Bonding Requirements When Filing an Appeal of a Bureau of Safety and Environmental Enforcement Civil Penalty, 89922-89926 [2024-26504]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Safety and Environmental Enforcement

[Federal Register Volume 89, Number 220 (Thursday, November 14, 2024)]
[Rules and Regulations]
[Pages 89922-89926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26504]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Parts 250 and 290

[Docket ID: BSEE-2023-0014 EEEE500000 256E1700D2 ET1SF0000.EAQ000]
RIN 1014-AA57


Bonding Requirements When Filing an Appeal of a Bureau of Safety 
and Environmental Enforcement Civil Penalty

AGENCY: Bureau of Safety and Environmental Enforcement, Interior.

ACTION: Final rule.

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SUMMARY: The Department of the Interior (Interior) is amending 
regulations administered by the Bureau of Safety and Environmental 
Enforcement (BSEE) regarding the bonding requirements for entities 
filing an appeal from a BSEE decision that assesses a civil penalty. 
The regulations will clarify that entities appealing a BSEE civil 
penalty decision to the Interior Board of Land Appeals (IBLA) must have 
a bond covering the civil penalty assessment amount for the IBLA to 
have jurisdiction over the appeal.

DATES: This final rule is effective on January 13, 2025.

FOR FURTHER INFORMATION CONTACT: For technical questions, contact 
Janine Marie Tobias at [email protected] or (202) 208-4657. For 
procedural questions, contact Kirk Malstrom at (703) 787-1751 or by 
email at [email protected].

SUPPLEMENTARY INFORMATION: 

Executive Summary

    Pursuant to the Outer Continental Shelf Lands Act (OCSLA) (43 
U.S.C. 1350), BSEE has the delegated authority to assess civil 
penalties to certain entities engaged in energy exploration, 
development, and production operations on the Outer Continental Shelf 
(OCS) following certain violations by those entities of a statutory 
provision, regulation, order, or lease, license, or permit term. 
Interior's implementing regulations for this authority are located at 
30 CFR part 250, ``Subpart N-Outer Continental Shelf Civil Penalties'' 
(Sec. Sec.  250.1400-250.1409). Additional relevant regulations 
regarding the procedures for appealing civil penalty assessments are 
found at 30 CFR part 290, ``Subpart A-Bureau of Safety and 
Environmental Enforcement Appeal Procedures'' (Sec. Sec.  290.1-290.8).
    BSEE recently commenced a review of its regulations for civil 
penalty

[[Page 89923]]

assessment appeals. BSEE initiated this review following the IBLA's 
July 7, 2022, order in Petro Ventures, Inc. (IBLA No. 2020-48), which 
analyzed the effect of the civil penalty appeal bonding requirements in 
30 CFR 250.1409. This regulation, at paragraph (b), requires that an 
entity filing an appeal of a civil penalty assessment must either 
``[s]ubmit a surety bond in the amount of the penalty'' or request that 
``your lease-specific/area-wide bond on file be used as the bond for 
the penalty amount.'' When Interior proposed what is now 30 CFR 
250.1409 in 1999, it explained that the civil penalty appeal bonding 
requirement was ``designed to ensure that funds will be available to 
cover the final civil penalty assessment if the appeal is denied, and 
to discourage any appeals filed for the sole purpose of delaying 
payment of that assessment.'' 64 FR 1930, 1966 (January 12, 1999). BSEE 
and its predecessors have consistently intended and understood this 
bonding requirement to operate as a condition precedent to an entity's 
right to pursue an appeal. The IBLA, however, concluded in Petro 
Ventures, Inc. that while 30 CFR 250.1409 requires that the appellant 
have bonding covering the appealed civil penalty amount, the regulation 
is not phrased in such a way as to make it a jurisdictional 
precondition that would require dismissal of the appeal if the bonding 
requirement is not met.
    Accordingly, Interior is revising 30 CFR 250.1409, ``What are my 
appeal rights?,'' and 30 CFR 290.4, ``How do I file an appeal?'', to 
effectuate the original intent of the bonding requirement by ensuring 
that bonding is a jurisdictional precondition for appealing a BSEE 
civil penalty assessment to the IBLA.

