Waste Prevention, Production Subject to Royalties, and Resource Conservation; Postponement of Certain Compliance Dates, 27430-27431 [2017-12325]

Download as PDF 27430 Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Rules and Regulations 2000), nor will it impose substantial direct costs on tribal governments or preempt tribal law. The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this action and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the Federal Register. A major rule cannot take effect until 60 days after it is published in the Federal Register. This action is not a ‘‘major rule’’ as defined by 5 U.S.C. 804(2). Under section 307(b)(1) of the CAA, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by August 14, 2017. Filing a petition for reconsideration by the Administrator of this final rule does not affect the finality of this action for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and shall not postpone the effectiveness of such rule or action. This action may not be challenged later in proceedings to enforce its requirements. See section 307(b)(2). List of Subjects in 40 CFR Part 52 Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relations, Nitrogen dioxide, Ozone, Particulate matter, Reporting and recordkeeping requirements, Volatile organic compounds. Dated: May 25, 2017. V. Anne Heard, Acting Regional Administrator, Region 4. 40 CFR part 52 is amended as follows: PART 52—APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS 1. The authority citation for part 52 continues to read as follows: ■ pmangrum on DSK3GDR082PROD with RULES Authority: 42 U.S.C. 7401 et seq. Subpart RR—Tennessee ■ 2. Add § 52.2219 to read as follows: § 52.2219 Conditional approval. Tennessee submitted a letter to EPA on December 7, 2016, with a commitment to address the State VerDate Sep<11>2014 14:00 Jun 14, 2017 Jkt 241001 Implementation Plan deficiencies regarding requirements of Clean Air Act section 110(a)(2)(D)(i)(II) related to interference with measures to protect visibility in another state (prong 4) for the 2010 1-hour NO2, 2010 1-hour SO2, and 2012 annual PM2.5 NAAQS. EPA conditionally approved the prong 4 portions of Tennessee’s March 13, 2014, 2010 1-hour NO2 and 2010 1-hour SO2 infrastructure SIP submission and December 16, 2015, 2012 annual PM2.5 infrastructure SIP submission in an action published in the Federal Register on June 15, 2017. If Tennessee fails to meet its commitment by June 15, 2018, the conditional approval will automatically become a disapproval on that date and EPA will issue a finding of disapproval. [FR Doc. 2017–12342 Filed 6–14–17; 8:45 am] BILLING CODE 6560–50–P DEPARTMENT OF THE INTERIOR Bureau of Land Management 43 CFR Part 3170 [17X.LLWO310000.L13100000.PP0000] RIN 1004–AE14 Waste Prevention, Production Subject to Royalties, and Resource Conservation; Postponement of Certain Compliance Dates Bureau of Land Management, Interior. ACTION: Notification; postponement of compliance dates. AGENCY: On November 18, 2016, the Bureau of Land Management (BLM) issued a final rule entitled, ‘‘Waste Prevention, Production Subject to Royalties, and Resource Conservation’’ (the ‘‘Waste Prevention Rule’’ or ‘‘Rule’’). Immediately after the Waste Prevention Rule was issued, petitions for judicial review of the Rule were filed by industry groups and States with significant BLM-managed Federal and Indian minerals. This litigation has been consolidated and is now pending in the U.S. District Court for the District of Wyoming. In light of the existence and potential consequences of the pending litigation, the BLM has concluded that justice requires it to postpone the compliance dates for certain sections of the Rule pursuant to the Administrative Procedure Act, pending judicial review. DATES: June 15, 2017. FOR FURTHER INFORMATION CONTACT: Timothy Spisak at the BLM Washington Office, 20 M Street SE., Room 2134 LM, SUMMARY: PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 Washington, DC 20003, or by telephone at 202–912–7311. For questions relating to regulatory process issues, contact Faith Bremner at 202–912–7441. Persons who use a telecommunications device for the deaf (TDD) may call the Federal Relay Service (FRS) at 1–800–877–8339 to contact these individuals during normal business hours. FRS is available 24 hours a day, 7 days a week to leave a message or question with these individuals. You will receive a reply