81_FR_70554 81 FR 70357 - Leasing of Sulfur or Oil and Gas in the Outer Continental Shelf MMAA104000

81 FR 70357 - Leasing of Sulfur or Oil and Gas in the Outer Continental Shelf MMAA104000

DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management

Federal Register Volume 81, Issue 197 (October 12, 2016)

Page Range70357-70358
FR Document2016-24586

This final rule clarifies the language in one section of a final rule that the Bureau of Ocean Energy Management (BOEM) published in the Federal Register on March 30, 2016, and that became effective on May 31, 2016.

Federal Register, Volume 81 Issue 197 (Wednesday, October 12, 2016)
[Federal Register Volume 81, Number 197 (Wednesday, October 12, 2016)]
[Rules and Regulations]
[Pages 70357-70358]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-24586]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

30 CFR Parts 550, 556, 559 and 560

RIN 1010-AD06
[Docket ID: BOEM-2016-0031]


Leasing of Sulfur or Oil and Gas in the Outer Continental Shelf 
MMAA104000

AGENCY: Bureau of Ocean Energy Management (BOEM), Interior.

ACTION: Final rule.

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

SUMMARY: This final rule clarifies the language in one section of a 
final rule that the Bureau of Ocean Energy Management (BOEM) published 
in the Federal Register on March 30, 2016, and that became effective on 
May 31, 2016.

DATES: Effective November 14, 2016.

FOR FURTHER INFORMATION CONTACT: Robert Sebastian, Office of Policy, 
Regulation and Analysis at (504) 736-2761 or email at 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    On March 30, 2016, BOEM published in the Federal Register (81 FR 
18111), a final rule entitled Leasing of Sulfur or Oil and Gas in the 
Outer Continental Shelf, (leasing rule) which updated and streamlined 
the Outer Continental Shelf (OCS) oil and gas and sulfur leasing 
regulations, and became effective on May 31, 2016. On May 24, 2016, 
BOEM published a proposed rule to revise the leasing rule in order to 
clarify the language in one definition in Part 556 of that rule (81 FR 
32694). In this final rule, BOEM amends 30 CFR 556.105 to revise that 
definition.

II. Analysis

Section 556.105 Acronyms and Definitions

    The term ``You'' was defined in Section 556.105 of the leasing rule 
by providing a list of categories of persons to whom the term applies. 
The definition also included an introductory sentence to clarify that 
some persons not yet in a legal relationship with BOEM were affected by 
portions of Part 556. That definition read as follows: ``You means any 
party that has, or may have, legal obligations to the Federal 
government with respect to any operations on the OCS in which it is or 
may become involved. Depending on the context of the regulation, the 
term ``you'' may include a lessee (record title owner), an operating 
rights owner, a designated operator or agent of the lessee, a 
predecessor lessee, a holder of a State or Federal RUE, or a pipeline 
ROW holder.''
    The first sentence of that definition, by its reference to 
operations, might have caused confusion as to who is considered to be 
subject to the regulations in Part 556. Therefore, BOEM published a 
proposed rule and solicited public comments on its proposal to change 
the wording of the definition. In order to clarify the meaning of the 
definition, BOEM proposed to remove the introductory sentence of the 
definition and add specific references to: a bidder; a prospective 
bidder; and an applicant seeking to become an assignee of record title 
or operating rights. Those changes clarified the categories of persons 
who (depending on the context of the regulations) must comply with 
certain sections of Part 556, without the ambiguity of the definition 
as it was stated in the leasing rule.
    BOEM also proposed to clarify the term ``a holder of a State or 
Federal RUE'' contained in the definition. A RUE is not correctly 
described as being ``State'' or ``Federal.'' Rather, a RUE

[[Page 70358]]

should be described on the basis of whether it is granted in order to 
service or support either a State or a Federal lease. Therefore, a 
holder of a RUE (the person to whom the RUE is granted) is correctly 
referred to as a ``RUE holder for a State or Federal lease.''