Table of Contents

I. Discussion of Public Comment on the Proposed Rule
II. Section-by-Section Summary
III. Procedural Matters

I. Discussion of Public Comment on the Proposed Rule

    BSEE published a proposed rule in late 2023 with revisions to 30 
CFR 250.1409 and 30 CFR 290.4. 88 FR 86285 (Dec. 13, 2023). BSEE 
received one comment on the proposed rule related to Interior's 
determination under E.O. 13175 that this rule will not have substantial 
direct effects on Tribal Nations or Alaska Natives, on the relationship 
between the Federal Government and Tribal Nations or Alaska Natives, or 
on the distribution of power and responsibilities between the Federal 
Government and Tribal Nations or Alaska Natives. The commenter stated 
that ``there is no indication you have consulted with Tribal Nations or 
Alaska Natives in order to come to this conclusion.'' Here, BSEE 
determined that this is an administrative update to current policy with 
no substantial direct effects on federally recognized Indian Tribes, 
Alaska Native Claims Settlement Act (``ANCSA'') Corporations, or the 
Native Hawaiian Community pursuant to the criteria in E.O. 13175, and 
that this action does not have Tribal implications pursuant to 
Interior's consultation policies. BSEE evaluated this proposed 
ruleunder the Department's consultation policy in Departmental Manual 
part 512 chapters 4 and 5, and under the criteria in E.O. 13175. 
Accordingly, BSEE did not initiate a consultation process for the 
proposed rule.

II. Section-by-Section Summary

What are my appeal rights? (Sec.  250.1409)

Summary of Proposed Rule Revisions
    BSEE proposed to change the introductory sentence of Sec.  
250.1409(b) from ``If you file an appeal, you must either:'' to ``In 
order to file an appeal, you must perform one of the following actions 
within the 60-day appeal period to have your appeal heard:''. BSEE 
proposed to move existing Sec.  250.1409(d) to a new Sec.  250.1409(e). 
The proposed Sec.  250.1409(d) states that ``the bonding requirement in 
paragraph (b) of this section is a jurisdictional precondition for a 
civil penalty appeal.'' Together, these revised provisions would 
effectuate the intended functions of BSEE's bonding requirements for 
filing and maintaining a civil penalty appeal to the IBLA. BSEE 
requires bonding coverage for the full civil penalty amount of all 
civil penalty appeals to ensure that funds will be available to cover 
the civil penalty amount if the assessment is upheld and to discourage 
appeals filed for the sole purpose of delaying payment of that 
assessment.
    Lastly, BSEE proposed moving existing Sec.  250.1409(d) to the new 
Sec.  250.1409(e), and revising Sec.  250.1409(d) by changing the 
introductory sentence from ``If you do not either pay the penalty or 
file a timely appeal, BSEE will take one or more of the following 
actions:'' to ``If you do not either pay the penalty or fully satisfy 
the appeal requirements, the Department may take one or more of the 
following actions:''. In paragraph (e)(1), BSEE proposed deleting ``We 
will'' and starting the sentence with ``Collect.'' In paragraph (e)(2), 
BSEE proposed deleting ``We may'' and starting the sentence with 
``Initiate.'' In paragraph (e)(3), BSEE proposed deleting ``We may'' 
and starting the sentence with ``Bar.'' BSEE proposed these edits 
because different entities within Interior may take the listed actions 
and to improve the grammatical structure of the overall provision.
Summary of Final Rule Revisions
    BSEE did not receive any comments on the proposed revisions and 
includes the proposed revisions in the final rule without change.

How do I file an appeal? (Sec.  290.4)

Summary of Proposed Rule Revisions
    BSEE proposed to add a new paragraph (c) to Sec.  290.4. Existing 
Sec.  290.4 sets forth the items that BSEE must receive within 60 days 
after a party receives a decision for an appeal to be considered 
properly filed. The proposed paragraph (c) adds to that list: ``If you 
are appealing a civil penalty assessment, either notification of 
payment of the penalty or documentation demonstrating satisfaction of 
the requirements in 30 CFR 250.1409(b).'' As with the other appeal 
filing requirements in the section, it expressly states that the 
appellant ``cannot extend the 60-day period for satisfying this 
requirement, except as specifically provided in 30 CFR 250.1409(d).'' 
BSEE proposed these additions to ensure awareness of, and consistency 
with, the requirements in the proposed Sec.  250.1409; to ensure that 
appealing entities timely provide BSEE with documentation demonstrating 
compliance with Sec.  250.1409; and to further emphasize the nature of 
the bonding requirement as a jurisdictional precondition to maintenance 
of an appeal.
Summary of Final Rule Revisions
    BSEE did not receive any comments on the proposed revisions and 
includes the proposed revisions in the final rule without change.

