81_FR_29575 81 FR 29483 - Removal of Short Supply License Requirements on Exports of Crude Oil

81 FR 29483 - Removal of Short Supply License Requirements on Exports of Crude Oil

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 81, Issue 92 (May 12, 2016)

Page Range29483-29487
FR Document2016-11047

The Bureau of Industry and Security (BIS) publishes this final rule to amend the Export Administration Regulations (EAR) to remove the short supply license requirements that, prior to the entry into force of the ``Consolidated Appropriations Act, 2016'' on December 18, 2015, applied to exports of crude oil from the United States. Specifically, this rule removes the Commerce Control List (CCL) entry and the corresponding short supply provisions in the EAR that required a license from BIS to export crude oil from the United States. This rule also amends certain other EAR provisions to reflect the removal of these short supply license requirements. The changes made by this rule are intended to bring the provisions of the EAR into full compliance with the act, which mandates that, apart from certain exemptions specified therein, ``no official of the Federal Government shall impose or enforce any restriction on the export of crude oil.'' Consistent with the exceptions in the act, exports of crude oil continue to require authorization from BIS to embargoed or sanctioned countries or persons and to persons subject to a denial of export privileges.

Federal Register, Volume 81 Issue 92 (Thursday, May 12, 2016)
[Federal Register Volume 81, Number 92 (Thursday, May 12, 2016)]
[Rules and Regulations]
[Pages 29483-29487]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-11047]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 730, 740, 742, 744, 746, 754, 762, 772, and 774

[Docket No. 160302175- 6175- 01]
RIN 0694-AG83


Removal of Short Supply License Requirements on Exports of Crude 
Oil

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: The Bureau of Industry and Security (BIS) publishes this final 
rule to amend the Export Administration Regulations (EAR) to remove the 
short supply license requirements that, prior to the entry into force 
of the ``Consolidated Appropriations Act, 2016'' on December 18, 2015, 
applied to exports of crude oil from the United States. Specifically, 
this rule removes the Commerce Control List (CCL) entry and the 
corresponding short supply provisions in the EAR that required a 
license from BIS to export crude oil from the United States. This rule 
also amends certain other EAR provisions to reflect the removal of 
these short supply license requirements. The changes made by this rule 
are intended to bring the provisions of the EAR into full compliance 
with the act, which mandates that, apart from certain exemptions 
specified therein, ``no official of the Federal Government shall impose 
or enforce any restriction on the export of crude oil.'' Consistent 
with the exceptions in the act, exports of crude oil continue to 
require authorization from BIS to embargoed or sanctioned countries or 
persons and to persons subject to a denial of export privileges.

DATES: This rule is effective May 12, 2016.

ADDRESSES: Send comments regarding this collection of information, 
including suggestions for reducing the burden, to Jasmeet Seehra, 
Office of Management and Budget (OMB), by email to 
[email protected], or by fax to (202) 395-7285; and to the 
Regulatory Policy Division, Bureau of Industry and Security, Department 
of Commerce, 14th Street & Pennsylvania Avenue NW., Room 2705, 
Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Eileen Albanese, Director, Office of 
National Security and Technology Transfer Controls, Bureau of Industry 
and Security, Telephone: (202) 482-0092, Email: 
[email protected].

SUPPLEMENTARY INFORMATION: The Bureau of Industry and Security (BIS) is 
amending the Export Administration Regulations (EAR) to comply with the 
requirements of Division O, Title 1, Section 101 of Public Law 114-113 
(the Consolidated Appropriations Act, 2016) concerning exports of crude 
oil from the United States. These provisions repeal Section 103 of the 
Energy Policy and Conservation Act (formerly, 42 U.S.C. 6212), which 
required that the President promulgate a rule prohibiting the export of 
crude oil, and mandate, instead, that ``notwithstanding any other 
provision of law, except as provided in subsections (c) and (d) . . . 
no official of the Federal Government shall impose or enforce any 
restriction on the export of crude oil.'' Consistent with this 
requirement, this final rule amends part 754 of the EAR by removing and 
reserving Sec.  754.2, which described the short supply license 
requirements and licensing policies that applied to exports of crude 
oil from the United States to all destinations. This rule also amends 
the Commerce Control List (CCL) in Supplement No. 1 to part 774 of the 
EAR by removing Export Control Classification Number (ECCN) 1C981, 
which controlled crude petroleum, including reconstituted crude 
petroleum, tar sands and crude shale oil listed in Supplement No. 1 to 
part 754 of the EAR (Crude Petroleum and Petroleum Products). In 
addition, this rule moves the definition of ``crude oil,'' which 
previously appeared in Sec.  754.2(a) of the EAR, to Sec.  772.1 
(Definitions of terms as used in the Export Administration Regulations 
(EAR)), because it continues to have relevance with respect to the end-
user/end-use requirements in part 744 of the EAR and the embargoes and 
other special controls in part 746 of the EAR. The scope of this 
definition remains unchanged.
    The effect of the changes described above is to remove the short 
supply license requirements previously applicable to crude oil, as 
controlled under ECCN 1C981, thereby making crude oil an EAR99 item 
(i.e., subject to the EAR, as described in Sec.  734.3(a), but no 
longer listed on the CCL). As such, crude oil exports will now be 
treated

[[Page 29484]]

