Onshore Oil and Gas Operations-Annual Civil Penalties Inflation Adjustments, 3992-3995 [2018-01628]
Download as PDF
<![CDATA[
3992
Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Rules and Regulations
action present a disproportionate risk to
children. The EPA’s risk assessments for
the 2015 final rule (Docket ID No. EPA–
HQ–OAR–2012–0360) demonstrate that
the current regulations are associated
with an acceptable level of risk and
provide an ample margin of safety to
protect public health and prevent
adverse environmental effects. This
final action does not alter those
conclusions.
I. Executive Order 13211: Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use
This action is not subject to Executive
Order 13211 because it is not a
significant regulatory action under
Executive Order 12866.
sradovich on DSK3GMQ082PROD with RULES
J. National Technology Transfer and
Advancement Act (NTTAA)
This rulemaking does not involve
technical standards.
16:12 Jan 26, 2018
Jkt 244001
L. Congressional Review Act (CRA)
This action is subject to the CRA, and
the EPA will submit a rule report to
each House of the Congress and to the
Comptroller General of the United
States. This action is not a ‘‘major rule’’
as defined by 5 U.S.C. 804(2).
List of Subjects in 40 CFR Part 63
Environmental protection,
Administrative practice and procedures,
Air pollution control, Hazardous
substances, Intergovernmental relations,
Reporting and recordkeeping
requirements.
Dated: January 18, 2018.
E. Scott Pruitt,
Administrator.
K. Executive Order 12898: Federal
Actions To Address Environmental
Justice in Minority Populations and
Low-Income Populations
The EPA believes that this action does
not have disproportionately high and
adverse human health or environmental
effects on minority populations, lowincome populations, and/or indigenous
peoples, as specified in Executive Order
12898 (59 FR 7629, February 16, 1994).
In the 2015 final rule, the EPA
determined that the current health risks
posed by emissions from this source
category are acceptable and provide an
ample margin of safety to protect public
health and prevent adverse
environmental effects. To gain a better
understanding of the source category
and near source populations, the EPA
conducted a proximity analysis for
OSWRO facilities prior to proposal in
2014 to identify any overrepresentation
of minority, low income, or indigenous
populations. This analysis gave an
indication of the prevalence of
subpopulations that might be exposed to
air pollution from the sources. We
revised this analysis to include four
additional OSWRO facilities that the
EPA learned about after proposal for the
2015 rule. The EPA determined that the
final rule would not have
disproportionately high and adverse
human health or environmental effects
on minority, low income, or indigenous
populations. The revised proximity
analysis results and the details
concerning its development are
presented in the memorandum titled,
Updated Environmental Justice Review:
Off-Site Waste and Recovery Operations
RTR, available in the docket for this
VerDate Sep<11>2014
action (Docket Document ID No. EPA–
HQ–OAR–2012–0360–0109). This final
action does not alter the conclusions
made in the 2015 final rule regarding
this analysis.
are not subject to the obligations in
paragraph (c)(3)(i) of this section.
*
*
*
*
*
(ii) If any pressure relief device in offsite material service releases directly to
the atmosphere as a result of a pressure
release event, the owner or operator
must calculate the quantity of HAP
listed in Table 1 of this subpart released
during each pressure release event and
report this quantity as required in
§ 63.697(b)(5). Calculations may be
based on data from the pressure relief
device monitoring alone or in
combination with process parameter
monitoring data and process knowledge.
For containers, the calculations may be
based on process knowledge and
information alone.
*
*
*
*
*
[FR Doc. 2018–01512 Filed 1–26–18; 8:45 am]
BILLING CODE 6560–50–P
For the reasons stated in the
preamble, the Environmental Protection
Agency (EPA) is amending title 40,
chapter I, of the Code of Federal
Regulations (CFR) as follows:
DEPARTMENT OF THE INTERIOR
PART 63—NATIONAL EMISSION
STANDARDS FOR HAZARDOUS AIR
POLLUTANTS FOR SOURCE
CATEGORIES
[LLWO310000 L13100000 PP0000 18X]
1. The authority citation for part 63
continues to read as follows:
■
Authority: 42 U.S.C. 7401, et seq.
Subpart DD—National Emission
Standards for Hazardous Air Pollutants
from Off-Site Waste and Recovery
Operations
2. Section 63.691 is amended by
revising paragraph (c)(3) introductory
text and paragraph (c)(3)(ii) to read as
follows:
■
§ 63.691
Standards: Equipment leaks.
