81_FR_41984 81 FR 41860 - Onshore Oil and Gas Operations-Civil Penalties Inflation Adjustments

81 FR 41860 - Onshore Oil and Gas Operations-Civil Penalties Inflation Adjustments

DEPARTMENT OF THE INTERIOR
Bureau of Land Management

Federal Register Volume 81, Issue 124 (June 28, 2016)

Page Range41860-41862
FR Document2016-15129

This rule adjusts the level of civil monetary penalties contained in the Bureau of Land Management's regulations governing onshore oil and gas operations as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the ``Act''). The adjustments made by this interim final rule constitute the initial catch-up adjustments contemplated by the Act, and are consistent with applicable Office of Management and Budget (OMB) guidance.

Federal Register, Volume 81 Issue 124 (Tuesday, June 28, 2016)
[Federal Register Volume 81, Number 124 (Tuesday, June 28, 2016)]
[Rules and Regulations]
[Pages 41860-41862]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15129]


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

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Part 3160

[16X.LLWO310000.L13100000.PP0000]
RIN 1004-AE46


Onshore Oil and Gas Operations--Civil Penalties Inflation 
Adjustments

AGENCY: Bureau of Land Management, Interior.

ACTION: Interim final rule.

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

SUMMARY: This rule adjusts the level of civil monetary penalties 
contained in the Bureau of Land Management's regulations governing 
onshore oil and gas operations as required by the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (the 
``Act''). The adjustments made by this interim final rule constitute 
the initial catch-up adjustments contemplated by the Act, and are 
consistent with applicable Office of Management and Budget (OMB) 
guidance.

DATES: As required by the Act, this rule is effective on July 28, 2016. 
Comments will be accepted until August 29, 2016.

ADDRESSES: You may submit comments by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Search for 1004-AE46 and follow the instructions for submitting 
comments.
     Mail: Director (630), Bureau of Land Management, U.S. 
Department of the Interior, 1849 C St. NW., Washington, DC 20240, 
Attention: 1004-AE46.
     Hand Delivery, or Courier: U.S. Department of the 
Interior, Bureau of Land Management, 20 M St. SE., Room 2134LM, 
Attention: Regulatory Affairs, Washington, DC 20003.

FOR FURTHER INFORMATION CONTACT: Steven Wells, Division Chief, Fluid 
Minerals Division, 202-912-7143, for information regarding the BLM's 
Fluid Minerals Program. For questions relating to regulatory process 
issues, please contact Jennifer Noe, Division of Regulatory Affairs, at 
202-912-7442. Persons who use a telecommunications device for the deaf 
(TDD) may call the Federal Information Relay Service (FIRS) at 1-800-
877-8339, 24 hours a day, seven days a week to contact the above 
individuals.

SUPPLEMENTARY INFORMATION: 

I. Background
II. Calculation of Adjustment
III. Procedural Requirements
    A. Regulatory Planning and Review (E.O. 12866 and 13563)
    B. Regulatory Flexibility Act
    C. Small Business Regulatory Enforcement Fairness Act
    D. Unfunded Mandates Reform Act
    E. Takings (E.O. 12630)
    F. Federalism (E.O. 13132)
    G. Civil Justice Reform (E.O. 12988)
    H. Consultation With Indian Tribes (E.O. 13175 and Departmental 
Policy)
    I. Paperwork Reduction Act
    J. National Environmental Policy Act
    K. Effects on the Energy Supply (E.O. 13211)
    L. Clarity of This Regulation
    M. Administrative Procedure Act

I. Background

    On November 2, 2015, the President signed the Act into law (Sec. 
701 of Pub. L. 114-74). It requires all Federal agencies to review 
their existing regulations and adjust the level of civil monetary 
penalties found in those regulations for inflation. The Act 
contemplates two adjustments--an initial ``catch-up'' adjustment 
through rulemaking from the date the penalty in question was 
established to present day, and annual adjustments for inflation 
thereafter. The purpose of these adjustments is to maintain the 
deterrent effect of civil penalties found in existing regulations, in 
order to further the policy goals of the underlying statutes. The BLM 
has reviewed its existing regulations and determined that only the 
civil monetary penalties found at 43 CFR 3163.2 are subject to the 
Act's requirements.
    Once penalties subject to the Act have been identified, the Act 
specifies the formula and format to be used to adjust those amounts. 
(Section 701(b)) The adjustments contemplated by the Act are based on 
the percent change between the Consumer Price Index for all Urban 
Consumers (CPI-U) for the month of October in 1987, the year the 
penalties were established by regulation, and the October 2015 CPI-U, 
so the catch-up adjustment multiplier is 2.06278 for all penalties. The 
Act caps adjustments at 150 percent, and Section 701(b)(1)(D) of the 
Act specifically requires that adjustments be promulgated as an interim 
final rule. The Act does not provide BLM with discretion with respect 
to either of these provisions.
    The adjustments made by this interim final rule constitute the 
initial ``catch-up'' adjustment contemplated by the Act and subsequent 
guidance from OMB, and include the following changes to the penalties 
provided by existing regulations:

