Electronic Provision of Records During an Audit, 53790-53793 [2023-17059]
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Federal Register / Vol. 88, No. 152 / Wednesday, August 9, 2023 / Rules and Regulations
requirements, and deadlines set out in
§§ 2.816, 2.817, and 2.819 through 2.821
apply to appeals to the AS–IA under
this subpart. Submit your Appeal to:
U.S. Department of the Interior, Office
of the Assistant Secretary—Indian
Affairs, MS 4660, 1849 C Street NW,
Washington, DC 20240, as provided in
§ 2.214.
§ 2.825 When does the Statement of
Performance or a Decision become final?
(a) Statements of Performance, and
decisions rendered by Department
officials under this subpart, are final
when the deadline for submitting an
Objection to the Statement of
Performance or an Appeal has expired
and the account holder has not
submitted an Objection to the Statement
of Performance or an Appeal.
(b) A decision rendered by the AS–IA
is a final agency action.
§ 2.900 Is there a procedure other than a
formal appeal for resolving disputes?
Yes. We strongly encourage parties to
work together to reach a consensual
resolution of disputes whenever
possible. Use of an alternative approach
to dispute resolution can save time and
money, produce more durable and
creative solutions, and foster improved
relationships. It may be appropriate and
beneficial to consider the use of
alternative dispute resolution (ADR)
processes and techniques at any stage in
a dispute. The parties may request
information from the decision-maker on
the use of an ADR process.
§ 2.901 How do I request alternative
dispute resolution?
If you are interested in pursuing
alternative dispute resolution, you may
contact the reviewing official to make a
request to use ADR for a particular issue
or dispute.
§ 2.902 When do I initiate alternative
dispute resolution?
We will consider a request to use
alternative dispute resolution at any
time. If you file a Notice of Appeal, you
may request the opportunity to use a
consensual form of dispute resolution.
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§ 2.903 What will Indian Affairs do if I
request alternative dispute resolution?
If all interested parties concur, the
reviewing official may stay (discontinue
consideration of) the appeal while the
parties pursue ADR. Where the parties
agree to use ADR, Indian Affairs and
other interested parties may seek
assistance from the Department of the
Interior’s Office of Collaborative Action
16:18 Aug 08, 2023
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Bryan Newland,
Assistant Secretary—Indian Affairs.
[FR Doc. 2023–16733 Filed 8–8–23; 8:45 am]
BILLING CODE 4337–15–P
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
30 CFR Parts 1206, 1208, 1217, and
1220
[Docket No. ONRR–2022–0001; DS63644000
DRT000000.CH7000 223D1113RT]
Subpart I—Alternative Dispute
Resolution
VerDate Sep<11>2014
and Dispute Resolution (CADR). CADR
can assist in planning and facilitating an
effective collaboration or dispute
resolution process. Parties are
encouraged to consider best practices
for engagement, including but not
limited to, the use of neutral facilitation
and other collaborative problem-solving
approaches to promote effective
dialogue and conflict resolution.
RIN 1012–AA32
Electronic Provision of Records During
an Audit
Office of Natural Resources
Revenue (‘‘ONRR’’), Interior.
ACTION: Final rule.
AGENCY:
ONRR is amending its
regulations to allow ONRR and other
authorized Department of the Interior
(‘‘Department’’) representatives the
option to require that an auditee use
electronic means to provide records
requested during an audit of an
auditee’s royalty reporting and payment.
DATES: This final rule is effective 30
days from the date of publication in the
Federal Register.
FOR FURTHER INFORMATION CONTACT: For
questions concerning this final
rulemaking, contact Ginger Hensley,
Regulatory Specialist, by phone at 303–
231–3171, or by email at ONRR_
RegulationsMailbox@onrr.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Explanation of Final Rulemaking
ONRR is responsible for the efficient,
timely, and accurate collection and
disbursement of revenue originating
from the leasing and production of
natural resources and energy, including
oil, gas, coal, geothermal and other solid
minerals, from Federal and Indian
lands. See 30 U.S.C. 1711; Sec. Order.
3299, as amended; U.S. Department of
the Interior Departmental Manual, 112
DM 34 (Dec. 9, 2020). To verify that
lessees and other persons accurately
report and pay royalties and other
amounts due, ONRR audits royalty and
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other reporting and payment. 30 U.S.C.
1711(c).
Various sections of ONRR’s
regulations, which were adopted in
accordance with the Congressional
directive found in 30 U.S.C. 1711(a),
provide for audits by ONRR and other
Department representatives. These
sections include:
(1) 30 CFR 1206.250(c), which
addresses audits for Federal coal leases.
(2) 30 CFR 1206.350(b), which
addresses audits for Federal geothermal
leases.
(3) 30 CFR 1206.450(c), which
addresses audits for Indian coal leases.
(4) 30 CFR 1208.15, which addresses
audits for Federal royalty oil taken in
kind.
(5) 30 CFR 1217.50, which addresses
audits for Federal and Indian oil and gas
leases.
(6) 30 CFR 1217.300, which addresses
audits for Federal geothermal leases.
(7) 30 CFR 1220.033(e), which
addresses audits for oil and gas net
profit share leases.
States or Indian Tribes sometimes
perform the audits authorized by these
sections under delegations or
cooperative agreements with ONRR. See
30 U.S.C. 1732 and 1735; 30 CFR parts
1227 and 1228.
Congress and the President mandate
that Federal agencies use new
technologies to improve Government
operations. For example, the Paperwork
Reduction Act of 1995, Public Law 104–
13, and the Information Technology
Management Reform Act of 1996, Public
Law 104–106, authorize the use of new
technologies to improve the
productivity, efficiency, and
effectiveness of Government programs.