*
*
*
*
*
(c) * * *
(3) Pressure release management.
Except as provided in paragraph (c)(4)
of this section, emissions of HAP listed
in Table 1 of this subpart may not be
discharged directly to the atmosphere
from pressure relief devices in off-site
material service, and according to the
date an affected source commenced
construction or reconstruction and the
date an affected source receives off-site
material for the first time, as established
in § 63.680(e)(1)(i) through (iii), the
owner or operator must comply with the
requirements specified in paragraphs
(c)(3)(i) and (ii) of this section for all
pressure relief devices in off-site
material service, except that containers
PO 00000
Frm 00056
Fmt 4700
Sfmt 4700
Bureau of Land Management
43 CFR Part 3160
RIN 1004–AE51
Onshore Oil and Gas Operations—
Annual Civil Penalties Inflation
Adjustments
Bureau of Land Management,
Interior.
ACTION: Final rule.
AGENCY:
This final rule adjusts the
level of civil monetary penalties
contained in the Bureau of Land
Management’s (BLM) regulations
governing onshore oil and gas
operations as required by the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 and
consistent with applicable Office of
Management and Budget (OMB)
guidance. The adjustments made by this
final rule constitute the 2018 annual
inflation adjustments, accounting for
one year of inflation spanning the
period from October 2016 through
October 2017.
DATES: This rule is effective on January
29, 2018.
FOR FURTHER INFORMATION CONTACT:
Steven Wells, Division Chief, Fluid
Minerals Division, 202–912–7143, for
information regarding the BLM’s Fluid
Minerals Program. For questions
relating to regulatory process issues,
please contact Jennifer Noe, Division of
Regulatory Affairs, at 202–912–7442.
Persons who use a telecommunications
SUMMARY:
E:\FR\FM\29JAR1.SGM
29JAR1
Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Rules and Regulations
device for the deaf (TDD) may call the
Federal Relay Service (FRS) at 1–800–
877–8339, 24 hours a day, 7 days a week
to contact the above individuals.
SUPPLEMENTARY INFORMATION:
I. Background
II. Calculation of 2018 Adjustments
III. Procedural Requirements
A. Administrative Procedure Act
B. Regulatory Planning and Review (E.O.
12866, E.O. 13563, and E.O. 13771)
C. Regulatory Flexibility Act
D. Small Business Regulatory Enforcement
Fairness Act
E. Unfunded Mandates Reform Act
F. Takings (E.O. 12630)
G. Federalism (E.O. 13132)
H. Civil Justice Reform (E.O. 12988)
I. Consultation With Indian Tribes (E.O.
13175 and Departmental Policy)
J. Paperwork Reduction Act
K. National Environmental Policy Act
L. Effects on the Energy Supply (E.O.
13211)
I. Background
On November 2, 2015, the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Sec. 701 of
Pub. L. 114–74) (the 2015 Act) became
law.
The 2015 Act requires agencies to:
1. Adjust the level of civil monetary
penalties for inflation with an initial
‘‘catch-up’’ adjustment through an
interim final rulemaking in 2016;
2. Make subsequent annual
adjustments for inflation beginning in
2017; and
3. Report annually in Agency
Financial Reports on these inflation
adjustments.
The purpose of these adjustments is to
further the policy goals of the
underlying statutes.
As required by the 2015 Act, the BLM
issued an interim final rule that
adjusted the level of civil monetary
penalties in BLM regulations with the
initial ‘‘catch-up’’ adjustment (RIN
1004–AE46, 81 FR 41,860), which was
published on June 28, 2016, and became
effective on July 28, 2016. On January
19, 2017, the BLM published a final rule
(RIN 1004–AE49, 82 FR 6,307) updating
the civil penalty amounts to the 2017
annual adjustment levels.
OMB issued Memorandum M–18–03
on December 15, 2017 (Implementation
of Penalty Inflation Adjustments for
2018, Pursuant to the 2015 Act)
explaining agency responsibilities for
identifying applicable penalties and
calculating the annual adjustment for
2018 in accordance with the 2015 Act.
