Federalism (E.O. 13132)
G. Civil Justice Reform (E.O. 12988)
H. Consultation With Indian Tribes (E.O.
13175 and Departmental Policy)
I. Paperwork Reduction Act
J. National Environmental Policy Act
K. Effects on the Energy Supply (E.O.
13211)
L. Clarity of This Regulation
M. Administrative Procedure Act
I. Background
On November 2, 2015, the President
signed the Act into law (Sec. 701 of Pub.
L. 114–74). It requires all Federal
CFR citation
43
43
43
43
43
CFR
CFR
CFR
CFR
CFR
asabaliauskas on DSK3SPTVN1PROD with RULES
43 CFR 3163.2(g)(1) ...................
43 CFR 3163.2(g)(1) ...................
43 CFR 3163.2(g)(1) ...................
43 CFR 3163.2(g)(1) ...................
43 CFR 3163.2(g)(1) ...................
43 CFR 3163.2(g)(1) ...................
43 CFR 3163.2(g)(1) ...................
VerDate Sep<11>2014
16:05 Jun 27, 2016
Current
penalty
Description of the penalty
3163.2(a) ........................
3163.2(b) ........................
3163.2(d) ........................
3163.2(e) ........................
3163.2(f) .........................
agencies to review their existing
regulations and adjust the level of civil
monetary penalties found in those
regulations for inflation. The Act
contemplates two adjustments—an
initial ‘‘catch-up’’ adjustment through
rulemaking from the date the penalty in
question was established to present day,
and annual adjustments for inflation
thereafter. The purpose of these
adjustments is to maintain the deterrent
effect of civil penalties found in existing
regulations, in order to further the
policy goals of the underlying statutes.
The BLM has reviewed its existing
regulations and determined that only
the civil monetary penalties found at 43
CFR 3163.2 are subject to the Act’s
requirements.
Once penalties subject to the Act have
been identified, the Act specifies the
formula and format to be used to adjust
those amounts. (Section 701(b)) The
adjustments contemplated by the Act
are based on the percent change
between the Consumer Price Index for
all Urban Consumers (CPI–U) for the
month of October in 1987, the year the
penalties were established by
regulation, and the October 2015 CPI–U,
so the catch-up adjustment multiplier is
2.06278 for all penalties. The Act caps
adjustments at 150 percent, and Section
701(b)(1)(D) of the Act specifically
requires that adjustments be
promulgated as an interim final rule.
The Act does not provide BLM with
discretion with respect to either of these
provisions.
The adjustments made by this interim
final rule constitute the initial ‘‘catchup’’ adjustment contemplated by the
Act and subsequent guidance from
OMB, and include the following
changes to the penalties provided by
existing regulations:
Failure to comply ...............................................................
If corrective action is not taken .........................................
If transporter fails to permit inspection for documentation
Failure to permit inspection, failure to notify .....................
False or inaccurate documents; unlawful transfer or purchase.
Initial penalty under 43 CFR 3163.2(a) for a major violation.
Maximum penalty under 43 CFR 3163.2(a) for a major
violation.
Initial penalty under 43 CFR 3163.2(b) for a major violation.
Maximum penalty under 43 CFR 3163.2(b) for a major
violation.
Penalty under 43 CFR 3163.2(d) for a major violation .....
Penalty under 43 CFR 3163.2(e) for a major violation .....
Penalty under 43 CFR 3163.2(f) for a major violation ......
Jkt 238001
PO 00000
Frm 00074
Fmt 4700
Sfmt 4700
E:\FR\FM\28JNR1.SGM
Catchup
adjustment
Adjusted
penalty
$500
5,000
500
10,000
25,000
$531
5,314
531
10,628
26,570
$1,031
10,314
1,031
20,628
51,570
500
531
1,031
1,000
1,063
2,063
5,000
5,314
10,314
10,000
10,628
20,628
500
10,000
25,000
531
10,628
26,570
1,031
20,628
51,570
28JNR1
Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Rules and Regulations
CFR citation
43 CFR 3163.2(g)(2)(iii) ...............
43 CFR 3163.2(g)(2)(iii) ...............
43 CFR 3163.2(g)(2)(iii) ...............
43 CFR 3163.2(g)(2)(iii) ...............
Initial penalty under 43 CFR
tion.