----------------------------------------------------------------------------------------------------------------
                                              Description of the      Current         Catchup        Adjusted
                CFR citation                        penalty           penalty       adjustment        penalty
----------------------------------------------------------------------------------------------------------------
43 CFR 3163.2(a)............................  Failure to comply.            $500            $531          $1,031
43 CFR 3163.2(b)............................  If corrective                5,000           5,314          10,314
                                               action is not
                                               taken.
43 CFR 3163.2(d)............................  If transporter                 500             531           1,031
                                               fails to permit
                                               inspection for
                                               documentation.
43 CFR 3163.2(e)............................  Failure to permit           10,000          10,628          20,628
                                               inspection,
                                               failure to notify.
43 CFR 3163.2(f)............................  False or                    25,000          26,570          51,570
                                               inaccurate
                                               documents;
                                               unlawful transfer
                                               or purchase.
43 CFR 3163.2(g)(1).........................  Initial penalty                500             531           1,031
                                               under 43 CFR
                                               3163.2(a) for a
                                               major violation.
43 CFR 3163.2(g)(1).........................  Maximum penalty              1,000           1,063           2,063
                                               under 43 CFR
                                               3163.2(a) for a
                                               major violation.
43 CFR 3163.2(g)(1).........................  Initial penalty              5,000           5,314          10,314
                                               under 43 CFR
                                               3163.2(b) for a
                                               major violation.
43 CFR 3163.2(g)(1).........................  Maximum penalty             10,000          10,628          20,628
                                               under 43 CFR
                                               3163.2(b) for a
                                               major violation.
43 CFR 3163.2(g)(1).........................  Penalty under 43               500             531           1,031
                                               CFR 3163.2(d) for
                                               a major violation.
43 CFR 3163.2(g)(1).........................  Penalty under 43            10,000          10,628          20,628
                                               CFR 3163.2(e) for
                                               a major violation.
43 CFR 3163.2(g)(1).........................  Penalty under 43            25,000          26,570          51,570
                                               CFR 3163.2(f) for
                                               a major violation.

[[Page 41861]]

 
43 CFR 3163.2(g)(2)(iii)....................  Initial penalty                 50              53             103
                                               under 43 CFR
                                               3163.2(a) for a
                                               minor violation.
43 CFR 3163.2(g)(2)(iii)....................  Initial penalty                500             531           1,031
                                               under 43 CFR
                                               3163.2(b) for a
                                               minor violation.
43 CFR 3163.2(g)(2)(iii)....................  Maximum penalty                100             106             206
                                               under 43 CFR
                                               3163.2(a) for a
                                               minor violation.
43 CFR 3163.2(g)(2)(iii)....................  Maximum penalty              1,000           1,063           2,063
                                               under 43 CFR
                                               3163.2(b) for a
                                               minor violation.
----------------------------------------------------------------------------------------------------------------

II. Calculation of Adjustment

    OMB issued guidance on calculating the catch-up adjustment in 
accordance with the Act. See February 24, 2016, Memorandum for the 
Heads of Executive Departments and Agencies, from Shaun Donovan, 
Director, Office of Management and Budget, re: Implementation of the 
Federal Civil Penalties Inflation Adjustment Act Improvements Act of 
2015. Under this guidance, the Department of the Interior has 
identified applicable civil monetary penalties and calculated the 
catch-up adjustment. A civil monetary penalty is any assessment with a 
dollar amount that is levied for a violation of a Federal civil statute 
or regulation, and is assessed or enforceable through a civil action in 
Federal court or an administrative proceeding. A civil monetary penalty 
does not include a penalty levied for violation of a criminal statute, 
or fees for services, licenses, permits, or other regulatory review. 
The calculated catch-up adjustment is based on the percent change 
between the Consumer Price Index for all Urban Consumers (CPI-U) for 
the month of October in the year of the previous adjustment (or in the 
year of establishment, if no adjustment has been made) and the October 
2015 CPI-U.

III. Procedural Requirements

A. Regulatory Planning and Review (E.O. 12866 and 13563)

    Executive Order 12866 provides that the Office of Information and 
Regulatory Affairs in the Office of Management and Budget will review 
all significant rules. The Office of Information and Regulatory Affairs 
has determined that this rule is not significant. Executive Order 13563 
reaffirms the principles of E.O. 12866 while calling for improvements 
in the nation's regulatory system to promote predictability, to reduce 
uncertainty, and to use the best, most innovative, and least burdensome 
tools for achieving regulatory ends. The executive order directs 
agencies to consider regulatory approaches that reduce burdens and 
maintain flexibility and freedom of choice for the public where these 
approaches are relevant, feasible, and consistent with regulatory 
objectives. E.O. 13563 emphasizes further that regulations must be 
based on the best available science, and that the rulemaking process 
must allow for public participation and an open exchange of ideas. We 
have developed this rule in a manner consistent with these 
requirements.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires an agency to prepare 
a regulatory flexibility analysis for rules unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. The RFA applies only to rules for 
which an agency is required to first publish a proposed rule. See 5 
U.S.C. 603(a) and 604(a). The Act requires agencies to adjust civil 
penalties with an initial catch-up adjustment through an interim final 
rule. Since an interim final rule does not include first publishing a 
proposed rule, the RFA does not apply to this final rule.

C. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.
    This rule will potentially affect individuals and companies who 
hold leases on Federal or Indian lands. The BLM believes that the vast 
majority of potentially affected entities will be small businesses as 
defined by the Small Business Administration. However, the BLM does not 
believe the rule will pose a significant economic impact on the 
industry, including any small entities, for two reasons. First, any 
lessee can avoid being assessed civil penalties by operating in 
compliance with BLM rules and regulations. Second, payments for 
penalties adjusted as a result of this rule will be negligible compared 
with the $23 billion worth of crude oil and natural gas produced from 
Federal and Indian leases last year.

D. Unfunded Mandates Reform Act

    This rule does not impose an unfunded mandate on State, local, or 
tribal governments, or the private sector of more than $100 million per 
year. The rule does not have a significant or unique effect on State, 
local, or tribal governments or the private sector. A statement 
containing the information required by the Unfunded Mandates Reform Act 
(2 U.S.C. 1531 et seq.) is not required.

E. Takings (E.O. 12630)

    This rule does not effect a taking of private property or otherwise 
have takings implications under Executive Order 12630. A takings 
implication assessment is not required.

F. Federalism (E.O. 13132)

    Under the criteria in section 1 of Executive Order 13132, this rule 
does not have sufficient federalism implications to warrant the 
preparation of a federalism summary impact statement. A federalism 
summary impact statement is not required.

G. Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of Executive Order 12988. 
Specifically, this rule:
    (a) Meets the criteria of section 3(a) requiring that all 
regulations be reviewed to eliminate errors and ambiguity and be 
written to minimize litigation; and
    (b) Meets the criteria of section 3(b)(2) requiring that all 
regulations be written in clear language and contain clear legal 
standards.

[[Page 41862]]

H. Consultation With Indian Tribes (E.O. 13175 and Departmental Policy)

    The Department of the Interior strives to strengthen its 
government-to-government relationship with Indian tribes through a 
commitment to consultation with Indian tribes and recognition of their 
right to self-governance and tribal sovereignty. We have evaluated this 
rule under the Department's consultation policy and under the criteria 
in Executive Order 13175 and have determined that it has no substantial 
direct effects on federally recognized Indian tribes and that 
consultation under the Department's tribal consultation policy is not 
required.

I. Paperwork Reduction Act

    This rule does not contain information collection requirements, and 
a submission to OMB under the Paperwork Reduction Act (44 U.S.C. 3501 
et seq.) is not required. We may not conduct or sponsor, and you are 
not required to respond to, a collection of information unless it 
displays a currently valid OMB control number.

J. National Environmental Policy Act

    A detailed statement under the National Environmental Policy Act of 
1969 (NEPA) is not required because the rule is covered by a 
categorical exclusion. This rule is excluded from the requirement to 
prepare a detailed statement because it is a regulation of an 
administrative nature. (For further information see 43 CFR 46.210(i).) 
We have also determined that the rule does not involve any of the 
extraordinary circumstances listed in 43 CFR 46.215 that would require 
further analysis under NEPA.

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

    This rule is not a significant energy action under the definition 
in Executive Order 13211. Therefore, a Statement of Energy Effects is 
not required.

L. Clarity of This Regulation

    We are required by Executive Orders 12866 (section 1(b)(12)), 12988 
(section 3(b)(1)(B)), and 13563 (section 1(a)), and by the Presidential 
Memorandum of June 1, 1998, to write all rules in plain language. This 
means that each rule we publish must:
    (a) Be logically organized;
    (b) Use the active voice to address readers directly;
    (c) Use common, everyday words and clear language rather than 
jargon;
    (d) Be divided into short sections and sentences; and
    (e) Use lists and tables wherever possible.
    If you feel that we have not met these requirements, send us 
comments by one of the methods listed in the ADDRESSES section. To 
better help us revise the rule, your comments should be as specific as 
possible. For example, you should tell us the numbers of the sections 
or paragraphs that you find unclear, which sections or sentences are 
too long, the sections where you feel lists or tables would be useful.

M. Administrative Procedure Act

    The Act requires agencies to publish interim final rules by July 1, 
2016, with an effective date for the adjusted penalties no later than 
August 1, 2016. To comply with the Act, we are issuing these 
regulations as an interim final rule and are requesting comments post-
promulgation. Section 553(b) of the Administrative Procedure Act (APA) 
provides that, when an agency for good cause finds that ``notice and 
public procedure . . . are impracticable, unnecessary, or contrary to 
the public interest,'' the agency may issue a rule without providing 
notice and an opportunity for prior public comment.
    The BLM is promulgating this rule as an interim final rule because 
the Act expressly directs us to do so by July 1, 2016. The BLM also 
finds that there is good cause to promulgate this rule without notice 
and public procedure for two reasons. First, it would not be possible 
to meet the deadlines imposed by the Act if the BLM were first to 
publish a proposed rule, allow the public sufficient time to submit 
comments, and analyze those comments, before publishing a final rule. 
Also, since the Act does not give the BLM any discretion to vary the 
amount of the adjustment for any given penalty to reflect any views or 
suggestions provided by commenters, it would serve no purpose to 
provide an opportunity for pre-promulgation public comment on this 
rule. Thus, pre-promulgation notice and public comment is impracticable 
and unnecessary.

