82_FR_16388 82 FR 16325 - Federal Oil and Gas and Federal and Indian Coal Valuation

82 FR 16325 - Federal Oil and Gas and Federal and Indian Coal Valuation

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue

Federal Register Volume 82, Issue 63 (April 4, 2017)

Page Range16325-16327
FR Document2017-06600

The Office of Natural Resources Revenue (ONRR) requests comments and suggestions from affected parties and the interested public on whether revisions to the regulations governing the valuation, for royalty purposes, of oil and gas produced from Federal onshore and offshore leases and coal produced from Federal and Indian leases, are needed and, if so, what specific revisions should be considered. On July 1, 2016, ONRR published a final rule, Consolidated Federal Oil and Gas and Federal and Indian Coal Valuation Reform (2017 Valuation Rule). ONRR subsequently stayed the effective date of that rule pending resolution of litigation. As a result of the stay, the regulations in effect prior to January 1, 2017 (``pre-existing regulations'') remain in effect. In a separate notice, ONRR is seeking comments on a proposed rule to repeal the 2017 Valuation Rule to maintain the status quo in which the pre-existing regulations remain in effect while ONRR reconsiders whether changes made by the 2017 Valuation Rule are needed or appropriate.

Federal Register, Volume 82 Issue 63 (Tuesday, April 4, 2017)
[Federal Register Volume 82, Number 63 (Tuesday, April 4, 2017)]
[Proposed Rules]
[Pages 16325-16327]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-06600]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

30 CFR Parts 1202 and 1206

[Docket No. ONRR-2017-0002; DS63644000 DR2000000.CH7000 178D0102R2]
RIN 1012-AA21


Federal Oil and Gas and Federal and Indian Coal Valuation

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

ACTION: Advance Notice of Proposed Rulemaking (ANPRM).

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

SUMMARY: The Office of Natural Resources Revenue (ONRR) requests 
comments and suggestions from affected parties and the interested 
public on whether revisions to the regulations governing the valuation, 
for royalty purposes, of oil and gas produced from Federal onshore and 
offshore leases and coal produced from Federal and Indian leases, are 
needed and, if so, what specific revisions should be considered. On 
July 1, 2016, ONRR published a final rule, Consolidated Federal Oil and 
Gas and Federal and Indian Coal Valuation Reform (2017 Valuation Rule). 
ONRR subsequently stayed the effective date of that rule pending 
resolution of litigation. As a result of the stay, the regulations in 
effect prior to January 1, 2017 (``pre-existing regulations'') remain 
in effect. In a separate notice, ONRR is seeking comments on a proposed 
rule to repeal the 2017 Valuation Rule to maintain the status quo in 
which the pre-existing regulations remain in effect while ONRR 
reconsiders whether changes made by the 2017 Valuation Rule are needed 
or appropriate.

DATES: You must submit your comments by May 4, 2017.

ADDRESSES: You may submit comments to ONRR on this ANPRM by any of the 
following methods. Please reference the Regulation Identifier Number 
(RIN) 1012-AA21 in your comments.
     Electronically: Go to http://www.regulations.gov. In the 
entry titled ``Enter Keyword or ID,'' enter ``ONRR-2017-0002,'' then 
click ``Search.'' Follow the instructions to submit public comments. We 
will post all comments.
     Email comments to Luis Aguilar, Regulatory Specialist, at 
Luis.Aguilar@onrr.gov.

[[Page 16326]]

     Hand-carry or mail comments, using an overnight courier 
service, to the Office of Natural Resources Revenue, Building 53, 
Entrance E-20, Denver Federal Center, West 6th Ave. and Kipling St., 
Denver, Colorado 80225.