Initial penalty under 43 CFR
tion.
Maximum penalty under 43
violation.
Maximum penalty under 43
violation.
II. Calculation of Adjustment
OMB issued guidance on calculating
the catch-up adjustment in accordance
with the Act. See February 24, 2016,
Memorandum for the Heads of
Executive Departments and Agencies,
from Shaun Donovan, Director, Office of
Management and Budget, re:
Implementation of the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015. Under this
guidance, the Department of the Interior
has identified applicable civil monetary
penalties and calculated the catch-up
adjustment. A civil monetary penalty is
any assessment with a dollar amount
that is levied for a violation of a Federal
civil statute or regulation, and is
assessed or enforceable through a civil
action in Federal court or an
administrative proceeding. A civil
monetary penalty does not include a
penalty levied for violation of a criminal
statute, or fees for services, licenses,
permits, or other regulatory review. The
calculated catch-up adjustment is based
on the percent change between the
Consumer Price Index for all Urban
Consumers (CPI–U) for the month of
October in the year of the previous
adjustment (or in the year of
establishment, if no adjustment has
been made) and the October 2015 CPI–
U.
III. Procedural Requirements
asabaliauskas on DSK3SPTVN1PROD with RULES
A. Regulatory Planning and Review
(E.O. 12866 and 13563)
Executive Order 12866 provides that
the Office of Information and Regulatory
Affairs in the Office of Management and
Budget will review all significant rules.
The Office of Information and
Regulatory Affairs has determined that
this rule is not significant. Executive
Order 13563 reaffirms the principles of
E.O. 12866 while calling for
improvements in the nation’s regulatory
system to promote predictability, to
reduce uncertainty, and to use the best,
most innovative, and least burdensome
tools for achieving regulatory ends. The
executive order directs agencies to
consider regulatory approaches that
reduce burdens and maintain flexibility
VerDate Sep<11>2014
16:05 Jun 27, 2016
Current
penalty
Description of the penalty
Jkt 238001
50
53
103
3163.2(b) for a minor viola-
500
531
1,031
CFR 3163.2(a) for a minor
100
106
206
CFR 3163.2(b) for a minor
1,000
1,063
2,063
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
requires an agency to prepare a
regulatory flexibility analysis for rules
unless the agency certifies that the rule
will not have a significant economic
impact on a substantial number of small
entities. The RFA applies only to rules
for which an agency is required to first
publish a proposed rule. See 5 U.S.C.
603(a) and 604(a). The Act requires
agencies to adjust civil penalties with an
initial catch-up adjustment through an
interim final rule. Since an interim final
rule does not include first publishing a
proposed rule, the RFA does not apply
to this final rule.
C. Small Business Regulatory
Enforcement Fairness Act
This rule is not a major rule under 5
U.S.C. 804(2), the Small Business
Regulatory Enforcement Fairness Act.
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) Does 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.
This rule will potentially affect
individuals and companies who hold
leases on Federal or Indian lands. The
BLM believes that the vast majority of
potentially affected entities will be
small businesses as defined by the
Small Business Administration.
However, the BLM does not believe the
rule will pose a significant economic
Frm 00075
Adjusted
penalty
3163.2(a) for a minor viola-
and freedom of choice for the public
where these approaches are relevant,
feasible, and consistent with regulatory
objectives. E.O. 13563 emphasizes
further that regulations must be based
on the best available science, and that
the rulemaking process must allow for
public participation and an open
exchange of ideas. We have developed
this rule in a manner consistent with
these requirements.
PO 00000
Catchup
adjustment
41861
Fmt 4700
Sfmt 4700
impact on the industry, including any
small entities, for two reasons. First, any
lessee can avoid being assessed civil
penalties by operating in compliance
with BLM rules and regulations.
