Oil and Gas and Sulfur Operations in the Outer Continental Shelf-Decommissioning Costs for Pipelines, 80587-80592 [2016-27416]

Download as PDF Federal Register / Vol. 81, No. 221 / Wednesday, November 16, 2016 / Rules and Regulations • Consider an exemption for PHAs administering very few vouchers in Small Area FMR areas. The final rule exempts HUD Metropolitan FMR Areas with less than 2,500 HCVs under lease from using Small Area FMRs. In addition to the above, the presentation of the information in HUD’s proposed revision to its PHA administrative fee formula would also soften any adverse impact by providing additional resources to small PHAs generally. 7. Conclusion The majority of lessors of residential real estate and a substantial fraction of PHAs are characterized as small. If there were disproportionate effects on small entities, then a more detailed regulatory flexibility analysis would be merited. However, after an in-depth discussion of the industry structure and impact of the rule, HUD cannot conclude that there is a significant and disproportionate impact on small entities. It is true that many lessors may receive income from voucher tenants but it is not likely that they will be adversely affected once market forces are accounted for. Small PHAs could face an additional administrative burden but HUD has offered solutions to significantly reduce any burden. [FR Doc. 2016–27114 Filed 11–15–16; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9787] RIN 1545–BK29 Section 707 Regarding Disguised Sales, Generally; Correction Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendment. AGENCY: This document contains corrections to final regulations (TD 9787) that were published in the Federal Register on Wednesday, October 5, 2016 (81 FR 69291). The final regulations are under sections 707 and 752 of the Internal Revenue Code. DATES: This correction is effective November 16, 2016 and is applicable on and after October 5, 2016. FOR FURTHER INFORMATION CONTACT: Deane M. Burke or Caroline E. Hay at (202) 317–5279 (not a toll-free number). SUPPLEMENTARY INFORMATION: mstockstill on DSK3G9T082PROD with RULES SUMMARY: Background The final regulations (TD 9787) that are the subject of this correction are under sections 707 and 752 of the Internal Revenue Code. VerDate Sep<11>2014 16:03 Nov 15, 2016 Jkt 241001 80587 Need for Correction DEPARTMENT OF THE INTERIOR As published, the final regulations (TD 9787) contain errors that may prove to be misleading and are in need of clarification. Bureau of Safety and Environmental Enforcement List of Subjects in 26 CFR Part 1 [Docket ID: BSEE–2016–0004; 17XE1700DX EEEE500000 EX1SF0000.DAQ000] Income taxes, Reporting and recordkeeping requirements. RIN 1014–AA32 30 CFR Part 250 Oil and Gas and Sulfur Operations in the Outer Continental Shelf— Decommissioning Costs for Pipelines Correction of Publication Accordingly, 26 CFR Part 1 is corrected by making the following correcting amendments: ■ Bureau of Safety and Environmental Enforcement, Interior. ACTION: Final rule. AGENCY: PART 1—INCOME TAXES This rule amends Bureau of Safety and Environmental Enforcement (BSEE) regulations requiring lessees and owners of operating rights to submit summaries of actual decommissioning Authority: 26 U.S.C. 7805 * * * expenditures incurred for certain Section 1.707–5 also issued under 26 decommissioning activities related to oil U.S.C. 707(a)(2)(B). and gas and sulfur operations on the Outer Continental Shelf (OCS). The § 1.707–5 [Amended] amendment requires lessees, owners of ■ Par. 2. For each entry in § 1.707–5(f) operating rights, and right-of-way in the ‘‘Section’’ column, remove the (ROW) holders to submit summaries of language in the ‘‘Remove’’ column from actual expenditures incurred for wherever it appears in the Example and pipeline decommissioning activities. add in its place the language in the DATES: This final rule becomes effective ‘‘Add’’ column as set forth below: on December 16, 2016. FOR FURTHER INFORMATION CONTACT: Section Remove Add Betty Cox, Regulatory Analyst, Regulations and Standards Branch at Paragraph (f) Example regs@bsee.gov or by telephone at (703) 5(i) ............................. 2016 2017 787–1616. Paragraph (f) Example 10(i) ........................... 2016 2017 SUPPLEMENTARY INFORMATION: Paragraph (f) Example BSEE’s Functions and Authority Paragraph 1. The authority citation for part 1 continues to read in part as follows: ■ 10(ii) .......................... Paragraph (f) Example 11(i) ........................... Paragraph (f) Example 11(ii) .......................... Paragraph (f) Example 12(i) ........................... 2016 2017 2016 SUMMARY: 2017 BSEE promotes safety, protects the environment, and conserves natural resources through vigorous regulatory 2016 2017 oversight and enforcement regarding certain activities on the OCS. BSEE 2016 2017 derives its authority primarily from the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1331–1356a. Martin V. Franks, Congress enacted OCSLA in 1953, Chief, Publications and Regulations Branch, codifying Federal control over the OCS Legal Processing Division, Associate Chief and authorizing the Secretary of the Counsel (Procedure and Administration). Interior (Secretary) to, among other [FR Doc. 2016–27515 Filed 11–15–16; 8:45 am] things, regulate oil and natural gas BILLING CODE 4830–01–P exploration, development, and production operations and to grant rights-of-way on the OCS. The Secretary has authorized BSEE to perform certain of these functions, including overseeing decommissioning. (See 30 CFR 250.101; 30 CFR part 250, subpart Q.) To carry out its responsibilities, BSEE regulates exploration, development, and production of oil and natural gas and pipeline operations to enhance safety and environmental protection in a way that reflects advancements in PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 E:\FR\FM\16NOR1.SGM 16NOR1 80588 Federal Register / Vol. 81, No. 221 / Wednesday, November 16, 2016 / Rules and Regulations technology and new information. BSEE also conducts onsite inspections to ensure compliance with regulations, lease terms, and approved plans or permits. Detailed information concerning BSEE’s regulations and guidance for the offshore industry may be found on BSEE’s Web site at: www.bsee.gov/Regulations-andGuidance/index. mstockstill on DSK3G9T082PROD with RULES Background Among its responsibilities, BSEE regulates certain types of oil and gas pipelines used on the OCS. (See 30 CFR 250.1000–250.1019). In general, BSEE regulates pipelines or pipeline segments on the OCS that are operated by oil and gas producers.1 (See id.) Pipelines regulated by BSEE generally fall within two categories, ‘‘lease term’’ pipelines or ROW pipelines. Among other things, BSEE approves the installation, modification, and decommissioning of all lease term and ROW pipelines, and the modification or relinquishment of all pipeline ROW grants on the OCS. BSEE’s regulations for decommissioning pipelines are found at 30 CFR 250.1700 through 250.1704 and 250.1750 through 250.1754. A more detailed discussion of BSEE’s regulations for OCS pipelines is found in the preamble to the proposed rule for this rulemaking. (See 81 FR 53348 (Aug. 12, 2016).) Purpose and Summary of Proposed and Final Amendment To Decommissioning Cost Reporting Requirements In 2009, BSEE’s predecessor agency, the Minerals Management Service (MMS), proposed new reporting requirements related to lease assignment for lease term pipelines. (See 74 FR 25177 (May 27, 2009).) MMS also proposed to require the submission of information on expenditures for decommissioning of wells, platforms, and other facilities and for site clearance. (See id.) In a final rule published on December 4, 2015, BSEE amended its regulations to require lessees and owners of operating rights to submit summaries of actual decommissioning expenditures for certain required decommissioning activities within 120 days after completion of each such activity. (See 80 FR 75806.) Specifically, the final rule requires reporting of summaries of expenditures for plugging wells, removing platforms and other facilities, and clearing obstructions from sites. In addition, the final rule authorizes BSEE 1 BSEE also regulates transporter-operated pipelines that DOI and the U.S. Department of Transportation (DOT) have agreed are to be regulated by BSEE, as well as all OCS pipelines not subject to DOT regulation. See 30 CFR 250.1001. VerDate Sep<11>2014 16:03 Nov 15, 2016 Jkt 241001 to require additional supporting information regarding specific decommissioning costs on a case-bycase basis. The December 2015 final rule was codified at 30 CFR 250.1704(h) and (i). On April 27, 2016, BSEE issued a Notice to Lessees and Operators (NTL), No. 2016–N03, Reporting Requirements for Decommissioning Expenditures on the OCS, providing guidance and clarification regarding the submission of the decommissioning cost summaries required by § 250.1704(h). On April 29, 2016, BSEE adopted a final rule revising and establishing requirements for improving well control equipment and procedures (the Well