III. Final Rule and Response to Comments

    BOEM received two comments on the proposed rule. One of those 
comments was non-substantive, while the other commended BOEM for its 
efforts to update and streamline the OCS oil and gas and sulfur leasing 
regulations, including the clarification at issue in this rulemaking. 
Neither comment recommended any changes to the proposed rule's 
definition of ``you.'' As a result, neither comment resulted in any 
changes to the proposed rule. Therefore, the final rule incorporates 
the exact wording of the proposed rule's definition of ``you'' into 
Section 556.105.
    As amended, the definition of ``you'' in Section 556.105 will read: 
``You, depending on the context of the regulations, means a bidder, a 
prospective bidder, a lessee (record title owner), an operating rights 
owner, an applicant seeking to become an assignee of record title or 
operating rights, a designated operator or agent of the lessee, a 
predecessor lessee, a RUE holder for a State or Federal lease, or a 
pipeline ROW holder.''

IV. Procedural Requirements

    Section V, Legal and Regulatory Analyses, of the leasing rule 
issued on March 30, 2016 (81 FR 18145), summarizes BOEM's analyses of 
the rule pursuant to applicable statutes and executive orders. This 
amendment to that rule would not change any conclusion described in 
that section, because the amendment is only intended to clarify the 
meaning of one definition in one provision of the regulatory text in 
the leasing rule and would not require any additional actions by either 
BOEM or the regulated community. Therefore, no additional analysis is 
necessary.

List of Subjects in 30 CFR Part 556

    Administrative practice and procedure, Continental shelf, 
Environmental protection, Federal lands, Government contracts, 
Intergovernmental relations, Oil and gas exploration, Outer continental 
shelf, Mineral resources, Reporting and recordkeeping requirements.

    Dated: September 9, 2016.
Amanda C. Leiter,
Acting Assistant Secretary--Land and Minerals Management.

    For the reasons stated in the preamble, BOEM amends 30 CFR part 556 
as follows:

PART 556--LEASING OF SULFUR OR OIL AND GAS AND BONDING REQUIREMENTS 
IN THE OUTER CONTINENTAL SHELF

0
1. The authority citation for part 556 continues to read as follows:

    Authority: 30 U.S.C. 1701 note, 30 U.S.C. 1711, 31 U.S.C. 9701, 
42 U.S.C. 6213, 43 U.S.C. 1331 note, 43 U.S.C. 1334, 43 U.S.C. 1801-
1802.

0
2. Revise Sec.  556.105 to amend the definition of ``you'' to read as 
follows:


Sec.  556.105  Acronyms and definitions.

* * * * *
    You, depending on the context of the regulations, means a bidder, a 
prospective bidder, a lessee (record title owner), an operating rights 
owner, an applicant seeking to become an assignee of record title or 
operating rights, a designated operator or agent of the lessee, a 
predecessor lessee, a RUE holder for a State or Federal lease, or a 
pipeline ROW holder.
* * * * *
[FR Doc. 2016-24586 Filed 10-11-16; 8:45 am]
 BILLING CODE 4310-MR-P



                                                                 Federal Register / Vol. 81, No. 197 / Wednesday, October 12, 2016 / Rules and Regulations                                        70357