See 44 U.S.C. 3501(10), 44 U.S.C.
3504(a)(1)(B)(vi) and (h), 40 U.S.C. parts
11302 and 11303. In addition, the Office
of Management and Budget (‘‘OMB’’)
issued a memorandum on June 28, 2019,
entitled ‘‘Transition to Electronic
Records’’ (M–19–21), directing Federal
agencies to ensure that all Federal
records are created, retained, and
managed in electronic formats, with
appropriate metadata.
To meet these Federal mandates and
to take advantage of rapidly improving
technologies for the electronic
transmission and storage of records,
ONRR is amending its regulations to
allow ONRR and other Department
representatives the option to require
that records be provided for an audit by
secure electronic means. Because this
amendment applies to all oil, gas,
geothermal, coal, and other solid
mineral royalty audits performed by
ONRR or other Department
representatives, this final rule:
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Federal Register / Vol. 88, No. 152 / Wednesday, August 9, 2023 / Rules and Regulations
(1) Adds a new section, 30 CFR
1217.10, under the general provisions to
30 CFR part 1217—Audits and
Inspections, to specify the methods by
which ONRR or other Department
representatives can require an auditee to
provide records during an audit.
(2) Adds references to Part 1217 in
§§ 1206.250(c), 1206.350(b),
1206.450(c), 1208.15, and 1220.033(e) to
clarify that ONRR or an authorized State
or Tribe may require an auditee to
provide records for an audit by one or
more of the methods specified in the
new 30 CFR 1217.10.
Auditees keep most, if not all, records
for natural resources revenue reporting
and payment in electronic format and
generally prefer, when under audit, to
provide the records electronically. For
records that an auditee maintains only
in electronic form, the electronic
production and transmission of these
records for an audit avoids printing and
other costs of submitting records in
paper form. For records an auditee
maintains in paper form, technologies
exist to readily allow for the conversion
of these records to electronic form when
needed for an audit. Providing records
electronically helps avoid
administrative costs and expenses to the
Department and auditees for preparing,
submitting, processing, and preserving
paper records. ONRR or other
Department representatives will still
sometimes need to inspect paper
records or to conduct an entrance or
other conference at an auditee’s
business location. However, the option
to require that records be produced and
transmitted electronically should
shorten or possibly eliminate onsite
audit activities in appropriate
situations. It will also help ONRR and
auditees to better navigate disruptive
events that may make onsite inspection
of records more burdensome,
impractical, or unavailable.
ONRR regulations specifically provide
that information that ‘‘constitutes trade
secrets or commercial or financial
information that is identified as
privileged or confidential, or that is
exempt from disclosure under the
Freedom of Information Act, 5 U.S.C.
552, shall not be available for inspection
or made public or disclosed without the
consent of the lessee, except as provided
by law or regulation.’’ 30 CFR 1210.207.
To preserve the confidentiality of
records produced electronically for use
in an audit, this final rule allows
Department representatives the option
to require that records be provided
electronically only by means which are
secure. A secure means of transmission
involves the use of password protection,
encryption, or other security measures,
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to prevent unauthorized access to the
transmission by a third-party. The
Department maintains computer
systems and updates or replaces
software as technology changes, which
allows auditees to securely transmit
records for an audit. When requesting
electronic production and transmission
of records, a Department representative
will specify the format in which the
records are to be transmitted
electronically and provide instructions
for submitting the records securely.
Factors that contribute to what ONRR or
a Department representative consider
acceptable include the availability and
completeness of documentation and the
availability of applications that can
interpret it.
ONRR published the Electronic
Provision of Records During an Audit
proposed rule on September 16, 2022
(87 FR 59350). During the proposed
rule’s 60-day comment period, ONRR
received one comment. The commentor
stated support for initiatives and
technologies to improve government
operations. ONRR appreciates the
commentor’s support for this
rulemaking. ONRR received no other
comments on the proposed rule.
Following the proposed rule’s
publication, ONRR published a final
rule to amend its regulations pertaining
to Federal and Indian coal valuation. (88
FR 47003). Because that final rule
amended the paragraph structure in two
sections covered by this rulemaking,
ONRR revised the amendatory
instructions in this final rule from what
it had provided in the proposed rule.
Specifically, this final rule revises
§§ 1206.250(c) and 1206.450(c) in the
same manner ONRR’s proposed rule had
proposed to revise §§ 1206.250(d) and
1206.450(d).
This final rule is published pursuant
to authority delegated to ONRR by the
Secretary of the Interior. See 30 U.S.C.
189; 30 U.S.C. 1751; 43 U.S.C. 1334; 30
U.S.C. 1023; Secretary’s Order 3299, sec.
5; and Secretary’s Order 3306, sec. 3–4.
II. Procedural Matters
A. Regulatory Planning and Review
(Executive Orders 12866, 13563 and
14094)
Executive Order 14094 reaffirms the
principles of E.O. 12866 and E.O. 13563
and states that regulatory analysis
should facilitate agency efforts to
develop regulations that serve the
public interest, advance statutory
objectives, and are consistent with E.O.
12866, E.O. 13563, and the Presidential
Memorandum of January 20, 2021
(Modernizing Regulatory Review).
Regulatory analysis, as practicable and
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appropriate, shall recognize distributive
impacts and equity, to the extent
permitted by law. 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. ONRR
developed this final rule in a manner
consistent with these requirements.
E.O. 12866, as reaffirmed by E.O.