Control Rule). (See 81 FR 25888.) Among other things, effective July 28, 2016, the Well Control Rule revised paragraph (g) of § 250.1704, added a new paragraph (h), and redesignated existing paragraphs (h) and (i) as paragraphs (i) and (j), respectively. The Well Control Rule did not, however, affect the substance of those decommissioning cost reporting provisions. BSEE did not include reporting of expenditures for pipeline decommissioning in the December 2015 final rule because the 2009 proposed rule did not expressly refer to pipeline decommissioning expenditures. BSEE has determined, however, that accurate information about expenditures incurred for pipeline decommissioning activities is needed to better estimate future decommissioning costs for those activities. As BSEE explained in the December 2015 final rule, with regard to expenditures for other types of decommissioning activities, summaries of actual decommissioning expenditures will help BSEE better estimate future decommissioning costs. (See 80 FR 75806.) For the same reason, summaries of actual pipeline decommissioning expenditures will help BSEE better estimate future decommissioning costs. In addition, BSEE will share its pipeline decommissioning cost estimates—as well as all other decommissioning cost estimates—with the Bureau of Ocean Energy Management (BOEM) for use by BOEM in setting necessary financial assurance levels to minimize the possibility that (1) the government will incur future financial liability for decommissioning pipelines where the responsible party has failed to carry out the required decommissioning and has posted inadequate financial assurance; or (2) financial assurance requirements will exceed the amount actually necessary to cover future decommissioning liabilities. PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 Accordingly, on August 12, 2016, BSEE published a proposed rule to extend the existing decommissioning cost reporting regulations to require lessees, owners of operating rights, and pipeline ROW holders to submit information regarding actual expenditures incurred for activities related to decommissioning of pipelines. (See 81 FR 53348.) Specifically, BSEE proposed to expand the scope of: (1) Existing § 250.1704(i) in order to require that lessees, owners of operating rights, and pipeline ROW holders submit certified summaries of actual expenditures for decommissioning of pipelines; and (2) existing § 250.1704(j) in order to authorize Regional Supervisors to require the submission of additional information, on a case-by-case basis, to support summaries of pipeline decommissioning expenditures submitted under § 250.1704(i). The rule did not propose to revise the existing decommissioning cost reporting provisions. For the reasons stated in the proposed rule and based on BSEE’s evaluation of the public comments received, this rule finalizes the proposal to require lessees, owners of operating rights, and pipeline ROW holders to submit information reflecting actual expenditures incurred for the decommissioning of pipelines.2 The final rule amends paragraphs (i) and (j) of § 250.1704 to require lessees, owners of operating rights, and pipeline ROW holders to submit certified summaries of actual expenditures for decommissioning of pipelines, and to authorize Regional Supervisors to require additional information, on a case-by-case basis, as needed, to support a specific summary of such expenditures. Changes Between Proposed and Final Rules BSEE has made no changes to the language of the proposed rule and is finalizing the regulatory text as proposed. Summary of and Responses to Public Comments In response to the proposed rule, BSEE received one comment, which was submitted by a trade association representing producing companies and service providers to the offshore oil and natural gas industry. The full text of the comment can be viewed at: www.regulations.gov. To access the comment, enter BSEE–2016–0004 in the 2 As stated in the proposed rule, BSEE recognizes that a designated operator may submit the required summary of decommissioning costs on behalf of a lessee. (See 81 FR 53350 n.4.) E:\FR\FM\16NOR1.SGM 16NOR1 mstockstill on DSK3G9T082PROD with RULES Federal Register / Vol. 81, No. 221 / Wednesday, November 16, 2016 / Rules and Regulations search box. A summary of the issues raised by the comment, with BSEE’s responses, follows. Comment: The commenter asserted that BSEE had not provided guidance or details on how the certified summary of pipeline decommissioning expenditures should categorize and report information. The commenter stated that, at a minimum, the guidance in NTL No. 2016–N03 should be updated before the final rule is implemented to include specific guidance on decommissioning costs for pipelines, umbilicals, pipeline end terminations (PLETS), manifolds, and other equipment permitted through pipeline applications and bonding. Response: Subsequent to publication of the December 2015 Decommissioning Cost Reporting final rule, BSEE issued NTL No. 2016–N03, which provides guidance and clarification regarding the submission of certified decommissioning cost expenditure summaries for wells, platforms or other facilities, and for clearance of any site. Among other things, that NTL addresses the format of submitted data and recommends the submission of cost data for each decommissioning activity type, including PLETS, pipeline end manifolds, and other types of equipment being decommissioned. Notwithstanding the clarification provided by NTL No. 2016–N03, BSEE understands that supplemental guidance and clarification may be needed regarding the submission of certified summaries of pipeline decommissioning cost expenditures and expects to issue additional guidance and clarification, as future circumstances may warrant, through appropriate means (e.g., in a revised or new NTL). Comment: The commenter suggested that, if aggregate data are used by BSEE to estimate future decommissioning costs, these data should be made available, with specific operator information removed, to industry for benchmarking purposes. In addition, the commenter suggested that the owner or operator should have the ability to request an adjustment to a BSEE cost estimate by presenting its own decommissioning estimate data to BSEE/BOEM for review. Response: The commenter’s suggestions do not warrant any revision to the proposed regulatory language; however, BSEE will take these suggestions into consideration as aggregated data are developed and analyzed under the final rule. Regarding the commenter’s suggestion that BSEE allow the presentation of companyspecific estimates for review and possible adjustment of the BSEE cost estimates, BSEE has always allowed VerDate Sep<11>2014 16:03 Nov 15, 2016 Jkt 241001 such submissions and they will continue to be part of the BSEE process for estimating future costs. Comment: The commenter asserted that the phrase ‘‘actually incurred’’ in proposed § 250.1704(i) is ambiguous, since operators may develop a figure for the value of work done (VOWD) prior to receiving an invoice from the vendor, and the VOWD may differ from the vendor invoice that, in some cases, may not be received until more than 120 days after the decommissioning work is completed. The commenter further stated that, while the 120-day deadline for submitting a summary of expenditures may be practicable if a summary based on the VOWD is acceptable, 120 days may be insufficient if the summary is required to be based on actual invoices for services received. Response: BSEE disagrees that the phrase ‘‘expenditures actually incurred’’ is ambiguous. BSEE is requiring a summary of actual decommissioning expenditures for pipelines, using the same terminology used in the December 2015 final rule for submitting summaries of actual expenditures for decommissioning of wells, platforms, or other facilities and for site clearance. Such certified summaries are based on actual invoice data. By contrast, VOWD estimates may not accurately reflect the actual decommissioning costs and could negatively impact future BSEE decommissioning cost estimates. Accordingly, submitting a VOWD would not satisfy the requirement of this rule. Regarding the commenter’s assertion that 120 days may not be enough time to submit a certified summary based on actual invoice data, BSEE expects to apply the same guidance under this new rule as that contained in NTL No. 2016– N03, i.e.: BSEE appreciates that there could be situations where it may take longer than the 120-day reporting period allowed by regulation for lessees to receive and process all decommissioning related invoices. In such cases, BSEE will consider granting an extension when timely requested and sufficiently justified. BSEE would rather receive a single complete submission with a reporting period extension than a preliminary summary followed by some number of revisions/supplements. However, failure to submit decommissioning cost summaries in the timeframe required by the regulation, or as extended by BSEE, may result in BSEE’s issuance of an Incident of Noncompliance. BSEE expects to address any special