                                                drive electronics, and frequency                         for defense articles controlled in this category       I. Background
                                                converters, specially designed for laser                 where the purchase documentation includes
                                                                                                         commodities, software, or technology subject              On March 30, 2016, BOEM published
                                                systems controlled in this category;                                                                            in the Federal Register (81 FR 18111),
                                                  (22) Two-dimensional infrared scene                    to the EAR (see § 123.1(b) of this subchapter).
                                                                                                                                                                a final rule entitled Leasing of Sulfur or
                                                projector emitter arrays (i.e., resistive                   Note to Category XII: For purposes of               Oil and Gas in the Outer Continental
                                                arrays) specially designed for infrared                  paragraphs (b)(6), (c)(1)(iii), (c)(3), (c)(4)(ii),    Shelf, (leasing rule) which updated and
                                                scene generators controlled in USML                      (c)(5), (c)(6)(viii)(b), and (c)(7)(ii) of this        streamlined the Outer Continental Shelf
                                                Category IX(a)(10);                                      category, a ‘‘military end user’’ means the            (OCS) oil and gas and sulfur leasing
                                                  * (23) Any part, component,                            national armed services (army, navy, marine,           regulations, and became effective on
                                                accessory, attachment, or associated                     air force, or coast guard), national guard,
                                                                                                                                                                May 31, 2016. On May 24, 2016, BOEM
                                                equipment, that:                                         national police, government intelligence or
                                                                                                         reconnaissance organizations, or any person            published a proposed rule to revise the
                                                  (i) Is classified;
                                                                                                         or entity whose actions or functions are               leasing rule in order to clarify the
                                                  (ii) Contains classified software;
                                                  (iii) Is manufactured using classified                 intended to support military end uses. A               language in one definition in Part 556 of
                                                production data; or                                      system or end item is not specially designed           that rule (81 FR 32694). In this final
                                                  (iv) Is being developed using                          for a military end user if the item was                rule, BOEM amends 30 CFR 556.105 to
                                                                                                         developed with knowledge that it is or would           revise that definition.
                                                classified information.
                                                                                                         be for use by both military end users and
                                                  Note to paragraph (e)(23): ‘‘Classified’’              non-military end users, or if the item was or          II. Analysis
                                                means classified pursuant to Executive Order             is being developed with no knowledge of use
                                                13526, or predecessor order, and a security
                                                                                                                                                                Section 556.105 Acronyms and
                                                                                                         by a particular end user. For the purpose of
                                                classification guide developed pursuant                                                                         Definitions
                                                                                                         conducting a self-determination of
                                                thereto or equivalent, or to the corresponding           jurisdiction, documents contemporaneous                   The term ‘‘You’’ was defined in
                                                classification rules of another government.              with the development must establish such               Section 556.105 of the leasing rule by
                                                  (24) Developmental image intensifier                   knowledge. For the purpose of a Commodity              providing a list of categories of persons
                                                tubes, focal plane arrays, read-out-                     Jurisdiction determination, the government             to whom the term applies. The
                                                                                                         may base a determination on post-                      definition also included an introductory
                                                integrated circuits, accelerometers,                     development information that evidences
                                                gyroscopes, angular rate sensors, and                                                                           sentence to clarify that some persons
                                                                                                         such knowledge or is otherwise consistent
                                                inertial measurement units funded by                     with § 120.4 of this subchapter.
                                                                                                                                                                not yet in a legal relationship with
                                                the Department of Defense (MT if                                                                                BOEM were affected by portions of Part
                                                designed or modified for rockets,                        *       *      *       *      *                        556. That definition read as follows:
                                                missiles, SLVs, drones, or unmanned                                                                             ‘‘You means any party that has, or may
                                                                                                         Rose E. Gottemoeller,
                                                aerial vehicle systems capable of a range                                                                       have, legal obligations to the Federal
                                                                                                         Under Secretary, Arms Control and                      government with respect to any
                                                equal to or greater than 300 km).                        International Security, Department of State.