similarly to exports of petroleum products listed in Supplement No. 1 
to part 754 that have not been produced or derived from the Naval 
Petroleum Reserves (NPR) or become available for export as a result of 
an exchange of any NPR produced or derived commodities (such petroleum 
products are not controlled under ECCN 1C980, 1C982, 1C983, or 1C984 on 
the CCL, but are designated as EAR99 items, instead). As an EAR99 item, 
crude oil remains subject to the EAR, as described in Sec.  734.3(a) of 
the EAR, and exports of crude oil continue to require authorization 
from BIS to embargoed or sanctioned countries or persons and to persons 
subject to a denial of export privileges, as described in parts 744, 
746, and 764 of the EAR. The continuance of these EAR controls is 
consistent with the exemptions stated in Division O, Title 1, Section 
101, subsections (c) and (d) of Public Law 114-113.
    This final rule also amends certain other provisions in the EAR to 
reflect the removal of the short supply license requirements on crude 
oil. Specifically, this rule makes additional amendments to part 754 by 
removing and reserving paragraph (b)(1)(i) in Sec.  754.1 and by 
removing and reserving Supplement No. 3 to part 754 (Statutory 
Provisions Dealing with Exports of Crude Oil). This rule also removes 
references to Sec.  754.2 from Supplement No. 1 to part 730 and Sec.  
762.2(b)(39). In addition, this rule amends Sec.  740.15 (License 
Exception AVS) by removing the parenthetical reference to Sec.  754.2 
from Sec.  740.15(b)(3) and by removing the Note to paragraph (c)(3), 
which also referenced Sec.  754.2. This rule also removes references to 
ECCN 1C981 from Sec.  742.1(b)(1) and Sec.  746.7(a)(1) of the EAR. In 
Sec.  744.7 (Restrictions on Certain Exports to and for the use of 
Certain Foreign Vessels or Aircraft), paragraphs (b)(3)(i) and (ii) are 
revised to remove the exclusions that previously applied to crude oil 
and blends of crude oil with other petroleum products, because such 
items were subject to the short supply controls described in Sec.  
754.2 of the EAR.
    Finally, this rule removes authority citations for statutory 
provisions dealing with restrictions on the exports of crude oil, which 
no longer provide BIS with enforcement authority, based on Division O, 
Title 1, Section 101, subsection (b) of Public Law 114-113, which 
prohibits officials of the Federal Government from imposing or 
enforcing any restriction on the export of crude oil ``notwithstanding 
any other provision of law.'' Specifically, this rule removes the 
authority citations to 30 U.S.C. 185(s), 30 U.S.C. 185(u), and 43 
U.S.C. 1354 from parts 730, 754, and 774 of the EAR.
    Although the Export Administration Act expired on August 20, 2001, 
the President, through Executive Order 13222 of August 17, 2001, 3 CFR, 
2001 Comp., p. 783 (2002), as amended by Executive Order 13637 of March 
8, 2013, 78 FR 16129 (March 13, 2013), and as extended by the Notice of 
August 7, 2015 (80 FR 48233 (Aug. 11, 2015)), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.). BIS continues to carry 
out the provisions of the Export Administration Act, as appropriate and 
to the extent permitted by law, pursuant to Executive Order 13222 as 
amended by Executive Order 13637.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been designated a ``significant regulatory 
action,'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, the rule has been reviewed by the 
Office of Management and Budget.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. This rule 
contains a collection of information subject to the requirements of the 
PRA. This collection has been approved by OMB under Control Number 
0694-0088 (Multi-Purpose Application), which carries a burden hour 
estimate of 58 minutes to prepare and submit form BIS-748. Send 
comments regarding this burden estimate or any other aspect of this 
collection of information, including suggestions for reducing the 
burden, to Jasmeet Seehra, Office of Management and Budget, and to the 
Regulatory Policy Division, Bureau of Industry and Security, Department 
of Commerce, as indicated in the ADDRESSES section of this rule.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (APA) (5 
U.S.C. 553) requiring notice of proposed rulemaking and the opportunity 
for public participation are waived for good cause, because they are 
``unnecessary'' and ``contrary to the public interest.'' (See 5 U.S.C. 
553(b)(B)). This rule brings the Export Administration Regulations 
(EAR) into conformity with the Congressional mandate in Division O, 
Title 1, Section 101 of Public Law 114-113, which states that 
``notwithstanding any other provision of law, except as provided in 
subsections (c) and (d) . . . no official of the Federal Government 
shall impose or enforce any restrictions on the export of crude oil.'' 
A delay of this rulemaking to allow for notice and public comment would 
be ``unnecessary,'' within the context of the APA, because continuance 
of the controls in Sec.  754.2 of the EAR would be contrary to the 
explicit mandate in Public Law 114-113 against the imposition or 
enforcement of any restriction on the export of crude oil by an 
official of the Federal Government. Under such circumstances, the 
public interest would not be served by soliciting comments on the 
removal of these controls. A delay of this rulemaking to allow for 
notice and public comment also would be ``contrary to the public 
interest,'' within the context of the APA, because continuance of the 
controls in Sec.  754.2 of the EAR would result in unnecessary 
confusion due to the obvious contradiction between the short supply 
license requirements for crude oil, as described in Sec.  754.2 of the 
EAR prior to the publication of this rule, and the Congressional 
mandate in Public Law 114-113, which prohibits such license 
requirements. Furthermore, the confusion resulting from any delay to 
allow for notice and comment would be contrary to the public interest, 
as stated in Public Law 114-113, which is ``to promote the efficient 
exploration, production, storage, supply, marketing, pricing, and 
regulation of energy resources, including fossil fuels.'' Specifically, 
the obvious contradiction between the requirements previously described 
in Sec.  754.2 of the EAR and the mandate in Public Law 114-113 might 
discourage some persons from pursuing crude oil export opportunities, 
thereby resulting in significant economic losses due to lost sales. At 
best, the confusion

[[Page 29485]]

caused by this contradiction likely would result in unnecessary delays, 
which also can involve significant economic costs.
    The provision of the Administrative Procedure Act (APA) (5 U.S.C. 
553) requiring a 30-day delay in effectiveness is also waived for good 
cause. (5 U.S.C. 553(d)(3)). The amendments to the EAR contained in 
this final rule are required to make the EAR conform to the 
Congressional mandate in Public Law 114-113, which states that ``except 
as provided in subsections (c) and (d) . . . no official of the Federal 
Government shall impose or enforce any restrictions on the export of 
crude oil.'' A delay of this rulemaking to allow for a 30-day delay in 
effectiveness would be ``unnecessary,'' within the context of the APA, 
because continuance of the controls in Sec.  754.2 of the EAR would be 
contrary to the explicit mandate in Public Law 114-113 and, as such, 
would not serve the public interest. A delay of this rulemaking to 
allow for a 30-day delay in effectiveness, also would be ``contrary to 
the public interest,'' within the context of the APA, because such a 
delay would result in unnecessary confusion caused by the contradiction 
between the EAR's short supply license requirements for crude oil and 
the Congressional mandate in Public Law 114-113, as described above. In 
addition, any delay to allow for notice and comment would be contrary 
to the public interest, as stated in Public Law 114-113 and reiterated 
above.
    Further, no other law requires that a notice of proposed rulemaking 
and an opportunity for public comment be given for this final rule. 
Because a notice of proposed rulemaking and an opportunity for public 
comment are not required to be given for this rule under the 
Administrative Procedure Act or by any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Therefore, this regulation is issued in final form.

List of Subjects

15 CFR Part 730

    Administrative practice and procedure, Advisory committees, 
Exports, Reporting and recordkeeping requirements, Strategic and 
critical materials.

15 CFR Part 740

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

15 CFR Part 742

    Administrative practice and procedure, Chemicals, Exports, Foreign 
trade, Reporting and recordkeeping requirements.

15 CFR Part 744

    Exports, Foreign trade, Reporting and recordkeeping requirements.

15 CFR Part 746

    Exports, Reporting and recordkeeping requirements.

15 CFR Part 754

    Agricultural commodities, Exports, Forests and forest products, 
Horses, Petroleum, Reporting and recordkeeping requirements.

15 CFR Part 762

    Administrative practice and procedure, Business and industry, 
Confidential business information, Exports, Reporting and recordkeeping 
requirements.

15 CFR Part 772

    Exports.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, parts 730, 740, 742, 744, 
746, 754, 762, 772, and 774 of the Export Administration Regulations 
(15 CFR parts 730-774) are amended as follows:

PART 730--[AMENDED]

0
1. The authority citation for part 730 is revised to read as follows:

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 10 
U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c; 22 U.S.C. 2151 note; 
22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15 U.S.C. 
1824a; 50 U.S.C. 4305; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 
11912, 41 FR 15825, 3 CFR, 1976 Comp., p. 114; E.O. 12002, 42 FR 
35623, 3 CFR, 1977 Comp., p. 133; E.O. 12058, 43 FR 20947, 3 CFR, 
1978 Comp., p. 179; E.O. 12214, 45 FR 29783, 3 CFR, 1980 Comp., p. 
256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12854, 
58 FR 36587, 3 CFR, 1993 Comp., p. 179; E.O. 12918, 59 FR 28205, 3 
CFR, 1994 Comp., p. 899; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., 
p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 356; E.O. 
12981, 60 FR 62981, 3 CFR, 1995 Comp., p. 419; E.O. 13020, 61 FR 
54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 
208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 
66 FR 49079, 3 CFR, 2001 Comp., p. 786; E.O. 13338, 69 FR 26751, 3 
CFR, 2004 Comp., p 168; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., 
p. 223; Notice of May 6, 2015, 80 FR 26815 (May 8, 2015); Notice of 
August 7, 2015, 80 FR 48233 (August 11, 2015); Notice of September 
18, 2015, 80 FR 57281 (September 22, 2015); Notice of November 12, 
2015, 80 FR 70667 (November 13, 2015); Notice of January 20, 2016, 
81 FR 3937 (January 22, 2016).

Supplement No. 1 to Part 730--[Amended]

0
2. Supplement No. 1 to part 730 is amended by revising the entries for 
Collection number ``0694-0137'' and Collection number ``0607-0152'' to 
read as follows:

Supplement No. 1 to Part 730--Information Collection Requirements Under 
the Paperwork Reduction Act: OMB Control Numbers

* * * * *

------------------------------------------------------------------------
      Collection No.              Title           Reference in the EAR
------------------------------------------------------------------------
 
                              * * * * * * *
0694-0137................  License Exceptions   Sec.   734.4, Supplement
                            and Exclusions.      No. 2 to part 734, Sec.
                                                  Sec.   740.3(d),
                                                 740.4(c),
                                                 740.9(a)(2)(viii)(B),
                                                 740.9(c), 740.13(e),
                                                 740.12(b)(7), 740.17,
                                                 740.18, Supp. No. 2 to
                                                 part 740, Sec.  Sec.
                                                 742.15, 743.1, 743.3,
                                                 754.4, 762.2(b) and
                                                 Supplement No. 1 to
                                                 part 774.
0607-0152................  Automated Export     Sec.  Sec.   740.1(d),
                            System (AES)         740.3(a)(3), 754.4(c),
                            Program.             758.1, 758.2, and 758.3
                                                 of the EAR.
------------------------------------------------------------------------

PART 740--[AMENDED]

0
3. The authority citation for part 740 continues to read as follows:

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 7, 2015, 80 FR 48233 (August 11, 2015).