situations that may warrant an extension of the deadline for submitting a summary of pipeline decommissioning expenditures in the same manner as requests to extend the PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 80589 deadline for summaries of other decommissioning costs. Procedural Matters Regulatory Planning and Review (Executive Orders 12866 and 13563) Executive Order (E.O.) 12866 provides that the Office of Management and Budget (OMB), Office of Information and Regulatory Affairs (OIRA), will review all significant regulatory actions. BSEE has determined that this final rule is not a significant regulatory action as defined by section 3(f) of E.O. 12866 because: • It is not expected to have an annual effect on the economy of $100 million or more; • It will not adversely affect in a material way the economy, productivity, competition, jobs, the environment, public health or safety, or State, Tribal, or local governments or communities; • It will not create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; • It will not materially alter the budgetary impact of entitlements, grants, user fees, or loan programs, or the rights or obligations of their recipients; and • It will not raise novel legal or policy issues arising out of legal mandates, the President’s priorities, or the principles set forth in E.O. 12866. Accordingly, BSEE has not prepared an economic analysis beyond the analysis required under the Paperwork Reduction Act, and OIRA has not reviewed this rule under E.O. 12866. E.O. 13563 reaffirms the principles of E.O. 12866 while calling for improvements in the Nation’s regulatory system to promote predictability, reduce uncertainty, and use the best, most innovative, and least burdensome tools for achieving regulatory ends. E.O. 13563 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. It also emphasizes 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. BSEE developed this rule in a manner consistent with these requirements. Regulatory Flexibility Act (RFA) BSEE 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.). E:\FR\FM\16NOR1.SGM 16NOR1 mstockstill on DSK3G9T082PROD with RULES 80590 Federal Register / Vol. 81, No. 221 / Wednesday, November 16, 2016 / Rules and Regulations This rule potentially affects offshore lessees, owners of operating rights and other operators, and pipeline ROW holders who perform decommissioning activities under 30 CFR part 250, subpart Q. In the December 2015 final rule, using the Small Business Administration’s North American Industry Classification System (NAICS) codes 211111 (Crude Petroleum and Natural Gas Extraction) and 213111 (Drilling Oil and Gas Wells), we estimated that a substantial number, about 90 of the 130 active companies potentially affected by that rule (i.e., lessees and operators), would be considered small entities. (See 80 FR 75808.) However, we concluded that the final rule would not have a significant economic effect on those small entities because the cost of preparing decommissioning cost summaries is not significant. (See id.) This final rule will affect some additional companies (i.e., ROW holders that were not covered by the December 2015 final rule as lessees or owners of operating rights) that will be required to submit pipeline decommissioning cost summaries. Using more recent information than was available when we published the December 2015 final rule, we estimate that this final rule’s requirement to report pipeline decommissioning costs could affect approximately 111 lessees, owners of operating rights, and ROW holders that currently own or control DOI pipelines, including many companies already covered by the December 2015 final rule. Of these 111 potentially affected entities, we estimate that a substantial number (66 companies) are small entities. Therefore, this final rule will affect a substantial number of small entities. However, because the final rule requires only summary reports of actual expenditures related to pipeline decommissioning activities, it will not impose significant new economic impacts on any affected small entities. The requirement to submit pipeline decommissioning cost summaries will not result in significant additional costs or burdens for any affected entity. As indicated in the Paperwork Reduction Act section of this document, the annual burden of the rule is estimated to be only 519 hours in total for all affected entities to prepare and submit their pipeline decommissioning cost summaries. Accordingly, since the changes reflected in this final rule will not have a significant economic effect on a substantial number of small entities, the RFA does not require BSEE to prepare a regulatory flexibility analysis for this rule. VerDate Sep<11>2014 16:03 Nov 15, 2016 Jkt 241001 Small Business Regulatory Enforcement Fairness Act (SBREFA) This rule is not a major rule under the SBREFA (5 U.S.C. 804(2)). This final rule will not: • Have an annual effect on the economy of $100 million or more; • Cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or • Have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises. 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 BSEE, call 1–888–734–3247. You may comment to the Small Business Administration (SBA) without fear of retaliation. Allegations of discrimination/retaliation filed with the SBA will be investigated for appropriate action. governments have a role in OCS activities, this final rule will not affect that role. Accordingly, a federalism summary impact statement is not required. Unfunded Mandates Reform Act of 1995 This final rule will not impose an unfunded mandate on State, Tribal, or local governments or the private sector of more than $100 million per year. This rule also will not have a significant or unique effect on State, Tribal, or local governments or the private sector. Thus, a statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required. Paperwork Reduction Act (PRA) This rule contains new information collection (IC) requirements and submission to the OMB under the PRA of 1995 (44 U.S.C. 3501 et seq.) is required. The OMB has approved the IC in this rule under OMB Control Number 1014–0030, expiring on November 30, 2019. We estimate the annual burden associated with this IC to be 519 hours per year. The title of the collection of information for this rule is 30 CFR part 250, subpart Q, Decommissioning Costs for Pipelines. Potential respondents include approximately 111 OCS lessees, owners of operating rights, and ROW holders. Responses to this collection are mandatory. The frequency of response is on occasion. The IC does not include questions of a sensitive nature. BSEE will protect confidential commercial and proprietary information according to section 26 of OCSLA (43 U.S.C. 1352), FOIA (5 U.S.C. 552) and DOI’s implementing regulations (43 CFR part 2), and according to 30 CFR 250.197 (Data and information to be made available to the public or for limited inspection). Once the requirements of this rulemaking have been codified, BSEE will consolidate these additional burden Takings Implication Assessment (E.O. 12630) Under the criteria in E.O. 12630, this final rule will not effect a taking or otherwise have takings implications. This rule is not a governmental action capable of interference with constitutionally protected property rights. Therefore, a Takings Implication Assessment is not required. Federalism (E.O. 13132) Under the criteria in Executive Order 13132, this final rule does not have federalism implications. This rule will not have a substantial direct effect on the States or the relationship between the Federal and State governments. To the extent that State and local PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 Civil Justice Reform (E.O. 12988) This final rule complies with the requirements of Executive Order 12988 (E.O. 12988), Civil Justice Reform (February 7, 1996). Specifically, this rule: • Meets the criteria of section 3(a) of E.O. 12988 requiring that all regulations be reviewed to eliminate drafting errors and ambiguity and be written to minimize litigation; and • Meets the criteria of section 3(b)(2) of E.O. 12988 requiring that all regulations be written in clear language and contain clear legal standards. Consultation With Indian Tribal Governments (E.O. 13175) We have evaluated this final rule under the Department’s tribal consultation policy, under Departmental Manual Part 512 Chapters 4 and 5, and under the criteria in E.O. 13175 and have determined that it will have no substantial direct effects on federally recognized Indian tribes. As a result, consultation under the Department’s tribal consultation policy is not required. E:\FR\FM\16NOR1.SGM 16NOR1 Federal Register / Vol. 81, No. 221 / Wednesday, November 16, 2016 / Rules and Regulations 80591 burdens associated with this rulemaking. The following table is a breakdown of the burden estimate: We received one comment in response to the proposed rule pertaining to the information collection. Please see the Summary of and Responses to Public Comments section in this preamble. Based on the comment received, we are increasing