                                                                                                                                                                operations on the OCS in which it is or
                                                  Note 1 to paragraph (e)(24): This                      [FR Doc. 2016–24225 Filed 10–11–16; 8:45 am]
                                                paragraph does not control items: (a) In
                                                                                                                                                                may become involved. Depending on
                                                                                                         BILLING CODE 4710–25–P                                 the context of the regulation, the term
                                                production, (b) determined to be subject to
                                                the EAR via a Commodity Jurisdiction                                                                            ‘‘you’’ may include a lessee (record title
                                                determination (see § 120.4 of this                                                                              owner), an operating rights owner, a
                                                subchapter), or (c) identified in the relevant           DEPARTMENT OF THE INTERIOR                             designated operator or agent of the
                                                Department of Defense contract or other                                                                         lessee, a predecessor lessee, a holder of
                                                funding authorization as being developed for             Bureau of Ocean Energy Management                      a State or Federal RUE, or a pipeline
                                                both civil and military applications.                                                                           ROW holder.’’
                                                                                                         30 CFR Parts 550, 556, 559 and 560                        The first sentence of that definition,
                                                  Note 2 to paragraph (e)(24): Note 1 does
                                                not apply to defense articles enumerated on                                                                     by its reference to operations, might
                                                                                                         RIN 1010–AD06                                          have caused confusion as to who is
                                                the U.S. Munitions List, whether in
                                                production or development.                                                                                      considered to be subject to the
                                                                                                         [Docket ID: BOEM–2016–0031]
                                                                                                                                                                regulations in Part 556. Therefore,
                                                   Note 3 to paragraph (e)(24): This provision                                                                  BOEM published a proposed rule and
                                                is applicable to those contracts or other                Leasing of Sulfur or Oil and Gas in the
                                                                                                         Outer Continental Shelf MMAA104000                     solicited public comments on its
                                                funding authorizations that are dated October                                                                   proposal to change the wording of the
                                                12, 2017 or later.
                                                                                                         AGENCY:  Bureau of Ocean Energy                        definition. In order to clarify the
                                                  (f) Technical data (see § 120.10) and                  Management (BOEM), Interior.                           meaning of the definition, BOEM
                                                defense services (see § 120.9) directly                  ACTION: Final rule.                                    proposed to remove the introductory
                                                related to the defense articles described                                                                       sentence of the definition and add
                                                in paragraphs (a) through (e) of this                    SUMMARY:  This final rule clarifies the                specific references to: a bidder; a
                                                category and classified technical data                   language in one section of a final rule                prospective bidder; and an applicant
                                                directly related to items controlled in                  that the Bureau of Ocean Energy                        seeking to become an assignee of record
                                                ECCNs 7A611, 7B611, and 7D611. (See                      Management (BOEM) published in the                     title or operating rights. Those changes
                                                § 125.4 for exemptions.) (MT for                         Federal Register on March 30, 2016,                    clarified the categories of persons who
                                                technical data and defense services                      and that became effective on May 31,                   (depending on the context of the
                                                related to articles designated as such.)                 2016.                                                  regulations) must comply with certain
                                                  (g)–(w) [Reserved]                                                                                            sections of Part 556, without the
                                                                                                         DATES:      Effective November 14, 2016.
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                                                  (x) Commodities, software, and                                                                                ambiguity of the definition as it was
                                                technology subject to the EAR (see                       FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                                stated in the leasing rule.
                                                § 120.42 of this subchapter) used in or                  Robert Sebastian, Office of Policy,                       BOEM also proposed to clarify the
                                                with defense articles controlled in this                 Regulation and Analysis at (504) 736–                  term ‘‘a holder of a State or Federal
                                                category.                                                2761 or email at robert.sebastian@                     RUE’’ contained in the definition. A
                                                                                                         boem.gov.                                              RUE is not correctly described as being
                                                  Note to paragraph (x): Use of this
                                                paragraph is limited to license applications             SUPPLEMENTARY INFORMATION:                             ‘‘State’’ or ‘‘Federal.’’ Rather, a RUE