Second, payments for penalties adjusted
as a result of this rule will be negligible
compared with the $23 billion worth of
crude oil and natural gas produced from
Federal and Indian leases last year.
D. Unfunded Mandates Reform Act
This rule does not impose an
unfunded mandate on State, local, or
tribal governments, or the private sector
of more than $100 million per year. The
rule does 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. 1531 et seq.) is not
required.
E. Takings (E.O. 12630)
This rule does not effect a taking of
private property or otherwise have
takings implications under Executive
Order 12630. A takings implication
assessment is not required.
F. Federalism (E.O. 13132)
Under the criteria in section 1 of
Executive Order 13132, this rule does
not have sufficient federalism
implications to warrant the preparation
of a federalism summary impact
statement. A federalism summary
impact statement is not required.
G. Civil Justice Reform (E.O. 12988)
This rule complies with the
requirements of Executive Order 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.
E:\FR\FM\28JNR1.SGM
28JNR1
41862
Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Rules and Regulations
H. Consultation With Indian Tribes
(E.O. 13175 and Departmental Policy)
The Department of the Interior strives
to strengthen its government-togovernment relationship with Indian
tribes through a commitment to
consultation with Indian tribes and
recognition of their right to selfgovernance and tribal sovereignty. We
have evaluated this rule under the
Department’s consultation policy and
under the criteria in Executive Order
13175 and have determined that it has
no substantial direct effects on federally
recognized Indian tribes and that
consultation under the Department’s
tribal consultation policy is not
required.
I. Paperwork Reduction Act
This rule does not contain
information collection requirements,
and a submission to OMB under the
Paperwork Reduction Act (44 U.S.C.
3501 et seq.) is not required. We may
not conduct or sponsor, and you are not
required to respond to, a collection of
information unless it displays a
currently valid OMB control number.
J. National Environmental Policy Act
A detailed statement under the
National Environmental Policy Act of
1969 (NEPA) is not required because the
rule is covered by a categorical
exclusion. This rule is excluded from
the requirement to prepare a detailed
statement because it is a regulation of an
administrative nature. (For further
information see 43 CFR 46.210(i).) We
have also determined that the rule does
not involve any of the extraordinary
circumstances listed in 43 CFR 46.215
that would require further analysis
under NEPA.
K. Effects on the Energy Supply (E.O.
13211)
This rule is not a significant energy
action under the definition in Executive
Order 13211. Therefore, a Statement of
Energy Effects is not required.
asabaliauskas on DSK3SPTVN1PROD with RULES
L. Clarity of This Regulation
We are required by Executive Orders
12866 (section 1(b)(12)), 12988 (section
3(b)(1)(B)), and 13563 (section 1(a)), and
by the Presidential Memorandum of
June 1, 1998, to write all rules in plain
language. This means that each rule we
publish must:
(a) Be logically organized;
(b) Use the active voice to address
readers directly;
(c) Use common, everyday words and
clear language rather than jargon;
(d) Be divided into short sections and
sentences; and
VerDate Sep<11>2014
16:05 Jun 27, 2016
Jkt 238001
(e) Use lists and tables wherever
possible.
If you feel that we have not met these
requirements, send us comments by one
of the methods listed in the ADDRESSES
section. To better help us revise the
rule, your comments should be as
specific as possible. For example, you
should tell us the numbers of the
sections or paragraphs that you find
unclear, which sections or sentences are
too long, the sections where you feel
lists or tables would be useful.
M. Administrative Procedure Act
The Act requires agencies to publish
interim final rules by July 1, 2016, with
an effective date for the adjusted
penalties no later than August 1, 2016.
To comply with the Act, we are issuing
these regulations as an interim final rule
and are requesting comments postpromulgation. Section 553(b) of the
Administrative Procedure Act (APA)
provides that, when an agency for good
cause finds that ‘‘notice and public
procedure . . . are impracticable,
unnecessary, or contrary to the public
interest,’’ the agency may issue a rule
without providing notice and an
opportunity for prior public comment.