FOR FURTHER INFORMATION CONTACT: For questions on procedural issues, 
contact Luis Aguilar, Regulatory Specialist, ONRR, at (303) 231-3418 or 
email to Luis.Aguilar@onrr.gov. For questions on technical issues, 
contact Michael DeBerard, Asset Valuation, ONRR, at (303) 231-3884 or 
email to Michael.DeBerard@onrr.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    The Secretary of the Interior's authority to establish the value of 
Federal oil and gas production through regulations is contained in the 
mineral leasing statutes (43 U.S.C. 1334; 30 U.S.C. 189 and 359). 
Likewise, the Secretary of the Interior's authority to establish the 
value of Federal and Indian coal production through regulations is 
contained in the Indian Mineral Leasing Act of 1938, the Mineral 
Leasing Act, and the Mineral Leasing Act for Acquired Lands (25 U.S.C. 
396d; 30 U.S.C. 189 and 359). In addition, virtually all Federal oil 
and gas and Federal and Indian coal leases expressly reserve to the 
Secretary the authority to establish the reasonable value of production 
or provide that the royalty value be set by regulation.
    The 2017 Valuation Rule addressed Federal oil and gas and Federal 
and Indian coal valuation in one rulemaking. The 2017 Valuation Rule 
sought to (1) offer greater simplicity, certainty, clarity, and 
consistency in product valuation for mineral lessees and mineral 
revenue recipients; (2) ensure that Indian mineral lessors receive the 
maximum revenues from coal resources on their land, consistent with the 
Secretary's trust responsibility and lease terms; (3) decrease lessees' 
cost of compliance and ONRR's cost to ensure compliance; and (4) 
provide early certainty to ONRR and stakeholders. Whether the 2017 
Valuation Rule is repealed or retained, ONRR seeks to accomplish the 
goals outlined in that rulemaking. For additional information, see 81 
FR 43338, dated July 1, 2016.
    This ANPRM is intended to solicit comments and suggestions for two 
possible scenarios. If the 2017 Valuation Rule is repealed, ONRR seeks 
comments regarding whether a new valuation rule is needed and, if so, 
what particular issues the new valuation rule should address. 
Alternatively, if the 2017 Valuation Rule is not repealed, ONRR is 
seeking comments as to what changes should be made to ONRR's valuation 
regulations in 30 CFR parts 1202 and 1206, as amended by the 2017 
Valuation Rule. Please segregate comments to each of these two 
scenarios.
    Soliciting comments and involving all affected stakeholders early 
in the rulemaking process are the hallmarks of good government and 
smart business practice. The purpose of this rulemaking process is to 
provide regulations that would (1) offer greater simplicity, certainty, 
clarity, and consistency in production valuation for mineral lessees 
and mineral revenue recipients; (2) be easy to understand; (3) decrease 
industry's cost of compliance; and (4) provide early certainty to 
industry, ONRR, and stakeholders.

II. Public Comment Procedures

    ONRR is not obligated to consider comments that we receive after 
the close of the comment period for this ANPRM, or comments that are 
delivered to an address other than those listed in the ADDRESSES 
section of this notice. After the comment period for this ANPRM closes, 
ONRR will review all comment submissions. Upon consideration, ONRR may 
publish a notice of proposed rulemaking.

A. Written Comment Guidelines

    We are particularly interested in receiving comments and 
suggestions about the topics identified in section III, Description of 
Information Requested. Your written comments should: (1) Be specific; 
(2) explain the reason for your comments and suggestions; (3) address 
the issues outlined in this notice; and (4) where possible, refer to 
the specific provision, section, or paragraph of statutory law, case 
law, lease term, or existing regulations that you are addressing.
    The comments and recommendations that are most useful and have 
greater likelihood of influencing decisions on the content of a 
possible future proposed rule are: (1) Comments and recommendations 
supported by quantitative information or studies; and (2) comments that 
include citations to, and analyses of, the applicable laws, lease 
terms, and regulations.

B. Public Availability of Comments

    Before including your address, phone number, email address, or 
other personal identifying information in your comment, you should be 
aware that your entire comment--including your personal identifying 
information--may be made publicly available at any time. While you can 
ask us in your comment to withhold your personal identifying 
information from public review, we cannot guarantee that we will be 
able to do so.

