2024 Civil Monetary Penalty Inflation Adjustments, 3884-3886 [2024-01110]

Agencies

• DEPARTMENT OF THE INTERIOR
• Office of Natural Resources Revenue

[Federal Register Volume 89, Number 14 (Monday, January 22, 2024)]
[Rules and Regulations]
[Pages 3884-3886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01110]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

30 CFR Part 1241

[Docket No. ONRR-2022-0003; DS63644000 DR2000000.CH7000 245D1113RT]
RIN 1012-AA36


2024 Civil Monetary Penalty Inflation Adjustments

AGENCY: Office of Natural Resources Revenue (ONRR), Interior.

ACTION: Final rule.

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SUMMARY: Pursuant to the Federal Civil Penalties Inflation Adjustment 
Act of 1990, as amended by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (referred to herein as the 
``Inflation Adjustment Acts''), and Office of Management and Budget 
(OMB) guidance, ONRR is adjusting for inflation the civil monetary 
penalty (CMP) amounts it assesses under the Federal Oil and Gas Royalty 
Management Act of 1982 (FOGRMA).

DATES: This rule is effective on January 22, 2024.

FOR FURTHER INFORMATION CONTACT: For questions on procedural issues, 
contact Ginger Hensley, Regulatory Specialist, by telephone at (303) 
231-3171 or by email to [email protected]. For questions on 
technical issues, contact Michael Marchetti, Enforcement Program 
Manager, by telephone at (303) 231-3125 or by email to 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background
II. ONRR's Inflation-Adjusted Maximum Rates
III. Procedural Matters
    A. Regulatory Planning and Review (Executive Orders 12866, 
13563, and 14094)
    B. Regulatory Flexibility Act
    C. Congressional Review Act
    D. Unfunded Mandates Reform Act
    E. Takings (Executive Order 12630)
    F. Federalism (Executive Order 13132)
    G. Civil Justice Reform (Executive Order 12988)
    H. Consultation With Indian Tribes (Executive Order 13175)
    I. Paperwork Reduction Act
    J. National Environmental Policy Act
    K. Effects on the Energy Supply (Executive Order 13211)
    L. Clarity of This Regulation
    M. Administrative Procedure Act

I. Background

    FOGRMA, at 30 U.S.C. 1719(a) through (d), authorizes the Secretary 
of the Interior (``Secretary'') to assess CMPs for royalty reporting 
and other violations. Pursuant to authority delegated to it by the 
Secretary, ONRR published regulations at 30 CFR part 1241 implementing 
the Secretary's CMP authority. The Inflation Adjustment Acts require 
Federal agencies to publish annual CMP inflation adjustments in the 
Federal Register by January 15th of each year.
    The Inflation Adjustment Acts and OMB Memorandum No. M-24-07, 
December 19, 2023, (``OMB Memorandum'') specify that the annual 
inflation adjustments are based on the percent change between the 
Consumer Price Index for all Urban Consumers (``CPI-U'') published by 
the Department of Labor for the month of October in the year of the 
previous adjustment, and the October CPI-U for the preceding year. The 
OMB Memorandum further specifies that the cost-of-living adjustment 
multiplier for 2024, not seasonally adjusted, is 1.03241 for CY 2024 
(the October 2023 CPI-U (307.671) divided by the October 2022 CPI-U 
(298.012) = 1.03241). ONRR used this guidance to calculate required 
inflation adjustments. Pursuant to the Inflation Adjustment Acts, any 
increases in CMPs are rounded to the nearest whole dollar and the new 
maximum penalty rates apply to CMPs assessed after the date the 
increase takes effect.

II. ONRR's Inflation-Adjusted Maximum Rates

    This final rule increases the maximum CMP dollar amounts for each 
of the four violation categories identified in 30 U.S.C. 1719(a)-(d) 
and implemented by 30 CFR part 1241. The following table identifies the 
applicable ONRR regulations, the dollar amounts set forth in the 
regulations, and the adjusted amounts.

[[Page 3885]]



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                                                                   Current      2024 Inflation    2024 Adjusted
                       30 CFR citation                             maximum        adjustment         maximum
                                                                   penalty        multiplier         penalty
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1241.52(a)(2)................................................          $1,474           1.03241           $1,522
1241.52(b)...................................................          14,754           1.03241           15,232
1241.60(b)(1)................................................          29,505           1.03241           30,461
1241.60(b)(2)................................................          73,764           1.03241           76,155
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III. Procedural Matters

A. Regulatory Planning and Review (Executive Orders 12866, 13563, and 
14094)

    Executive Order (``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 OMB will review all significant rules. OIRA has 
determined that agency regulations intended only to implement the 
annual inflation adjustments are not significant, provided they are 
consistent with the OMB Memorandum. Because ONRR is only implementing 
the annual inflation adjustments in this final rule, this rule is not 
significant under E.O. 12866.
    E.O. 13563 reaffirms the principles of E.O. 12866, while calling 
for improvements in the United States' regulatory system to promote 
predictability, to reduce uncertainty, and to use the 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 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 
rule in a manner consistent with these requirements.