the burden to reflect requests for extension to the 120-day reporting period (+ 19 hours). An agency 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. The public may comment at any time on the accuracy of the IC burden in this rule and may submit any comments to the Department of the Interior, Bureau of Safety and Environmental Enforcement, Attention: Regulations and Standards Branch, VA– ORP, 45600 Woodland Road, Sterling, VA 20166. actions otherwise eligible for a categorical exclusion. We have concluded that this rule does not involve any of the listed extraordinary circumstances. Environmental impact statements, Environmental protection, Government contracts, Investigations, Oil and gas exploration, Penalties, Reporting and recordkeeping requirements, Sulfur. Data Quality Act Dated: November 1, 2016. Amanda C. Leiter, Acting Assistant Secretary, Land and Minerals Management. National Environmental Policy Act of 1969 (NEPA) Effects on the Nation’s Energy Supply (E.O. 13211) This rule meets the criteria set forth in 516 Departmental Manual (DM) 15.4C(1) for a categorical exclusion because it involves modification of existing regulations, the impacts of which would be limited to administrative or economic effects with minimal environmental impacts. We have also analyzed this rule to determine if it involves any of the extraordinary circumstances set forth in 43 CFR 46.215 that would require an environmental assessment or an environmental impact statement for This rule is not a significant energy action under Executive Order 13211 (E.O. 13211) because: • It is not a significant regulatory action under E.O. 12866; • It is not likely to have a significant adverse effect on the supply, distribution or use of energy; and • It has not been designated as a significant energy action by the Administrator of OIRA. VerDate Sep<11>2014 16:03 Nov 15, 2016 Jkt 241001 In developing this rule, we did not conduct or use a study, experiment, or survey requiring peer review under the Data Quality Act (44 U.S.C. 3516 et seq., Pub. L. 106–554, app. C sec. 515, 114 Stat. 2763, 2763A–153–154). List of Subjects in 30 CFR Part 250 Administrative practice and procedure, Continental shelf, PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 For the reasons stated in the preamble, BSEE amends 30 CFR part 250 as follows: PART 250—OIL AND GAS AND SULFUR OPERATIONS IN THE OUTER CONTINENTAL SHELF 1. The authority citation for part 250 continues to read as follows: ■ Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 33 U.S.C. 1321(j)(1)(C), 43 U.S.C. 1334. 2. Amend § 250.1704 by revising paragraphs (i) and (j) in the table to read as follows: ■ § 250.1704 What decommissioning applications and reports must I submit and when must I submit them? * E:\FR\FM\16NOR1.SGM * * 16NOR1 * * ER16NO16.013</GPH> mstockstill on DSK3G9T082PROD with RULES hours into the primary collection for 30 CFR part 250, subpart Q, under OMB Control Number 1014–0010 (expiration November 30, 2016; 15,524 burden hours and $1,686,396 non-hour cost burdens). There are no non-hour cost 80592 Federal Register / Vol. 81, No. 221 / Wednesday, November 16, 2016 / Rules and Regulations DECOMMISSIONING APPLICATIONS AND REPORTS TABLE Decommissioning applications and reports * * (i) A certified summary of expenditures for permanently plugging any well, removal of any platform or other facility, clearance of any site after wells have been plugged or platforms or facilities removed, and decommissioning of pipelines. (j) If requested by the Regional Supervisor, additional information in support of any decommissioning activity expenditures included in a summary submitted under paragraph (i) of this section. When to submit * * * * * Within 120 days after completion Submit to the Regional Supervisor a complete summary of expendiof each decommissioning activity tures actually incurred for each decommissioning activity (including, specified in this paragraph. but not limited to, the use of rigs, vessels, equipment, supplies and materials; transportation of any kind; personnel; and services). Include in, or attach to, the summary a certified statement by an authorized representative of your company attesting to the truth, accuracy and completeness of the summary. The Regional Supervisor may provide specific instructions or guidance regarding how to submit the certified summary. Within a reasonable time as deter- The Regional Supervisor will review the summary and may provide mined by the Regional Superspecific instructions or guidance regarding the submission of addivisor. tional information (including, but not limited to, copies of contracts and invoices), if requested, to complete or otherwise support the summary. [FR Doc. 2016–27416 Filed 11–15–16; 8:45 am] BILLING CODE 4310–VH–P DEPARTMENT OF THE INTERIOR Office of Surface Mining Reclamation and Enforcement 30 CFR Parts 700, 701, 773, 774, 777, 779, 780, 783, 784, 785, 800, 816, 817, 824, and 827 [Docket ID: OSM–2010–0021; S1D1S SS08011000 SX064A000 178S180110; S2D2S SS08011000 SX064A000 17XS501520] Stream Protection Rule; Final Environmental Impact Statement Office of Surface Mining Reclamation and Enforcement, Department of the Interior. ACTION: Notice of availability; final environmental impact statement. AGENCY: We, the Office of Surface Mining Reclamation and Enforcement (OSMRE), announce the availability of the Final Environmental Impact Statement (FEIS) for the Stream Protection Rule developed pursuant to the National Environmental Policy Act (NEPA). DATES: The final EIS is available on November 16, 2016. ADDRESSES: Copies of the FEIS are available for public inspection at the following OSMRE locations: • Administrative Record, Room 101 SIB, 1951 Constitution Avenue NW., Washington, DC 20240, (Phone: 202– 208–2823). • Appalachian Regional Office, Three Parkway Center, Pittsburgh, Pennsylvania 15220 (Phone: (412) 937– 2815). mstockstill on DSK3G9T082PROD with RULES SUMMARY: VerDate Sep<11>2014 16:03 Nov 15, 2016 Instructions Jkt 241001 • Mid-Continent Regional Office, William L. Beatty Federal Building, 501 Belle Street, Room 216, Alton, Illinois 62002 (Phone: (618) 463–6460). • Western Regional Office, 1999 Broadway, Suite 3320, Denver, Colorado 80201 (Phone: (303) 293–5000). • Charleston Field Office, 1027 Virginia Street East, Charleston, West Virginia 25301 (Phone: (304) 347–7158). • Knoxville Field Office, 710 Locust Street, 2nd floor, Knoxville, Tennessee 37902 (Phone: (865) 545–4103). • Lexington Field Office, 2675 Regency Road, Lexington, Kentucky 40503 (Phone: (859) 260–3902). • Beckley Area Office, 313 Harper Park Drive, Beckley, West Virginia 25801 (Phone: (304) 255–5265). • Harrisburg Area Office, 215 Limekiln Road, New Cumberland, Pennsylvania 17070 (Phone: (717) 730– 6985). • Albuquerque Area Office, 100 Sun Avenue NE., Pan American Building, Suite 330, Albuquerque, New Mexico 87109 (Phone: (505) 761–8989). • Casper Area Office, Dick Cheney Federal Building, 150 East B Street, Casper, Wyoming 82601 (Phone: (307) 261–6550). • Birmingham Field Office, 135 Gemini Circle, Suite 215, Homewood, Alabama 35209 (Phone: (205) 290– 7282). • Tulsa Field Office, 1645 South 101st East Avenue, Suite 145, Tulsa, Oklahoma 74128 (Phone: (918) 581– 6430). Electronic copies of the FEIS are available at: • Federal eRulemaking Portal: https:// www.regulations.gov. The Docket ID for the FEIS is OSM–2010–0021. • OSMRE Web site: www.osmre.gov. In addition, a limited number of CD copies of the FEIS are available upon PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 request. You may obtain a CD by contacting the person identified in FOR FURTHER INFORMATION CONTACT. FOR FURTHER INFORMATION CONTACT: Robin Ferguson, Office of Surface Mining Reclamation and Enforcement, U.S. Department of the Interior, 1951 Constitution Avenue NW., Washington, DC 20240. Telephone: 202–208–2802. Email: rferguson@osmre.gov. SUPPLEMENTARY INFORMATION: Background Significant advances in scientific knowledge and mining and reclamation techniques have occurred in the more than 30 years that have elapsed since the enactment of the Surface Mining Control and Reclamation Act of 1977, 30 U.S.C. 1201 et seq., and the adoption of Federal regulations implementing that law. On July 27, 2015, OSMRE proposed the Stream Protection Rule for the primary purpose of updating its regulations and providing regulatory certainty to industry using these advances in scientific knowledge to minimize the adverse impacts of surface coal mining and underground mining operations on surface water, groundwater, fish, wildlife, and related environmental values, with particular emphasis on protecting or restoring streams and aquatic ecosystems. (See 80 FR 44436.) The draft environmental impact statement (DEIS) for the proposed rule was made available for public review and comment on July 17, 2015. (See 80 FR 42535.) After an extension was granted, the comment period closed on October 26, 2015. (See 80 FR 54590.) During the comment period, OSMRE held six public hearings in Colorado, Kentucky, Missouri, Pennsylvania, Virginia, and West Virginia, and E:\FR\FM\16NOR1.SGM 16NOR1

