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:
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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.
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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
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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.
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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.
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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.
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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.)
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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
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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
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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.).
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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.
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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
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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.
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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
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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?
*
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*
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*
ER16NO16.013
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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
- DEPARTMENT OF THE INTERIOR
- Bureau of Safety and Environmental Enforcement
[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