13563 and E.O. 14094, provides that the
Office of Information and Regulatory
Affairs (OIRA) in the Office of
Management and Budget (OMB) will
review all significant rules. OIRA has
determined that this rule is not
significant.
B. Regulatory Flexibility Act
ONRR certifies that promulgation of
this final rule will not have a significant
economic effect on a substantial number
of small entities under the Regulatory
Flexibility Act (RFA), 5 U.S.C. 601 et
seq. because it only requires auditees—
when the Department requests—to
provide records and files electronically
that they are otherwise required to
provide in hard copy at their business
premises.
C. Congressional Review Act
This final rule is not a major rule
under 5 U.S.C. 804(2), the Congressional
Review Act.
This final rule:
(1) Does not have an annual effect on
the economy of $100 million or more.
(2) Will not cause a major increase in
costs or prices for consumers;
individual industries; or geographic
regions.
(3) Does not have significant adverse
effects on competition, employment,
investment, productivity, innovation, or
the ability of United States-based
enterprises to compete with foreignbased enterprises.
D. Unfunded Mandates Reform Act
This final rule does not impose an
unfunded mandate on State, local, or
Tribal Governments or the private sector
of more than $100 million per year. This
final rule does not have a significant or
unique effect on State, local, or Tribal
Governments or the private sector.
Therefore, ONRR is not required to
provide a statement pursuant to the
Unfunded Mandates Reform Act (2
U.S.C. 1531 et seq.).
E. Takings (E.O. 12630)
Under the criteria in section 2 of E.O.
12630, this final rule does not have any
significant takings implications. This
final rule does not impose conditions or
limitations on the use of any private
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Federal Register / Vol. 88, No. 152 / Wednesday, August 9, 2023 / Rules and Regulations
property because the rule only amends
how a lessee, operator, payor, and other
person must produce and transmit
records upon request. This final rule
does not require a takings implication
assessment.
F. Federalism (E.O. 13132)
Under the criteria in section 1 of E.O.
13132, this final rule does not have
sufficient federalism implications to
warrant the preparation of a federalism
summary impact statement. This final
rule does not impose administrative
costs on States or local Governments or
substantially and directly affect the
relationship between the Federal and
State Governments. Thus, a federalism
summary impact statement is not
required.
G. Civil Justice Reform (E.O. 12988)
H. Consultation With Indian Tribal
Governments (E.O. 13175)
ONRR strives to strengthen its
government-to-government relationship
with Indian Tribes through a
commitment to consultation with Indian
Tribes and in recognition of their right
to self-governance and Tribal
sovereignty. ONRR evaluated this final
rule and the criteria in E.O. 13175 and
determined that the final rule will not
have substantial direct effects on
Federally recognized Indian Tribes.
Thus, consultation under ONRR’s Tribal
consultation policy is not required.
I. Paperwork Reduction Act
This final rule does not contain any
new information collection
requirements or meet the definition of
‘‘collection of information’’ under 44
U.S.C. 3502(3). A submission to OMB
under the Paperwork Reduction Act (44
U.S.C. 3501 et seq.) is not required.
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This final rule does not constitute a
major Federal action significantly
affecting the quality of the human
environment. A detailed statement
under the National Environmental
Policy Act of 1969 (‘‘NEPA’’) is not
required because the final rule is
categorically excluded. See 43 CFR
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16:18 Aug 08, 2023
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K. Effects on the Energy Supply (E.O.
13211)
This final rule is not a significant
energy action under the definition in
E.O. 13211 and, therefore does not
require a Statement of Energy Effects.
L. Clarity of This Regulation
This final rule complies with the
requirements of E.O. 12988.
Specifically, the final rule:
(1) Meets the criteria of Section 3(a),
which requires that ONRR review all
regulations to eliminate errors and
ambiguity in order to minimize
litigation.
(2) Meets the criteria of Section
3(b)(2), which requires that all
regulations be written in clear language
using clear legal standards.
J. National Environmental Policy Act
46.210(i) and the Department’s
Departmental Manual, Part 516, section
15.4.D. ONRR has determined that this
final rule is not involved in any of the
extraordinary circumstances under 43
CFR 46.215 that require further analysis
under NEPA. The procedural changes
resulting from these amendments have
no consequence with respect to the
physical environment. This final rule
will not alter in any material way
natural resource exploration,
production, or transportation.
ONRR is required by E.O. 12866
(section 1(b)(12)), E.O. 12988 (section
3(b)(1)(B)), and E.O. 13563 (section
1(a)), and by the Presidential
Memorandum of June 1, 1998, to write
all rules in plain language. This means
that each rule ONRR publishes must:
(1) Be logically organized.
(2) Use the active voice to address
readers directly.
(3) Use common, everyday words and
clear language rather than jargon.
(4) Be divided into short sections and
sentences.
(5) Use lists and tables wherever
possible.
If you feel that ONRR has not met
these requirements, send your
comments to ONRR_
RegulationsMailbox@onrr.gov. To better
help ONRR revise this final rule, your
remarks should be as specific as
possible. For example, you should tell
ONRR the numbers of the sections or
paragraphs that are not clearly written,
which sections or sentences are too
long, the sections where you feel lists or
tables would be useful, etc.
List of Subjects
Coal, Continental shelf, Geothermal
energy, Government contracts, Indian
lands, Mineral royalties, Oil and gas
exploration, Public lands-mineral
resources, Reporting and recordkeeping
requirements.
30 CFR Part 1208
Continental shelf, Government
contracts, Mineral Royalties, Public
lands-minerals resources, Reporting and
recordkeeping requirements, Small
businesses.