0
4. Section 740.15 is amended by revising paragraph (b)(3) introductory

[[Page 29486]]

text and by removing the note to paragraph (c)(3).
    The revision reads as follows:


Sec.  740.15  Aircraft, vessels, and spacecraft (AVS).

* * * * *
    (b) * * *
    (3) Ship and plane stores. Usual and reasonable kinds and 
quantities of the following commodities may be exported for use or 
consumption on board an aircraft or vessel of any registry during the 
outgoing and immediate return flight or voyage.
* * * * *

PART 742--[AMENDED]

0
5. The authority citation for part 742 continues to read as follows:

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058, 
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., 
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential 
Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; 
Notice of August 7, 2015, 80 FR 48233 (August 11, 2015); Notice of 
November 12, 2015, 80 FR 70667 (November 13, 2015).


Sec.  742.1  [Amended]

0
6. In Sec.  742.1, remove the phrase ``1C981 (Crude petroleum, 
including reconstituted crude petroleum, tar sands, and crude shale 
oil);'' where it appears in the second sentence of paragraph (b)(1).

PART 744--[AMENDED]

0
7. The authority citation for part 744 continues to read as follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; 
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 
CFR, 2001 Comp., p. 786; Notice of August 7, 2015, 80 FR 48233 
(August 11, 2015); Notice of September 18, 2015, 80 FR 57281 
(September 22, 2015); Notice of November 12, 2015, 80 FR 70667 
(November 13, 2015); Notice of January 20, 2016, 81 FR 3937 (January 
22, 2016).


0
8. In Sec.  744.7, revise paragraphs (b)(3)(i) and (ii) to read as 
follows:


Sec.  744.7  Restrictions on certain exports to and for the use of 
certain foreign vessels or aircraft.

* * * * *
    (b) * * *
    (3) * * *
    (i) Fuel, including crude oil, petroleum products other than crude 
oil that are of non-Naval Petroleum Reserves origin or derivation (see 
Sec.  754.3 of the EAR), and blends of crude oil with such petroleum 
products;
    (ii) Deck, engine, and steward department stores, provisions, and 
supplies for both port and voyage requirements, provided that any 
petroleum products other than crude oil which are listed in Supplement 
No. 1 to part 754 of the EAR are of non-Naval Petroleum Reserves origin 
or derivation (see Sec.  754.3 of the EAR);
* * * * *

PART 746--[AMENDED]

0
9. The authority citation for part 746 continues to read as follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C. 
6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 
36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR, 
1994 Comp., p. 899; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; Presidential 
Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; 
Presidential Determination 2007-7, 72 FR 1899, 3 CFR, 2006 Comp., p. 
325; Notice of May 6, 2015, 80 FR 26815 (May 8, 2015); Notice of 
August 7, 2015, 80 FR 48233 (August 11, 2015).


Sec.  746.7  [Amended]

0
10. In Sec.  746.7, remove ``1C981,'' where it appears in paragraph 
(a)(1).

PART 754--[AMENDED]

0
11. The authority citation for part 754 is revised to read as follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 10 
U.S.C. 7420; 10 U.S.C. 7430(e); 15 U.S.C. 1824a; E.O. 11912, 41 FR 
15825, 3 CFR, 1976 Comp., p. 114; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783; Notice of August 7, 2015, 80 FR 48233 (August 
11, 2015).


Sec.  754.1  [Amended]

0
12. Section 754.1 is amended by removing and reserving paragraph 
(b)(1)(i).


Sec.  754.2  [Removed]

0
13. Section 754.2 is removed and reserved.

0
14. In Supplement No. 1 to part 754, revise the first sentence in the 
introductory text to read as follows:

Supplement No. 1 to Part 754--Crude Petroleum and Petroleum Products

    This Supplement provides relevant Schedule B numbers and commodity 
descriptions for crude oil (EAR99) and for petroleum products other 
than crude oil that are controlled by ECCN 1C980, 1C982, 1C983, or 
1C984. * * *
* * * * *

Supplement No. 3 to Part 754--[Removed and Reserved]

0
15. Supplement No. 3 to part 754 is removed and reserved.

PART 762--[AMENDED]

0
16. The authority citation for part 762 continues to read as follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 
2015, 80 FR 48233 (August 11, 2015).


Sec.  762.2  [Amended]

0
17. Section 762.2 is amended by removing and reserving paragraph 
(b)(39).

PART 772--[AMENDED]

0
18. The authority citation for part 772 continues to read as follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 
2015, 80 FR 48233 (August 11, 2015).


0
19. Section 772.1 is amended by adding in alphabetical order a 
definition for crude oil to read as follows:


Sec.  772.1  Definitions of terms as used in the Export Administration 
Regulations (EAR).

* * * * *
    Crude oil. A mixture of hydrocarbons that existed in liquid phase 
in underground reservoirs, remains liquid at atmospheric pressure 
(after passing through surface separating facilities), and has not been 
processed through a crude oil distillation tower. Crude oil includes 
reconstituted crude petroleum, lease condensate, and liquid 
hydrocarbons produced from tar sands, gilsonite, and oil shale. Drip 
gases are also included, but topped crude oil, residual oil, and other 
finished and unfinished oils are excluded.
* * * * *

PART 774--[AMENDED]

0
20. The authority citation for part 774 is revised to read as follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 10 
U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 
seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15 U.S.C. 1824a; 50 U.S.C. 
4305; 22 U.S.C. 7201

[[Page 29487]]

et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., 
p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice 
of August 7, 2015, 80 FR 48233 (August 11, 2015).

Supplement No. 1 to Part 774--[Amended]

0
21. In Supplement No. 1 to Part 774 (the Commerce Control List), ECCN 
1C981 is removed.

    Dated: May 5, 2016.
Eric L. Hirschhorn,
Under Secretary for Industry and Security.
[FR Doc. 2016-11047 Filed 5-11-16; 8:45 am]
 BILLING CODE 3510-33-P



                                                                    Federal Register / Vol. 81, No. 92 / Thursday, May 12, 2016 / Rules and Regulations                                           29483