List of Subjects in 43 CFR Part 3160

    Administrative practice and procedure, Government contracts, 
Indians--lands, Mineral royalties, Oil and gas exploration, Penalties, 
Public lands--mineral resources, Reporting and recordkeeping 
requirements.

    For the reasons given in the preamble, the BLM amends Chapter II of 
Title 43 of the Code of Federal Regulations as follows:

PART 3160--ONSHORE OIL AND GAS OPERATIONS

0
1. The authority citation for part 3160 is revised to read as follows:

    Authority: 25 U.S.C. 396d and 2107; 30 U.S.C. 189, 306, 359, and 
1751; 43 U.S.C. 1732(b), 1733, 1740; and Sec. 107, Pub. L. 114-74, 
129 Stat. 599, unless otherwise noted.

Subpart 3163--Noncompliance, Assessments, and Penalties


Sec.  3163.2  [Amended]

0
2. In Sec.  3163.2:
0
a. In paragraph (a), remove ``$500'' and add in its place ``$1,031''.
0
b. In paragraph (b), remove ``$5,000'' and add in its place 
``$10,314''.
0
c. In paragraph (d), remove ``$500'' and add in its place ``$1,031''.
0
d. In paragraph (e) introductory text, remove ``$10,000'' and add in 
its place ``$20,628''.
0
e. In paragraph (f) introductory text, remove ``$25,000'' and add in 
its place ``$51,570''.
0
f. In paragraph (g)(1), remove ``$500'' each place that it occurs and 
add in its place ``$1,031''; remove ``$5,000'' and add in its place 
``$10,314''; remove ``$1,000'' each place that it occurs and add in its 
place ``$2,063''; remove ``$10,000'' each place that it occurs and add 
in its place ``$20,628''; remove ``$25,000'' and add in its place 
``$51,570''.
0
g. In paragraph (g)(2)(iii), remove ``$50'' and add in its place 
``$103''; remove ``$500'' and add in its place ``$1,031''; remove 
``$100'' and add in its place ``$206''; remove ``$1,000'' and add in 
its place ``$2,063''.


Janice M. Schneider,
Assistant Secretary, Land and Minerals Management.
[FR Doc. 2016-15129 Filed 6-27-16; 8:45 am]
BILLING CODE 4310-84-P



                                                  41860                  Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Rules and Regulations

                                                  ■  a. In paragraph (g)(2) introductory                             AE46 and follow the instructions for                              agencies to review their existing
                                                  text, remove ‘‘$5,000’’ and add in its                             submitting comments.                                              regulations and adjust the level of civil
                                                  place ‘‘$6,428’’.                                                    • Mail: Director (630), Bureau of Land                          monetary penalties found in those
                                                  ■ b. In paragraph (g)(3), remove                                   Management, U.S. Department of the                                regulations for inflation. The Act
                                                  ‘‘$1,000’’ and add in its place ‘‘$1,268’’.                        Interior, 1849 C St. NW., Washington,                             contemplates two adjustments—an
                                                    Dated: June 8, 2016.                                             DC 20240, Attention: 1004–AE46.                                   initial ‘‘catch-up’’ adjustment through
                                                  Michael Bean,
                                                                                                                       • Hand Delivery, or Courier: U.S.                               rulemaking from the date the penalty in
                                                                                                                     Department of the Interior, Bureau of                             question was established to present day,
                                                  Principal Deputy Assistant Secretary for Fish
                                                  and Wildlife and Parks.                                            Land Management, 20 M St. SE., Room
                                                                                                                                                                                       and annual adjustments for inflation
                                                                                                                     2134LM, Attention: Regulatory Affairs,
                                                  [FR Doc. 2016–15168 Filed 6–27–16; 8:45 am]                                                                                          thereafter. The purpose of these
                                                                                                                     Washington, DC 20003.
                                                  BILLING CODE 4310–EJ–P                                                                                                               adjustments is to maintain the deterrent
                                                                                                                     FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                                                       effect of civil penalties found in existing
                                                                                                                     Steven Wells, Division Chief, Fluid
                                                                                                                                                                                       regulations, in order to further the
                                                  DEPARTMENT OF THE INTERIOR                                         Minerals Division, 202–912–7143, for
                                                                                                                     information regarding the BLM’s Fluid                             policy goals of the underlying statutes.
                                                  Bureau of Land Management                                          Minerals Program. For questions                                   The BLM has reviewed its existing
                                                                                                                     relating to regulatory process issues,                            regulations and determined that only
                                                  43 CFR Part 3160                                                   please contact Jennifer Noe, Division of                          the civil monetary penalties found at 43
                                                                                                                     Regulatory Affairs, at 202–912–7442.                              CFR 3163.2 are subject to the Act’s
                                                  [16X.LLWO310000.L13100000.PP0000]                                                                                                    requirements.
                                                                                                                     Persons who use a telecommunications
                                                  RIN 1004–AE46                                                      device for the deaf (TDD) may call the                               Once penalties subject to the Act have
                                                                                                                     Federal Information Relay Service                                 been identified, the Act specifies the
                                                  Onshore Oil and Gas Operations—Civil                               (FIRS) at 1–800–877–8339, 24 hours a                              formula and format to be used to adjust
                                                  Penalties Inflation Adjustments                                    day, seven days a week to contact the                             those amounts. (Section 701(b)) The
                                                  AGENCY:   Bureau of Land Management,                               above individuals.                                                adjustments contemplated by the Act
                                                  Interior.                                                          SUPPLEMENTARY INFORMATION:                                        are based on the percent change
                                                  ACTION: Interim final rule.                                        I. Background                                                     between the Consumer Price Index for
                                                                                                                     II. Calculation of Adjustment                                     all Urban Consumers (CPI–U) for the
                                                  SUMMARY:    This rule adjusts the level of                         III. Procedural Requirements                                      month of October in 1987, the year the
                                                  civil monetary penalties contained in                                 A. Regulatory Planning and Review (E.O.
                                                  the Bureau of Land Management’s                                          12866 and 13563)                                            penalties were established by
                                                  regulations governing onshore oil and                                 B. Regulatory Flexibility Act                                  regulation, and the October 2015 CPI–U,
                                                  gas operations as required by the                                     C. Small Business Regulatory Enforcement                       so the catch-up adjustment multiplier is
                                                  Federal Civil Penalties Inflation                                        Fairness Act                                                2.06278 for all penalties. The Act caps
                                                                                                                        D. Unfunded Mandates Reform Act                                adjustments at 150 percent, and Section
                                                  Adjustment Act Improvements Act of
                                                                                                                        E. Takings (E.O. 12630)                                        701(b)(1)(D) of the Act specifically
                                                  2015 (the ‘‘Act’’). The adjustments made                              F. Federalism (E.O. 13132)
                                                  by this interim final rule constitute the                             G. Civil Justice Reform (E.O. 12988)
                                                                                                                                                                                       requires that adjustments be
                                                  initial catch-up adjustments                                          H. Consultation With Indian Tribes (E.O.                       promulgated as an interim final rule.
                                                  contemplated by the Act, and are                                         13175 and Departmental Policy)                              The Act does not provide BLM with
                                                  consistent with applicable Office of                                  I. Paperwork Reduction Act                                     discretion with respect to either of these
                                                  Management and Budget (OMB)                                           J. National Environmental Policy Act                           provisions.
                                                  guidance.                                                             K. Effects on the Energy Supply (E.O.
                                                                                                                           13211)                                                         The adjustments made by this interim
                                                  DATES: As required by the Act, this rule                              L. Clarity of This Regulation                                  final rule constitute the initial ‘‘catch-
                                                  is effective on July 28, 2016. Comments                               M. Administrative Procedure Act                                up’’ adjustment contemplated by the
                                                  will be accepted until August 29, 2016.                                                                                              Act and subsequent guidance from
                                                  ADDRESSES: You may submit comments
                                                                                                                     I. Background
                                                                                                                                                                                       OMB, and include the following
                                                  by any of the following methods:                                      On November 2, 2015, the President                             changes to the penalties provided by
                                                     • Federal eRulemaking Portal: http://                           signed the Act into law (Sec. 701 of Pub.                         existing regulations:
                                                  www.regulations.gov. Search for 1004–                              L. 114–74). It requires all Federal