II. Calculation of 2018 Adjustment
In accordance with the 2015 Act and
OMB Memorandum M–18–03, the BLM
has identified applicable civil monetary
penalties in its regulations and
calculated the annual adjustment. A
civil monetary penalty is any
assessment with a dollar amount that is
levied for a violation of a Federal civil
statute or regulation, and is assessed or
enforceable through a civil action in
Federal court or an administrative
proceeding. A civil monetary penalty
does not include a penalty levied for
violation of a criminal statute, nor does
it include fees for services, licenses,
permits, or other regulatory review. The
calculated annual inflation adjustments
are based on the percentage change
between the Consumer Price Index for
all Urban Consumers (CPI–U) for the
October preceding the date of the
CFR citation
43
43
43
43
43
CFR
CFR
CFR
CFR
CFR
sradovich on DSK3GMQ082PROD with RULES
A. Administrative Procedure Act
In accordance with the 2015 Act,
agencies must adjust civil monetary
penalties ‘‘notwithstanding Section 553
of the Administrative Procedure Act’’
(2015 Act at § 4(b)(2)). The BLM is
promulgating this 2018 inflation
adjustment for civil penalties as a final
rule pursuant to the provisions of the
2015 Act and OMB guidance. A
proposed rule is not required because
the 2015 Act expressly exempts the
annual inflation adjustments from the
16:12 Jan 26, 2018
Current
penalty
Failure to comply .......................................................................................
If corrective action is not taken .................................................................
If transporter fails to permit inspection for documentation .......................
Failure to permit inspection, failure to notify .............................................
False or inaccurate documents; unlawful transfer or purchase ................
III. Procedural Requirements
VerDate Sep<11>2014
adjustment, and the prior year’s October
CPI–U. Consistent with guidance in
OMB Memorandum M–18–03, the BLM
divided the October 2017 CPI–U by the
October 2016 CPI–U to calculate the
multiplier. In this case, October 2017
CPI–U (246.663)/October 2016 CPI–U
(241.729) = 1.02041. OMB
Memorandum M–18–03 confirms that
this is the proper multiplier. (OMB
Memorandum M–18–03 at 1 and n.4.)
The 2015 Act requires the BLM to
adjust the civil penalty amounts in 43
CFR 3163.2. To accomplish this, BLM
multiplied the current penalty amounts
in 43 CFR 3163.2 subparagraph (b)(2)
and paragraphs (d), (e), and (f) by the
multiplier set forth in OMB
Memorandum M–18–03 (1.02041) to
obtain the adjusted penalty amounts.
The 2015 Act requires that the resulting
amounts be rounded to the nearest $1.00
at the end of the calculation process.
Due to an error, the current penalty
amount in 43 CFR 3163.2(b)(1) of $1,031
reflects the initial ‘‘catch-up’’
adjustment published on June 28, 2016,
rather than the 2017 annual adjusted
amount of $1,048. The correct adjusted
penalty amount in 43 CFR 3163(b)(1) of
$1,069 was calculated by multiplying
the 2017 annual adjusted amount
($1,048) by the multiplier set forth in
OMB Memorandum M–18–03 (1.02041).
The adjusted penalty amounts will
take effect immediately upon
publication of this rule. Pursuant to the
2015 Act, the adjusted civil penalty
amounts apply to civil penalties
assessed after the date the increase takes
effect, even if the associated violation
predates such increase. This final rule
adjusts the following civil penalties:
Description of the penalty
3163.2(b)(1) .......................
3163.2(b)(2) .......................
3163.2(d) ............................
3163.2(e) ............................
3163.2(f) .............................
Jkt 244001
notice and comment requirements of the
Administrative Procedure Act. In
addition, since the 2015 Act does not
give the BLM any discretion to vary the
amount of the annual inflation
adjustment for any given penalty to
reflect any views or suggestions
provided by commenters, it would serve
no purpose to provide an opportunity
for public comment on this rule.
PO 00000
Frm 00057
Fmt 4700
Sfmt 4700
3993
$1,031
10,483
1,048
20,965
52,414
Adjusted
penalty
$1,069
10,697
1,069
21,393
53,484
B. Regulatory Planning and Review
(Executive Orders 12866, 13563, and
13771)
Executive Order (E.O.) 12866 provides
that the Office of Information and
Regulatory Affairs (OIRA) in the OMB
will review all significant rules. OIRA
has determined that this rule is not
significant. (See OMB Memorandum M–
18–03 at 3).