III. Description of Information Requested

    We are interested in submission of proposals that will lead to 
improved efficiencies for lessees, ONRR, and other stakeholders. In 
considering proposed changes to the existing Federal oil and gas 
royalty valuation regulations at 30 CFR parts 1202 and 1206, we have 
three goals in mind, as follows:
     Provide clear regulations that are understandable and 
consistent with fulfilling the Secretary's responsibility to ensure 
fair value for the public's resources.
     Provide valuation methods that are as efficient as 
practicable for lessees to use.
     Provide early certainty that correct payment has been 
made.
    As discussed above, ONRR requests comments on two possible 
scenarios pending the outcome of the proposed rule to repeal the 2017 
Valuation Rule. We recognize the outcome of the proposed rule to repeal 
the 2017 Valuation Rule may not be known by the closing date of this 
ANPRM. Therefore, we encourage commenters to consider both of the two 
possible outcomes of that rulemaking when preparing their submissions 
as follows.
    1. If the 2017 Valuation Rule is repealed, ONRR requests comments 
regarding whether a new rulemaking would be beneficial or is necessary. 
If commenters believe that a new rulemaking would be beneficial, ONRR 
requests comments regarding specific changes to the Federal oil and gas 
and Federal and Indian coal valuation regulations.
    2. If the 2017 Valuation Rule is not repealed, ONRR requests 
comments regarding whether potential changes to the 2017 Valuation Rule 
are needed. Possible topics include, but are not limited to:
     Whether ONRR should have one rule addressing Federal oil 
and gas and Federal and Indian coal valuation, or separate rulemakings.
     How best to value non-arm's-length coal sales and/or sales 
between affiliates.
     Whether ONRR should update the valuation regulations 
governing non-arm's-length dispositions of Federal gas, and if so, how.
     Whether ONRR should address marketable condition and/or 
unbundling, and if so, how.

[[Page 16327]]

     Whether ONRR should have a default provision clarifying 
how ONRR will exercise Secretarial authority to determine value for 
royalty purposes in cases where there is misconduct, breach of duty to 
market, or ONRR cannot otherwise verify value. Other potential 
valuation methods or necessary changes to ONRR valuation regulations.
    ONRR appreciates your participation and looks forward to receiving 
your comments.

    Dated: March 30, 2017.
Amy Holley,
Acting Assistant Secretary for Policy, Management and Budget.
[FR Doc. 2017-06600 Filed 4-3-17; 8:45 am]
 BILLING CODE 4335-30-P



                                                                           Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Proposed Rules                                                  16325

                                                 ambiguity and to write them to                          not involved in any of the extraordinary                Dated: March 30, 2017.
                                                 minimize litigation.                                    circumstances listed in 43 CFR 46.215                  Amy Holley,
                                                   b. Would meet the criteria of § 3(b)(2),              that would require further analysis                    Acting Assistant Secretary for Policy,
                                                 which requires that we write all                        under NEPA. The procedural changes                     Management and Budget.
                                                 regulations in clear language using clear               resulting from the repeal of the 2017                  [FR Doc. 2017–06617 Filed 4–3–17; 8:45 am]
                                                 legal standards.                                        Valuation Rule would have no                           BILLING CODE 4335–30–P