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30 CFR Part 1220
Accounting, Continental Shelf,
Government contracts, Mineral
royalties, Oil and gas exploration,
Public lands-mineral resources,
Reporting and recordkeeping
requirements.
Howard Cantor,
Acting Director, Office of Natural Resources
Revenue.
Authority and Issuance
For the reasons discussed in the
preamble, ONRR is amending 30 CFR
parts 1206, 1208, 1217, and 1220 as set
forth below:
PART 1206—PRODUCT VALUATION
1. The authority citation for part 1206
continues to read as follows:
■
Authority: 5 U.S.C. 301 et seq., 25 U.S.C.
396, 396a et seq., 398, 398a et seq., 2101 et
seq.; 30 U.S.C. 181 et seq., 351 et seq., 1001
et seq., 1701 et seq.; 43 U.S.C. 1301 et seq.,
1331 et seq., and 1801 et seq.
Subpart F—Federal Coal
2. Amend § 1206.250 by revising (c) to
read as follows:
■
§ 1206.250 What is the purpose and scope
of this subpart?
*
*
*
*
*
(c) ONRR may audit and order you to
adjust all royalty payments. ONRR or an
authorized State may require you to
provide records for the audit by one or
more of the methods specified in 30
CFR 1217.10.
Subpart H—Geothermal Resources
3. Amend § 1206.350(b) by revising
the text to read as follows:
■
§ 1206.350 What is the purpose and scope
of this subpart?
30 CFR Part 1206
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30 CFR Part 1217
Coal, Government contracts, Mineral
royalties, Oil and gas exploration,
Public lands-mineral resources,
Reporting and recordkeeping
requirements.
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*
*
*
*
*
(b) ONRR may audit and order you to
adjust all royalty and fee payments.
ONRR or an authorized State may
require you to provide records for the
audit by one or more of the methods
specified in 30 CFR 1217.10.
*
*
*
*
*
Subpart J—Indian Coal
4. Amend § 1206.450 by revising the
section heading and paragraph (c) to
read as follows:
■
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Federal Register / Vol. 88, No. 152 / Wednesday, August 9, 2023 / Rules and Regulations
§ 1206.450 What is the purpose and scope
of this subpart?
*
*
*
*
*
(c) ONRR may audit and order you to
adjust all royalty payments. ONRR or an
authorized Tribe may require you to
provide records for the audit by one or
more of the methods specified in 30
CFR 1217.10.
*
*
*
*
*
PART 1208—SALE OF FEDERAL
ROYALTY OIL
5. The authority citation for part 1208
continues to read as follows:
■
Authority: 5 U.S.C. 301 et seq.; 30 U.S.C.
181 et seq., 351 et seq., 1701 et seq.; 31 U.S.C.
9701; 41 U.S.C. 601 et seq.; 43 U.S.C. 1301
et seq., 1331 et seq., and 1801 et seq.
Subpart A—General Provisions
■
6. Revise § 1208.15 to read as follows:
§ 1208.15
Audits.
Audits of the accounts and books of
lessees, operators, payors, and/or
purchasers of royalty oil taken in kind
may be made annually or at such other
times as may be directed by ONRR.
Such audits will be for the purpose of
determining compliance with applicable
statutes, regulations, and royalty oil
contracts. ONRR may require you to
provide records for the audit by one or
more of the methods specified in 30
CFR 1217.10.
PART 1217—AUDITS AND
INSPECTIONS
(1) Inspect records at an auditee’s
place of business during normal
business hours;
(2) Send records using secure
electronic means. When requesting that
records be provided electronically,
ONRR or the authorized State or Tribe
will specify the format in which the
records shall be produced, directions for
electronic transmission, and
instructions to ensure secure
transmission; or
(3) Deliver hard copy records using
the U.S. Postal Service, special courier,
overnight mail, or other delivery service
to an address specified by ONRR or an
authorized State or Tribe.
(b) [Reserved]
PART 1220—ACCOUNTING
PROCEDURES FOR DETERMINING
NET PROFIT SHARE PAYMENT FOR
OUTER CONTINENTAL SHELF OIL
AND GAS LEASE
9. The authority citation for part 1220
continues to read as follows:
■
Authority: Sec. 205, Pub. L. 95–372, 92
Stat. 643 (43 U.S.C. 1337).
10. Amend § 1220.033 by revising
paragraph (e) to read as follows:
■
§ 1220.033
Audits.
*
*
*
*
*
(e) ONRR or its authorized agent may
require you to provide records for the
audit by one or more of the methods
specified in 30 CFR 1217.10.
[FR Doc. 2023–17059 Filed 8–8–23; 8:45 am]
BILLING CODE P
7. The authority citation for part 1217
continues to read as follows:
■
Authority: 35 Stat. 312; 35 Stat. 781, as
amended; secs. 32, 6, 26, 41 Stat. 450, 753,
1248; secs. 1, 2, 3, 44 Stat. 301, as amended;
secs. 6, 3, 44 Stat. 659, 710; secs. 1, 2, 3, 44
Stat. 1057; 47 Stat. 1487; 49 Stat. 1482, 1250,
1967, 2026; 52 Stat. 347; sec. 10, 53 Stat.
1196, as amended; 56 Stat. 273; sec. 10, 61
Stat. 915; sec. 3, 63 Stat. 683; 64 Stat. 311;
25 U.S.C. 396, 396a–f, 30 U.S.C. 189, 271,
281, 293, 359. Interpret or apply secs. 5, 5,
44 Stat. 302, 1058, as amended; 58 Stat. 483–
485; 5 U.S.C. 301, 16 U.S.C. 508b, 30 U.S.C.