                                                   (v) Implement conservation practices                   Signed this 26th day of April, 2016, in             14th Street & Pennsylvania Avenue
                                                consistent with an approved forest                      Washington, DC.                                       NW., Room 2705, Washington, DC
                                                management plan when the EQIP plan                      Jason A. Weller,                                      20230.
                                                of operations includes forest-related                   Vice President, Commodity Credit                      FOR FURTHER INFORMATION CONTACT:
                                                practices that address resource concerns                Corporation, and Chief, Natural Resources
                                                                                                                                                              Eileen Albanese, Director, Office of
                                                on NIPF,                                                Conservation Service.
                                                                                                                                                              National Security and Technology
                                                *      *    *    *     *                                [FR Doc. 2016–10161 Filed 5–11–16; 8:45 am]
                                                                                                                                                              Transfer Controls, Bureau of Industry
                                                                                                        BILLING CODE 3410–16–P
                                                ■ 6. Amend § 1466.25 by revising                                                                              and Security, Telephone: (202) 482–
                                                paragraphs (b) through (d),                                                                                   0092, Email: eileen.albanese@
                                                redesignating paragraph (e) as paragraph                                                                      bis.doc.gov.
                                                                                                        DEPARTMENT OF COMMERCE
                                                (f), and adding a new paragraph (e) to                                                                        SUPPLEMENTARY INFORMATION: The
                                                read as follows:                                        Bureau of Industry and Security                       Bureau of Industry and Security (BIS) is
                                                                                                                                                              amending the Export Administration
                                                § 1466.25 Contract modifications and
                                                                                                        15 CFR Parts 730, 740, 742, 744, 746,                 Regulations (EAR) to comply with the
                                                transfers of land.
                                                                                                        754, 762, 772, and 774                                requirements of Division O, Title 1,
                                                *      *     *     *    *                                                                                     Section 101 of Public Law 114–113 (the
                                                   (b) Within the time specified in the                 [Docket No. 160302175– 6175– 01]                      Consolidated Appropriations Act, 2016)
                                                contract, the participant must provide                  RIN 0694–AG83                                         concerning exports of crude oil from the
                                                NRCS with written notice regarding any                                                                        United States. These provisions repeal
                                                voluntary or involuntary loss of control                Removal of Short Supply License                       Section 103 of the Energy Policy and
                                                of any acreage under the EQIP contract,                 Requirements on Exports of Crude Oil                  Conservation Act (formerly, 42 U.S.C.
                                                which includes changes in a                                                                                   6212), which required that the President
                                                participant’s ownership structure or                    AGENCY:  Bureau of Industry and                       promulgate a rule prohibiting the export
                                                corporate form. Failure to provide                      Security, Commerce.                                   of crude oil, and mandate, instead, that
                                                timely notice will result in termination                ACTION: Final rule.                                   ‘‘notwithstanding any other provision of
                                                of the entire contract.                                                                                       law, except as provided in subsections
                                                                                                        SUMMARY:    The Bureau of Industry and
                                                   (c) Unless NRCS approves a transfer                  Security (BIS) publishes this final rule              (c) and (d) . . . no official of the Federal
                                                of contract rights under this paragraph                 to amend the Export Administration                    Government shall impose or enforce any
                                                (c), a participant losing control of any                Regulations (EAR) to remove the short                 restriction on the export of crude oil.’’
                                                acreage will constitute a violation of the              supply license requirements that, prior               Consistent with this requirement, this
                                                EQIP contract and NRCS will terminate                   to the entry into force of the                        final rule amends part 754 of the EAR
                                                the contract and require a participant to               ‘‘Consolidated Appropriations Act,                    by removing and reserving § 754.2,
                                                refund all or a portion of any financial                2016’’ on December 18, 2015, applied to               which described the short supply
                                                assistance provided. NRCS may approve                   exports of crude oil from the United                  license requirements and licensing
                                                a transfer of the contract if:                          States. Specifically, this rule removes               policies that applied to exports of crude
                                                   (1) NRCS receives written notice that                the Commerce Control List (CCL) entry                 oil from the United States to all
                                                identifies the new producer who will                                                                          destinations. This rule also amends the
                                                                                                        and the corresponding short supply
                                                take control of the acreage, as required                                                                      Commerce Control List (CCL) in
                                                                                                        provisions in the EAR that required a
                                                in paragraph (d) of this section;                                                                             Supplement No. 1 to part 774 of the
                                                                                                        license from BIS to export crude oil
                                                   (2) The new producer meets program                                                                         EAR by removing Export Control
                                                                                                        from the United States. This rule also
                                                eligibility requirements within a                                                                             Classification Number (ECCN) 1C981,
                                                                                                        amends certain other EAR provisions to
                                                reasonable time frame, as specified in                                                                        which controlled crude petroleum,
                                                                                                        reflect the removal of these short supply
                                                the EQIP contract;                                                                                            including reconstituted crude
                                                                                                        license requirements. The changes made
                                                   (3) The new producer agrees to                                                                             petroleum, tar sands and crude shale oil
                                                                                                        by this rule are intended to bring the
                                                assume the rights and responsibilities                                                                        listed in Supplement No. 1 to part 754
                                                                                                        provisions of the EAR into full
                                                for the acreage under the contract; and                                                                       of the EAR (Crude Petroleum and
                                                                                                        compliance with the act, which
                                                                                                                                                              Petroleum Products). In addition, this
                                                   (4) NRCS determines that the                         mandates that, apart from certain
                                                                                                                                                              rule moves the definition of ‘‘crude oil,’’
                                                purposes of the program will continue                   exemptions specified therein, ‘‘no
                                                                                                                                                              which previously appeared in § 754.2(a)
                                                to be met despite the original                          official of the Federal Government shall
                                                                                                                                                              of the EAR, to § 772.1 (Definitions of
                                                participant’s losing control of all or a                impose or enforce any restriction on the
                                                                                                                                                              terms as used in the Export
                                                portion of the land under contract.                     export of crude oil.’’ Consistent with the
                                                                                                                                                              Administration Regulations (EAR)),
                                                   (d) Until NRCS approves the transfer                 exceptions in the act, exports of crude
                                                                                                                                                              because it continues to have relevance
                                                of contract rights, the new producer is                 oil continue to require authorization
                                                                                                                                                              with respect to the end-user/end-use
                                                not a participant in the program and                    from BIS to embargoed or sanctioned
                                                                                                                                                              requirements in part 744 of the EAR and
                                                may not receive payment for                             countries or persons and to persons
                                                                                                                                                              the embargoes and other special
                                                conservation activities commenced                       subject to a denial of export privileges.
                                                                                                                                                              controls in part 746 of the EAR. The
                                                prior to approval of the contract                       DATES: This rule is effective May 12,
                                                                                                                                                              scope of this definition remains
                                                transfer.                                               2016.                                                 unchanged.
                                                   (e) NRCS may not approve a contract                  ADDRESSES: Send comments regarding                       The effect of the changes described
                                                transfer and may terminate the contract                 this collection of information, including             above is to remove the short supply
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                                                in its entirety if NRCS determines that                 suggestions for reducing the burden, to               license requirements previously
                                                the loss of control is voluntary, the new               Jasmeet Seehra, Office of Management                  applicable to crude oil, as controlled
                                                producer is not eligible or willing to                  and Budget (OMB), by email to Jasmeet_                under ECCN 1C981, thereby making
                                                assume responsibilities under the                       K._Seehra@omb.eop.gov, or by fax to                   crude oil an EAR99 item (i.e., subject to
                                                contract, or the purposes of the program                (202) 395–7285; and to the Regulatory                 the EAR, as described in § 734.3(a), but
                                                cannot be met.                                          Policy Division, Bureau of Industry and               no longer listed on the CCL). As such,
                                                *      *     *     *    *                               Security, Department of Commerce,                     crude oil exports will now be treated


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                                                29484               Federal Register / Vol. 81, No. 92 / Thursday, May 12, 2016 / Rules and Regulations