The BLM is promulgating this rule as
an interim final rule because the Act
expressly directs us to do so by July 1,
2016. The BLM also finds that there is
good cause to promulgate this rule
without notice and public procedure for
two reasons. First, it would not be
possible to meet the deadlines imposed
by the Act if the BLM were first to
publish a proposed rule, allow the
public sufficient time to submit
comments, and analyze those
comments, before publishing a final
rule. Also, since the Act does not give
the BLM any discretion to vary the
amount of the adjustment for any given
penalty to reflect any views or
suggestions provided by commenters, it
would serve no purpose to provide an
opportunity for pre-promulgation public
comment on this rule. Thus, prepromulgation notice and public
comment is impracticable and
unnecessary.
List of Subjects in 43 CFR Part 3160
Administrative practice and
procedure, Government contracts,
Indians—lands, Mineral royalties, Oil
and gas exploration, Penalties, Public
lands—mineral resources, Reporting
and recordkeeping requirements.
For the reasons given in the preamble,
the BLM amends Chapter II of Title 43
of the Code of Federal Regulations as
follows:
PO 00000
Frm 00076
Fmt 4700
Sfmt 4700
PART 3160—ONSHORE OIL AND GAS
OPERATIONS
1. The authority citation for part 3160
is revised to read as follows:
■
Authority: 25 U.S.C. 396d and 2107; 30
U.S.C. 189, 306, 359, and 1751; 43 U.S.C.
1732(b), 1733, 1740; and Sec. 107, Pub. L.
114–74, 129 Stat. 599, unless otherwise
noted.
Subpart 3163—Noncompliance,
Assessments, and Penalties
§ 3163.2
[Amended]
2. In § 3163.2:
a. In paragraph (a), remove ‘‘$500’’
and add in its place ‘‘$1,031’’.
■ b. In paragraph (b), remove ‘‘$5,000’’
and add in its place ‘‘$10,314’’.
■ c. In paragraph (d), remove ‘‘$500’’
and add in its place ‘‘$1,031’’.
■ d. In paragraph (e) introductory text,
remove ‘‘$10,000’’ and add in its place
‘‘$20,628’’.
■ e. In paragraph (f) introductory text,
remove ‘‘$25,000’’ and add in its place
‘‘$51,570’’.
■ f. In paragraph (g)(1), remove ‘‘$500’’
each place that it occurs and add in its
place ‘‘$1,031’’; remove ‘‘$5,000’’ and
add in its place ‘‘$10,314’’; remove
‘‘$1,000’’ each place that it occurs and
add in its place ‘‘$2,063’’; remove
‘‘$10,000’’ each place that it occurs and
add in its place ‘‘$20,628’’; remove
‘‘$25,000’’ and add in its place
‘‘$51,570’’.
■ g. In paragraph (g)(2)(iii), remove
‘‘$50’’ and add in its place ‘‘$103’’;
remove ‘‘$500’’ and add in its place
‘‘$1,031’’; remove ‘‘$100’’ and add in its
place ‘‘$206’’; remove ‘‘$1,000’’ and add
in its place ‘‘$2,063’’.
■
■
Janice M. Schneider,
Assistant Secretary, Land and Minerals
Management.
[FR Doc. 2016–15129 Filed 6–27–16; 8:45 am]
BILLING CODE 4310–84–P
DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
50 CFR Part 11
[Docket No. FWS–HQ–LE–2016–0045;
FF09L00200–FX–LE18110900000]
RIN 1018–BB32
Civil Penalties; Inflation Adjustments
for Civil Monetary Penalties
Fish and Wildlife Service,
Interior.
ACTION: Interim rule.