                                                 9. Consultation With Indian Tribal                      consequences on the physical
                                                 Governments (E.O. 13175)                                environment. This proposed rule would
                                                                                                         not alter, in any material way, natural                DEPARTMENT OF THE INTERIOR
                                                    The Department strives to strengthen                 resources exploration, production, or
                                                 its government-to-government                            transportation.                                        Office of Natural Resources Revenue
                                                 relationship with the Indian Tribes
                                                 through a commitment to consultation                    12. Effects on the Energy Supply (E.O.                 30 CFR Parts 1202 and 1206
                                                 with the Indian Tribes and recognition                  13211)
                                                                                                                                                                [Docket No. ONRR–2017–0002; DS63644000
                                                 of their right to self-governance and                     This proposed rule would not be a                    DR2000000.CH7000 178D0102R2]
                                                 Tribal sovereignty. Under the                           significant energy action under the
                                                 Department’s consultation policy and                                                                           RIN 1012–AA21
                                                                                                         definition in E.O. 13211, and, therefore,
                                                 the criteria in E.O. 13175, we evaluated                would not require a Statement of Energy                Federal Oil and Gas and Federal and
                                                 this proposed rule and determined that                  Effects.                                               Indian Coal Valuation
                                                 it would potentially affect Federally-
                                                 recognized Indian Tribes. We                            13. Clarity of This Regulation                         AGENCY: Office of Natural Resources
                                                 determined that this rule would restore                                                                        Revenue (ONRR), Interior.
                                                 the historical valuation methodology for                   Executive Orders 12866 (section                     ACTION: Advance Notice of Proposed
                                                 coal produced from Indian leases. Our                   1(b)(12)), 12988 (section 3(b)(1)(B)), and             Rulemaking (ANPRM).
                                                 previous and planned activities include:                13563 (section 1(a)), and the
                                                    (a) As described in the 2017 Valuation               Presidential Memorandum of June 1,                     SUMMARY:    The Office of Natural
                                                 Rule under Procedural Matters, item 9,                  1998, would require us to write all rules              Resources Revenue (ONRR) requests
                                                 at 81 FR 43368, we consulted with the                   in Plain Language. This means that each                comments and suggestions from affected
                                                 affected Tribes on a government-to-                     rule that we publish must: (a) Have                    parties and the interested public on
                                                 government basis in preparing the 2017                  logical organization; (b) use the active               whether revisions to the regulations
                                                 Valuation Rule. We also will consult                    voice to address readers directly; (c) use             governing the valuation, for royalty
                                                 with the affected Tribes about potential                clear language rather than jargon; (d) use             purposes, of oil and gas produced from
                                                 repeal of the 2017 Valuation Rule.                      short sections and sentences; and (e) use              Federal onshore and offshore leases and
                                                    (b) We will fully consider Tribal                    lists and tables wherever possible.                    coal produced from Federal and Indian
                                                 views in the final rule.                                   If you feel that we have not met these              leases, are needed and, if so, what
                                                                                                         requirements, send your comments to                    specific revisions should be considered.
                                                 10. Paperwork Reduction Act                                                                                    On July 1, 2016, ONRR published a final
                                                                                                         armand.southall@onrr.gov. To better
                                                    This proposed rule:                                  help us revise this rule, make your                    rule, Consolidated Federal Oil and Gas
                                                    (a) Does not contain any new                         comments as specific as possible. For                  and Federal and Indian Coal Valuation
                                                 information collection requirements.                    example, you should tell us the                        Reform (2017 Valuation Rule). ONRR
                                                    (b) Does not require a submission to                 numbers of the sections or paragraphs                  subsequently stayed the effective date of
                                                 OMB under the Paperwork Reduction                       that you think we wrote unclearly,                     that rule pending resolution of
                                                 Act of 1995 (44 U.S.C. 3501 et seq). See                which sections or sentences are too                    litigation. As a result of the stay, the
                                                 5 CFR 1320.4(a)(2).                                                                                            regulations in effect prior to January 1,
                                                                                                         long, the sections where you feel lists or
                                                    This proposed rule, if promulgated as                                                                       2017 (‘‘pre-existing regulations’’) remain
                                                                                                         tables would be useful, etc.
                                                 a final rule, will leave in tack the                                                                           in effect. In a separate notice, ONRR is
                                                 information collection requirements that                14. Public Availability of Comments                    seeking comments on a proposed rule to
                                                 OMB already approved under OMB                                                                                 repeal the 2017 Valuation Rule to
                                                 Control Numbers 1012–0004, 1012–                          Before including your address, phone                 maintain the status quo in which the
                                                 0005, and 1012–0010.                                    number, email address, or other                        pre-existing regulations remain in effect
                                                                                                         personal identifying information in your               while ONRR reconsiders whether
                                                 11. National Environmental Policy Act                   comment, you should be aware that                      changes made by the 2017 Valuation
                                                 of 1969 (NEPA)                                          your entire comment—including your                     Rule are needed or appropriate.
                                                   This proposed rule would not                          personal identifying information—may                   DATES: You must submit your comments
                                                 constitute a major Federal action,                      be made publicly available at any time.                by May 4, 2017.
                                                 significantly affecting the quality of the              While you can ask us, in your comment,
                                                                                                                                                                ADDRESSES: You may submit comments
                                                 human environment. We are not                           to withhold your personal identifying
                                                                                                                                                                to ONRR on this ANPRM by any of the
                                                 required to provide a detailed statement                information from public view, we                       following methods. Please reference the
                                                 under NEPA because this rule qualifies                  cannot guarantee that we will be able to               Regulation Identifier Number (RIN)
                                                 for categorically exclusion under 43                    do so.                                                 1012–AA21 in your comments.
                                                 CFR 46.210(i) in that this is ‘‘. . . of an             List of Subjects in 30 CFR Parts 1202                     • Electronically: Go to http://
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                                                 administrative, financial, legal,                       and 1206                                               www.regulations.gov. In the entry titled
                                                 technical, or procedural nature. . . .’’                                                                       ‘‘Enter Keyword or ID,’’ enter ‘‘ONRR–
                                                 This rule also qualifies for categorically                Coal, Continental shelf, Government                  2017–0002,’’ then click ‘‘Search.’’
                                                 exclusion under Departmental Manual,                    contracts, Indian lands, Mineral                       Follow the instructions to submit public
                                                 part 516, section 15.4.(C)(1) in that its               royalties, Natural gas, Oil, Oil and gas               comments. We will post all comments.
                                                 impacts are limited to administrative,                  exploration, Public lands—mineral                         • Email comments to Luis Aguilar,
                                                 economic, or technological effects. We                  resources, Reporting and recordkeeping                 Regulatory Specialist, at Luis.Aguilar@
                                                 also have determined that this rule is                  requirements.                                          onrr.gov.