                                                similarly to exports of petroleum                       30 U.S.C. 185(u), and 43 U.S.C. 1354                  Security, Department of Commerce, as
                                                products listed in Supplement No. 1 to                  from parts 730, 754, and 774 of the EAR.              indicated in the ADDRESSES section of
                                                part 754 that have not been produced or                    Although the Export Administration                 this rule.
                                                derived from the Naval Petroleum                        Act expired on August 20, 2001, the                      3. This rule does not contain policies
                                                Reserves (NPR) or become available for                  President, through Executive Order                    with Federalism implications as that
                                                export as a result of an exchange of any                13222 of August 17, 2001, 3 CFR, 2001                 term is defined in Executive Order
                                                NPR produced or derived commodities                     Comp., p. 783 (2002), as amended by                   13132.
                                                (such petroleum products are not                        Executive Order 13637 of March 8,                        4. The provisions of the
                                                controlled under ECCN 1C980, 1C982,                     2013, 78 FR 16129 (March 13, 2013),                   Administrative Procedure Act (APA) (5
                                                1C983, or 1C984 on the CCL, but are                     and as extended by the Notice of August               U.S.C. 553) requiring notice of proposed
                                                designated as EAR99 items, instead). As                 7, 2015 (80 FR 48233 (Aug. 11, 2015)),                rulemaking and the opportunity for
                                                an EAR99 item, crude oil remains                        has continued the Export                              public participation are waived for good
                                                subject to the EAR, as described in                     Administration Regulations in effect                  cause, because they are ‘‘unnecessary’’
                                                § 734.3(a) of the EAR, and exports of                   under the International Emergency                     and ‘‘contrary to the public interest.’’
                                                crude oil continue to require                           Economic Powers Act (50 U.S.C. 1701 et                (See 5 U.S.C. 553(b)(B)). This rule brings
                                                authorization from BIS to embargoed or                  seq.). BIS continues to carry out the                 the Export Administration Regulations
                                                sanctioned countries or persons and to                  provisions of the Export Administration               (EAR) into conformity with the
                                                persons subject to a denial of export                   Act, as appropriate and to the extent                 Congressional mandate in Division O,
                                                privileges, as described in parts 744,                  permitted by law, pursuant to Executive               Title 1, Section 101 of Public Law 114–
                                                746, and 764 of the EAR. The                            Order 13222 as amended by Executive                   113, which states that ‘‘notwithstanding
                                                continuance of these EAR controls is                    Order 13637.                                          any other provision of law, except as
                                                consistent with the exemptions stated in                                                                      provided in subsections (c) and (d) . . .
                                                                                                        Rulemaking Requirements                               no official of the Federal Government
                                                Division O, Title 1, Section 101,
                                                                                                           1. Executive Orders 13563 and 12866                shall impose or enforce any restrictions
                                                subsections (c) and (d) of Public Law
                                                                                                        direct agencies to assess all costs and               on the export of crude oil.’’ A delay of
                                                114–113.
                                                                                                        benefits of available regulatory                      this rulemaking to allow for notice and
                                                   This final rule also amends certain                  alternatives and, if regulation is                    public comment would be
                                                other provisions in the EAR to reflect                  necessary, to select regulatory                       ‘‘unnecessary,’’ within the context of the
                                                the removal of the short supply license                 approaches that maximize net benefits                 APA, because continuance of the
                                                requirements on crude oil. Specifically,                (including potential economic,                        controls in § 754.2 of the EAR would be
                                                this rule makes additional amendments                   environmental, public health and safety               contrary to the explicit mandate in
                                                to part 754 by removing and reserving                   effects, distributive impacts, and                    Public Law 114–113 against the
                                                paragraph (b)(1)(i) in § 754.1 and by                   equity). Executive Order 13563                        imposition or enforcement of any
                                                removing and reserving Supplement No.                   emphasizes the importance of                          restriction on the export of crude oil by
                                                3 to part 754 (Statutory Provisions                     quantifying both costs and benefits, of               an official of the Federal Government.
                                                Dealing with Exports of Crude Oil). This                reducing costs, of harmonizing rules,                 Under such circumstances, the public
                                                rule also removes references to § 754.2                 and of promoting flexibility. This rule               interest would not be served by
                                                from Supplement No. 1 to part 730 and                   has been designated a ‘‘significant                   soliciting comments on the removal of
                                                § 762.2(b)(39). In addition, this rule                  regulatory action,’’ although not                     these controls. A delay of this
                                                amends § 740.15 (License Exception                      economically significant, under section               rulemaking to allow for notice and
                                                AVS) by removing the parenthetical                      3(f) of Executive Order 12866.                        public comment also would be
                                                reference to § 754.2 from § 740.15(b)(3)                Accordingly, the rule has been reviewed               ‘‘contrary to the public interest,’’ within
                                                and by removing the Note to paragraph                   by the Office of Management and                       the context of the APA, because
                                                (c)(3), which also referenced § 754.2.                  Budget.                                               continuance of the controls in § 754.2 of
                                                This rule also removes references to                       2. Notwithstanding any other                       the EAR would result in unnecessary
                                                ECCN 1C981 from § 742.1(b)(1) and                       provision of law, no person is required               confusion due to the obvious
                                                § 746.7(a)(1) of the EAR. In § 744.7                    to respond to, nor shall any person be                contradiction between the short supply
                                                (Restrictions on Certain Exports to and                 subject to a penalty for failure to comply            license requirements for crude oil, as
                                                for the use of Certain Foreign Vessels or               with, a collection of information subject             described in § 754.2 of the EAR prior to
                                                Aircraft), paragraphs (b)(3)(i) and (ii) are            to the requirements of the Paperwork                  the publication of this rule, and the
                                                revised to remove the exclusions that                   Reduction Act of 1995 (44 U.S.C. 3501                 Congressional mandate in Public Law
                                                previously applied to crude oil and                     et seq.) (PRA), unless that collection of             114–113, which prohibits such license
                                                blends of crude oil with other petroleum                information displays a currently valid                requirements. Furthermore, the
                                                products, because such items were                       Office of Management and Budget                       confusion resulting from any delay to
                                                subject to the short supply controls                    (OMB) Control Number. This rule                       allow for notice and comment would be
                                                described in § 754.2 of the EAR.                        contains a collection of information                  contrary to the public interest, as stated
                                                   Finally, this rule removes authority                 subject to the requirements of the PRA.               in Public Law 114–113, which is ‘‘to
                                                citations for statutory provisions dealing              This collection has been approved by                  promote the efficient exploration,
                                                with restrictions on the exports of crude               OMB under Control Number 0694–0088                    production, storage, supply, marketing,
                                                oil, which no longer provide BIS with                   (Multi-Purpose Application), which                    pricing, and regulation of energy
                                                enforcement authority, based on                         carries a burden hour estimate of 58                  resources, including fossil fuels.’’
                                                Division O, Title 1, Section 101,                       minutes to prepare and submit form                    Specifically, the obvious contradiction
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                                                subsection (b) of Public Law 114–113,                   BIS–748. Send comments regarding this                 between the requirements previously
                                                which prohibits officials of the Federal                burden estimate or any other aspect of                described in § 754.2 of the EAR and the
                                                Government from imposing or enforcing                   this collection of information, including             mandate in Public Law 114–113 might
                                                any restriction on the export of crude oil              suggestions for reducing the burden, to               discourage some persons from pursuing
                                                ‘‘notwithstanding any other provision of                Jasmeet Seehra, Office of Management                  crude oil export opportunities, thereby
                                                law.’’ Specifically, this rule removes the              and Budget, and to the Regulatory                     resulting in significant economic losses
                                                authority citations to 30 U.S.C. 185(s),                Policy Division, Bureau of Industry and               due to lost sales. At best, the confusion


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                                                                     Federal Register / Vol. 81, No. 92 / Thursday, May 12, 2016 / Rules and Regulations                                           29485