E.O. 13563 reaffirms the principles of
E.O. 12866 while calling for
improvements in the Nation’s regulatory
system to promote predictability and to
E:\FR\FM\29JAR1.SGM
29JAR1
3994
Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Rules and Regulations
reduce uncertainty and the use of 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.
E.O. 13563 emphasizes further that
regulations must be based on the best
available science, and that the
rulemaking process must allow for
public participation and an open
exchange of ideas. We have developed
this rule in a manner consistent with
these requirements to the extent
permitted by the 2015 Act.
E.O. 13771 of January 30, 2017,
directs federal agencies to reduce the
regulatory burden on regulated entities
and control regulatory costs. E.O. 13771,
however, applies only to significant
regulatory actions, as defined in Section
3(f) of E.O. 12866. OIRA has determined
that agency regulations exclusively
implementing the annual adjustment are
not significant regulatory actions under
E.O. 12866, provided they are consistent
with OMB Memorandum M–18–03 (See
OMB Memorandum M–18–03 at 3).
Therefore, E.O. 13771 does not apply to
this final rule.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
requires an agency to prepare a
regulatory flexibility analysis for all
rules unless the agency certifies that the
rule will not have a significant
economic impact on a substantial
number of small entities. The RFA
applies only to rules for which an
agency is required to first publish a
proposed rule. See 5 U.S.C. 603(a) and
604(a). The 2015 Act expressly exempts
these annual inflation adjustments from
the requirement to publish a proposed
rule for notice and comment (see 2015
Act at § 4 (b)(2)). Because the final rule
in this case does not include publication
of a proposed rule, the RFA does not
apply to this final rule.
sradovich on DSK3GMQ082PROD with RULES
D. Small Business Regulatory
Enforcement Fairness Act
This rule is not a major rule under 5
U.S.C. 804(2), the Small Business
Regulatory Enforcement Fairness Act.
This rule:
(a) Will not have an annual effect on
the economy of $100 million or more;
(b) Will not cause a major increase in
costs or prices for consumers,
individual industries, Federal, State, or
local government agencies, or
geographic regions; and
VerDate Sep<11>2014
16:12 Jan 26, 2018
Jkt 244001
(c) Will not have significant adverse
effects on competition, employment,
investment, productivity, innovation, or
the ability of U.S.-based enterprises to
compete with foreign-based enterprises.
This rule will potentially affect
individuals and companies who
conduct operations on oil and gas leases
on Federal or Indian lands. The BLM
believes that the vast majority of
potentially affected entities will be
small businesses as defined by the
Small Business Administration (SBA).
However, the BLM does not believe the
rule will pose a significant economic
impact on the industry, including any
small entities, for two reasons. First, any
lessee can avoid being assessed civil
penalties by operating in compliance
with BLM rules and regulations.
Second, even though most of the entities
potentially affected are small businesses
as defined by the SBA, the adjusted
penalties and potential increase in
penalty receipts are small in comparison
to the $16 billion value of oil, natural
gas and natural gas liquids produced
from Federal and Indian leases in FY
2016.
E. Unfunded Mandates Reform Act
This rule does not impose an
unfunded mandate on State, local, or
tribal governments, or the private sector
of more than $100 million per year. The
rule does not have a significant or
unique effect on State, local, or tribal
governments or the private sector.
Therefore, a statement containing the
information required by the Unfunded
Mandates Reform Act (2 U.S.C. 1531 et
seq.) is not required.
F. Takings (E.O. 12630)
This rule does not effect a taking of
private property or otherwise have
takings implications under E.O. 12630.
Therefore, a takings implication
assessment is not required.
G. Federalism (E.O. 13132)
Under the criteria in section 1 of E.O.
13132, this rule does not have sufficient
federalism implications to warrant the
preparation of a federalism summary
impact statement. Therefore, a
federalism summary impact statement is
not required.
H. Civil Justice Reform (E.O. 12988)
This rule complies with the
requirements of E.O. 12988.
Specifically, this rule:
(a) Meets the criteria of section 3(a)
requiring that all regulations be
reviewed to eliminate errors and
ambiguity and be written to minimize
litigation; and
PO 00000
Frm 00058
Fmt 4700
Sfmt 4700
(b) Meets the criteria of section 3(b)(2)
requiring that all regulations be written
in clear language and contain clear legal
standards.