B. Regulatory Flexibility Act

    This 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 the rule only makes an 
adjustment for inflation. The Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 requires agencies to adjust 
civil penalties with an annual inflation adjustment. Therefore, the RFA 
does not apply to this rulemaking.

C. Congressional Review Act

    This rule is not a major rule under 5 U.S.C. 804(2), the 
Congressional Review Act. This rule:
    (a) Does 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, local government 
agencies; or geographic regions; and
    (c) 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 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 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 containing the information that the 
Unfunded Mandates Reform Act (2 U.S.C. 1531, et seq.) requires because 
this rule is not an unfunded mandate.

E. Takings (E.O. 12630)

    This rule does not result in a taking of private property or 
otherwise have takings implications under E.O. 12630. Therefore, this 
rule does not require a takings implication assessment.

F. 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.

G. 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), which requires that ONRR 
review all regulations to eliminate errors and ambiguity and to write 
them to minimize litigation; and
    (b) Meets the criteria of section 3(b)(2), which requires that ONRR 
write all regulations in clear language, using clear legal standards.

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

    The Department of the Interior (``DOI'') 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. Under the DOI's 
consultation policy and the criteria in E.O. 13175, ONRR evaluated this 
rule and determined that it will have no substantial, direct effects on 
Federally recognized Indian Tribes and does not require consultation.

I. Paperwork Reduction Act

    This rule:
    (a) Does not contain any new information collection requirements; 
and
    (b) Does not require a submission to OMB under the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501, et seq.). See 5 CFR 
1320.4(a)(2).

J. National Environmental Policy Act of 1969 (``NEPA'')

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. ONRR is not required to 
provide a detailed statement under NEPA because this rule qualifies for 
categorical exclusion under 43 CFR 46.210(i) in that this rule is ``. . 
. of an administrative, financial, legal, technical, or procedural 
nature. . . .'' ONRR also has determined that this rule is not involved 
in any of the extraordinary circumstances listed in 43 CFR 46.215 that 
would require further analysis under NEPA.

K. Effects on the Energy Supply (E.O. 13211)

    This 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:

[[Page 3886]]

    (a) Be logically organized;
    (b) Use the active voice to address readers directly;
    (c) Use common, everyday words and clear language rather than 
jargon;
    (d) Be divided into short sections and sentences; and
    (e) Use lists and tables wherever possible;
    If you feel that ONRR has not met these requirements, send your 
comments to [email protected]. Your comments should be 
as specific as possible. For example, you should identify the number of 
the sections or paragraphs that you find unclear, which sections or 
sentences are too long, the sections where you feel lists or tables 
would be useful, etc.

M. Administrative Procedure Act

    The Act requires agencies to publish annual inflation adjustments 
by January 15 of each year, notwithstanding section 553 of the 
Administrative Procedure Act. OMB has interpreted this direction to 
mean that the usual APA public procedure for rulemaking--which includes 
public notice of a proposed rule, an opportunity for public comment, 
and a delay in the effective date of a final rule--is not required when 
agencies issue regulations to implement the annual adjustments to civil 
penalties that the 2015 Act requires. See OMB Memorandum, M-24-07, at 
pages 3-4. Accordingly, ONRR is issuing the 2024 annual adjustments as 
a final rule without prior notice or an opportunity for comment and 
with an effective date immediately upon publication in the Federal 
Register.

List of Subjects in 30 CFR Part 1241

    Administrative practice and procedure, Coal, Geothermal energy, 
Indian--lands, Mineral royalties, Natural gas, Oil and gas exploration, 
Penalties, Public lands--mineral resources.

Howard M. Cantor,
Director, Office of Natural Resources Revenue.

Authority and Issuance

    For the reasons discussed in the preamble, ONRR amends 30 CFR part 
1241 as set forth below:

PART 1241--PENALTIES

0
1. The authority citation for part 1241 continues to read as follows:

    Authority: 25 U.S.C. 396 et seq., 396a 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., 1801 et seq.


Sec.  1241.52  [Amended]

0
2. Amend Sec.  1241.52 by:
0
a. In paragraph (a)(2), removing ``$1,474'' and adding in its place 
``$1,522''.
0
b. In paragraph (b) introductory text, removing ``$14,754'' and adding 
in its place ``$15,232''.


Sec.  1241.60  [Amended]

0
3. Amend Sec.  1241.60 by:
0
a. In paragraph (b)(1), removing ``$29,505'' and adding in its place 
``$30,461''.
0
b. In paragraph (b)(2), removing ``$73,764'' and adding in its place 
``$76,155''.

[FR Doc. 2024-01110 Filed 1-19-24; 8:45 am]
BILLING CODE 4335-30-P