during normal business hours. SUPPLEMENTARY INFORMATION: I. Background On November 18, 2016, the BLM published the Waste Prevention Rule. (81 FR 83008) The Rule addresses, among other things, the loss of natural gas through venting, flaring, and leaks during the production of Federal and Indian oil and gas. The Rule replaced Notice to Lessees and Operators of Onshore Federal and Indian Oil and Gas Leases, Royalty or Compensation for Oil and Gas Lost (1980) (‘‘NTL–4A’’), which governed the venting and flaring of Federal and Indian gas for more than three decades. In addition to updating and revising the requirements of NTL– 4A, the Rule contained new requirements that operators capture a certain percentage of the gas they produce (43 CFR 3179.7), measure flared volumes (43 CFR 3179.9), upgrade or replace pneumatic equipment (43 CFR 3179.201–179.202), capture or combust storage tank vapors (43 CFR 3179.203), and implement leak detection and repair (LDAR) programs (43 CFR 3179.301–.305). The Rule did not obligate operators to comply with these new requirements until January 17, 2018. Compliance with certain other provisions of the Rule is already mandatory, including the requirement that operators submit a ‘‘waste minimization plan’’ with applications for permits to drill (43 CFR 3162.3–1), new regulations for the royalty-free use of production (43 CFR subpart 3178), new regulatory definitions of ‘‘unavoidably lost’’ and ‘‘avoidably lost’’ oil and gas (43 CFR 3179.4), limits on venting and flaring during drilling and production operations (43 CFR 3179.101–179.105), and requirements for downhole well maintenance and liquids unloading (43 CFR 3179.204). Immediately after the Rule was issued, petitions for judicial review of the Rule were filed by industry groups and States with significant BLMmanaged Federal and Indian minerals. The petitioners in this litigation are the Western Energy Alliance (WEA), the Independent Petroleum Association of E:\FR\FM\15JNR1.SGM 15JNR1 pmangrum on DSK3GDR082PROD with RULES Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Rules and Regulations America, the State of Wyoming, the State of Montana, the State of North Dakota, and the State of Texas. This litigation has been consolidated and is now pending in the U.S. District Court for the District of Wyoming. Wyoming v. U.S. Dep’t of the Interior, Case No. 2:16– cv–00285–SWS (D. Wyo.). Petitioners assert that the BLM was arbitrary and capricious in promulgating the Rule and that the Rule exceeds the BLM’s statutory authority. On March 28, 2017, the President issued Executive Order No. 13783 (E.O. 13783) entitled, ‘‘Promoting Energy Independence and Economic Growth.’’ E.O. 13783 directed the Secretary of the Interior (Secretary) to review the Rule for consistency with the policies set forth in Section 1 of E.O. 13783 and, if appropriate, publish for notice and comment a proposed rule suspending, revising, or rescinding the Rule. E.O. 13783 Sec. 7(b). On March 29, 2017, the Secretary issued Secretarial Order 3349 implementing E.O. 13783. The Department’s review of the Rule is ongoing. The Secretary has received written requests from WEA and the American Petroleum Institute (API) that the BLM suspend the Rule or postpone its compliance dates in light of the regulatory uncertainty created by the pending litigation and the ongoing administrative review of the Rule. Letter from Kathleen M. Sgamma to Secretary Zinke (April 4, 2017); letter from Jack N. Gerard to Secretary Zinke (May 16, 2017). Both API and WEA stated that operators face the prospect of significant expenditures to comply with provisions of the Rule that will become operative in January 2018. WEA specifically noted that the LDAR, storage tank, and pneumatic device provisions will require operators to begin purchasing and installing tens of thousands of replacement parts in the near future. Section 705 of the Administrative Procedure Act (APA), 5 U.S.C. 705, provides that, ‘‘[w]hen an agency finds that justice so requires, it may postpone the effective date of action taken by it, pending judicial review.’’ The Rule obligates operators to comply with its ‘‘capture percentage,’’ flaring measurement, pneumatic equipment, storage tank, and LDAR provisions beginning on January 17, 2018. This compliance date has not yet passed and is within the meaning of the term ‘‘effective date’’ as that term is used in Section 705 of the APA. Considering the substantial cost that complying with these requirements poses to operators (see U.S. Bureau of Land Management, Regulatory Impact Analysis for: Revisions to 43 CFR subpart 3100 VerDate Sep<11>2014 14:00 Jun 14, 2017 Jkt 241001 (Onshore Oil and Gas Leasing) and 43 CFR subpart 3600 (sic) (Onshore Oil and Gas Operations), Additions of 43 CFR subpart 3178 (Royalty-Free Use of Lease Production) and 43 CFR subpart 3179 (Waste Prevention and Resource Conservation) (November 10, 2016)), and the uncertain future these requirements face in light of the pending litigation and administrative review of the Rule, the BLM finds that justice requires it to postpone the future compliance dates for the following sections of the Rule: 43 CFR 3179.7, 3179.9, 3179.201, 3179.202, 3179.203, and 3179.301–3179.305. While the BLM believes the Waste Prevention Rule was properly promulgated, the petitioners have raised serious questions concerning the validity of certain provisions of the Rule. Given this legal uncertainty, operators should not be required to expend substantial time and resources to comply with regulatory requirements that may prove short-lived as a result of pending litigation or the administrative review that is already under way. Postponing these compliance dates will help preserve the regulatory status quo while the litigation is pending and the Department reviews and reconsiders the Rule. The provisions with compliance dates that have passed and are therefore unaffected by this document include: the requirement that operators submit a ‘‘waste minimization plan’’ with applications for permits to drill (43 CFR 3162.3–1), new regulations for the royalty-free use of production (43 CFR subpart 3178), new regulatory definitions of ‘‘unavoidably lost’’ and ‘‘avoidably lost’’ oil and gas (43 CFR 3179.4), limits on venting and flaring during drilling and production operations (43 CFR 3179.101–179.105), and requirements for downhole well maintenance and liquids unloading (43 CFR 3179.204). Separately, the BLM intends to conduct notice-and-comment rulemaking to suspend or extend the compliance dates of those sections affected by the Rule. II. Postponement of Compliance Dates Pursuant to Section 705 of the APA, the BLM hereby postpones the future compliance dates for the following sections affected by the final rule entitled, ‘‘Waste Prevention, Production Subject to Royalties, and Resource Conservation’’, pending judicial review: 43 CFR 3179.7, 3179.9, 3179.201, 3179.202, 3179.203, and 3179.301– 3179.305. BLM will publish a document announcing the outcome of that review. PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 27431 Dated: June 9, 2017. Katharine S. MacGregor Delegated the Authority of the Assistant Secretary for Land and Minerals Management. [FR Doc. 2017–12325 Filed 6–14–17; 8:45 am] BILLING CODE 4310–84–P NATIONAL FOUNDATION FOR THE ARTS AND HUMANITIES National Endowment for the Arts 45 CFR Parts 1149 and 1158 RIN 3135–AA33 Implementing the Federal Civil Penalties Adjustment Act Improvements Act of 2015 National Endowment for the Arts, National Foundation for the Arts and Humanities. ACTION: Interim final rule; request for comments. AGENCY: The National Endowment for the Arts (NEA) is adjusting the maximum civil monetary penalties that may be imposed for violations of the Program Fraud and Civil Remedies Act (PFCRA) and the NEA’s Restrictions on Lobbying to reflect the requirements of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act). The 2015 Act further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act) to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. DATES: Effective date: This rule is effective June 15, 2017. Comments date: Submit comments on or before July 17, 2017. ADDRESSES: You may submit comments, identified by RIN 3135–AA33, by any of the following methods: • Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments. • Email: generalcounsel@arts.gov. Include RIN 3135–AA33 in the subject line of the message. • Mail: National Endowment for the Arts, Office of the General Counsel, 400 7th Street SW., Second Floor, Washington, DC 20506. • Hand Delivery/Courier: National Endowment for the Arts, Office of the General Counsel, 400 7th Street SW., Second Floor, Washington, DC 20506. Instructions: All submissions received must include the agency name and docket number or Regulatory SUMMARY: E:\FR\FM\15JNR1.SGM 15JNR1