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                                                70358            Federal Register / Vol. 81, No. 197 / Wednesday, October 12, 2016 / Rules and Regulations

                                                should be described on the basis of                       Dated: September 9, 2016.                            DATES:  This rule is effective without
                                                whether it is granted in order to service                Amanda C. Leiter,                                     actual notice from October 12, 2016
                                                or support either a State or a Federal                   Acting Assistant Secretary—Land and                   until November 19, 2016. For the
                                                lease. Therefore, a holder of a RUE (the                 Minerals Management.                                  purposes of enforcement, actual notice
                                                person to whom the RUE is granted) is                      For the reasons stated in the                       will be used from September 1, 2016
                                                correctly referred to as a ‘‘RUE holder                  preamble, BOEM amends 30 CFR part                     until October 12, 2016.
                                                for a State or Federal lease.’’                          556 as follows:                                       ADDRESSES:   To view documents
                                                III. Final Rule and Response to                                                                                mentioned in this preamble as being
                                                                                                         PART 556—LEASING OF SULFUR OR                         available in the docket, go to http://
                                                Comments                                                 OIL AND GAS AND BONDING                               www.regulations.gov, type USCG–2016–
                                                   BOEM received two comments on the                     REQUIREMENTS IN THE OUTER                             0845 in the ‘‘SEARCH’’ box and click
                                                                                                         CONTINENTAL SHELF
                                                proposed rule. One of those comments                                                                           ‘‘SEARCH.’’ Click on Open Docket
                                                was non-substantive, while the other                     ■ 1. The authority citation for part 556              Folder on the line associated with this
                                                commended BOEM for its efforts to                        continues to read as follows:                         rule.
                                                update and streamline the OCS oil and                                                                          FOR FURTHER INFORMATION CONTACT:     If
                                                                                                           Authority: 30 U.S.C. 1701 note, 30 U.S.C.
                                                gas and sulfur leasing regulations,                      1711, 31 U.S.C. 9701, 42 U.S.C. 6213, 43              you have questions on this rule, call or
                                                including the clarification at issue in                  U.S.C. 1331 note, 43 U.S.C. 1334, 43 U.S.C.           email Petty Officer Ashley Schad, MSD
                                                this rulemaking. Neither comment                         1801–1802.                                            Nashville, Nashville, TN, at 615–736–
                                                recommended any changes to the                           ■ 2. Revise § 556.105 to amend the                    5421 or at Ashley.M.Schad@uscg.mil.
                                                proposed rule’s definition of ‘‘you.’’ As                definition of ‘‘you’’ to read as follows:
                                                a result, neither comment resulted in                                                                          SUPPLEMENTARY INFORMATION:
                                                any changes to the proposed rule.                        § 556.105    Acronyms and definitions.
                                                                                                                                                               I. Table of Abbreviations
                                                Therefore, the final rule incorporates the               *     *     *      *    *
                                                                                                           You, depending on the context of the                CFR Code of Federal Regulations
                                                exact wording of the proposed rule’s
                                                                                                         regulations, means a bidder, a                        DHS Department of Homeland Security
                                                definition of ‘‘you’’ into Section                                                                             FR Federal Register
                                                556.105.                                                 prospective bidder, a lessee (record title
                                                                                                                                                               NPRM Notice of proposed rulemaking
                                                                                                         owner), an operating rights owner, an
                                                   As amended, the definition of ‘‘you’’                                                                       § Section
                                                                                                         applicant seeking to become an assignee               U.S.C. United States Code
                                                in Section 556.105 will read: ‘‘You,                     of record title or operating rights, a
                                                depending on the context of the                          designated operator or agent of the                   II. Background Information and
                                                regulations, means a bidder, a                           lessee, a predecessor lessee, a RUE                   Regulatory History
                                                prospective bidder, a lessee (record title               holder for a State or Federal lease, or a
                                                owner), an operating rights owner, an                    pipeline ROW holder.                                     The Coast Guard is issuing this
                                                applicant seeking to become an assignee                                                                        temporary rule without prior notice and
                                                                                                         *     *     *      *    *                             opportunity to comment pursuant to
                                                of record title or operating rights, a                   [FR Doc. 2016–24586 Filed 10–11–16; 8:45 am]
                                                designated operator or agent of the                                                                            authority under section 4(a) of the
                                                                                                         BILLING CODE 4310–MR–P
                                                lessee, a predecessor lessee, a RUE                                                                            Administrative Procedure Act (APA) (5
                                                holder for a State or Federal lease, or a                                                                      U.S.C. 553(b)). This provision
                                                pipeline ROW holder.’’                                                                                         authorizes an agency to issue a rule
                                                                                                         DEPARTMENT OF HOMELAND                                without prior notice and opportunity to
                                                IV. Procedural Requirements                              SECURITY                                              comment when the agency for good
                                                                                                         Coast Guard                                           cause finds that those procedures are
                                                  Section V, Legal and Regulatory                                                                              ‘‘impracticable, unnecessary, or contrary
                                                Analyses, of the leasing rule issued on                                                                        to the public interest.’’ Under 5 U.S.C.
                                                March 30, 2016 (81 FR 18145),                            33 CFR Part 165
                                                                                                                                                               553(b)(B), the Coast Guard finds that
                                                summarizes BOEM’s analyses of the rule                   [Docket Number USCG–2016–0845]                        good cause exists for not publishing a
                                                pursuant to applicable statutes and                                                                            notice of proposed rulemaking (NPRM)
                                                                                                         RIN 1625–AA00
                                                executive orders. This amendment to                                                                            with respect to this rule because the
                                                that rule would not change any                           Safety Zone; Tennessee River,                         event sponsor submitted the event
                                                conclusion described in that section,                    Knoxville, TN, MM TNR 646.9–647.1                     application on August 9, 2016. This late
                                                because the amendment is only                                                                                  submission did not give the Coast Guard
                                                intended to clarify the meaning of one                   AGENCY:    Coast Guard, DHS.
                                                                                                                                                               enough time to complete the full NPRM
                                                definition in one provision of the                       ACTION:   Temporary final rule.                       process. It is impracticable to publish an
                                                regulatory text in the leasing rule and                                                                        NPRM because we must establish this
                                                                                                         SUMMARY:   The Coast Guard is
                                                would not require any additional                         establishing a temporary safety zone for              safety zone by September 1, 2016.
                                                actions by either BOEM or the regulated                  all waters of the Tennessee River                        We are issuing this rule, and under 5
                                                community. Therefore, no additional                      beginning at mile marker 646.9 and                    U.S.C. 553(d)(3), the Coast Guard finds
                                                analysis is necessary.                                   ending at mile marker 647.1, extending                that good cause exists for making it
                                                List of Subjects in 30 CFR Part 556                      bank to bank. This temporary safety                   effective less than 30 days after
                                                                                                         zone is necessary to protect persons and              publication in the Federal Register.
                                                  Administrative practice and                            property from potential damage and                    Delaying this rule would be contrary to
mstockstill on DSK3G9T082PROD with RULES