                                                caused by this contradiction likely                     List of Subjects                                      PART 730—[AMENDED]
                                                would result in unnecessary delays,
                                                                                                        15 CFR Part 730
                                                which also can involve significant                                                                            ■  1. The authority citation for part 730
                                                economic costs.                                           Administrative practice and                         is revised to read as follows:
                                                   The provision of the Administrative                  procedure, Advisory committees,
                                                Procedure Act (APA) (5 U.S.C. 553)                                                                              Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
                                                                                                        Exports, Reporting and recordkeeping
                                                requiring a 30-day delay in effectiveness                                                                     1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
                                                                                                        requirements, Strategic and critical
                                                is also waived for good cause. (5 U.S.C.                                                                      7430(e); 22 U.S.C. 287c; 22 U.S.C. 2151 note;
                                                                                                        materials.
                                                553(d)(3)). The amendments to the EAR                                                                         22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42
                                                                                                        15 CFR Part 740                                       U.S.C. 2139a; 15 U.S.C. 1824a; 50 U.S.C.
                                                contained in this final rule are required
                                                                                                                                                              4305; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210;
                                                to make the EAR conform to the                            Administrative practice and                         E.O. 11912, 41 FR 15825, 3 CFR, 1976 Comp.,
                                                Congressional mandate in Public Law                     procedure, Exports, Reporting and                     p. 114; E.O. 12002, 42 FR 35623, 3 CFR, 1977
                                                114–113, which states that ‘‘except as                  recordkeeping requirements.                           Comp., p. 133; E.O. 12058, 43 FR 20947, 3
                                                provided in subsections (c) and (d) . . .                                                                     CFR, 1978 Comp., p. 179; E.O. 12214, 45 FR
                                                no official of the Federal Government                   15 CFR Part 742
                                                                                                                                                              29783, 3 CFR, 1980 Comp., p. 256; E.O.
                                                shall impose or enforce any restrictions                   Administrative practice and                        12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
                                                on the export of crude oil.’’ A delay of                procedure, Chemicals, Exports, Foreign                608; E.O. 12854, 58 FR 36587, 3 CFR, 1993
                                                this rulemaking to allow for a 30-day                   trade, Reporting and recordkeeping                    Comp., p. 179; E.O. 12918, 59 FR 28205, 3
                                                delay in effectiveness would be                         requirements.                                         CFR, 1994 Comp., p. 899; E.O. 12938, 59 FR
                                                ‘‘unnecessary,’’ within the context of the                                                                    59099, 3 CFR, 1994 Comp., p. 950; E.O.
                                                APA, because continuance of the                         15 CFR Part 744                                       12947, 60 FR 5079, 3 CFR, 1995 Comp., p.
                                                controls in § 754.2 of the EAR would be                   Exports, Foreign trade, Reporting and               356; E.O. 12981, 60 FR 62981, 3 CFR, 1995
                                                contrary to the explicit mandate in                     recordkeeping requirements.                           Comp., p. 419; E.O. 13020, 61 FR 54079, 3
                                                Public Law 114–113 and, as such,                                                                              CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR
                                                would not serve the public interest. A                  15 CFR Part 746                                       58767, 3 CFR, 1996 Comp., p. 228; E.O.
                                                delay of this rulemaking to allow for a                                                                       13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
                                                                                                          Exports, Reporting and recordkeeping
                                                30-day delay in effectiveness, also                                                                           208; E.O. 13222, 66 FR 44025, 3 CFR, 2001
                                                                                                        requirements.                                         Comp., p. 783; E.O. 13224, 66 FR 49079, 3
                                                would be ‘‘contrary to the public
                                                interest,’’ within the context of the APA,              15 CFR Part 754                                       CFR, 2001 Comp., p. 786; E.O. 13338, 69 FR
                                                because such a delay would result in                                                                          26751, 3 CFR, 2004 Comp., p 168; E.O.
                                                                                                          Agricultural commodities, Exports,                  13637, 78 FR 16129, 3 CFR, 2014 Comp., p.
                                                unnecessary confusion caused by the                     Forests and forest products, Horses,
                                                contradiction between the EAR’s short                                                                         223; Notice of May 6, 2015, 80 FR 26815
                                                                                                        Petroleum, Reporting and recordkeeping                (May 8, 2015); Notice of August 7, 2015, 80
                                                supply license requirements for crude
                                                                                                        requirements.                                         FR 48233 (August 11, 2015); Notice of
                                                oil and the Congressional mandate in
                                                                                                                                                              September 18, 2015, 80 FR 57281 (September
                                                Public Law 114–113, as described                        15 CFR Part 762
                                                                                                                                                              22, 2015); Notice of November 12, 2015, 80
                                                above. In addition, any delay to allow
                                                                                                          Administrative practice and                         FR 70667 (November 13, 2015); Notice of
                                                for notice and comment would be                                                                               January 20, 2016, 81 FR 3937 (January 22,
                                                                                                        procedure, Business and industry,
                                                contrary to the public interest, as stated                                                                    2016).
                                                                                                        Confidential business information,
                                                in Public Law 114–113 and reiterated
                                                                                                        Exports, Reporting and recordkeeping                  Supplement No. 1 to Part 730—
                                                above.
                                                   Further, no other law requires that a                requirements.                                         [Amended]
                                                notice of proposed rulemaking and an                    15 CFR Part 772
                                                opportunity for public comment be                                                                             ■ 2. Supplement No. 1 to part 730 is
                                                given for this final rule. Because a                      Exports.                                            amended by revising the entries for
                                                notice of proposed rulemaking and an                    15 CFR Part 774                                       Collection number ‘‘0694–0137’’ and
                                                opportunity for public comment are not                                                                        Collection number ‘‘0607–0152’’ to read
                                                required to be given for this rule under                  Exports, Reporting and recordkeeping                as follows:
                                                the Administrative Procedure Act or by                  requirements.
                                                                                                                                                              Supplement No. 1 to Part 730—
                                                any other law, the analytical                             For the reasons stated in the
                                                                                                                                                              Information Collection Requirements
                                                requirements of the Regulatory                          preamble, parts 730, 740, 742, 744, 746,
                                                                                                                                                              Under the Paperwork Reduction Act:
                                                Flexibility Act (5 U.S.C. 601 et seq.) are              754, 762, 772, and 774 of the Export
                                                                                                                                                              OMB Control Numbers
                                                not applicable. Therefore, this                         Administration Regulations (15 CFR
                                                regulation is issued in final form.                     parts 730–774) are amended as follows:                *        *      *     *   *

                                                    Collection No.                         Title                                                         Reference in the EAR


                                                        *                      *                   *                            *                    *                    *                   *
                                                0694–0137 ........   License Exceptions and Exclusions ........       § 734.4, Supplement No. 2 to part 734, §§ 740.3(d), 740.4(c), 740.9(a)(2)(viii)(B),
                                                                                                                         740.9(c), 740.13(e), 740.12(b)(7), 740.17, 740.18, Supp. No. 2 to part 740,
                                                                                                                         §§ 742.15, 743.1, 743.3, 754.4, 762.2(b) and Supplement No. 1 to part 774.
                                                0607–0152 ........   Automated Export System (AES) Pro-               §§ 740.1(d), 740.3(a)(3), 754.4(c), 758.1, 758.2, and 758.3 of the EAR.
                                                                       gram.
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                                                PART 740—[AMENDED]                                        Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.        Comp., p. 783; Notice of August 7, 2015, 80
                                                                                                        1701 et seq.; 22 U.S.C. 7201 et seq.; E.O.            FR 48233 (August 11, 2015).
                                                ■ 3. The authority citation for part 740                13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
                                                                                                        228; E.O. 13222, 66 FR 44025, 3 CFR, 2001             ■ 4. Section 740.15 is amended by
                                                continues to read as follows:                                                                                 revising paragraph (b)(3) introductory


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                                                29486               Federal Register / Vol. 81, No. 92 / Thursday, May 12, 2016 / Rules and Regulations