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                                                 16326                     Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Proposed Rules

                                                   • Hand-carry or mail comments,                        address. Alternatively, if the 2017                    While you can ask us in your comment
                                                 using an overnight courier service, to                  Valuation Rule is not repealed, ONRR is                to withhold your personal identifying
                                                 the Office of Natural Resources                         seeking comments as to what changes                    information from public review, we
                                                 Revenue, Building 53, Entrance E–20,                    should be made to ONRR’s valuation                     cannot guarantee that we will be able to
                                                 Denver Federal Center, West 6th Ave.                    regulations in 30 CFR parts 1202 and                   do so.
                                                 and Kipling St., Denver, Colorado                       1206, as amended by the 2017 Valuation
                                                                                                                                                                III. Description of Information
                                                 80225.                                                  Rule. Please segregate comments to each
                                                                                                                                                                Requested
                                                 FOR FURTHER INFORMATION CONTACT: For
                                                                                                         of these two scenarios.
                                                                                                            Soliciting comments and involving all                  We are interested in submission of
                                                 questions on procedural issues, contact
                                                                                                         affected stakeholders early in the                     proposals that will lead to improved
                                                 Luis Aguilar, Regulatory Specialist,
                                                                                                         rulemaking process are the hallmarks of                efficiencies for lessees, ONRR, and other
                                                 ONRR, at (303) 231–3418 or email to
                                                                                                         good government and smart business                     stakeholders. In considering proposed
                                                 Luis.Aguilar@onrr.gov. For questions on
                                                                                                         practice. The purpose of this rulemaking               changes to the existing Federal oil and
                                                 technical issues, contact Michael
                                                                                                         process is to provide regulations that                 gas royalty valuation regulations at 30
                                                 DeBerard, Asset Valuation, ONRR, at
                                                                                                         would (1) offer greater simplicity,                    CFR parts 1202 and 1206, we have three
                                                 (303) 231–3884 or email to
                                                                                                         certainty, clarity, and consistency in                 goals in mind, as follows:
                                                 Michael.DeBerard@onrr.gov.
                                                                                                         production valuation for mineral lessees                  • Provide clear regulations that are
                                                 SUPPLEMENTARY INFORMATION:
                                                                                                         and mineral revenue recipients; (2) be                 understandable and consistent with
                                                 I. Background                                           easy to understand; (3) decrease                       fulfilling the Secretary’s responsibility
                                                    The Secretary of the Interior’s                      industry’s cost of compliance; and (4)                 to ensure fair value for the public’s
                                                 authority to establish the value of                     provide early certainty to industry,                   resources.
                                                 Federal oil and gas production through                  ONRR, and stakeholders.                                   • Provide valuation methods that are
                                                 regulations is contained in the mineral                 II. Public Comment Procedures                          as efficient as practicable for lessees to
                                                 leasing statutes (43 U.S.C. 1334; 30                                                                           use.
                                                                                                            ONRR is not obligated to consider                      • Provide early certainty that correct
                                                 U.S.C. 189 and 359). Likewise, the                      comments that we receive after the close
                                                 Secretary of the Interior’s authority to                                                                       payment has been made.
                                                                                                         of the comment period for this ANPRM,                     As discussed above, ONRR requests
                                                 establish the value of Federal and                      or comments that are delivered to an
                                                 Indian coal production through                                                                                 comments on two possible scenarios
                                                                                                         address other than those listed in the                 pending the outcome of the proposed
                                                 regulations is contained in the Indian                  ADDRESSES section of this notice. After
                                                 Mineral Leasing Act of 1938, the                                                                               rule to repeal the 2017 Valuation Rule.
                                                                                                         the comment period for this ANPRM                      We recognize the outcome of the