I. Consultation With Indian Tribes (E.O.
13175 and Departmental Policy)
The Department of the Interior strives
to strengthen its government-togovernment relationship with Indian
tribes through a commitment to
consultation with Indian tribes and
recognition of their right to selfgovernance and tribal sovereignty. We
have evaluated this rule under the
Department’s consultation policy and
under the criteria in E.O. 13175 and
have determined that it has no
substantial direct effects on federally
recognized Indian tribes and that
consultation under the Department’s
tribal consultation policy is not
required.
J. Paperwork Reduction Act
This rule does not contain
information collection requirements,
and a submission to OMB under the
Paperwork Reduction Act (44 U.S.C.
3501 et seq.) is not required. We may
not conduct or sponsor, and you are not
required to respond to, a collection of
information unless it displays a
currently valid OMB control number.
K. National Environmental Policy Act
A detailed statement under the
National Environmental Policy Act of
1969 (NEPA) is not required because, as
a regulation of an administrative nature,
the rule is covered by a categorical
exclusion (see 43 CFR 46.210(i)). We
have also determined that the rule does
not involve any of the extraordinary
circumstances listed in 43 CFR 46.215
that would require further analysis
under NEPA.
L. Effects on the Energy Supply (E.O.
13211)
This rule is not a significant energy
action under the definition in E.O.
13211. Therefore, a Statement of Energy
Effects is not required.
List of Subjects 43 CFR Part 3160
Administrative practice and
procedure; Government contracts;
Indians—lands; Mineral royalties; Oil
and gas exploration; Penalties; Public
lands—mineral resources; Reporting
and recordkeeping requirements.
For the reasons given in the preamble,
the BLM amends Chapter II of Title 43
of the Code of Federal Regulations as
follows:
E:\FR\FM\29JAR1.SGM
29JAR1
Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Rules and Regulations
PART 3160—ONSHORE OIL AND GAS
OPERATIONS
1. The authority citation for part 3160
continues to read as follows:
■
sradovich on DSK3GMQ082PROD with RULES
Authority: 25 U.S.C. 396d and 2107; 30
U.S.C. 189, 306, 359, and 1751; 43 U.S.C.
1732(b), 1733, 1740; and Sec. 701, Pub. L.
114–74, 129 Stat. 599, unless otherwise
noted.
VerDate Sep<11>2014
16:12 Jan 26, 2018
Jkt 244001
Subpart 3163—Noncompliance,
Assessments, and Penalties
§ 3163.2
[Amended]
2. In § 3163.2:
a. In paragraph (b)(1), remove
‘‘$1,031’’ and add in its place ‘‘$1,069’’.
■ b. In paragraph (b)(2), remove
‘‘$10,483’’ and add in its place
‘‘$10,697’’.
■ c. In paragraph (d), remove ‘‘$1,048’’
and add in its place ‘‘$1,069’’.
■
■
PO 00000
Frm 00059
Fmt 4700
Sfmt 9990
3995
d. In paragraph (e) introductory text,
remove ‘‘$20,965’’ and add in its place
‘‘$21,393’’.
■ e. In paragraph (f) introductory text,
remove ‘‘$52,414’’ and add in its place
‘‘$53,484’’.
■
Joseph Balash,
Assistant Secretary—Land and Minerals
Management, U.S. Department of the Interior.
[FR Doc. 2018–01628 Filed 1–26–18; 8:45 am]
BILLING CODE 4310–84–P
E:\FR\FM\29JAR1.SGM
29JAR1
]]>Agencies
[Federal Register Volume 83, Number 19 (Monday, January 29, 2018)]
[Rules and Regulations]
[Pages 3992-3995]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01628]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
43 CFR Part 3160
[LLWO310000 L13100000 PP0000 18X]
RIN 1004-AE51
Onshore Oil and Gas Operations--Annual Civil Penalties Inflation
Adjustments
AGENCY: Bureau of Land Management, Interior.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule adjusts the level of civil monetary penalties
contained in the Bureau of Land Management's (BLM) regulations
governing onshore oil and gas operations as required by the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and
consistent with applicable Office of Management and Budget (OMB)
guidance. The adjustments made by this final rule constitute the 2018
annual inflation adjustments, accounting for one year of inflation
spanning the period from October 2016 through October 2017.
DATES: This rule is effective on January 29, 2018.