III. Procedural Matters

Regulatory Flexibility Act (5 U.S.C. 601 et seq.)

    When an agency issues a rulemaking proposal, the Regulatory 
Flexibility Act (RFA) requires the agency to ``prepare and make 
available for public comment an initial regulatory flexibility 
analysis'' that will ``describe the impact of the proposed rule on 
small entities.'' (5 U.S.C. 603(a)). Section 605 of the RFA allows an 
agency to certify a rule, in lieu of preparing an analysis, if the 
proposed rulemaking is not expected to have a

[[Page 89924]]

significant economic impact on a substantial number of small entities.
    BSEE estimates that at least 80 entities (lessees, grant holders, 
and operators) are subject to this rule, of which approximately 60 
percent are small according to the U.S. Small Business Administration 
size standards based on each firm's North American Industry 
Classification System code, number of employees, and annual revenues. 
Therefore, BSEE has determined that this rule applies to a substantial 
number of small entities.
    However, BSEE has determined that the impact on entities affected 
by the rule is not significant. The provisions of this regulation only 
align the language of the regulations with BSEE's longstanding 
understanding of the effects of the existing requirement. Existing 
regulations have long required satisfaction of bonding requirements for 
appeals of civil penalty assessments, and these revisions only clarify 
the procedural effects of noncompliance with that requirement. They do 
not add any cost burdens to entities that would be subject to the rule. 
Accordingly, Interior hereby certifies that this rule will not have a 
significant economic impact on a substantial number of small entities.

Small Business Regulatory Enforcement Fairness Act/Congressional Review 
Act (5 U.S.C. 801-808)

    This rule does not meet the criteria under 5 U.S.C. 804(2), the 
Small Business Regulatory Enforcement Fairness Act. This 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, Federal, State, or local government 
agencies, or geographic regions; and
    (3) Does 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 does not generate an annual economic effect of $100 
million or more; cause major price increases for consumers, businesses, 
governments, or geographic regions; or degrade competition, employment, 
investment, productivity, innovation, or the ability of U.S. businesses 
to compete against foreign businesses. Its effects are purely 
administrative, legal, and procedural.

Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1501 et seq.)

    This rule does not impose an unfunded mandate on State, local, or 
Tribal governments, or the private sector of more than $189 million per 
year. The rule does not have a significant or unique effect on State, 
local, or Tribal governments or the private sector. A statement 
containing the information required by the Unfunded Mandates Reform Act 
is not required.

Takings Implication Assessment (E.O. 12630)

    Under the criteria in E.O. 12630, this rule does not have 
significant takings implications. The rule is not a governmental action 
capable of interference with constitutionally protected property 
rights. A takings implication assessment is not required.

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. To the extent that State and local 
governments have a role in Outer Continental Shelf activities, this 
rule will not affect that role. Therefore, a federalism summary impact 
statement is not required.

Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of E.O. 12988. 
Specifically, this rule:
    (1) 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
    (2) Meets the criteria of section 3(b)(2) requiring that all 
regulations be written in clear language and contain clear legal 
standards.

Consultation and Coordination With Indian Tribal Governments (E.O. 
13175)