                                                text and by removing the note to                        § 744.7 Restrictions on certain exports to            Supplement No. 1 to Part 754—Crude
                                                paragraph (c)(3).                                       and for the use of certain foreign vessels            Petroleum and Petroleum Products
                                                                                                        or aircraft.
                                                  The revision reads as follows:                                                                                This Supplement provides relevant
                                                                                                        *      *     *    *    *                              Schedule B numbers and commodity
                                                § 740.15   Aircraft, vessels, and spacecraft              (b) * * *
                                                (AVS).                                                    (3) * * *                                           descriptions for crude oil (EAR99) and
                                                                                                          (i) Fuel, including crude oil,                      for petroleum products other than crude
                                                *      *     *    *     *                                                                                     oil that are controlled by ECCN 1C980,
                                                   (b) * * *                                            petroleum products other than crude oil
                                                                                                        that are of non-Naval Petroleum                       1C982, 1C983, or 1C984. * * *
                                                   (3) Ship and plane stores. Usual and                 Reserves origin or derivation (see                    *     *      *    *     *
                                                reasonable kinds and quantities of the                  § 754.3 of the EAR), and blends of crude
                                                following commodities may be exported                                                                         Supplement No. 3 to Part 754—
                                                                                                        oil with such petroleum products;                     [Removed and Reserved]
                                                for use or consumption on board an                        (ii) Deck, engine, and steward
                                                aircraft or vessel of any registry during               department stores, provisions, and                    ■ 15. Supplement No. 3 to part 754 is
                                                the outgoing and immediate return                       supplies for both port and voyage                     removed and reserved.
                                                flight or voyage.                                       requirements, provided that any
                                                *      *     *    *     *                               petroleum products other than crude oil               PART 762—[AMENDED]
                                                                                                        which are listed in Supplement No. 1 to
                                                PART 742—[AMENDED]                                                                                            ■ 16. The authority citation for part 762
                                                                                                        part 754 of the EAR are of non-Naval
                                                                                                                                                              continues to read as follows:
                                                                                                        Petroleum Reserves origin or derivation
                                                ■ 5. The authority citation for part 742                (see § 754.3 of the EAR);                                Authority: 50 U.S.C. 4601 et seq.; 50
                                                continues to read as follows:                                                                                 U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
                                                                                                        *      *     *    *    *                              3 CFR, 2001 Comp., p. 783; Notice of August
                                                  Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
                                                1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C.                                                               7, 2015, 80 FR 48233 (August 11, 2015).
                                                                                                        PART 746—[AMENDED]
                                                2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210;                                                                § 762.2    [Amended]
                                                Sec. 1503, Pub. L. 108–11, 117 Stat. 559; E.O.          ■ 9. The authority citation for part 746
                                                12058, 43 FR 20947, 3 CFR, 1978 Comp., p.               continues to read as follows:                         ■ 17. Section 762.2 is amended by
                                                179; E.O. 12851, 58 FR 33181, 3 CFR, 1993                                                                     removing and reserving paragraph
                                                Comp., p. 608; E.O. 12938, 59 FR 59099, 3                 Authority: 50 U.S.C. 4601 et seq.; 50
                                                                                                                                                              (b)(39).
                                                CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR              U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503,
                                                58767, 3 CFR, 1996 Comp., p. 228; E.O.                  Pub. L. 108–11, 117 Stat. 559; 22 U.S.C. 6004;
                                                                                                                                                              PART 772—[AMENDED]
                                                13222, 66 FR 44025, 3 CFR, 2001 Comp., p.               22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.
                                                783; Presidential Determination 2003–23, 68             12854, 58 FR 36587, 3 CFR, 1993 Comp., p.             ■ 18. The authority citation for part 772
                                                FR 26459, 3 CFR, 2004 Comp., p. 320; Notice             614; E.O. 12918, 59 FR 28205, 3 CFR, 1994
                                                                                                        Comp., p. 899; E.O. 13222, 66 FR 44025, 3
                                                                                                                                                              continues to read as follows:
                                                of August 7, 2015, 80 FR 48233 (August 11,
                                                2015); Notice of November 12, 2015, 80 FR               CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR               Authority: 50 U.S.C. 4601 et seq.; 50
                                                70667 (November 13, 2015).                              26751, 3 CFR, 2004 Comp., p 168;                      U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
                                                                                                        Presidential Determination 2003–23, 68 FR             3 CFR, 2001 Comp., p. 783; Notice of August
                                                § 742.1    [Amended]                                    26459, 3 CFR, 2004 Comp., p. 320;                     7, 2015, 80 FR 48233 (August 11, 2015).
                                                                                                        Presidential Determination 2007–7, 72 FR
                                                ■  6. In § 742.1, remove the phrase                                                                           ■ 19. Section 772.1 is amended by
                                                                                                        1899, 3 CFR, 2006 Comp., p. 325; Notice of
                                                ‘‘1C981 (Crude petroleum, including                     May 6, 2015, 80 FR 26815 (May 8, 2015);               adding in alphabetical order a definition
                                                reconstituted crude petroleum, tar                      Notice of August 7, 2015, 80 FR 48233                 for crude oil to read as follows:
                                                sands, and crude shale oil);’’ where it                 (August 11, 2015).
                                                                                                                                                              § 772.1 Definitions of terms as used in the
                                                appears in the second sentence of                       § 746.7   [Amended]                                   Export Administration Regulations (EAR).
                                                paragraph (b)(1).                                                                                             *     *     *     *     *
                                                                                                        ■  10. In § 746.7, remove ‘‘1C981,’’ where
                                                                                                                                                                 Crude oil. A mixture of hydrocarbons
                                                PART 744—[AMENDED]                                      it appears in paragraph (a)(1).
                                                                                                                                                              that existed in liquid phase in
                                                                                                        PART 754—[AMENDED]                                    underground reservoirs, remains liquid
                                                ■ 7. The authority citation for part 744                                                                      at atmospheric pressure (after passing
                                                continues to read as follows:                           ■  11. The authority citation for part 754            through surface separating facilities),
                                                  Authority: 50 U.S.C. 4601 et seq.; 50                 is revised to read as follows:                        and has not been processed through a
                                                U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;                                                                  crude oil distillation tower. Crude oil
                                                42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22               Authority: 50 U.S.C. 4601 et seq.; 50
                                                                                                        U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.        includes reconstituted crude petroleum,
                                                U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,
                                                                                                        7430(e); 15 U.S.C. 1824a; E.O. 11912, 41 FR           lease condensate, and liquid
                                                1978 Comp., p. 179; E.O. 12851, 58 FR 33181,
                                                3 CFR, 1993 Comp., p. 608; E.O. 12938, 59               15825, 3 CFR, 1976 Comp., p. 114; E.O.                hydrocarbons produced from tar sands,
                                                FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.               13222, 66 FR 44025, 3 CFR, 2001 Comp., p.             gilsonite, and oil shale. Drip gases are
                                                12947, 60 FR 5079, 3 CFR, 1995 Comp., p.                783; Notice of August 7, 2015, 80 FR 48233            also included, but topped crude oil,
                                                356; E.O. 13026, 61 FR 58767, 3 CFR, 1996               (August 11, 2015).                                    residual oil, and other finished and
                                                Comp., p. 228; E.O. 13099, 63 FR 45167, 3               § 754.1   [Amended]                                   unfinished oils are excluded.
                                                CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR                                                                    *     *     *     *     *
                                                44025, 3 CFR, 2001 Comp., p. 783; E.O.                  ■ 12. Section 754.1 is amended by
                                                13224, 66 FR 49079, 3 CFR, 2001 Comp., p.               removing and reserving paragraph                      PART 774—[AMENDED]
                                                786; Notice of August 7, 2015, 80 FR 48233              (b)(1)(i).
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                                                (August 11, 2015); Notice of September 18,                                                                    ■  20. The authority citation for part 774
                                                2015, 80 FR 57281 (September 22, 2015);                 § 754.2   [Removed]
                                                                                                                                                              is revised to read as follows:
                                                Notice of November 12, 2015, 80 FR 70667                ■ 13. Section 754.2 is removed and
                                                (November 13, 2015); Notice of January 20,                                                                      Authority: 50 U.S.C. 4601 et seq.; 50
                                                                                                        reserved.                                             U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
                                                2016, 81 FR 3937 (January 22, 2016).
                                                                                                        ■ 14. In Supplement No. 1 to part 754,                7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et
                                                ■ 8. In § 744.7, revise paragraphs                      revise the first sentence in the                      seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15
                                                (b)(3)(i) and (ii) to read as follows:                  introductory text to read as follows:                 U.S.C. 1824a; 50 U.S.C. 4305; 22 U.S.C. 7201



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                                                                    Federal Register / Vol. 81, No. 92 / Thursday, May 12, 2016 / Rules and Regulations                                         29487