189, 192c, 271, 281, 293, 359, 43 U.S.C. 387,
unless otherwise noted.
8. Add § 1217.10 to subpart A to read
as follows:
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■
Providing Records During an
(a) ONRR or an authorized State or
Tribe may specify the method an
auditee must use to provide records for
all audits conducted under Chapter XII,
statute, or agreement. The methods may
include one or more of the following:
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40 CFR Part 52
[EPA–R10–OAR–2022–0893, FRL–10419–
02–R10]
Air Plan Approval; AK; Revisions to Ice
Fog and Sulfur Dioxide Regulations
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:
The Environmental Protection
Agency (EPA) is approving a revision to
the Alaska State Implementation Plan
(SIP) submitted on May 16, 2022. In the
submission, Alaska revised and
repealed State regulations originally put
in place to limit water vapor emissions
that may contribute to ice fog and to
address the use of high-sulfur marine
fuels near the communities of St. Paul
Island and Unalaska. Alaska determined
that the regulations are obsolete due to
technology improvements and
SUMMARY:
Subpart A—General Provisions
§ 1217.10
Audit.
ENVIRONMENTAL PROTECTION
AGENCY
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53793
regulatory changes, including Federal
sulfur content in fuel restrictions. The
State requested that the SIP be updated
to reflect the revised and repealed State
regulations. We have determined the
submitted revision will not interfere
with attainment of the national ambient
air quality standards or other applicable
requirements of the Clean Air Act.
DATES: This final rule is effective
September 8, 2023.
ADDRESSES: The EPA has established a
docket for this action under Docket ID
No. EPA–R10–OAR–2022–0893. All
documents in the docket are listed on
the https://www.regulations.gov
website. Although listed in the index,
some information is not publicly
available, e.g., Confidential Business
Information or other information the
disclosure of which is restricted by
statute. Certain other material, such as
copyrighted material, is not placed on
the internet and will be publicly
available only in hard copy form.
Publicly available docket materials are
available at https://
www.regulations.gov, or please contact
the person listed in the FOR FURTHER
INFORMATION CONTACT section for
additional availability information.
FOR FURTHER INFORMATION CONTACT:
Kristin Hall (15–H13), EPA Region 10,
1200 Sixth Avenue (Suite 155), Seattle,
WA 98101, (206) 553–6357,
hall.kristin@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document wherever
‘‘we’’ or ‘‘our’’ is used, it means the
EPA.
Table of Contents
I. Background
II. Final Action
III. Incorporation by Reference
IV. Statutory and Executive Order Reviews
I. Background
On May 16, 2022, Alaska submitted a
SIP revision to the EPA. In the
submission, the State revised and
repealed certain air quality regulations
and requested to update the federally
approved SIP.1 On May 24, 2023, we
proposed to approve the submission (88
FR 33555). The reasons for our proposed
approval are included in the proposal
and will not be restated here. The public
comment period closed on June 23,
2023. We received no comments on our
proposed action and therefore we are
finalizing our action as proposed.
1 The submission also updated the State’s
adoption by reference of Federal air quality
standards and test methods codified at 18 Alaska
Administrative Code (AAC) 50.035 and 18 AAC
50.040. We approved these adoption updates in a
separate action on March 22, 2023 (88 FR 17159).
E:\FR\FM\09AUR1.SGM
09AUR1
]]>Agencies
[Federal Register Volume 88, Number 152 (Wednesday, August 9, 2023)]
[Rules and Regulations]
[Pages 53790-53793]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-17059]
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DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
30 CFR Parts 1206, 1208, 1217, and 1220
[Docket No. ONRR-2022-0001; DS63644000 DRT000000.CH7000 223D1113RT]
RIN 1012-AA32
Electronic Provision of Records During an Audit
AGENCY: Office of Natural Resources Revenue (``ONRR''), Interior.
ACTION: Final rule.
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SUMMARY: ONRR is amending its regulations to allow ONRR and other
authorized Department of the Interior (``Department'') representatives
the option to require that an auditee use electronic means to provide
records requested during an audit of an auditee's royalty reporting and
payment.
DATES: This final rule is effective 30 days from the date of
publication in the Federal Register.
FOR FURTHER INFORMATION CONTACT: For questions concerning this final
rulemaking, contact Ginger Hensley, Regulatory Specialist, by phone at
303-231-3171, or by email at [email protected].
SUPPLEMENTARY INFORMATION:
I. Explanation of Final Rulemaking
ONRR is responsible for the efficient, timely, and accurate
collection and disbursement of revenue originating from the leasing and
production of natural resources and energy, including oil, gas, coal,
geothermal and other solid minerals, from Federal and Indian lands. See
30 U.S.C. 1711; Sec. Order. 3299, as amended; U.S. Department of the
Interior Departmental Manual, 112 DM 34 (Dec. 9, 2020). To verify that
lessees and other persons accurately report and pay royalties and other
amounts due, ONRR audits royalty and other reporting and payment. 30
U.S.C. 1711(c).
Various sections of ONRR's regulations, which were adopted in
accordance with the Congressional directive found in 30 U.S.C. 1711(a),
provide for audits by ONRR and other Department representatives. These
sections include:
(1) 30 CFR 1206.250(c), which addresses audits for Federal coal
leases.
(2) 30 CFR 1206.350(b), which addresses audits for Federal
geothermal leases.
(3) 30 CFR 1206.450(c), which addresses audits for Indian coal
leases.
(4) 30 CFR 1208.15, which addresses audits for Federal royalty oil
taken in kind.
(5) 30 CFR 1217.50, which addresses audits for Federal and Indian
oil and gas leases.