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[Federal Register Volume 82, Number 114 (Thursday, June 15, 2017)]
[Rules and Regulations]
[Pages 27430-27431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-12325]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Part 3170

[17X.LLWO310000.L13100000.PP0000]
RIN 1004-AE14


Waste Prevention, Production Subject to Royalties, and Resource 
Conservation; Postponement of Certain Compliance Dates

AGENCY: Bureau of Land Management, Interior.

ACTION: Notification; postponement of compliance dates.

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

SUMMARY: On November 18, 2016, the Bureau of Land Management (BLM) 
issued a final rule entitled, ``Waste Prevention, Production Subject to 
Royalties, and Resource Conservation'' (the ``Waste Prevention Rule'' 
or ``Rule''). Immediately after the Waste Prevention Rule was issued, 
petitions for judicial review of the Rule were filed by industry groups 
and States with significant BLM-managed Federal and Indian minerals. 
This litigation has been consolidated and is now pending in the U.S. 
District Court for the District of Wyoming. In light of the existence 
and potential consequences of the pending litigation, the BLM has 
concluded that justice requires it to postpone the compliance dates for 
certain sections of the Rule pursuant to the Administrative Procedure 
Act, pending judicial review.

DATES: June 15, 2017.

FOR FURTHER INFORMATION CONTACT: Timothy Spisak at the BLM Washington 
Office, 20 M Street SE., Room 2134 LM, Washington, DC 20003, or by 
telephone at 202-912-7311. For questions relating to regulatory process 
issues, contact Faith Bremner at 202-912-7441.
    Persons who use a telecommunications device for the deaf (TDD) may 
call the Federal Relay Service (FRS) at 1-800-877-8339 to contact these 
individuals during normal business hours. FRS is available 24 hours a 
day, 7 days a week to leave a message or question with these 
individuals. You will receive a reply during normal business hours.

SUPPLEMENTARY INFORMATION:

I. Background

    On November 18, 2016, the BLM published the Waste Prevention Rule. 
(81 FR 83008) The Rule addresses, among other things, the loss of 
natural gas through venting, flaring, and leaks during the production 
of Federal and Indian oil and gas. The Rule replaced Notice to Lessees 
and Operators of Onshore Federal and Indian Oil and Gas Leases, Royalty 
or Compensation for Oil and Gas Lost (1980) (``NTL-4A''), which 
governed the venting and flaring of Federal and Indian gas for more 
than three decades. In addition to updating and revising the 
requirements of NTL-4A, the Rule contained new requirements that 
operators capture a certain percentage of the gas they produce (43 CFR 
3179.7), measure flared volumes (43 CFR 3179.9), upgrade or replace 
pneumatic equipment (43 CFR 3179.201-179.202), capture or combust 
storage tank vapors (43 CFR 3179.203), and implement leak detection and 
repair (LDAR) programs (43 CFR 3179.301-.305). The Rule did not 
obligate operators to comply with these new requirements until January 
17, 2018. Compliance with certain other provisions of the Rule is 
already mandatory, including the requirement that operators submit a 
``waste minimization plan'' with applications for permits to drill (43 
CFR 3162.3-1), new regulations for the royalty-free use of production 
(43 CFR subpart 3178), new regulatory definitions of ``unavoidably 
lost'' and ``avoidably lost'' oil and gas (43 CFR 3179.4), limits on 
venting and flaring during drilling and production operations (43 CFR 
3179.101-179.105), and requirements for downhole well maintenance and 
liquids unloading (43 CFR 3179.204).
    Immediately after the Rule was issued, petitions for judicial 
review of the Rule were filed by industry groups and States with 
significant BLM-managed Federal and Indian minerals. The petitioners in 
this litigation are the Western Energy Alliance (WEA), the Independent 
Petroleum Association of

[[Page 27431]]

