82 FR 18858 - Civil Monetary Penalty Rates Inflation Adjustments for Calendar Year 2017 and Initial “Catch-Up” Adjustments

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue

Federal Register Volume 82, Issue 77 (April 24, 2017)

Page Range		18858-18860
FR Document		2017-08225

In accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990 (Act), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act) and recent Office of Management and Budget (OMB) guidance, the Office of Natural Resources Revenue (ONRR) is publishing this final rule to adjust our maximum civil monetary penalty (CMP) rates for calendar year 2017. This final rule also adopts as final a 2016 interim final rule that adjusted the amount of our civil monetary penalties for inflation with initial ``catch-up'' adjustments under the 2015 Act.

Federal Register, Volume 82 Issue 77 (Monday, April 24, 2017)

[Federal Register Volume 82, Number 77 (Monday, April 24, 2017)]
[Rules and Regulations]
[Pages 18858-18860]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-08225]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

30 CFR Part 1241

[Docket No. ONRR-2016-0002; DS63644000 DR2PS0000.CH7000 178D0102R2]
RIN 1012-AA17


Civil Monetary Penalty Rates Inflation Adjustments for Calendar 
Year 2017 and Initial ``Catch-Up'' Adjustments

AGENCY: Office of the Secretary, Office of Natural Resources Revenue, 
Interior.

ACTION: Final rule.

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

SUMMARY: In accordance with the Federal Civil Penalties Inflation 
Adjustment Act of 1990 (Act), as amended by the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (2015 Act) and recent 
Office of Management and Budget (OMB) guidance, the Office of Natural 
Resources Revenue (ONRR) is publishing this final rule to adjust our 
maximum civil monetary penalty (CMP) rates for calendar year 2017. This 
final rule also adopts as final a 2016 interim final rule that adjusted 
the amount of our civil monetary penalties for inflation with initial 
``catch-up'' adjustments under the 2015 Act.

DATES: This rule is effective on April 24, 2017.

FOR FURTHER INFORMATION CONTACT: For questions on procedural issues, 
contact Armand Southall, Regulatory Specialist, by telephone at (303) 
231-3221 or email to [email protected]. For questions on 
technical issues, contact Geary Keeton, Chief of Enforcement, by 
telephone at (303) 231-3096 or email to [email protected]. You may 
obtain a paper copy of this rule by contacting Mr. Southall by phone or 
email.

SUPPLEMENTARY INFORMATION: 

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

I. Background

    The Act, as amended (set out in a note following 28 U.S.C. 2461), 
requires Federal agencies to adjust their civil monetary penalty (CMP) 
rates through an interim final rulemaking to take effect no later than 
August 1, 2016, and to make annual inflation adjustments not later than 
January 15 of every year thereafter with the guidance that OMB provides 
us by December 15 of each calendar year, as required by section 7 of 
the Act, to calculate the maximum CMP rates for the following calendar 
year.
    On February 24, 2016, OMB issued guidance on calculating the 
initial catch-up and subsequent annual CMP inflation adjustments. See 
February 24, 2016, Memorandum for the Heads of Executive Departments 
and Agencies from Shaun Donovan, Director, OMB, re: Implementation of 
the Federal Civil Penalties Inflation Adjustment Act Improvements Act 
of 2015 (OMB Memorandum M-16-06). That memorandum included a table 
(Table A) showing CMP inflation-adjustment multipliers by calendar year 
of CMP establishment from 1914 to 2015. On June 9, 2016, ONRR published 
its interim final rule required by the Act, as amended, adjusting for 
inflation from 1983 to 2016.
    On December 16, 2016, OMB issued additional guidance on the annual 
adjustment of CMPs for 2017. See December 16, 2016, Memorandum for the 
Heads of Executive Departments and Agencies from OMB Director Shaun 
Donovan re: Implementation of the 2017 annual adjustment pursuant to 
the Federal Civil Penalties Inflation Adjustment Act Improvements Act 
of 2015 (OMB Memorandum M-17-11). That memorandum informed agencies 
that the inflation-adjustment multiplier for 2017 is 1.01636.