Agencies

[Federal Register Volume 81, Number 221 (Wednesday, November 16, 2016)]
[Rules and Regulations]
[Pages 80587-80592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27416]


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

DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Part 250

[Docket ID: BSEE-2016-0004; 17XE1700DX EEEE500000 EX1SF0000.DAQ000]
RIN 1014-AA32


Oil and Gas and Sulfur Operations in the Outer Continental 
Shelf--Decommissioning Costs for Pipelines

AGENCY: Bureau of Safety and Environmental Enforcement, Interior.

ACTION: Final rule.

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

SUMMARY: This rule amends Bureau of Safety and Environmental 
Enforcement (BSEE) regulations requiring lessees and owners of 
operating rights to submit summaries of actual decommissioning 
expenditures incurred for certain decommissioning activities related to 
oil and gas and sulfur operations on the Outer Continental Shelf (OCS). 
The amendment requires lessees, owners of operating rights, and right-
of-way (ROW) holders to submit summaries of actual expenditures 
incurred for pipeline decommissioning activities.

DATES: This final rule becomes effective on December 16, 2016.

FOR FURTHER INFORMATION CONTACT: Betty Cox, Regulatory Analyst, 
Regulations and Standards Branch at regs@bsee.gov or by telephone at 
(703) 787-1616.

SUPPLEMENTARY INFORMATION:

BSEE's Functions and Authority

    BSEE promotes safety, protects the environment, and conserves 
natural resources through vigorous regulatory oversight and enforcement 
regarding certain activities on the OCS. BSEE derives its authority 
primarily from the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 
1331-1356a. Congress enacted OCSLA in 1953, codifying Federal control 
over the OCS and authorizing the Secretary of the Interior (Secretary) 
to, among other things, regulate oil and natural gas exploration, 
development, and production operations and to grant rights-of-way on 
the OCS. The Secretary has authorized BSEE to perform certain of these 
functions, including overseeing decommissioning. (See 30 CFR 250.101; 
30 CFR part 250, subpart Q.) To carry out its responsibilities, BSEE 
regulates exploration, development, and production of oil and natural 
gas and pipeline operations to enhance safety and environmental 
protection in a way that reflects advancements in

[[Page 80588]]

technology and new information. BSEE also conducts onsite inspections 
to ensure compliance with regulations, lease terms, and approved plans 
or permits. Detailed information concerning BSEE's regulations and 
guidance for the offshore industry may be found on BSEE's Web site at: 
www.bsee.gov/Regulations-and-Guidance/index.