                                                                                                                                                                                       Current          Catchup        Adjusted
                                                               CFR citation                                              Description of the penalty                                    penalty         adjustment       penalty

                                                  43   CFR   3163.2(a) ........................    Failure to comply ...............................................................         $500             $531         $1,031
                                                  43   CFR   3163.2(b) ........................    If corrective action is not taken .........................................               5,000           5,314         10,314
                                                  43   CFR   3163.2(d) ........................    If transporter fails to permit inspection for documentation                                 500             531          1,031
                                                  43   CFR   3163.2(e) ........................    Failure to permit inspection, failure to notify .....................                    10,000          10,628         20,628
                                                  43   CFR   3163.2(f) .........................   False or inaccurate documents; unlawful transfer or pur-                                 25,000          26,570         51,570
                                                                                                      chase.
                                                  43 CFR 3163.2(g)(1) ...................          Initial penalty under 43 CFR 3163.2(a) for a major viola-                                     500           531           1,031
                                                                                                      tion.
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  43 CFR 3163.2(g)(1) ...................          Maximum penalty under 43 CFR 3163.2(a) for a major                                        1,000           1,063           2,063
                                                                                                      violation.
                                                  43 CFR 3163.2(g)(1) ...................          Initial penalty under 43 CFR 3163.2(b) for a major viola-                                 5,000           5,314         10,314
                                                                                                      tion.
                                                  43 CFR 3163.2(g)(1) ...................          Maximum penalty under 43 CFR 3163.2(b) for a major                                       10,000          10,628         20,628
                                                                                                      violation.
                                                  43 CFR 3163.2(g)(1) ...................          Penalty under 43 CFR 3163.2(d) for a major violation .....                                  500             531          1,031
                                                  43 CFR 3163.2(g)(1) ...................          Penalty under 43 CFR 3163.2(e) for a major violation .....                               10,000          10,628         20,628
                                                  43 CFR 3163.2(g)(1) ...................          Penalty under 43 CFR 3163.2(f) for a major violation ......                              25,000          26,570         51,570



                                             VerDate Sep<11>2014      16:05 Jun 27, 2016      Jkt 238001     PO 00000      Frm 00074      Fmt 4700      Sfmt 4700     E:\FR\FM\28JNR1.SGM    28JNR1