FOR FURTHER INFORMATION CONTACT: Steven Wells, Division Chief, Fluid
Minerals Division, 202-912-7143, for information regarding the BLM's
Fluid Minerals Program. For questions relating to regulatory process
issues, please contact Jennifer Noe, Division of Regulatory Affairs, at
202-912-7442. Persons who use a telecommunications
[[Page 3993]]
device for the deaf (TDD) may call the Federal Relay Service (FRS) at
1-800-877-8339, 24 hours a day, 7 days a week to contact the above
individuals.
SUPPLEMENTARY INFORMATION:
I. Background
II. Calculation of 2018 Adjustments
III. Procedural Requirements
A. Administrative Procedure Act
B. Regulatory Planning and Review (E.O. 12866, E.O. 13563, and
E.O. 13771)
C. Regulatory Flexibility Act
D. Small Business Regulatory Enforcement Fairness Act
E. Unfunded Mandates Reform Act
F. Takings (E.O. 12630)
G. Federalism (E.O. 13132)
H. Civil Justice Reform (E.O. 12988)
I. Consultation With Indian Tribes (E.O. 13175 and Departmental
Policy)
J. Paperwork Reduction Act
K. National Environmental Policy Act
L. Effects on the Energy Supply (E.O. 13211)
I. Background
On November 2, 2015, the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L. 114-74)
(the 2015 Act) became law.
The 2015 Act requires agencies to:
1. Adjust the level of civil monetary penalties for inflation with
an initial ``catch-up'' adjustment through an interim final rulemaking
in 2016;
2. Make subsequent annual adjustments for inflation beginning in
2017; and
3. Report annually in Agency Financial Reports on these inflation
adjustments.
The purpose of these adjustments is to further the policy goals of
the underlying statutes.
As required by the 2015 Act, the BLM issued an interim final rule
that adjusted the level of civil monetary penalties in BLM regulations
with the initial ``catch-up'' adjustment (RIN 1004-AE46, 81 FR 41,860),
which was published on June 28, 2016, and became effective on July 28,
2016. On January 19, 2017, the BLM published a final rule (RIN 1004-
AE49, 82 FR 6,307) updating the civil penalty amounts to the 2017
annual adjustment levels.
OMB issued Memorandum M-18-03 on December 15, 2017 (Implementation
of Penalty Inflation Adjustments for 2018, Pursuant to the 2015 Act)
explaining agency responsibilities for identifying applicable penalties
and calculating the annual adjustment for 2018 in accordance with the
2015 Act.
II. Calculation of 2018 Adjustment
In accordance with the 2015 Act and OMB Memorandum M-18-03, the BLM
has identified applicable civil monetary penalties in its regulations
and calculated the annual adjustment. A civil monetary penalty is any
assessment with a dollar amount that is levied for a violation of a
Federal civil statute or regulation, and is assessed or enforceable
through a civil action in Federal court or an administrative
proceeding. A civil monetary penalty does not include a penalty levied
for violation of a criminal statute, nor does it include fees for
services, licenses, permits, or other regulatory review. The calculated
annual inflation adjustments are based on the percentage change between
the Consumer Price Index for all Urban Consumers (CPI-U) for the
October preceding the date of the adjustment, and the prior year's
October CPI-U. Consistent with guidance in OMB Memorandum M-18-03, the
BLM divided the October 2017 CPI-U by the October 2016 CPI-U to
calculate the multiplier. In this case, October 2017 CPI-U (246.663)/
October 2016 CPI-U (241.729) = 1.02041. OMB Memorandum M-18-03 confirms
that this is the proper multiplier. (OMB Memorandum M-18-03 at 1 and
n.4.)
The 2015 Act requires the BLM to adjust the civil penalty amounts
in 43 CFR 3163.2. To accomplish this, BLM multiplied the current
penalty amounts in 43 CFR 3163.2 subparagraph (b)(2) and paragraphs
(d), (e), and (f) by the multiplier set forth in OMB Memorandum M-18-03
(1.02041) to obtain the adjusted penalty amounts. The 2015 Act requires
that the resulting amounts be rounded to the nearest $1.00 at the end
of the calculation process.
Due to an error, the current penalty amount in 43 CFR 3163.2(b)(1)
of $1,031 reflects the initial ``catch-up'' adjustment published on
June 28, 2016, rather than the 2017 annual adjusted amount of $1,048.
The correct adjusted penalty amount in 43 CFR 3163(b)(1) of $1,069 was
calculated by multiplying the 2017 annual adjusted amount ($1,048) by
the multiplier set forth in OMB Memorandum M-18-03 (1.02041).