(6) 30 CFR 1217.300, which addresses audits for Federal geothermal
leases.
(7) 30 CFR 1220.033(e), which addresses audits for oil and gas net
profit share leases.
States or Indian Tribes sometimes perform the audits authorized by
these sections under delegations or cooperative agreements with ONRR.
See 30 U.S.C. 1732 and 1735; 30 CFR parts 1227 and 1228.
Congress and the President mandate that Federal agencies use new
technologies to improve Government operations. For example, the
Paperwork Reduction Act of 1995, Public Law 104-13, and the Information
Technology Management Reform Act of 1996, Public Law 104-106, authorize
the use of new technologies to improve the productivity, efficiency,
and effectiveness of Government programs. See 44 U.S.C. 3501(10), 44
U.S.C. 3504(a)(1)(B)(vi) and (h), 40 U.S.C. parts 11302 and 11303. In
addition, the Office of Management and Budget (``OMB'') issued a
memorandum on June 28, 2019, entitled ``Transition to Electronic
Records'' (M-19-21), directing Federal agencies to ensure that all
Federal records are created, retained, and managed in electronic
formats, with appropriate metadata.
To meet these Federal mandates and to take advantage of rapidly
improving technologies for the electronic transmission and storage of
records, ONRR is amending its regulations to allow ONRR and other
Department representatives the option to require that records be
provided for an audit by secure electronic means. Because this
amendment applies to all oil, gas, geothermal, coal, and other solid
mineral royalty audits performed by ONRR or other Department
representatives, this final rule:
[[Page 53791]]
(1) Adds a new section, 30 CFR 1217.10, under the general
provisions to 30 CFR part 1217--Audits and Inspections, to specify the
methods by which ONRR or other Department representatives can require
an auditee to provide records during an audit.
(2) Adds references to Part 1217 in Sec. Sec. 1206.250(c),
1206.350(b), 1206.450(c), 1208.15, and 1220.033(e) to clarify that ONRR
or an authorized State or Tribe may require an auditee to provide
records for an audit by one or more of the methods specified in the new
30 CFR 1217.10.
Auditees keep most, if not all, records for natural resources
revenue reporting and payment in electronic format and generally
prefer, when under audit, to provide the records electronically. For
records that an auditee maintains only in electronic form, the
electronic production and transmission of these records for an audit
avoids printing and other costs of submitting records in paper form.
For records an auditee maintains in paper form, technologies exist to
readily allow for the conversion of these records to electronic form
when needed for an audit. Providing records electronically helps avoid
administrative costs and expenses to the Department and auditees for
preparing, submitting, processing, and preserving paper records. ONRR
or other Department representatives will still sometimes need to
inspect paper records or to conduct an entrance or other conference at
an auditee's business location. However, the option to require that
records be produced and transmitted electronically should shorten or
possibly eliminate onsite audit activities in appropriate situations.
It will also help ONRR and auditees to better navigate disruptive
events that may make onsite inspection of records more burdensome,
impractical, or unavailable.
ONRR regulations specifically provide that information that
``constitutes trade secrets or commercial or financial information that
is identified as privileged or confidential, or that is exempt from
disclosure under the Freedom of Information Act, 5 U.S.C. 552, shall
not be available for inspection or made public or disclosed without the
consent of the lessee, except as provided by law or regulation.'' 30
CFR 1210.207. To preserve the confidentiality of records produced
electronically for use in an audit, this final rule allows Department
representatives the option to require that records be provided
electronically only by means which are secure. A secure means of
transmission involves the use of password protection, encryption, or
other security measures, to prevent unauthorized access to the
transmission by a third-party. The Department maintains computer
systems and updates or replaces software as technology changes, which
allows auditees to securely transmit records for an audit. When
requesting electronic production and transmission of records, a
Department representative will specify the format in which the records
are to be transmitted electronically and provide instructions for
submitting the records securely. Factors that contribute to what ONRR
or a Department representative consider acceptable include the
availability and completeness of documentation and the availability of
applications that can interpret it.
ONRR published the Electronic Provision of Records During an Audit
proposed rule on September 16, 2022 (87 FR 59350). During the proposed
rule's 60-day comment period, ONRR received one comment. The commentor
stated support for initiatives and technologies to improve government
operations. ONRR appreciates the commentor's support for this
rulemaking. ONRR received no other comments on the proposed rule.
Following the proposed rule's publication, ONRR published a final
rule to amend its regulations pertaining to Federal and Indian coal
valuation. (88 FR 47003). Because that final rule amended the paragraph
structure in two sections covered by this rulemaking, ONRR revised the
amendatory instructions in this final rule from what it had provided in
the proposed rule. Specifically, this final rule revises Sec. Sec.
1206.250(c) and 1206.450(c) in the same manner ONRR's proposed rule had
proposed to revise Sec. Sec. 1206.250(d) and 1206.450(d).
This final rule is published pursuant to authority delegated to
ONRR by the Secretary of the Interior. See 30 U.S.C. 189; 30 U.S.C.
1751; 43 U.S.C. 1334; 30 U.S.C. 1023; Secretary's Order 3299, sec. 5;
and Secretary's Order 3306, sec. 3-4.
II. Procedural Matters
A. Regulatory Planning and Review (Executive Orders 12866, 13563 and
14094)
Executive Order 14094 reaffirms the principles of E.O. 12866 and
E.O. 13563 and states that regulatory analysis should facilitate agency
efforts to develop regulations that serve the public interest, advance
statutory objectives, and are consistent with E.O. 12866, E.O. 13563,
and the Presidential Memorandum of January 20, 2021 (Modernizing
Regulatory Review). Regulatory analysis, as practicable and
appropriate, shall recognize distributive impacts and equity, to the
extent permitted by law. 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. ONRR developed this final rule in a manner consistent with these
requirements.