                                                et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR              opportunity for a hearing or to                       Administration (DEA) for public
                                                58767, 3 CFR, 1996 Comp., p. 228; E.O.                  participate in a hearing must be                      inspection online at http://
                                                13222, 66 FR 44025, 3 CFR, 2001 Comp., p.               received on or before June 13, 2016.                  www.regulations.gov. Such information
                                                783; Notice of August 7, 2015, 80 FR 48233                                                                    includes personal identifying
                                                (August 11, 2015).                                      ADDRESSES: To ensure proper handling
                                                                                                        of comments, please reference ‘‘Docket                information (such as your name,
                                                Supplement No. 1 to Part 774—                           No. DEA–435’’ on all correspondence,                  address, etc.) voluntarily submitted by
                                                [Amended]                                               including any attachments.                            the commenter. The Freedom of
                                                                                                          • Electronic comments: The Drug                     Information Act (FOIA) applies to all
                                                ■ 21. In Supplement No. 1 to Part 774                                                                         comments received. If you want to
                                                                                                        Enforcement Administration encourages
                                                (the Commerce Control List), ECCN                                                                             submit personal identifying information
                                                                                                        that all comments be submitted
                                                1C981 is removed.                                                                                             (such as your name, address, etc.) as
                                                                                                        electronically through the Federal
                                                  Dated: May 5, 2016.                                   eRulemaking Portal, which provides the                part of your comment, but do not want
                                                Eric L. Hirschhorn,                                     ability to type short comments directly               it to be made publicly available, you
                                                Under Secretary for Industry and Security.              into the comment field on the Web page                must include the phrase ‘‘PERSONAL
                                                [FR Doc. 2016–11047 Filed 5–11–16; 8:45 am]             or attach a file for lengthier comments.              IDENTIFYING INFORMATION’’ in the
                                                                                                        Please go to http://www.regulations.gov               first paragraph of your comment. You
                                                BILLING CODE 3510–33–P
                                                                                                        and follow the online instructions at                 must also place all of the personal
                                                                                                        that site for submitting comments. Upon               identifying information you do not want
                                                                                                        completion of your submission, you will               made publicly available in the first
                                                DEPARTMENT OF JUSTICE                                                                                         paragraph of your comment and identify
                                                                                                        receive a Comment Tracking Number for
                                                Drug Enforcement Administration                         your comment. Please be aware that                    what information you want redacted.
                                                                                                        submitted comments are not                               If you want to submit confidential
                                                                                                        instantaneously available for public                  business information as part of your
                                                21 CFR Part 1308
                                                                                                        view on Regulations.gov. If you have                  comment, but do not want it to be made
                                                [Docket No. DEA–435]
                                                                                                        received a Comment Tracking Number,                   publicly available, you must include the
                                                                                                        your comment has been successfully                    phrase ‘‘CONFIDENTIAL BUSINESS
                                                Schedules of Controlled Substances:                                                                           INFORMATION’’ in the first paragraph
                                                Placement of Brivaracetam Into                          submitted and there is no need to
                                                                                                        resubmit the same comment.                            of your comment. You must also
                                                Schedule V                                                                                                    prominently identify the confidential
                                                                                                          • Paper comments: Paper comments
                                                AGENCY:  Drug Enforcement                               that duplicate the electronic submission              business information to be redacted
                                                Administration, Department of Justice.                  are not necessary and are discouraged.                within the comment.
                                                                                                                                                                 Comments containing personal
                                                ACTION: Interim final rule, with request                Should you wish to mail a paper
                                                                                                                                                              identifying information and confidential
                                                for comments.                                           comment in lieu of an electronic
                                                                                                                                                              business information identified as
                                                                                                        comment, it should be sent via regular
                                                                                                                                                              directed above will generally be made
                                                SUMMARY:    The Drug Enforcement                        or express mail to: Drug Enforcement
                                                                                                                                                              publicly available in redacted form. If a
                                                Administration is placing the substance                 Administration, Attn: DEA Federal                     comment has so much confidential
                                                brivaracetam ((2S)-2-[(4R)-2-oxo-4-                     Register Representative/ODW, 8701                     business information or personal
                                                propylpyrrolidin-1-yl] butanamide)                      Morrissette Drive, Springfield, VA                    identifying information that it cannot be
                                                (also referred to as BRV; UCB–34714;                    22152.                                                effectively redacted, all or part of that
                                                Briviact) (including its salts) into                      • Hearing requests: All requests for
                                                                                                                                                              comment may not be made publicly
                                                schedule V of the Controlled Substances                 hearing and waivers of participation
                                                                                                                                                              available. Comments posted to http://
                                                Act. This scheduling action is pursuant                 must be sent to: Drug Enforcement
                                                                                                                                                              www.regulations.gov may include any
                                                to the Controlled Substances Act, as                    Administration, Attn: Administrator,
                                                                                                                                                              personal identifying information (such
                                                revised by the Improving Regulatory                     8701 Morrissette Drive, Springfield,
                                                                                                                                                              as name, address, and phone number)
                                                Transparency for New Medical                            Virginia 22152. All requests for hearing
                                                                                                                                                              included in the text of your electronic
                                                Therapies Act which was signed into                     and waivers of participation should also
                                                                                                                                                              submission that is not identified as
                                                law on November 25, 2015.                               be sent to: (1) Drug Enforcement
                                                                                                                                                              directed above as confidential.
                                                DATES: The effective date of this                       Administration, Attn: Hearing Clerk/LJ,                  An electronic copy of this document
                                                rulemaking is May 12, 2016. Interested                  8701 Morrissette Drive, Springfield,                  and supplemental information,
                                                persons may file written comments on                    Virginia 22152; and (2) Drug                          including the complete Department of
                                                this rulemaking in accordance with 21                   Enforcement Administration, Attn: DEA                 Health and Human Services and Drug
                                                CFR 1308.43(g). Electronic comments                     Federal Register Representative/ODW,                  Enforcement Administration eight-factor
                                                must be submitted, and written                          8701 Morrissette Drive, Springfield,                  analyses, to this interim final rule are
                                                comments must be postmarked, on or                      Virginia 22152.                                       available at http://www.regulations.gov
                                                before June 13, 2016. Commenters                        FOR FURTHER INFORMATION CONTACT:                      for easy reference.
                                                should be aware that the electronic                     Barbara J. Boockholdt, Office of
                                                Federal Docket Management System                        Diversion Control, Drug Enforcement                   Request for Hearing, Notice of
                                                will not accept comments after 11:59                    Administration; Mailing Address: 8701                 Appearance at Hearing, or Waiver of
                                                p.m. Eastern Time on the last day of the                Morrissette Drive, Springfield, Virginia              Participation in Hearing
                                                comment period.                                         22152; Telephone: (202) 598–6812.                       Pursuant to 21 U.S.C. 811(a), this
                                                   Interested persons, defined at 21 CFR                SUPPLEMENTARY INFORMATION:                            action is a formal rulemaking ‘‘on the
jstallworth on DSK7TPTVN1PROD with RULES




                                                1300.01 as those ‘‘adversely affected or                                                                      record after opportunity for a hearing.’’
                                                aggrieved by any rule or proposed rule                  Posting of Public Comments                            Such proceedings are conducted
                                                issuable pursuant to section 201 of the                   Please note that all comments                       pursuant to the provisions of the
                                                Act (21 U.S.C. 811),’’ may file a request               received are considered part of the                   Administrative Procedure Act (APA), 5
                                                for hearing or waiver of hearing                        public record. They will, unless                      U.S.C. 551–559. 21 CFR 1308.41–
                                                pursuant to 21 CFR 1308.44. Requests                    reasonable cause is given, be made                    1308.45; 21 CFR part 1316, subpart D.
                                                for hearing and waivers of an                           available by the Drug Enforcement                     In accordance with 21 CFR 1308.44(a)–


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Document Created: 2016-05-12 01:07:47
Document Modified: 2016-05-12 01:07:47
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective May 12, 2016.
ContactEileen Albanese, Director, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, Telephone: (202) 482-0092, Email: [email protected]
FR Citation81 FR 29483 
RIN Number0694-AG83
CFR Citation15 CFR 730
15 CFR 740
15 CFR 742
15 CFR 744
15 CFR 746
15 CFR 754
15 CFR 762
15 CFR 772
15 CFR 774
CFR AssociatedAdministrative Practice and Procedure; Advisory Committees; Exports; Reporting and Recordkeeping Requirements; Strategic and Critical Materials; Chemicals; Foreign Trade; Agricultural Commodities; Forests and Forest Products; Horses; Petroleum; Business and Industry and Confidential Business Information

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