AGENCY:
The U.S. Fish and Wildlife
Service (Service or we) is revising our
SUMMARY:
E:\FR\FM\28JNR1.SGM
28JNR1
]]>Agencies
[Federal Register Volume 81, Number 124 (Tuesday, June 28, 2016)]
[Rules and Regulations]
[Pages 41860-41862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15129]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
43 CFR Part 3160
[16X.LLWO310000.L13100000.PP0000]
RIN 1004-AE46
Onshore Oil and Gas Operations--Civil Penalties Inflation
Adjustments
AGENCY: Bureau of Land Management, Interior.
ACTION: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: This rule adjusts the level of civil monetary penalties
contained in the Bureau of Land Management's regulations governing
onshore oil and gas operations as required by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015 (the
``Act''). The adjustments made by this interim final rule constitute
the initial catch-up adjustments contemplated by the Act, and are
consistent with applicable Office of Management and Budget (OMB)
guidance.
DATES: As required by the Act, this rule is effective on July 28, 2016.
Comments will be accepted until August 29, 2016.
ADDRESSES: You may submit comments by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Search for 1004-AE46 and follow the instructions for submitting
comments.
Mail: Director (630), Bureau of Land Management, U.S.
Department of the Interior, 1849 C St. NW., Washington, DC 20240,
Attention: 1004-AE46.
Hand Delivery, or Courier: U.S. Department of the
Interior, Bureau of Land Management, 20 M St. SE., Room 2134LM,
Attention: Regulatory Affairs, Washington, DC 20003.
FOR FURTHER INFORMATION CONTACT: Steven Wells, Division Chief, Fluid
Minerals Division, 202-912-7143, for information regarding the BLM's
Fluid Minerals Program. For questions relating to regulatory process
issues, please contact Jennifer Noe, Division of Regulatory Affairs, at
202-912-7442. Persons who use a telecommunications device for the deaf
(TDD) may call the Federal Information Relay Service (FIRS) at 1-800-
877-8339, 24 hours a day, seven days a week to contact the above
individuals.
SUPPLEMENTARY INFORMATION:
I. Background
II. Calculation of Adjustment
III. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866 and 13563)
B. Regulatory Flexibility Act
C. Small Business Regulatory Enforcement Fairness Act
D. Unfunded Mandates Reform Act
E. Takings (E.O. 12630)
F. Federalism (E.O. 13132)
G. Civil Justice Reform (E.O. 12988)
H. Consultation With Indian Tribes (E.O. 13175 and Departmental
Policy)
I. Paperwork Reduction Act
J. National Environmental Policy Act
K. Effects on the Energy Supply (E.O. 13211)
L. Clarity of This Regulation
M. Administrative Procedure Act
I. Background
On November 2, 2015, the President signed the Act into law (Sec.
701 of Pub. L. 114-74). It requires all Federal agencies to review
their existing regulations and adjust the level of civil monetary
penalties found in those regulations for inflation. The Act
contemplates two adjustments--an initial ``catch-up'' adjustment
through rulemaking from the date the penalty in question was
established to present day, and annual adjustments for inflation
thereafter. The purpose of these adjustments is to maintain the
deterrent effect of civil penalties found in existing regulations, in
order to further the policy goals of the underlying statutes. The BLM
has reviewed its existing regulations and determined that only the
civil monetary penalties found at 43 CFR 3163.2 are subject to the
Act's requirements.
Once penalties subject to the Act have been identified, the Act
specifies the formula and format to be used to adjust those amounts.
(Section 701(b)) The adjustments contemplated by the Act are based on
the percent change between the Consumer Price Index for all Urban
Consumers (CPI-U) for the month of October in 1987, the year the
penalties were established by regulation, and the October 2015 CPI-U,
so the catch-up adjustment multiplier is 2.06278 for all penalties. The
Act caps adjustments at 150 percent, and Section 701(b)(1)(D) of the
Act specifically requires that adjustments be promulgated as an interim
final rule. The Act does not provide BLM with discretion with respect
to either of these provisions.