                                                 Mineral Leasing Act, and the Mineral                    closes, ONRR will review all comment
                                                 Leasing Act for Acquired Lands (25                                                                             proposed rule to repeal the 2017
                                                                                                         submissions. Upon consideration,                       Valuation Rule may not be known by
                                                 U.S.C. 396d; 30 U.S.C. 189 and 359). In                 ONRR may publish a notice of proposed
                                                 addition, virtually all Federal oil and                                                                        the closing date of this ANPRM.
                                                                                                         rulemaking.                                            Therefore, we encourage commenters to
                                                 gas and Federal and Indian coal leases
                                                 expressly reserve to the Secretary the                  A. Written Comment Guidelines                          consider both of the two possible
                                                 authority to establish the reasonable                      We are particularly interested in                   outcomes of that rulemaking when
                                                 value of production or provide that the                 receiving comments and suggestions                     preparing their submissions as follows.
                                                 royalty value be set by regulation.                     about the topics identified in section III,               1. If the 2017 Valuation Rule is
                                                    The 2017 Valuation Rule addressed                    Description of Information Requested.                  repealed, ONRR requests comments
                                                 Federal oil and gas and Federal and                     Your written comments should: (1) Be                   regarding whether a new rulemaking
                                                 Indian coal valuation in one                            specific; (2) explain the reason for your              would be beneficial or is necessary. If
                                                 rulemaking. The 2017 Valuation Rule                     comments and suggestions; (3) address                  commenters believe that a new
                                                 sought to (1) offer greater simplicity,                 the issues outlined in this notice; and                rulemaking would be beneficial, ONRR
                                                 certainty, clarity, and consistency in                  (4) where possible, refer to the specific              requests comments regarding specific
                                                 product valuation for mineral lessees                   provision, section, or paragraph of                    changes to the Federal oil and gas and
                                                 and mineral revenue recipients; (2)                     statutory law, case law, lease term, or                Federal and Indian coal valuation
                                                 ensure that Indian mineral lessors                      existing regulations that you are                      regulations.
                                                 receive the maximum revenues from                       addressing.                                               2. If the 2017 Valuation Rule is not
                                                 coal resources on their land, consistent                   The comments and recommendations                    repealed, ONRR requests comments
                                                 with the Secretary’s trust responsibility               that are most useful and have greater                  regarding whether potential changes to
                                                 and lease terms; (3) decrease lessees’                  likelihood of influencing decisions on                 the 2017 Valuation Rule are needed.
                                                 cost of compliance and ONRR’s cost to                   the content of a possible future                       Possible topics include, but are not
                                                 ensure compliance; and (4) provide                      proposed rule are: (1) Comments and                    limited to:
                                                 early certainty to ONRR and                             recommendations supported by                              • Whether ONRR should have one
                                                 stakeholders. Whether the 2017                          quantitative information or studies; and               rule addressing Federal oil and gas and
                                                 Valuation Rule is repealed or retained,                 (2) comments that include citations to,                Federal and Indian coal valuation, or
                                                 ONRR seeks to accomplish the goals                      and analyses of, the applicable laws,                  separate rulemakings.
                                                 outlined in that rulemaking. For                        lease terms, and regulations.                             • How best to value non-arm’s-length
                                                 additional information, see 81 FR                                                                              coal sales and/or sales between
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                                                 43338, dated July 1, 2016.                              B. Public Availability of Comments                     affiliates.
                                                    This ANPRM is intended to solicit                      Before including your address, phone                    • Whether ONRR should update the
                                                 comments and suggestions for two                        number, email address, or other                        valuation regulations governing non-
                                                 possible scenarios. If the 2017 Valuation               personal identifying information in your               arm’s-length dispositions of Federal gas,
                                                 Rule is repealed, ONRR seeks comments                   comment, you should be aware that                      and if so, how.
                                                 regarding whether a new valuation rule                  your entire comment—including your                        • Whether ONRR should address
                                                 is needed and, if so, what particular                   personal identifying information—may                   marketable condition and/or
                                                 issues the new valuation rule should                    be made publicly available at any time.                unbundling, and if so, how.