America, the State of Wyoming, the State of Montana, the State of North 
Dakota, and the State of Texas. This litigation has been consolidated 
and is now pending in the U.S. District Court for the District of 
Wyoming. Wyoming v. U.S. Dep't of the Interior, Case No. 2:16-cv-00285-
SWS (D. Wyo.). Petitioners assert that the BLM was arbitrary and 
capricious in promulgating the Rule and that the Rule exceeds the BLM's 
statutory authority.
    On March 28, 2017, the President issued Executive Order No. 13783 
(E.O. 13783) entitled, ``Promoting Energy Independence and Economic 
Growth.'' E.O. 13783 directed the Secretary of the Interior (Secretary) 
to review the Rule for consistency with the policies set forth in 
Section 1 of E.O. 13783 and, if appropriate, publish for notice and 
comment a proposed rule suspending, revising, or rescinding the Rule. 
E.O. 13783 Sec. 7(b). On March 29, 2017, the Secretary issued 
Secretarial Order 3349 implementing E.O. 13783. The Department's review 
of the Rule is ongoing.
    The Secretary has received written requests from WEA and the 
American Petroleum Institute (API) that the BLM suspend the Rule or 
postpone its compliance dates in light of the regulatory uncertainty 
created by the pending litigation and the ongoing administrative review 
of the Rule. Letter from Kathleen M. Sgamma to Secretary Zinke (April 
4, 2017); letter from Jack N. Gerard to Secretary Zinke (May 16, 2017). 
Both API and WEA stated that operators face the prospect of significant 
expenditures to comply with provisions of the Rule that will become 
operative in January 2018. WEA specifically noted that the LDAR, 
storage tank, and pneumatic device provisions will require operators to 
begin purchasing and installing tens of thousands of replacement parts 
in the near future.
    Section 705 of the Administrative Procedure Act (APA), 5 U.S.C. 
705, provides that, ``[w]hen an agency finds that justice so requires, 
it may postpone the effective date of action taken by it, pending 
judicial review.'' The Rule obligates operators to comply with its 
``capture percentage,'' flaring measurement, pneumatic equipment, 
storage tank, and LDAR provisions beginning on January 17, 2018. This 
compliance date has not yet passed and is within the meaning of the 
term ``effective date'' as that term is used in Section 705 of the APA. 
Considering the substantial cost that complying with these requirements 
poses to operators (see U.S. Bureau of Land Management, Regulatory 
Impact Analysis for: Revisions to 43 CFR subpart 3100 (Onshore Oil and 
Gas Leasing) and 43 CFR subpart 3600 (sic) (Onshore Oil and Gas 
Operations), Additions of 43 CFR subpart 3178 (Royalty-Free Use of 
Lease Production) and 43 CFR subpart 3179 (Waste Prevention and 
Resource Conservation) (November 10, 2016)), and the uncertain future 
these requirements face in light of the pending litigation and 
administrative review of the Rule, the BLM finds that justice requires 
it to postpone the future compliance dates for the following sections 
of the Rule: 43 CFR 3179.7, 3179.9, 3179.201, 3179.202, 3179.203, and 
3179.301-3179.305.
    While the BLM believes the Waste Prevention Rule was properly 
promulgated, the petitioners have raised serious questions concerning 
the validity of certain provisions of the Rule. Given this legal 
uncertainty, operators should not be required to expend substantial 
time and resources to comply with regulatory requirements that may 
prove short-lived as a result of pending litigation or the 
administrative review that is already under way. Postponing these 
compliance dates will help preserve the regulatory status quo while the 
litigation is pending and the Department reviews and reconsiders the 
Rule.
    The provisions with compliance dates that have passed and are 
therefore unaffected by this document include: the requirement that 
operators submit a ``waste minimization plan'' with applications for 
permits to drill (43 CFR 3162.3-1), new regulations for the royalty-
free use of production (43 CFR subpart 3178), new regulatory 
definitions of ``unavoidably lost'' and ``avoidably lost'' oil and gas 
(43 CFR 3179.4), limits on venting and flaring during drilling and 
production operations (43 CFR 3179.101-179.105), and requirements for 
downhole well maintenance and liquids unloading (43 CFR 3179.204).
    Separately, the BLM intends to conduct notice-and-comment 
rulemaking to suspend or extend the compliance dates of those sections 
affected by the Rule.

II. Postponement of Compliance Dates

    Pursuant to Section 705 of the APA, the BLM hereby postpones the 
future compliance dates for the following sections affected by the 
final rule entitled, ``Waste Prevention, Production Subject to 
Royalties, and Resource Conservation'', pending judicial review: 43 CFR 
3179.7, 3179.9, 3179.201, 3179.202, 3179.203, and 3179.301-3179.305. 
BLM will publish a document announcing the outcome of that review.

    Dated: June 9, 2017.
Katharine S. MacGregor
Delegated the Authority of the Assistant Secretary for Land and 
Minerals Management.
[FR Doc. 2017-12325 Filed 6-14-17; 8:45 am]
BILLING CODE 4310-84-P
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