The adjustments made by this interim final rule constitute the
initial ``catch-up'' adjustment contemplated by the Act and subsequent
guidance from OMB, and include the following changes to the penalties
provided by existing regulations:
----------------------------------------------------------------------------------------------------------------
Description of the Current Catchup Adjusted
CFR citation penalty penalty adjustment penalty
----------------------------------------------------------------------------------------------------------------
43 CFR 3163.2(a)............................ Failure to comply. $500 $531 $1,031
43 CFR 3163.2(b)............................ If corrective 5,000 5,314 10,314
action is not
taken.
43 CFR 3163.2(d)............................ If transporter 500 531 1,031
fails to permit
inspection for
documentation.
43 CFR 3163.2(e)............................ Failure to permit 10,000 10,628 20,628
inspection,
failure to notify.
43 CFR 3163.2(f)............................ False or 25,000 26,570 51,570
inaccurate
documents;
unlawful transfer
or purchase.
43 CFR 3163.2(g)(1)......................... Initial penalty 500 531 1,031
under 43 CFR
3163.2(a) for a
major violation.
43 CFR 3163.2(g)(1)......................... Maximum penalty 1,000 1,063 2,063
under 43 CFR
3163.2(a) for a
major violation.
43 CFR 3163.2(g)(1)......................... Initial penalty 5,000 5,314 10,314
under 43 CFR
3163.2(b) for a
major violation.
43 CFR 3163.2(g)(1)......................... Maximum penalty 10,000 10,628 20,628
under 43 CFR
3163.2(b) for a
major violation.
43 CFR 3163.2(g)(1)......................... Penalty under 43 500 531 1,031
CFR 3163.2(d) for
a major violation.
43 CFR 3163.2(g)(1)......................... Penalty under 43 10,000 10,628 20,628
CFR 3163.2(e) for
a major violation.
43 CFR 3163.2(g)(1)......................... Penalty under 43 25,000 26,570 51,570
CFR 3163.2(f) for
a major violation.
[[Page 41861]]
43 CFR 3163.2(g)(2)(iii).................... Initial penalty 50 53 103
under 43 CFR
3163.2(a) for a
minor violation.
43 CFR 3163.2(g)(2)(iii).................... Initial penalty 500 531 1,031
under 43 CFR
3163.2(b) for a
minor violation.
43 CFR 3163.2(g)(2)(iii).................... Maximum penalty 100 106 206
under 43 CFR
3163.2(a) for a
minor violation.
43 CFR 3163.2(g)(2)(iii).................... Maximum penalty 1,000 1,063 2,063
under 43 CFR
3163.2(b) for a
minor violation.
----------------------------------------------------------------------------------------------------------------
II. Calculation of Adjustment
OMB issued guidance on calculating the catch-up adjustment in
accordance with the Act. See February 24, 2016, Memorandum for the
Heads of Executive Departments and Agencies, from Shaun Donovan,
Director, Office of Management and Budget, re: Implementation of the
Federal Civil Penalties Inflation Adjustment Act Improvements Act of
2015. Under this guidance, the Department of the Interior has
identified applicable civil monetary penalties and calculated the
catch-up adjustment. A civil monetary penalty is any assessment with a
dollar amount that is levied for a violation of a Federal civil statute
or regulation, and is assessed or enforceable through a civil action in
Federal court or an administrative proceeding. A civil monetary penalty
does not include a penalty levied for violation of a criminal statute,
or fees for services, licenses, permits, or other regulatory review.