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                                                                           Federal Register / Vol. 82, No. 63 / Tuesday, April 4, 2017 / Proposed Rules                                           16327

                                                   • Whether ONRR should have a                          SUPPLEMENTARY INFORMATION section for                  COTP Key West or a designated
                                                 default provision clarifying how ONRR                   further instructions on submitting                     representative. The proposed regulatory
                                                 will exercise Secretarial authority to                  comments.                                              text appears at the end of this
                                                 determine value for royalty purposes in                 FOR FURTHER INFORMATION CONTACT: If                    document.
                                                 cases where there is misconduct, breach                 you have questions on this proposed                       Notice of enforcement and suspension
                                                 of duty to market, or ONRR cannot                       rulemaking, call or email Lieutenant                   of enforcement will be made by all
                                                 otherwise verify value. Other potential                 Scott Ledee, Waterways Management                      appropriate means to affect the widest
                                                 valuation methods or necessary changes                  Division Chief, Sector Key West, FL,                   distribution among the affected
                                                 to ONRR valuation regulations.                          U.S. Coast Guard; telephone (305) 292–                 segments of the public. Such means of
                                                   ONRR appreciates your participation                   8768, email Scott.G.Ledee@uscg.mil.                    notification may include, but are not
                                                 and looks forward to receiving your                                                                            limited to, Broadcast Notice to Mariners,
                                                                                                         SUPPLEMENTARY INFORMATION:
                                                 comments.                                                                                                      Local Notice to Mariners, or notices on
                                                  Dated: March 30, 2017.                                 I. Table of Abbreviations                              the U. S. Coast Guard Homeport Web
                                                                                                                                                                site.
                                                 Amy Holley,                                             COTP Captain of the Port
                                                 Acting Assistant Secretary for Policy,                  CFR Code of Federal Regulations                        IV. Regulatory Analyses
                                                 Management and Budget.                                  DHS Department of Homeland Security
                                                                                                         FR Federal Register                                      We developed this proposed rule after
                                                 [FR Doc. 2017–06600 Filed 4–3–17; 8:45 am]                                                                     considering numerous statutes and
                                                                                                         NPRM Notice of proposed rulemaking
                                                 BILLING CODE 4335–30–P                                  §     Section                                          executive orders related to rulemaking.
                                                                                                         U.S.C.    United States Code                           Below we summarize our analyses
                                                                                                                                                                based on a number of these statutes and
                                                                                                         II. Background, Purpose, and Legal                     executive orders and we discuss First
                                                 DEPARTMENT OF HOMELAND
                                                                                                         Basis                                                  Amendment rights of protestors.
                                                 SECURITY
                                                                                                            This proposed rule would establish
                                                 Coast Guard                                             safety zones around firework platforms,                A. Regulatory Planning and Review
                                                                                                         structures or barges within the Sector                    Executive Orders 12866 and 13563
                                                 33 CFR Part 165                                         Key West COTP Zone during the                          direct agencies to assess the costs and
                                                                                                         storage, preparation, and launching of                 benefits of available regulatory
                                                 [Docket Number USCG–2016–0983]
                                                                                                         fireworks. Hazards from firework                       alternatives and, if regulation is
                                                 RIN 1625–AA00                                           displays include accidental discharge of               necessary, to select regulatory
                                                                                                         fireworks, dangerous projectiles, and                  approaches that maximize net benefits.
                                                 Safety Zone; Fireworks Displays,                        falling hot embers or other debris. The                Executive Order 13563 emphasizes the
                                                 Sector Key West, Florida                                COTP Key West has determined that                      importance of quantifying both costs
                                                 AGENCY:   Coast Guard, DHS.                             potential hazards associated with                      and benefits, of reducing costs, of
                                                                                                         fireworks are a safety concern for                     harmonizing rules, and of promoting
                                                 ACTION:   Notice of proposed rulemaking.                                                                       flexibility. This NPRM has not been
                                                                                                         anyone within a 500-yard radius of the
                                                 SUMMARY:   The Coast Guard proposes to                  firework platforms, structures, or barges.             designated a ‘‘significant regulatory
                                                 establish safety zones for certain waters                  The purpose of this rulemaking is to                action,’’ under Executive Order 12866.
                                                 within the Sector Key West Captain of                   ensure the safety of vessels and the                   Accordingly, the NPRM has not been
                                                 the Port (COTP) Zone. This action                       navigable waters within a 500-yard                     reviewed by the Office of Management
                                                 would establish safety zones around                     radius of all firework platforms,                      and Budget.
                                                 firework platforms, structures, or barges               structures, or barges during the storage,                 Although this proposed rule may
                                                 during the storage, preparation, and                    preparation, and launching of fireworks.               restrict access to small portions of the
                                                 launching of fireworks. The proposed                    The Coast Guard proposes this                          waterway within the Sector Key West
                                                 rule is necessary to provide for the                    rulemaking under authority in 33 U.S.C.                COTP Zone, the effect of this regulation
                                                 safety of the participants, participant                 1231.                                                  would not be significant for the
                                                 vessels, and the general public on the                                                                         following reasons: (1) The safety zones
                                                                                                         III. Discussion of Proposed Rule                       would only be enforced during limited
                                                 navigable waters of the United States
                                                                                                            The Coast Guard proposes to establish               time intervals while firework display
                                                 during the fireworks displays. This
                                                                                                         safety zones on navigable waters around                operations present a hazard; (2) vessels
                                                 proposed rule would allow the Coast
                                                                                                         firework platforms, structures, or barges              may be authorized to enter the regulated
                                                 Guard to restrict persons and vessels,
                                                                                                         within the COTP Zone Key West,                         areas with permission of the COTP Key
                                                 except those participating in the event,
                                                                                                         Florida. The safety zones would include                West or a designated representative; and
                                                 from entering, transiting through,
                                                                                                         all waters within a 500-yard radius of all             (3) advanced notification of closures
                                                 anchoring in, or remaining within the
                                                                                                         fireworks launching platforms,                         will be made via Local Notice to
                                                 regulated area unless authorized by the
                                                                                                         structures, or barges while engaged in                 Mariners, Broadcast to Mariners, and
                                                 COTP Key West or a designated
                                                                                                         the storage, preparation, and launching                the U. S. Coast Guard Homeport Web
                                                 representative. We invite your
                                                                                                         of fireworks.                                          site.
                                                 comments on this proposed rulemaking.
                                                                                                            The proposed rule seeks to enhance
                                                 DATES: Comments and related material                    navigation safety and marine                           B. Impact on Small Entities
                                                 must be received by the Coast Guard on                  environmental protection, reduce the                     The Regulatory Flexibility Act of
nlaroche on DSK30NT082PROD with PROPOSALS