Background

    Among its responsibilities, BSEE regulates certain types of oil and 
gas pipelines used on the OCS. (See 30 CFR 250.1000-250.1019). In 
general, BSEE regulates pipelines or pipeline segments on the OCS that 
are operated by oil and gas producers.\1\ (See id.) Pipelines regulated 
by BSEE generally fall within two categories, ``lease term'' pipelines 
or ROW pipelines. Among other things, BSEE approves the installation, 
modification, and decommissioning of all lease term and ROW pipelines, 
and the modification or relinquishment of all pipeline ROW grants on 
the OCS. BSEE's regulations for decommissioning pipelines are found at 
30 CFR 250.1700 through 250.1704 and 250.1750 through 250.1754. A more 
detailed discussion of BSEE's regulations for OCS pipelines is found in 
the preamble to the proposed rule for this rulemaking. (See 81 FR 53348 
(Aug. 12, 2016).)
---------------------------------------------------------------------------

    \1\ BSEE also regulates transporter-operated pipelines that DOI 
and the U.S. Department of Transportation (DOT) have agreed are to 
be regulated by BSEE, as well as all OCS pipelines not subject to 
DOT regulation. See 30 CFR 250.1001.
---------------------------------------------------------------------------

Purpose and Summary of Proposed and Final Amendment To Decommissioning 
Cost Reporting Requirements

    In 2009, BSEE's predecessor agency, the Minerals Management Service 
(MMS), proposed new reporting requirements related to lease assignment 
for lease term pipelines. (See 74 FR 25177 (May 27, 2009).) MMS also 
proposed to require the submission of information on expenditures for 
decommissioning of wells, platforms, and other facilities and for site 
clearance. (See id.)
    In a final rule published on December 4, 2015, BSEE amended its 
regulations to require lessees and owners of operating rights to submit 
summaries of actual decommissioning expenditures for certain required 
decommissioning activities within 120 days after completion of each 
such activity. (See 80 FR 75806.) Specifically, the final rule requires 
reporting of summaries of expenditures for plugging wells, removing 
platforms and other facilities, and clearing obstructions from sites. 
In addition, the final rule authorizes BSEE to require additional 
supporting information regarding specific decommissioning costs on a 
case-by-case basis. The December 2015 final rule was codified at 30 CFR 
250.1704(h) and (i).
    On April 27, 2016, BSEE issued a Notice to Lessees and Operators 
(NTL), No. 2016-N03, Reporting Requirements for Decommissioning 
Expenditures on the OCS, providing guidance and clarification regarding 
the submission of the decommissioning cost summaries required by Sec.  
250.1704(h). On April 29, 2016, BSEE adopted a final rule revising and 
establishing requirements for improving well control equipment and 
procedures (the Well Control Rule). (See 81 FR 25888.) Among other 
things, effective July 28, 2016, the Well Control Rule revised 
paragraph (g) of Sec.  250.1704, added a new paragraph (h), and 
redesignated existing paragraphs (h) and (i) as paragraphs (i) and (j), 
respectively. The Well Control Rule did not, however, affect the 
substance of those decommissioning cost reporting provisions.
    BSEE did not include reporting of expenditures for pipeline 
decommissioning in the December 2015 final rule because the 2009 
proposed rule did not expressly refer to pipeline decommissioning 
expenditures. BSEE has determined, however, that accurate information 
about expenditures incurred for pipeline decommissioning activities is 
needed to better estimate future decommissioning costs for those 
activities.
    As BSEE explained in the December 2015 final rule, with regard to 
expenditures for other types of decommissioning activities, summaries 
of actual decommissioning expenditures will help BSEE better estimate 
future decommissioning costs. (See 80 FR 75806.) For the same reason, 
summaries of actual pipeline decommissioning expenditures will help 
BSEE better estimate future decommissioning costs. In addition, BSEE 
will share its pipeline decommissioning cost estimates--as well as all 
other decommissioning cost estimates--with the Bureau of Ocean Energy 
Management (BOEM) for use by BOEM in setting necessary financial 
assurance levels to minimize the possibility that (1) the government 
will incur future financial liability for decommissioning pipelines 
where the responsible party has failed to carry out the required 
decommissioning and has posted inadequate financial assurance; or (2) 
financial assurance requirements will exceed the amount actually 
necessary to cover future decommissioning liabilities.
    Accordingly, on August 12, 2016, BSEE published a proposed rule to 
extend the existing decommissioning cost reporting regulations to 
require lessees, owners of operating rights, and pipeline ROW holders 
to submit information regarding actual expenditures incurred for 
activities related to decommissioning of pipelines. (See 81 FR 53348.) 
Specifically, BSEE proposed to expand the scope of: (1) Existing Sec.  
250.1704(i) in order to require that lessees, owners of operating 
rights, and pipeline ROW holders submit certified summaries of actual 
expenditures for decommissioning of pipelines; and (2) existing Sec.  
250.1704(j) in order to authorize Regional Supervisors to require the 
submission of additional information, on a case-by-case basis, to 
support summaries of pipeline decommissioning expenditures submitted 
under Sec.  250.1704(i). The rule did not propose to revise the 
existing decommissioning cost reporting provisions.
    For the reasons stated in the proposed rule and based on BSEE's 
evaluation of the public comments received, this rule finalizes the 
proposal to require lessees, owners of operating rights, and pipeline 
ROW holders to submit information reflecting actual expenditures 
incurred for the decommissioning of pipelines.\2\ The final rule amends 
paragraphs (i) and (j) of Sec.  250.1704 to require lessees, owners of 
operating rights, and pipeline ROW holders to submit certified 
summaries of actual expenditures for decommissioning of pipelines, and 
to authorize Regional Supervisors to require additional information, on 
a case-by-case basis, as needed, to support a specific summary of such 
expenditures.
---------------------------------------------------------------------------

    \2\ As stated in the proposed rule, BSEE recognizes that a 
designated operator may submit the required summary of 
decommissioning costs on behalf of a lessee. (See 81 FR 53350 n.4.)
---------------------------------------------------------------------------

Changes Between Proposed and Final Rules

    BSEE has made no changes to the language of the proposed rule and 
is finalizing the regulatory text as proposed.

Summary of and Responses to Public Comments

    In response to the proposed rule, BSEE received one comment, which 
was submitted by a trade association representing producing companies 
and service providers to the offshore oil and natural gas industry. The 
full text of the comment can be viewed at: www.regulations.gov. To 
access the comment, enter BSEE-2016-0004 in the

[[Page 80589]]