The calculated catch-up adjustment is based on the percent change
between the Consumer Price Index for all Urban Consumers (CPI-U) for
the month of October in the year of the previous adjustment (or in the
year of establishment, if no adjustment has been made) and the October
2015 CPI-U.
III. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866 and 13563)
Executive Order 12866 provides that the Office of Information and
Regulatory Affairs in the Office of Management and Budget will review
all significant rules. The Office of Information and Regulatory Affairs
has determined that this rule is not significant. Executive Order 13563
reaffirms the principles of E.O. 12866 while calling for improvements
in the nation's regulatory system to promote predictability, to reduce
uncertainty, and to use the best, most innovative, and least burdensome
tools for achieving regulatory ends. The executive order directs
agencies to consider regulatory approaches that reduce burdens and
maintain flexibility and freedom of choice for the public where these
approaches are relevant, feasible, and consistent with regulatory
objectives. E.O. 13563 emphasizes further that regulations must be
based on the best available science, and that the rulemaking process
must allow for public participation and an open exchange of ideas. We
have developed this rule in a manner consistent with these
requirements.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires an agency to prepare
a regulatory flexibility analysis for rules unless the agency certifies
that the rule will not have a significant economic impact on a
substantial number of small entities. The RFA applies only to rules for
which an agency is required to first publish a proposed rule. See 5
U.S.C. 603(a) and 604(a). The Act requires agencies to adjust civil
penalties with an initial catch-up adjustment through an interim final
rule. Since an interim final rule does not include first publishing a
proposed rule, the RFA does not apply to this final rule.
C. Small Business Regulatory Enforcement Fairness Act
This rule is not a major rule under 5 U.S.C. 804(2), the Small
Business Regulatory Enforcement Fairness Act. 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) Does 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.
This rule will potentially affect individuals and companies who
hold leases on Federal or Indian lands. The BLM believes that the vast
majority of potentially affected entities will be small businesses as
defined by the Small Business Administration. However, the BLM does not
believe the rule will pose a significant economic impact on the
industry, including any small entities, for two reasons. First, any
lessee can avoid being assessed civil penalties by operating in
compliance with BLM rules and regulations. Second, payments for
penalties adjusted as a result of this rule will be negligible compared
with the $23 billion worth of crude oil and natural gas produced from
Federal and Indian leases last year.
D. Unfunded Mandates Reform Act
This rule does not impose an unfunded mandate on State, local, or
tribal governments, or the private sector of more than $100 million per
year. The rule does 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. 1531 et seq.) is not required.
E. Takings (E.O. 12630)
This rule does not effect a taking of private property or otherwise
have takings implications under Executive Order 12630. A takings
implication assessment is not required.
F. Federalism (E.O. 13132)
Under the criteria in section 1 of Executive Order 13132, this rule
does not have sufficient federalism implications to warrant the
preparation of a federalism summary impact statement. A federalism
summary impact statement is not required.
G. Civil Justice Reform (E.O. 12988)
This rule complies with the requirements of Executive Order 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.
[[Page 41862]]
H. Consultation With Indian Tribes (E.O. 13175 and Departmental Policy)
The Department of the Interior strives to strengthen its
government-to-government relationship with Indian tribes through a
commitment to consultation with Indian tribes and recognition of their
right to self-governance and tribal sovereignty. We have evaluated this
rule under the Department's consultation policy and under the criteria
in Executive Order 13175 and have determined that it has no substantial
direct effects on federally recognized Indian tribes and that
consultation under the Department's tribal consultation policy is not
required.
I. Paperwork Reduction Act
This rule does not contain information collection requirements, and
a submission to OMB under the Paperwork Reduction Act (44 U.S.C. 3501
et seq.) is not required. We may not conduct or sponsor, and you are
not required to respond to, a collection of information unless it
displays a currently valid OMB control number.
J. National Environmental Policy Act
A detailed statement under the National Environmental Policy Act of
1969 (NEPA) is not required because the rule is covered by a
categorical exclusion. This rule is excluded from the requirement to
prepare a detailed statement because it is a regulation of an
administrative nature. (For further information see 43 CFR 46.210(i).)
We have also determined that the rule does not involve any of the
extraordinary circumstances listed in 43 CFR 46.215 that would require
further analysis under NEPA.
K. Effects on the Energy Supply (E.O. 13211)
This rule is not a significant energy action under the definition
in Executive Order 13211. Therefore, a Statement of Energy Effects is
not required.
L. Clarity of This Regulation
We are required by Executive Orders 12866 (section 1(b)(12)), 12988
(section 3(b)(1)(B)), and 13563 (section 1(a)), and by the Presidential
Memorandum of June 1, 1998, to write all rules in plain language. This
means that each rule we publish must:
(a) Be logically organized;
(b) Use the active voice to address readers directly;
(c) Use common, everyday words and clear language rather than
jargon;
(d) Be divided into short sections and sentences; and
(e) Use lists and tables wherever possible.