                                                 or before May 4, 2017.                                  potential for the loss of lives and                    1980, 5 U.S.C. 601–612, as amended,
                                                 ADDRESSES: You may submit comments                      property, and ensure the safety of vessel              requires Federal agencies to consider
                                                 identified by docket number USCG–                       and workers from hazards associated                    the potential impact of regulations on
                                                 2016–0983 using the Federal                             with fireworks operations in the                       small entities during rulemaking. The
                                                 e-Rulemaking Portal at http://                          regulated area.                                        term ‘‘small entities’’ comprises small
                                                 www.regulations.gov. See the ‘‘Public                      No vessel or person would be                        businesses, not-for-profit organizations
                                                 Participation and Request for                           permitted to enter the safety zone                     that are independently owned and
                                                 Comments’’ portion of the                               without obtaining permission from the                  operated and are not dominant in their


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Document Created: 2017-04-03 23:53:31
Document Modified: 2017-04-03 23:53:31
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionAdvance Notice of Proposed Rulemaking (ANPRM).
DatesYou must submit your comments by May 4, 2017.
ContactFor questions on procedural issues, contact Luis Aguilar, Regulatory Specialist, ONRR, at (303) 231-3418 or email to [email protected] For questions on technical issues, contact Michael DeBerard, Asset Valuation, ONRR, at (303) 231-3884 or email to [email protected]
FR Citation82 FR 16325 
RIN Number1012-AA21
CFR Citation30 CFR 1202
30 CFR 1206

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