E.O. 12866, as reaffirmed by E.O. 13563 and E.O. 14094, provides
that the Office of Information and Regulatory Affairs (OIRA) in the
Office of Management and Budget (OMB) will review all significant
rules. OIRA has determined that this rule is not significant.
B. Regulatory Flexibility Act
ONRR certifies that promulgation of this final rule will not have a
significant economic effect on a substantial number of small entities
under the Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq.
because it only requires auditees--when the Department requests--to
provide records and files electronically that they are otherwise
required to provide in hard copy at their business premises.
C. Congressional Review Act
This final rule is not a major rule under 5 U.S.C. 804(2), the
Congressional Review Act.
This final rule:
(1) Does not have an annual effect on the economy of $100 million
or more.
(2) Will not cause a major increase in costs or prices for
consumers; individual industries; or geographic regions.
(3) Does not have significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
United States-based enterprises to compete with foreign-based
enterprises.
D. Unfunded Mandates Reform Act
This final rule does not impose an unfunded mandate on State,
local, or Tribal Governments or the private sector of more than $100
million per year. This final rule does not have a significant or unique
effect on State, local, or Tribal Governments or the private sector.
Therefore, ONRR is not required to provide a statement pursuant to the
Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.).
E. Takings (E.O. 12630)
Under the criteria in section 2 of E.O. 12630, this final rule does
not have any significant takings implications. This final rule does not
impose conditions or limitations on the use of any private
[[Page 53792]]
property because the rule only amends how a lessee, operator, payor,
and other person must produce and transmit records upon request. This
final rule does not require a takings implication assessment.
F. Federalism (E.O. 13132)
Under the criteria in section 1 of E.O. 13132, this final rule does
not have sufficient federalism implications to warrant the preparation
of a federalism summary impact statement. This final rule does not
impose administrative costs on States or local Governments or
substantially and directly affect the relationship between the Federal
and State Governments. Thus, a federalism summary impact statement is
not required.
G. Civil Justice Reform (E.O. 12988)
This final rule complies with the requirements of E.O. 12988.
Specifically, the final rule:
(1) Meets the criteria of Section 3(a), which requires that ONRR
review all regulations to eliminate errors and ambiguity in order to
minimize litigation.
(2) Meets the criteria of Section 3(b)(2), which requires that all
regulations be written in clear language using clear legal standards.
H. Consultation With Indian Tribal Governments (E.O. 13175)
ONRR strives to strengthen its government-to-government
relationship with Indian Tribes through a commitment to consultation
with Indian Tribes and in recognition of their right to self-governance
and Tribal sovereignty. ONRR evaluated this final rule and the criteria
in E.O. 13175 and determined that the final rule will not have
substantial direct effects on Federally recognized Indian Tribes. Thus,
consultation under ONRR's Tribal consultation policy is not required.
I. Paperwork Reduction Act
This final rule does not contain any new information collection
requirements or meet the definition of ``collection of information''
under 44 U.S.C. 3502(3). A submission to OMB under the Paperwork
Reduction Act (44 U.S.C. 3501 et seq.) is not required.
J. National Environmental Policy Act
This final rule does not constitute a major Federal action
significantly affecting the quality of the human environment. A
detailed statement under the National Environmental Policy Act of 1969
(``NEPA'') is not required because the final rule is categorically
excluded. See 43 CFR 46.210(i) and the Department's Departmental
Manual, Part 516, section 15.4.D. ONRR has determined that this final
rule is not involved in any of the extraordinary circumstances under 43
CFR 46.215 that require further analysis under NEPA. The procedural
changes resulting from these amendments have no consequence with
respect to the physical environment. This final rule will not alter in
any material way natural resource exploration, production, or
transportation.
K. Effects on the Energy Supply (E.O. 13211)
This final rule is not a significant energy action under the
definition in E.O. 13211 and, therefore does not require a Statement of
Energy Effects.
L. Clarity of This Regulation
ONRR is required by E.O. 12866 (section 1(b)(12)), E.O. 12988
(section 3(b)(1)(B)), and E.O. 13563 (section 1(a)), and by the
Presidential Memorandum of June 1, 1998, to write all rules in plain
language. This means that each rule ONRR publishes must:
(1) Be logically organized.
(2) Use the active voice to address readers directly.
(3) Use common, everyday words and clear language rather than
jargon.
(4) Be divided into short sections and sentences.
(5) Use lists and tables wherever possible.
If you feel that ONRR has not met these requirements, send your
comments to [email protected]. To better help ONRR
revise this final rule, your remarks should be as specific as possible.
For example, you should tell ONRR the numbers of the sections or
paragraphs that are not clearly written, which sections or sentences
are too long, the sections where you feel lists or tables would be
useful, etc.
List of Subjects
30 CFR Part 1206
Coal, Continental shelf, Geothermal energy, Government contracts,
Indian lands, Mineral royalties, Oil and gas exploration, Public lands-
mineral resources, Reporting and recordkeeping requirements.
30 CFR Part 1208
Continental shelf, Government contracts, Mineral Royalties, Public
lands-minerals resources, Reporting and recordkeeping requirements,
Small businesses.
30 CFR Part 1217
Coal, Government contracts, Mineral royalties, Oil and gas
exploration, Public lands-mineral resources, Reporting and
recordkeeping requirements.