    BSEE strives to strengthen its government-to-government 
relationships with federally recognized Indian Tribes through a 
commitment to consultation with Tribes and recognition of their right 
to self-governance and Tribal sovereignty. We are also respectful of 
our responsibilities for consultation with ANCSA Corporations. BSEE has 
reviewed this rule pursuant to the criteria in E.O. 13175, 
``Consultation and Coordination with Indian Tribal Governments'' (dated 
November 6, 2000), and Interior's policies and procedures for 
consultation with Indian Tribes and ANCSA Corporations. (512 
Departmental Manual 4-7). BSEE is also respectful of our 
responsibilities for consultation with the Native Hawaiian Community. 
BSEE follows the Department's Office of Native Hawaiian Relations 
``Standard Operating Procedure for Consultation with the Native 
Hawaiian Community.'' This Standard Operating Procedure provides that: 
``Congress has also required Federal agencies to consult before taking 
actions that have the potential to significantly affect Native Hawaiian 
resources, rights, or lands by correspondingly charging the Office with 
fully integrating the policy and practice of meaningful consultation by 
such Federal agencies.'' BSEE has determined that this rule will not 
have substantial direct effects on federally recognized Indian Tribes, 
ANCSA Corporations, or the Native Hawaiian Community and will not have 
substantial direct effects on the relationship between the Federal 
Government and federally recognized Indian Tribes, ANCSA Corporations, 
or the Native Hawaiian Community, or on the distribution of power and 
responsibilities between the Federal Government and federally 
recognized Indian Tribes, ANCSA Corporations, or the Native Hawaiian 
Community.

Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.)

    This rule does not contain information collection requirements, and 
a submission to the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act 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.

National Environmental Policy Act of 1969 (42 U.S.C. 4321-4347)

    This 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, as a regulation of an administrative nature, this 
rule is covered by a categorical exclusion (see 43 CFR 46.210(i)). BSEE 
also determined that the rule does not implicate any of the 
extraordinary circumstances listed in 43 CFR 46.215 that would require 
further analysis under NEPA. Therefore, a detailed statement under NEPA 
is not required.

Effects on the Nation's Energy Supply (E.O. 13211)

    This rule is not a significant energy action under the definition 
in E.O. 13211. This rule is not likely to have a significant adverse 
effect on the supply, distribution, or use of energy. A Statement of 
Energy Effects is not required.

[[Page 89925]]

Regulatory Planning and Review (Executive Orders (E.O.) 12866 and 
13563)

    E.O. 12866, ``Regulatory Planning and Review,'' as amended by E.O. 
14094, provides that OMB's Office of Information and Regulatory Affairs 
(OIRA) will review all significant regulatory actions. A significant 
regulatory action is one that is likely to result in a rule that:
    A. Has an annual effect on the economy of $200 million or more 
(adjusted every 3 years by the Administrator of OIRA for changes in 
gross domestic product); or adversely affects in a material way the 
economy, a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, territorial, or 
Tribal governments or communities;
    B. Creates a serious inconsistency or otherwise interferes with an 
action taken or planned by another agency;
    C. Materially alters the budgetary impacts of entitlements, grants, 
user fees, loan programs, or the rights and obligations of recipients 
thereof; or
    D. Raises legal or policy issues for which centralized review would 
meaningfully further the President's priorities or the principles set 
forth in E.O. 12866.
    OIRA has concluded that this rule is not a significant action under 
E.O. 12866. The provisions of the final rule will align the language of 
the regulations with BSEE's and the regulated industry's longstanding 
understanding of the effects of the existing requirements and will not 
add any cost burdens to entities that would be subject to the rule, 
yielding only procedural effects. Accordingly, BSEE does not anticipate 
that this rule will have an annual economic impact of $200 million or 
more or have a material adverse effect on the economy, a sector of the 
economy, productivity, competition, jobs, public health or safety, the 
environment, or State, local, or Tribal governments or communities. 
This rule also will not raise novel legal or policy issues.
    E.O. 13563, ``Improving Regulation and Regulatory Review,'' 
reaffirms the principles of E.O. 12866 while calling for improvements 
in the Nation's regulatory system to promote predictability, to reduce 
uncertainty, and to use the best, most innovative, and least burdensome 
tools for achieving regulatory ends. E.O. 13563 directs agencies to 
consider regulatory approaches that reduce burdens and maintain 
flexibility and freedom of choice for the public where these approaches 
are relevant, feasible, and consistent with regulatory objectives. E.O. 
13563 further 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. We have developed this 
rule in a manner consistent with these requirements.

Effects on Environmental Justice for Minority and Low-Income 
Populations (E.O. 12898)

    E.O. 12898 requires Federal agencies to make achieving 
environmental justice part of their mission by identifying and 
addressing disproportionately high and adverse human health or 
environmental effects of their programs, policies, and activities on 
minority and low-income populations. BSEE has determined that this rule 
will not have a disproportionately high or adverse human health or 
environmental effect on native, minority, or low-income communities 
because its provisions are administrative and procedural in nature and 
does not affect public safety, environmental protection, or OCS 
operational requirements.