The adjusted penalty amounts will take effect immediately upon
publication of this rule. Pursuant to the 2015 Act, the adjusted civil
penalty amounts apply to civil penalties assessed after the date the
increase takes effect, even if the associated violation predates such
increase. This final rule adjusts the following civil penalties:
----------------------------------------------------------------------------------------------------------------
Current Adjusted
CFR citation Description of the penalty penalty penalty
----------------------------------------------------------------------------------------------------------------
43 CFR 3163.2(b)(1)........................ Failure to comply.................. $1,031 $1,069
43 CFR 3163.2(b)(2)........................ If corrective action is not taken.. 10,483 10,697
43 CFR 3163.2(d)........................... If transporter fails to permit 1,048 1,069
inspection for documentation.
43 CFR 3163.2(e)........................... Failure to permit inspection, 20,965 21,393
failure to notify.
43 CFR 3163.2(f)........................... False or inaccurate documents; 52,414 53,484
unlawful transfer or purchase.
----------------------------------------------------------------------------------------------------------------
III. Procedural Requirements
A. Administrative Procedure Act
In accordance with the 2015 Act, agencies must adjust civil
monetary penalties ``notwithstanding Section 553 of the Administrative
Procedure Act'' (2015 Act at Sec. 4(b)(2)). The BLM is promulgating
this 2018 inflation adjustment for civil penalties as a final rule
pursuant to the provisions of the 2015 Act and OMB guidance. A proposed
rule is not required because the 2015 Act expressly exempts the annual
inflation adjustments from the notice and comment requirements of the
Administrative Procedure Act. In addition, since the 2015 Act does not
give the BLM any discretion to vary the amount of the annual inflation
adjustment for any given penalty to reflect any views or suggestions
provided by commenters, it would serve no purpose to provide an
opportunity for public comment on this rule.
B. Regulatory Planning and Review (Executive Orders 12866, 13563, and
13771)
Executive Order (E.O.) 12866 provides that the Office of
Information and Regulatory Affairs (OIRA) in the OMB will review all
significant rules. OIRA has determined that this rule is not
significant. (See OMB Memorandum M-18-03 at 3).
E.O. 13563 reaffirms the principles of E.O. 12866 while calling for
improvements in the Nation's regulatory system to promote
predictability and to
[[Page 3994]]
reduce uncertainty and the use of 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. E.O. 13563 emphasizes further that regulations must be
based on the best available science, and that the rulemaking process
must allow for public participation and an open exchange of ideas. We
have developed this rule in a manner consistent with these requirements
to the extent permitted by the 2015 Act.
E.O. 13771 of January 30, 2017, directs federal agencies to reduce
the regulatory burden on regulated entities and control regulatory
costs. E.O. 13771, however, applies only to significant regulatory
actions, as defined in Section 3(f) of E.O. 12866. OIRA has determined
that agency regulations exclusively implementing the annual adjustment
are not significant regulatory actions under E.O. 12866, provided they
are consistent with OMB Memorandum M-18-03 (See OMB Memorandum M-18-03
at 3). Therefore, E.O. 13771 does not apply to this final rule.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires an agency to prepare
a regulatory flexibility analysis for all rules unless the agency
certifies that the rule will not have a significant economic impact on
a substantial number of small entities. The RFA applies only to rules
for which an agency is required to first publish a proposed rule. See 5
U.S.C. 603(a) and 604(a). The 2015 Act expressly exempts these annual
inflation adjustments from the requirement to publish a proposed rule
for notice and comment (see 2015 Act at Sec. 4 (b)(2)). Because the
final rule in this case does not include publication of a proposed
rule, the RFA does not apply to this final rule.
D. Small Business Regulatory Enforcement Fairness Act
This rule is not a major rule under 5 U.S.C. 804(2), the Small
Business Regulatory Enforcement Fairness Act. This rule:
(a) Will not have an annual effect on the economy of $100 million
or more;
(b) Will not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions; and
(c) Will not have significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
U.S.-based enterprises to compete with foreign-based enterprises.
This rule will potentially affect individuals and companies who
conduct operations on oil and gas leases on Federal or Indian lands.