                                                                       Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Rules and Regulations                                            41861

                                                                                                                                                                   Current           Catchup        Adjusted
                                                              CFR citation                                       Description of the penalty                        penalty          adjustment       penalty

                                                  43 CFR 3163.2(g)(2)(iii) ...............   Initial penalty under 43 CFR      3163.2(a) for a minor viola-                  50              53              103
                                                                                                tion.
                                                  43 CFR 3163.2(g)(2)(iii) ...............   Initial penalty under 43 CFR      3163.2(b) for a minor viola-                  500            531           1,031
                                                                                                tion.
                                                  43 CFR 3163.2(g)(2)(iii) ...............   Maximum penalty under 43          CFR 3163.2(a) for a minor                     100            106              206
                                                                                                violation.
                                                  43 CFR 3163.2(g)(2)(iii) ...............   Maximum penalty under 43          CFR 3163.2(b) for a minor                   1,000          1,063           2,063
                                                                                                violation.



                                                  II. Calculation of Adjustment                            and freedom of choice for the public                    impact on the industry, including any
                                                                                                           where these approaches are relevant,                    small entities, for two reasons. First, any
                                                     OMB issued guidance on calculating
                                                                                                           feasible, and consistent with regulatory                lessee can avoid being assessed civil
                                                  the catch-up adjustment in accordance
                                                                                                           objectives. E.O. 13563 emphasizes                       penalties by operating in compliance
                                                  with the Act. See February 24, 2016,
                                                                                                           further that regulations must be based                  with BLM rules and regulations.
                                                  Memorandum for the Heads of
                                                                                                           on the best available science, and that                 Second, payments for penalties adjusted
                                                  Executive Departments and Agencies,
                                                                                                           the rulemaking process must allow for                   as a result of this rule will be negligible
                                                  from Shaun Donovan, Director, Office of
                                                                                                           public participation and an open                        compared with the $23 billion worth of
                                                  Management and Budget, re:
                                                                                                           exchange of ideas. We have developed                    crude oil and natural gas produced from
                                                  Implementation of the Federal Civil
                                                                                                           this rule in a manner consistent with                   Federal and Indian leases last year.
                                                  Penalties Inflation Adjustment Act
                                                                                                           these requirements.
                                                  Improvements Act of 2015. Under this                                                                             D. Unfunded Mandates Reform Act
                                                  guidance, the Department of the Interior                 B. Regulatory Flexibility Act
                                                  has identified applicable civil monetary                   The Regulatory Flexibility Act (RFA)                     This rule does not impose an
                                                  penalties and calculated the catch-up                    requires an agency to prepare a                         unfunded mandate on State, local, or
                                                  adjustment. A civil monetary penalty is                  regulatory flexibility analysis for rules               tribal governments, or the private sector
                                                  any assessment with a dollar amount                      unless the agency certifies that the rule               of more than $100 million per year. The
                                                  that is levied for a violation of a Federal              will not have a significant economic                    rule does not have a significant or
                                                  civil statute or regulation, and is                      impact on a substantial number of small                 unique effect on State, local, or tribal
                                                  assessed or enforceable through a civil                  entities. The RFA applies only to rules                 governments or the private sector. A
                                                  action in Federal court or an                            for which an agency is required to first                statement containing the information
                                                  administrative proceeding. A civil                       publish a proposed rule. See 5 U.S.C.                   required by the Unfunded Mandates
                                                  monetary penalty does not include a                      603(a) and 604(a). The Act requires                     Reform Act (2 U.S.C. 1531 et seq.) is not
                                                  penalty levied for violation of a criminal               agencies to adjust civil penalties with an              required.
                                                  statute, or fees for services, licenses,                 initial catch-up adjustment through an
                                                  permits, or other regulatory review. The                 interim final rule. Since an interim final              E. Takings (E.O. 12630)
                                                  calculated catch-up adjustment is based                  rule does not include first publishing a
                                                  on the percent change between the                        proposed rule, the RFA does not apply                     This rule does not effect a taking of
                                                  Consumer Price Index for all Urban                       to this final rule.                                     private property or otherwise have
                                                  Consumers (CPI–U) for the month of                                                                               takings implications under Executive
                                                  October in the year of the previous                      C. Small Business Regulatory                            Order 12630. A takings implication
                                                  adjustment (or in the year of                            Enforcement Fairness Act                                assessment is not required.
                                                  establishment, if no adjustment has                         This rule is not a major rule under 5
                                                                                                                                                                   F. Federalism (E.O. 13132)
                                                  been made) and the October 2015 CPI–                     U.S.C. 804(2), the Small Business
                                                  U.                                                       Regulatory Enforcement Fairness Act.                      Under the criteria in section 1 of
                                                                                                           This rule:                                              Executive Order 13132, this rule does
                                                  III. Procedural Requirements                                (a) Does not have an annual effect on                not have sufficient federalism
                                                  A. Regulatory Planning and Review                        the economy of $100 million or more.                    implications to warrant the preparation
                                                  (E.O. 12866 and 13563)                                      (b) Will not cause a major increase in
                                                                                                           costs or prices for consumers,                          of a federalism summary impact
                                                    Executive Order 12866 provides that                    individual industries, Federal, State, or               statement. A federalism summary
                                                  the Office of Information and Regulatory                 local government agencies, or                           impact statement is not required.
                                                  Affairs in the Office of Management and                  geographic regions.                                     G. Civil Justice Reform (E.O. 12988)
                                                  Budget will review all significant rules.                   (c) Does not have significant adverse
                                                  The Office of Information and                            effects on competition, employment,                        This rule complies with the
                                                  Regulatory Affairs has determined that                   investment, productivity, innovation, or                requirements of Executive Order 12988.
                                                  this rule is not significant. Executive                  the ability of U.S.-based enterprises to                Specifically, this rule:
                                                  Order 13563 reaffirms the principles of                  compete with foreign-based enterprises.                    (a) Meets the criteria of section 3(a)
                                                  E.O. 12866 while calling for                                This rule will potentially affect
                                                                                                                                                                   requiring that all regulations be
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                                                  improvements in the nation’s regulatory                  individuals and companies who hold
                                                  system to promote predictability, to                     leases on Federal or Indian lands. The                  reviewed to eliminate errors and
                                                  reduce uncertainty, and to use the best,                 BLM believes that the vast majority of                  ambiguity and be written to minimize
                                                  most innovative, and least burdensome                    potentially affected entities will be                   litigation; and
                                                  tools for achieving regulatory ends. The                 small businesses as defined by the                         (b) Meets the criteria of section 3(b)(2)
                                                  executive order directs agencies to                      Small Business Administration.                          requiring that all regulations be written
                                                  consider regulatory approaches that                      However, the BLM does not believe the                   in clear language and contain clear legal
                                                  reduce burdens and maintain flexibility                  rule will pose a significant economic                   standards.