search box. A summary of the issues raised by the comment, with BSEE's 
responses, follows.
    Comment: The commenter asserted that BSEE had not provided guidance 
or details on how the certified summary of pipeline decommissioning 
expenditures should categorize and report information. The commenter 
stated that, at a minimum, the guidance in NTL No. 2016-N03 should be 
updated before the final rule is implemented to include specific 
guidance on decommissioning costs for pipelines, umbilicals, pipeline 
end terminations (PLETS), manifolds, and other equipment permitted 
through pipeline applications and bonding.
    Response: Subsequent to publication of the December 2015 
Decommissioning Cost Reporting final rule, BSEE issued NTL No. 2016-
N03, which provides guidance and clarification regarding the submission 
of certified decommissioning cost expenditure summaries for wells, 
platforms or other facilities, and for clearance of any site. Among 
other things, that NTL addresses the format of submitted data and 
recommends the submission of cost data for each decommissioning 
activity type, including PLETS, pipeline end manifolds, and other types 
of equipment being decommissioned. Notwithstanding the clarification 
provided by NTL No. 2016-N03, BSEE understands that supplemental 
guidance and clarification may be needed regarding the submission of 
certified summaries of pipeline decommissioning cost expenditures and 
expects to issue additional guidance and clarification, as future 
circumstances may warrant, through appropriate means (e.g., in a 
revised or new NTL).
    Comment: The commenter suggested that, if aggregate data are used 
by BSEE to estimate future decommissioning costs, these data should be 
made available, with specific operator information removed, to industry 
for benchmarking purposes. In addition, the commenter suggested that 
the owner or operator should have the ability to request an adjustment 
to a BSEE cost estimate by presenting its own decommissioning estimate 
data to BSEE/BOEM for review.
    Response: The commenter's suggestions do not warrant any revision 
to the proposed regulatory language; however, BSEE will take these 
suggestions into consideration as aggregated data are developed and 
analyzed under the final rule. Regarding the commenter's suggestion 
that BSEE allow the presentation of company-specific estimates for 
review and possible adjustment of the BSEE cost estimates, BSEE has 
always allowed such submissions and they will continue to be part of 
the BSEE process for estimating future costs.
    Comment: The commenter asserted that the phrase ``actually 
incurred'' in proposed Sec.  250.1704(i) is ambiguous, since operators 
may develop a figure for the value of work done (VOWD) prior to 
receiving an invoice from the vendor, and the VOWD may differ from the 
vendor invoice that, in some cases, may not be received until more than 
120 days after the decommissioning work is completed. The commenter 
further stated that, while the 120-day deadline for submitting a 
summary of expenditures may be practicable if a summary based on the 
VOWD is acceptable, 120 days may be insufficient if the summary is 
required to be based on actual invoices for services received.
    Response: BSEE disagrees that the phrase ``expenditures actually 
incurred'' is ambiguous. BSEE is requiring a summary of actual 
decommissioning expenditures for pipelines, using the same terminology 
used in the December 2015 final rule for submitting summaries of actual 
expenditures for decommissioning of wells, platforms, or other 
facilities and for site clearance. Such certified summaries are based 
on actual invoice data. By contrast, VOWD estimates may not accurately 
reflect the actual decommissioning costs and could negatively impact 
future BSEE decommissioning cost estimates. Accordingly, submitting a 
VOWD would not satisfy the requirement of this rule.
    Regarding the commenter's assertion that 120 days may not be enough 
time to submit a certified summary based on actual invoice data, BSEE 
expects to apply the same guidance under this new rule as that 
contained in NTL No. 2016-N03, i.e.:

    BSEE appreciates that there could be situations where it may 
take longer than the 120-day reporting period allowed by regulation 
for lessees to receive and process all decommissioning related 
invoices. In such cases, BSEE will consider granting an extension 
when timely requested and sufficiently justified. BSEE would rather 
receive a single complete submission with a reporting period 
extension than a preliminary summary followed by some number of 
revisions/supplements. However, failure to submit decommissioning 
cost summaries in the timeframe required by the regulation, or as 
extended by BSEE, may result in BSEE's issuance of an Incident of 
Noncompliance.

    BSEE expects to address any special situations that may warrant an 
extension of the deadline for submitting a summary of pipeline 
decommissioning expenditures in the same manner as requests to extend 
the deadline for summaries of other decommissioning costs.

Procedural Matters

Regulatory Planning and Review (Executive Orders 12866 and 13563)

    Executive Order (E.O.) 12866 provides that the Office of Management 
and Budget (OMB), Office of Information and Regulatory Affairs (OIRA), 
will review all significant regulatory actions. BSEE has determined 
that this final rule is not a significant regulatory action as defined 
by section 3(f) of E.O. 12866 because:
     It is not expected to have an annual effect on the economy 
of $100 million or more;
     It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, Tribal, or local governments or 
communities;
     It will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency;
     It will not materially alter the budgetary impact of 
entitlements, grants, user fees, or loan programs, or the rights or 
obligations of their recipients; and
     It will not raise novel legal or policy issues arising out 
of legal mandates, the President's priorities, or the principles set 
forth in E.O. 12866.
    Accordingly, BSEE has not prepared an economic analysis beyond the 
analysis required under the Paperwork Reduction Act, and OIRA has not 
reviewed this rule under E.O. 12866. E.O. 13563 reaffirms the 
principles of E.O. 12866 while calling for improvements in the Nation's 
regulatory system to promote predictability, reduce uncertainty, and 
use the best, most innovative, and least burdensome tools for achieving 
regulatory ends. E.O. 13563 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. It also emphasizes 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. BSEE developed this rule in a manner consistent with 
these requirements.

Regulatory Flexibility Act (RFA)

    BSEE 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.).

[[Page 80590]]

This rule potentially affects offshore lessees, owners of operating 
rights and other operators, and pipeline ROW holders who perform 
decommissioning activities under 30 CFR part 250, subpart Q. In the 
December 2015 final rule, using the Small Business Administration's 
North American Industry Classification System (NAICS) codes 211111 
(Crude Petroleum and Natural Gas Extraction) and 213111 (Drilling Oil 
and Gas Wells), we estimated that a substantial number, about 90 of the 
130 active companies potentially affected by that rule (i.e., lessees 
and operators), would be considered small entities. (See 80 FR 75808.) 
However, we concluded that the final rule would not have a significant 
economic effect on those small entities because the cost of preparing 
decommissioning cost summaries is not significant. (See id.)
    This final rule will affect some additional companies (i.e., ROW 
holders that were not covered by the December 2015 final rule as 
lessees or owners of operating rights) that will be required to submit 
pipeline decommissioning cost summaries. Using more recent information 
than was available when we published the December 2015 final rule, we 
estimate that this final rule's requirement to report pipeline 
decommissioning costs could affect approximately 111 lessees, owners of 
operating rights, and ROW holders that currently own or control DOI 
pipelines, including many companies already covered by the December 
2015 final rule. Of these 111 potentially affected entities, we 
estimate that a substantial number (66 companies) are small entities. 
Therefore, this final rule will affect a substantial number of small 
entities.
    However, because the final rule requires only summary reports of 
actual expenditures related to pipeline decommissioning activities, it 
will not impose significant new economic impacts on any affected small 
entities. The requirement to submit pipeline decommissioning cost 
summaries will not result in significant additional costs or burdens 
for any affected entity. As indicated in the Paperwork Reduction Act 
section of this document, the annual burden of the rule is estimated to 
be only 519 hours in total for all affected entities to prepare and 
submit their pipeline decommissioning cost summaries. Accordingly, 
since the changes reflected in this final rule will not have a 
significant economic effect on a substantial number of small entities, 
the RFA does not require BSEE to prepare a regulatory flexibility 
analysis for this rule.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This rule is not a major rule under the SBREFA (5 U.S.C. 804(2)). 
This final rule will not:
     Have an annual effect on the economy of $100 million or 
more;
     Cause a major increase in costs or prices for consumers, 
individual industries, Federal, State, or local government agencies, or 
geographic regions; or
     Have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.
    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 BSEE, call 1-888-
734-3247. You may comment to the Small Business Administration (SBA) 
without fear of retaliation. Allegations of discrimination/retaliation 
filed with the SBA will be investigated for appropriate action.

Unfunded Mandates Reform Act of 1995

    This final rule will not impose an unfunded mandate on State, 
Tribal, or local governments or the private sector of more than $100 
million per year. This rule also will not have a significant or unique 
effect on State, Tribal, or local governments or the private sector. 
Thus, a statement containing the information required by the Unfunded 
Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required.