The BLM believes that the vast majority of potentially affected
entities will be small businesses as defined by the Small Business
Administration (SBA). However, the BLM does not believe the rule will
pose a significant economic impact on the industry, including any small
entities, for two reasons. First, any lessee can avoid being assessed
civil penalties by operating in compliance with BLM rules and
regulations. Second, even though most of the entities potentially
affected are small businesses as defined by the SBA, the adjusted
penalties and potential increase in penalty receipts are small in
comparison to the $16 billion value of oil, natural gas and natural gas
liquids produced from Federal and Indian leases in FY 2016.
E. Unfunded Mandates Reform Act
This rule does not impose an unfunded mandate on State, local, or
tribal governments, or the private sector of more than $100 million per
year. The rule does not have a significant or unique effect on State,
local, or tribal governments or the private sector. Therefore, a
statement containing the information required by the Unfunded Mandates
Reform Act (2 U.S.C. 1531 et seq.) is not required.
F. Takings (E.O. 12630)
This rule does not effect a taking of private property or otherwise
have takings implications under E.O. 12630. Therefore, a takings
implication assessment is not required.
G. Federalism (E.O. 13132)
Under the criteria in section 1 of E.O. 13132, this rule does not
have sufficient federalism implications to warrant the preparation of a
federalism summary impact statement. Therefore, a federalism summary
impact statement is not required.
H. Civil Justice Reform (E.O. 12988)
This rule complies with the requirements of E.O. 12988.
Specifically, this rule:
(a) Meets the criteria of section 3(a) requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation; and
(b) Meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.
I. Consultation With Indian Tribes (E.O. 13175 and Departmental Policy)
The Department of the Interior strives to strengthen its
government-to-government relationship with Indian tribes through a
commitment to consultation with Indian tribes and recognition of their
right to self-governance and tribal sovereignty. We have evaluated this
rule under the Department's consultation policy and under the criteria
in E.O. 13175 and have determined that it has no substantial direct
effects on federally recognized Indian tribes and that consultation
under the Department's tribal consultation policy is not required.
J. Paperwork Reduction Act
This rule does not contain information collection requirements, and
a submission to OMB under the Paperwork Reduction Act (44 U.S.C. 3501
et seq.) is not required. We may not conduct or sponsor, and you are
not required to respond to, a collection of information unless it
displays a currently valid OMB control number.
K. National Environmental Policy Act
A detailed statement under the National Environmental Policy Act of
1969 (NEPA) is not required because, as a regulation of an
administrative nature, the rule is covered by a categorical exclusion
(see 43 CFR 46.210(i)). We have also determined that the rule does not
involve any of the extraordinary circumstances listed in 43 CFR 46.215
that would require further analysis under NEPA.
L. Effects on the Energy Supply (E.O. 13211)
This rule is not a significant energy action under the definition
in E.O. 13211. Therefore, a Statement of Energy Effects is not
required.
List of Subjects 43 CFR Part 3160
Administrative practice and procedure; Government contracts;
Indians--lands; Mineral royalties; Oil and gas exploration; Penalties;
Public lands--mineral resources; Reporting and recordkeeping
requirements.
For the reasons given in the preamble, the BLM amends Chapter II of
Title 43 of the Code of Federal Regulations as follows:
[[Page 3995]]
PART 3160--ONSHORE OIL AND GAS OPERATIONS
0
1. The authority citation for part 3160 continues to read as follows:
Authority: 25 U.S.C. 396d and 2107; 30 U.S.C. 189, 306, 359,
and 1751; 43 U.S.C. 1732(b), 1733, 1740; and Sec. 701, Pub. L. 114-
74, 129 Stat. 599, unless otherwise noted.
Subpart 3163--Noncompliance, Assessments, and Penalties
Sec. 3163.2 [Amended]
0
2. In Sec. 3163.2:
0
a. In paragraph (b)(1), remove ``$1,031'' and add in its place
``$1,069''.
0
b. In paragraph (b)(2), remove ``$10,483'' and add in its place
``$10,697''.
0
c. In paragraph (d), remove ``$1,048'' and add in its place ``$1,069''.
0
d. In paragraph (e) introductory text, remove ``$20,965'' and add in
its place ``$21,393''.
0
e. In paragraph (f) introductory text, remove ``$52,414'' and add in
its place ``$53,484''.
Joseph Balash,
Assistant Secretary--Land and Minerals Management, U.S. Department of
the Interior.
[FR Doc. 2018-01628 Filed 1-26-18; 8:45 am]
BILLING CODE 4310-84-P