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                                                  41862              Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Rules and Regulations

                                                  H. Consultation With Indian Tribes                         (e) Use lists and tables wherever                   PART 3160—ONSHORE OIL AND GAS
                                                  (E.O. 13175 and Departmental Policy)                    possible.                                              OPERATIONS
                                                     The Department of the Interior strives                  If you feel that we have not met these
                                                                                                          requirements, send us comments by one                  ■  1. The authority citation for part 3160
                                                  to strengthen its government-to-                                                                               is revised to read as follows:
                                                  government relationship with Indian                     of the methods listed in the ADDRESSES
                                                  tribes through a commitment to                          section. To better help us revise the                    Authority: 25 U.S.C. 396d and 2107; 30
                                                                                                          rule, your comments should be as                       U.S.C. 189, 306, 359, and 1751; 43 U.S.C.
                                                  consultation with Indian tribes and                                                                            1732(b), 1733, 1740; and Sec. 107, Pub. L.
                                                  recognition of their right to self-                     specific as possible. For example, you
                                                                                                                                                                 114–74, 129 Stat. 599, unless otherwise
                                                  governance and tribal sovereignty. We                   should tell us the numbers of the                      noted.
                                                  have evaluated this rule under the                      sections or paragraphs that you find
                                                  Department’s consultation policy and                    unclear, which sections or sentences are               Subpart 3163—Noncompliance,
                                                  under the criteria in Executive Order                   too long, the sections where you feel                  Assessments, and Penalties
                                                  13175 and have determined that it has                   lists or tables would be useful.
                                                                                                                                                                 § 3163.2   [Amended]
                                                  no substantial direct effects on federally              M. Administrative Procedure Act
                                                  recognized Indian tribes and that                                                                              ■  2. In § 3163.2:
                                                  consultation under the Department’s                       The Act requires agencies to publish                 ■  a. In paragraph (a), remove ‘‘$500’’
                                                  tribal consultation policy is not                       interim final rules by July 1, 2016, with              and add in its place ‘‘$1,031’’.
                                                  required.                                               an effective date for the adjusted                     ■ b. In paragraph (b), remove ‘‘$5,000’’
                                                                                                          penalties no later than August 1, 2016.                and add in its place ‘‘$10,314’’.
                                                  I. Paperwork Reduction Act                                                                                     ■ c. In paragraph (d), remove ‘‘$500’’
                                                                                                          To comply with the Act, we are issuing
                                                    This rule does not contain                            these regulations as an interim final rule             and add in its place ‘‘$1,031’’.
                                                                                                                                                                 ■ d. In paragraph (e) introductory text,
                                                  information collection requirements,                    and are requesting comments post-
                                                  and a submission to OMB under the                                                                              remove ‘‘$10,000’’ and add in its place
                                                                                                          promulgation. Section 553(b) of the
                                                                                                                                                                 ‘‘$20,628’’.
                                                  Paperwork Reduction Act (44 U.S.C.                      Administrative Procedure Act (APA)                     ■ e. In paragraph (f) introductory text,
                                                  3501 et seq.) is not required. We may                   provides that, when an agency for good                 remove ‘‘$25,000’’ and add in its place
                                                  not conduct or sponsor, and you are not                 cause finds that ‘‘notice and public                   ‘‘$51,570’’.
                                                  required to respond to, a collection of                 procedure . . . are impracticable,                     ■ f. In paragraph (g)(1), remove ‘‘$500’’
                                                  information unless it displays a                        unnecessary, or contrary to the public                 each place that it occurs and add in its
                                                  currently valid OMB control number.                     interest,’’ the agency may issue a rule                place ‘‘$1,031’’; remove ‘‘$5,000’’ and
                                                                                                          without providing notice and an                        add in its place ‘‘$10,314’’; remove
                                                  J. National Environmental Policy Act
                                                                                                          opportunity for prior public comment.                  ‘‘$1,000’’ each place that it occurs and
                                                    A detailed statement under the                          The BLM is promulgating this rule as                 add in its place ‘‘$2,063’’; remove
                                                  National Environmental Policy Act of                    an interim final rule because the Act                  ‘‘$10,000’’ each place that it occurs and