List of Subjects

30 CFR Part 250

    Administrative practice and procedure, Continental shelf, 
Environmental impact statements, Environmental protection, Government 
contracts, Investigations, Mineral resources, Oil and gas exploration, 
Penalties, Pipelines, Continental Shelf--mineral resources, Continental 
Shelf--rights-of-way, Reporting and recordkeeping requirements, Sulfur.

30 CFR Part 290

    Administrative practice and procedure.

    This action by the Principal Deputy Assistant Secretary is taken 
herein pursuant to an existing delegation of authority.

Steven H. Feldgus,
Principal Deputy Assistant Secretary, Land and Minerals Management.

    For the reasons stated in the preamble, the Department of the 
Interior amends 30 CFR parts 250 and 290 as follows:

PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

0
1. The authority citation for part 250 continues to read as follows:

    Authority:  30 U.S.C. 1751, 31 U.S.C. 9701, 33 U.S.C. 
1321(j)(1)(C), 43 U.S.C. 1334.

Subpart N--Outer Continental Shelf Civil Penalties

0
2. Amend Sec.  250.1409 by revising paragraphs (b) and (d) and adding 
paragraph (e) to read as follows:


Sec.  250.1409  What are my appeal rights?

* * * * *
    (b) In order to file an appeal, you must perform one of the 
following actions within the 60-day appeal period to have your appeal 
heard:
* * * * *
    (d) Satisfying the bonding requirement in paragraph (b) of this 
section is a jurisdictional precondition for a civil penalty appeal. If 
you have timely filed a request with BOEM pursuant to paragraph (b)(2) 
of this section to use your lease-specific/area-wide bond on file as 
the bond for the penalty amount, the IBLA's jurisdiction over the 
appeal is preserved while BOEM's decision on your request is pending. 
Should BOEM deny your request or require additional security pursuant 
to paragraph (c) of this section, you have 30 days to satisfy paragraph 
(b)(1) of this section or post the required additional security, as 
applicable, and jurisdiction is preserved during that 30-day period. If 
you fail to satisfy these bonding requirements, the IBLA will lose 
jurisdiction and must dismiss your appeal.
    (e) If you do not either pay the penalty or fully satisfy the 
appeal requirements, the Department may take one or more of the 
following actions:
    (1) Collect the amount you were assessed, plus interest, late 
payment charges, and other fees as provided by law, from the date you 
received the Reviewing Officer's final decision until the date we 
receive payment;
    (2) Initiate additional enforcement, including, if appropriate, 
cancellation of the lease, right-of-way, license, permit, or approval, 
or the forfeiture of a bond under this part; or
    (3) Bar you from doing further business with the Federal Government 
according to Executive Orders 12549 and 12689, and section 2455 of the 
Federal Acquisition Streamlining Act of 1994, 31 U.S.C. 6101. The 
Department of the Interior's regulations implementing these authorities 
are found at 43 CFR part 12, subpart D.

PART 290--APPEAL PROCEDURES

0
3. The authority citation for part 290 continues to read as follows:

    Authority:  5 U.S.C. 305; 43 U.S.C. 1334.

[[Page 89926]]

Subpart A--Bureau of Safety and Environmental Enforcement Appeal 
Procedures

0
4. Amend Sec.  290.4 by:
0
a. Removing the word ``and'' at the end of paragraph (a);
0
b. In paragraph (b) introductory text, removing ``.'' and adding in its 
place ``; and''; and
0
c. Adding paragraph (c).
    The addition reads as follows:


Sec.  290.4  How do I file an appeal?

* * * * *
    (c) If you are appealing a civil penalty assessment, either 
notification of payment of the penalty or documentation demonstrating 
satisfaction of the requirements in 30 CFR 250.1409(b). You cannot 
extend the 60-day period for satisfying this requirement, except as 
specifically provided in 30 CFR 250.1409(d).

[FR Doc. 2024-26504 Filed 11-13-24; 8:45 am]
BILLING CODE 4310-VH-P