                                                procedure, Continental shelf,                            safety hazard during fireworks displays               public interest of ensuring the safety of
                                                Environmental protection, Federal                        on or over the navigable waterway.                    spectators and vessels during the event.
                                                lands, Government contracts,                             Entry of vessels or persons into this                 Immediate action is necessary to
                                                Intergovernmental relations, Oil and gas                 zone is prohibited unless specifically                prevent possible loss of life and
                                                exploration, Outer continental shelf,                    authorized by the Captain of the Port                 property during the hazards created by
                                                Mineral resources, Reporting and                         Ohio Valley or a designated                           a barge-based fireworks display near
                                                recordkeeping requirements.                              representative.                                       and over the navigable waterway.


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Document Created: 2016-10-12 00:55:11
Document Modified: 2016-10-12 00:55:11
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.
DatesEffective November 14, 2016.
ContactRobert Sebastian, Office of Policy, Regulation and Analysis at (504) 736-2761 or email at [email protected]
FR Citation81 FR 70357 
RIN Number1010-AD06
CFR Citation30 CFR 550
30 CFR 556
30 CFR 559
30 CFR 560
CFR AssociatedAdministrative Practice and Procedure; Continental Shelf; Environmental Protection; Federal Lands; Government Contracts; Intergovernmental Relations; Oil and Gas Exploration; Outer Continental Shelf; Mineral Resources and Reporting and Recordkeeping Requirements

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