30 CFR Part 1220
Accounting, Continental Shelf, Government contracts, Mineral
royalties, Oil and gas exploration, Public lands-mineral resources,
Reporting and recordkeeping requirements.
Howard Cantor,
Acting Director, Office of Natural Resources Revenue.
Authority and Issuance
For the reasons discussed in the preamble, ONRR is amending 30 CFR
parts 1206, 1208, 1217, and 1220 as set forth below:
PART 1206--PRODUCT VALUATION
0
1. The authority citation for part 1206 continues to read as follows:
Authority: 5 U.S.C. 301 et seq., 25 U.S.C. 396, 396a et seq.,
398, 398a et seq., 2101 et seq.; 30 U.S.C. 181 et seq., 351 et seq.,
1001 et seq., 1701 et seq.; 43 U.S.C. 1301 et seq., 1331 et seq.,
and 1801 et seq.
Subpart F--Federal Coal
0
2. Amend Sec. 1206.250 by revising (c) to read as follows:
Sec. 1206.250 What is the purpose and scope of this subpart?
* * * * *
(c) ONRR may audit and order you to adjust all royalty payments.
ONRR or an authorized State may require you to provide records for the
audit by one or more of the methods specified in 30 CFR 1217.10.
Subpart H--Geothermal Resources
0
3. Amend Sec. 1206.350(b) by revising the text to read as follows:
Sec. 1206.350 What is the purpose and scope of this subpart?
* * * * *
(b) ONRR may audit and order you to adjust all royalty and fee
payments. ONRR or an authorized State may require you to provide
records for the audit by one or more of the methods specified in 30 CFR
1217.10.
* * * * *
Subpart J--Indian Coal
0
4. Amend Sec. 1206.450 by revising the section heading and paragraph
(c) to read as follows:
[[Page 53793]]
Sec. 1206.450 What is the purpose and scope of this subpart?
* * * * *
(c) ONRR may audit and order you to adjust all royalty payments.
ONRR or an authorized Tribe may require you to provide records for the
audit by one or more of the methods specified in 30 CFR 1217.10.
* * * * *
PART 1208--SALE OF FEDERAL ROYALTY OIL
0
5. The authority citation for part 1208 continues to read as follows:
Authority: 5 U.S.C. 301 et seq.; 30 U.S.C. 181 et seq., 351 et
seq., 1701 et seq.; 31 U.S.C. 9701; 41 U.S.C. 601 et seq.; 43 U.S.C.
1301 et seq., 1331 et seq., and 1801 et seq.
Subpart A--General Provisions
0
6. Revise Sec. 1208.15 to read as follows:
Sec. 1208.15 Audits.
Audits of the accounts and books of lessees, operators, payors,
and/or purchasers of royalty oil taken in kind may be made annually or
at such other times as may be directed by ONRR. Such audits will be for
the purpose of determining compliance with applicable statutes,
regulations, and royalty oil contracts. ONRR may require you to provide
records for the audit by one or more of the methods specified in 30 CFR
1217.10.
PART 1217--AUDITS AND INSPECTIONS
0
7. The authority citation for part 1217 continues to read as follows:
Authority: 35 Stat. 312; 35 Stat. 781, as amended; secs. 32, 6,
26, 41 Stat. 450, 753, 1248; secs. 1, 2, 3, 44 Stat. 301, as
amended; secs. 6, 3, 44 Stat. 659, 710; secs. 1, 2, 3, 44 Stat.
1057; 47 Stat. 1487; 49 Stat. 1482, 1250, 1967, 2026; 52 Stat. 347;
sec. 10, 53 Stat. 1196, as amended; 56 Stat. 273; sec. 10, 61 Stat.
915; sec. 3, 63 Stat. 683; 64 Stat. 311; 25 U.S.C. 396, 396a-f, 30
U.S.C. 189, 271, 281, 293, 359. Interpret or apply secs. 5, 5, 44
Stat. 302, 1058, as amended; 58 Stat. 483-485; 5 U.S.C. 301, 16
U.S.C. 508b, 30 U.S.C. 189, 192c, 271, 281, 293, 359, 43 U.S.C. 387,
unless otherwise noted.
Subpart A--General Provisions
0
8. Add Sec. 1217.10 to subpart A to read as follows:
Sec. 1217.10 Providing Records During an Audit.
(a) ONRR or an authorized State or Tribe may specify the method an
auditee must use to provide records for all audits conducted under
Chapter XII, statute, or agreement. The methods may include one or more
of the following:
(1) Inspect records at an auditee's place of business during normal
business hours;
(2) Send records using secure electronic means. When requesting
that records be provided electronically, ONRR or the authorized State
or Tribe will specify the format in which the records shall be
produced, directions for electronic transmission, and instructions to
ensure secure transmission; or
(3) Deliver hard copy records using the U.S. Postal Service,
special courier, overnight mail, or other delivery service to an
address specified by ONRR or an authorized State or Tribe.
(b) [Reserved]
PART 1220--ACCOUNTING PROCEDURES FOR DETERMINING NET PROFIT SHARE
PAYMENT FOR OUTER CONTINENTAL SHELF OIL AND GAS LEASE
0
9. The authority citation for part 1220 continues to read as follows:
Authority: Sec. 205, Pub. L. 95-372, 92 Stat. 643 (43 U.S.C.
1337).
0
10. Amend Sec. 1220.033 by revising paragraph (e) to read as follows:
Sec. 1220.033 Audits.
* * * * *
(e) ONRR or its authorized agent may require you to provide records
for the audit by one or more of the methods specified in 30 CFR
1217.10.
[FR Doc. 2023-17059 Filed 8-8-23; 8:45 am]
BILLING CODE P