Takings Implication Assessment (E.O. 12630)

    Under the criteria in E.O. 12630, this final rule will not effect a 
taking or otherwise have takings implications. This rule is not a 
governmental action capable of interference with constitutionally 
protected property rights. Therefore, a Takings Implication Assessment 
is not required.

Federalism (E.O. 13132)

    Under the criteria in Executive Order 13132, this final rule does 
not have federalism implications. This rule will not have a substantial 
direct effect on the States or 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. 
Accordingly, a federalism summary impact statement is not required.

Civil Justice Reform (E.O. 12988)

    This final rule complies with the requirements of Executive Order 
12988 (E.O. 12988), Civil Justice Reform (February 7, 1996). 
Specifically, this rule:
     Meets the criteria of section 3(a) of E.O. 12988 requiring 
that all regulations be reviewed to eliminate drafting errors and 
ambiguity and be written to minimize litigation; and
     Meets the criteria of section 3(b)(2) of E.O. 12988 
requiring that all regulations be written in clear language and contain 
clear legal standards.

Consultation With Indian Tribal Governments (E.O. 13175)

    We have evaluated this final rule under the Department's tribal 
consultation policy, under Departmental Manual Part 512 Chapters 4 and 
5, and under the criteria in E.O. 13175 and have determined that it 
will have no substantial direct effects on federally recognized Indian 
tribes. As a result, consultation under the Department's tribal 
consultation policy is not required.

Paperwork Reduction Act (PRA)

    This rule contains new information collection (IC) requirements and 
submission to the OMB under the PRA of 1995 (44 U.S.C. 3501 et seq.) is 
required. The OMB has approved the IC in this rule under OMB Control 
Number 1014-0030, expiring on November 30, 2019. We estimate the annual 
burden associated with this IC to be 519 hours per year.
    The title of the collection of information for this rule is 30 CFR 
part 250, subpart Q, Decommissioning Costs for Pipelines. Potential 
respondents include approximately 111 OCS lessees, owners of operating 
rights, and ROW holders. Responses to this collection are mandatory. 
The frequency of response is on occasion. The IC does not include 
questions of a sensitive nature. BSEE will protect confidential 
commercial and proprietary information according to section 26 of OCSLA 
(43 U.S.C. 1352), FOIA (5 U.S.C. 552) and DOI's implementing 
regulations (43 CFR part 2), and according to 30 CFR 250.197 (Data and 
information to be made available to the public or for limited 
inspection).
    Once the requirements of this rulemaking have been codified, BSEE 
will consolidate these additional burden

[[Page 80591]]

hours into the primary collection for 30 CFR part 250, subpart Q, under 
OMB Control Number 1014-0010 (expiration November 30, 2016; 15,524 
burden hours and $1,686,396 non-hour cost burdens). There are no non-
hour cost burdens associated with this rulemaking.
    The following table is a breakdown of the burden estimate:
    We received one comment in response to the proposed rule pertaining 
to the information collection. Please see the Summary of and Responses 
to Public Comments section in this preamble. Based on the comment 
received, we are increasing the burden to reflect requests for 
extension to the 120-day reporting period (+ 19 hours).
[GRAPHIC] [TIFF OMITTED] TR16NO16.013

    An agency 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. The public may comment at any time on the 
accuracy of the IC burden in this rule and may submit any comments to 
the Department of the Interior, Bureau of Safety and Environmental 
Enforcement, Attention: Regulations and Standards Branch, VA-ORP, 45600 
Woodland Road, Sterling, VA 20166.

National Environmental Policy Act of 1969 (NEPA)

    This rule meets the criteria set forth in 516 Departmental Manual 
(DM) 15.4C(1) for a categorical exclusion because it involves 
modification of existing regulations, the impacts of which would be 
limited to administrative or economic effects with minimal 
environmental impacts.
    We have also analyzed this rule to determine if it involves any of 
the extraordinary circumstances set forth in 43 CFR 46.215 that would 
require an environmental assessment or an environmental impact 
statement for actions otherwise eligible for a categorical exclusion. 
We have concluded that this rule does not involve any of the listed 
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 
(44 U.S.C. 3516 et seq., 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 Executive Order 
13211 (E.O. 13211) because:
     It is not a significant regulatory action under E.O. 
12866;
     It is not likely to have a significant adverse effect on 
the supply, distribution or use of energy; and
     It has not been designated as a significant energy action 
by the Administrator of OIRA.

List of Subjects in 30 CFR Part 250

    Administrative practice and procedure, Continental shelf, 
Environmental impact statements, Environmental protection, Government 
contracts, Investigations, Oil and gas exploration, Penalties, 
Reporting and recordkeeping requirements, Sulfur.

    Dated: November 1, 2016.
Amanda C. Leiter,
Acting Assistant Secretary, Land and Minerals Management.

    For the reasons stated in the preamble, BSEE amends 30 CFR part 250 
as follows:

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

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

    Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 33 U.S.C. 
1321(j)(1)(C), 43 U.S.C. 1334.


0
2. Amend Sec.  250.1704 by revising paragraphs (i) and (j) in the table 
to read as follows:


Sec.  250.1704  What decommissioning applications and reports must I 
submit and when must I submit them?

* * * * *

[[Page 80592]]



             Decommissioning Applications and Reports Table
------------------------------------------------------------------------
 Decommissioning applications
          and reports             When to submit        Instructions
------------------------------------------------------------------------
 
                              * * * * * * *
(i) A certified summary of      Within 120 days    Submit to the
 expenditures for permanently    after completion   Regional Supervisor
 plugging any well, removal of   of each            a complete summary
 any platform or other           decommissioning    of expenditures
 facility, clearance of any      activity           actually incurred
 site after wells have been      specified in       for each
 plugged or platforms or         this paragraph.    decommissioning
 facilities removed, and                            activity (including,
 decommissioning of pipelines.                      but not limited to,
                                                    the use of rigs,
                                                    vessels, equipment,
                                                    supplies and
                                                    materials;
                                                    transportation of
                                                    any kind; personnel;
                                                    and services).
                                                    Include in, or
                                                    attach to, the
                                                    summary a certified
                                                    statement by an
                                                    authorized
                                                    representative of
                                                    your company
                                                    attesting to the
                                                    truth, accuracy and
                                                    completeness of the
                                                    summary. The
                                                    Regional Supervisor
                                                    may provide specific
                                                    instructions or
                                                    guidance regarding
                                                    how to submit the
                                                    certified summary.
(j) If requested by the         Within a           The Regional
 Regional Supervisor,            reasonable time    Supervisor will
 additional information in       as determined by   review the summary
 support of any                  the Regional       and may provide
 decommissioning activity        Supervisor.        specific
 expenditures included in a                         instructions or
 summary submitted under                            guidance regarding
 paragraph (i) of this section.                     the submission of
                                                    additional
                                                    information
                                                    (including, but not
                                                    limited to, copies
                                                    of contracts and
                                                    invoices), if
                                                    requested, to
                                                    complete or
                                                    otherwise support
                                                    the summary.
------------------------------------------------------------------------

[FR Doc. 2016-27416 Filed 11-15-16; 8:45 am]
BILLING CODE 4310-VH-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.