If you feel that we have not met these requirements, send us
comments by one of the methods listed in the ADDRESSES section. To
better help us revise the rule, your comments should be as specific as
possible. For example, you should tell us the numbers of the sections
or paragraphs that you find unclear, which sections or sentences are
too long, the sections where you feel lists or tables would be useful.
M. Administrative Procedure Act
The Act requires agencies to publish interim final rules by July 1,
2016, with an effective date for the adjusted penalties no later than
August 1, 2016. To comply with the Act, we are issuing these
regulations as an interim final rule and are requesting comments post-
promulgation. Section 553(b) of the Administrative Procedure Act (APA)
provides that, when an agency for good cause finds that ``notice and
public procedure . . . are impracticable, unnecessary, or contrary to
the public interest,'' the agency may issue a rule without providing
notice and an opportunity for prior public comment.
The BLM is promulgating this rule as an interim final rule because
the Act expressly directs us to do so by July 1, 2016. The BLM also
finds that there is good cause to promulgate this rule without notice
and public procedure for two reasons. First, it would not be possible
to meet the deadlines imposed by the Act if the BLM were first to
publish a proposed rule, allow the public sufficient time to submit
comments, and analyze those comments, before publishing a final rule.
Also, since the Act does not give the BLM any discretion to vary the
amount of the adjustment for any given penalty to reflect any views or
suggestions provided by commenters, it would serve no purpose to
provide an opportunity for pre-promulgation public comment on this
rule. Thus, pre-promulgation notice and public comment is impracticable
and unnecessary.
List of Subjects in 43 CFR Part 3160
Administrative practice and procedure, Government contracts,
Indians--lands, Mineral royalties, Oil and gas exploration, Penalties,
Public lands--mineral resources, Reporting and recordkeeping
requirements.
For the reasons given in the preamble, the BLM amends Chapter II of
Title 43 of the Code of Federal Regulations as follows:
PART 3160--ONSHORE OIL AND GAS OPERATIONS
0
1. The authority citation for part 3160 is revised to read as follows:
Authority: 25 U.S.C. 396d and 2107; 30 U.S.C. 189, 306, 359, and
1751; 43 U.S.C. 1732(b), 1733, 1740; and Sec. 107, Pub. L. 114-74,
129 Stat. 599, unless otherwise noted.
Subpart 3163--Noncompliance, Assessments, and Penalties
Sec. 3163.2 [Amended]
0
2. In Sec. 3163.2:
0
a. In paragraph (a), remove ``$500'' and add in its place ``$1,031''.
0
b. In paragraph (b), remove ``$5,000'' and add in its place
``$10,314''.
0
c. In paragraph (d), remove ``$500'' and add in its place ``$1,031''.
0
d. In paragraph (e) introductory text, remove ``$10,000'' and add in
its place ``$20,628''.
0
e. In paragraph (f) introductory text, remove ``$25,000'' and add in
its place ``$51,570''.
0
f. In paragraph (g)(1), remove ``$500'' each place that it occurs and
add in its place ``$1,031''; remove ``$5,000'' and add in its place
``$10,314''; remove ``$1,000'' each place that it occurs and add in its
place ``$2,063''; remove ``$10,000'' each place that it occurs and add
in its place ``$20,628''; remove ``$25,000'' and add in its place
``$51,570''.
0
g. In paragraph (g)(2)(iii), remove ``$50'' and add in its place
``$103''; remove ``$500'' and add in its place ``$1,031''; remove
``$100'' and add in its place ``$206''; remove ``$1,000'' and add in
its place ``$2,063''.
Janice M. Schneider,
Assistant Secretary, Land and Minerals Management.
[FR Doc. 2016-15129 Filed 6-27-16; 8:45 am]
BILLING CODE 4310-84-P