                                                  1969 (NEPA) is not required because the                 expressly directs us to do so by July 1,               add in its place ‘‘$20,628’’; remove
                                                  rule is covered by a categorical                        2016. The BLM also finds that there is                 ‘‘$25,000’’ and add in its place
                                                  exclusion. This rule is excluded from                   good cause to promulgate this rule                     ‘‘$51,570’’.
                                                  the requirement to prepare a detailed                   without notice and public procedure for                ■ g. In paragraph (g)(2)(iii), remove
                                                  statement because it is a regulation of an              two reasons. First, it would not be                    ‘‘$50’’ and add in its place ‘‘$103’’;
                                                  administrative nature. (For further                     possible to meet the deadlines imposed                 remove ‘‘$500’’ and add in its place
                                                  information see 43 CFR 46.210(i).) We                   by the Act if the BLM were first to                    ‘‘$1,031’’; remove ‘‘$100’’ and add in its
                                                  have also determined that the rule does                 publish a proposed rule, allow the                     place ‘‘$206’’; remove ‘‘$1,000’’ and add
                                                  not involve any of the extraordinary                    public sufficient time to submit                       in its place ‘‘$2,063’’.
                                                  circumstances listed in 43 CFR 46.215                   comments, and analyze those
                                                  that would require further analysis                     comments, before publishing a final                    Janice M. Schneider,
                                                  under NEPA.                                             rule. Also, since the Act does not give                Assistant Secretary, Land and Minerals
                                                  K. Effects on the Energy Supply (E.O.                   the BLM any discretion to vary the                     Management.
                                                  13211)                                                  amount of the adjustment for any given                 [FR Doc. 2016–15129 Filed 6–27–16; 8:45 am]
                                                                                                          penalty to reflect any views or                        BILLING CODE 4310–84–P
                                                    This rule is not a significant energy                 suggestions provided by commenters, it
                                                  action under the definition in Executive                would serve no purpose to provide an
                                                  Order 13211. Therefore, a Statement of                  opportunity for pre-promulgation public                DEPARTMENT OF THE INTERIOR
                                                  Energy Effects is not required.                         comment on this rule. Thus, pre-
                                                  L. Clarity of This Regulation                           promulgation notice and public                         Fish and Wildlife Service
                                                                                                          comment is impracticable and
                                                    We are required by Executive Orders                                                                          50 CFR Part 11
                                                                                                          unnecessary.
                                                  12866 (section 1(b)(12)), 12988 (section
                                                  3(b)(1)(B)), and 13563 (section 1(a)), and              List of Subjects in 43 CFR Part 3160                   [Docket No. FWS–HQ–LE–2016–0045;
                                                                                                                                                                 FF09L00200–FX–LE18110900000]
                                                  by the Presidential Memorandum of
                                                  June 1, 1998, to write all rules in plain                 Administrative practice and                          RIN 1018–BB32
                                                  language. This means that each rule we                  procedure, Government contracts,
                                                                                                          Indians—lands, Mineral royalties, Oil
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                                                  publish must:                                                                                                  Civil Penalties; Inflation Adjustments
                                                    (a) Be logically organized;                           and gas exploration, Penalties, Public                 for Civil Monetary Penalties
                                                    (b) Use the active voice to address                   lands—mineral resources, Reporting
                                                                                                          and recordkeeping requirements.                        AGENCY:   Fish and Wildlife Service,
                                                  readers directly;                                                                                              Interior.
                                                    (c) Use common, everyday words and                      For the reasons given in the preamble,               ACTION: Interim rule.
                                                  clear language rather than jargon;                      the BLM amends Chapter II of Title 43
                                                    (d) Be divided into short sections and                of the Code of Federal Regulations as                  SUMMARY:  The U.S. Fish and Wildlife
                                                  sentences; and                                          follows:                                               Service (Service or we) is revising our


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Document Created: 2016-06-28 00:53:14
Document Modified: 2016-06-28 00:53:14
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
ActionInterim final rule.
DatesAs required by the Act, this rule is effective on July 28, 2016. Comments will be accepted until August 29, 2016.
ContactSteven Wells, Division Chief, Fluid Minerals Division, 202-912-7143, for information regarding the BLM's Fluid Minerals Program. For questions relating to regulatory process issues, please contact Jennifer Noe, Division of Regulatory Affairs, at 202-912-7442. Persons who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800- 877-8339, 24 hours a day, seven days a week to contact the above individuals.
FR Citation81 FR 41860 
RIN Number1004-AE46
CFR AssociatedAdministrative Practice and Procedure; Government Contracts; Indians-Lands; Mineral Royalties; Oil and Gas Exploration; Penalties; Public Lands-Mineral Resources and Reporting and Recordkeeping Requirements

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