II. Calculation of Adjustments

    ONRR assesses CMPs under section 109 of the Federal Oil and Gas 
Royalty Management Act of 1982 (FOGRMA), codified as amended at 30 
U.S.C. 1719. In accordance with FOGRMA, we calculate and assess CMPs 
per violation, at the applicable rate, for each day such violation 
continues.
    Since we had not adjusted the maximum CMP rates for inflation since 
their establishment in 1983, we calculated the new maximum CMP rates 
for 2016 using the inflation-adjustment multiplier for CMPs established 
in 1983, as set out in Table A in OMB Memorandum M-16-06. That 
multiplier was 2.35483. On June 9, 2016, we published an interim final 
rule in the Federal Register (81 FR 37153) establishing the maximum CMP 
rates with the initial catch-up adjustments. Those maximum CMP rates 
were effective on July 11, 2016. However, the interim final rule 
requested public comments until August 8, 2016. ONRR received no 
comments and, therefore, is finalizing that rule. OMB Memorandum M-17-
11 authorizes agencies to finalize their 2016 initial ``catch-up'' 
adjustment interim final rule in the same rulemaking that establishes 
their 2017 annual adjustments.
    In accordance with sections 4 and 5 of the Act, as amended, the 
annual CMP Inflation Adjustment calculation for 2017 is based on the 
percent change in the Consumer Price Index for all Urban Consumers 
(CPI-U) between October 2015 and October 2016. To calculate the maximum 
CMP rates for 2017, we are using the inflation-adjustment multiplier 
that OMB provided in its Memorandum M-17-11. That multiplier is 
1.01636. In accordance with section 5(a) of the Act, as amended, the 
new maximum CMP rates will be rounded to the nearest dollar. For 
example, the maximum CMP rate under 30 U.S.C. 1719(a) in 2016 is $1,177 
per violation for each day such violation continues; the 2017 CMP 
inflation-adjustment multiplier is 1.01636; $1,177 x 1.01636 = 
$1,196.2557, which rounds down to $1,196. Therefore, the new maximum 
CMP rate for this violation is $1,196 for each day such violation 
continues. It is important to note that, by themselves, the increases 
in maximum CMP rates contained in this final rule do not determine the 
amount of the CMP that we will assess for a particular violation; as 
authorized by FOGRMA and the implementing regulations codified at 30 
CFR part 1241, we calculate each CMP on a case-by-case basis.
    In accordance with section 6 of the Act, as amended, the new 
maximum

[[Page 18859]]

penalty rates will apply only to CMPs, including those which are 
associated with violations predating the increase, that are assessed 
after the date the increase takes effect.

III. Summary of Final Rule

    This final rule adjusts the maximum CMP rates for each of the four 
categories of violations identified in 30 U.S.C. 1719(a)-(d). The 
following list identifies the existing ONRR regulations containing CMP 
rates and shows those rates before and after adjustment.

----------------------------------------------------------------------------------------------------------------
                                                                                  2017 inflation
                         30 CFR citation                              Current       adjustment     2017 adjusted
                                                                   penalty rate     multiplier     penalty rate
----------------------------------------------------------------------------------------------------------------
1241.52(a)(2)...................................................           1,177         1.01636           1,196
1241.52(b)......................................................          11,774         1.01636          11,967
1241.60(b)(1)...................................................          23,548         1.01636          23,933
1241.60(b)(2)...................................................          58,871         1.01636          59,834
----------------------------------------------------------------------------------------------------------------
Note: The CMP rates under 30 CFR part 1241 are authorized by 30 U.S.C. 1719(a)-(d).

IV. Procedural Requirements

A. Regulatory Planning and Review (Executive Orders 12866 and 13563)

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

B. Regulatory Flexibility Act

    This rule will not have a significant economic effect on a 
substantial number of small entities under the Regulatory Flexibility 
Act (RFA, 5 U.S.C. 601 et seq.) because the rule only makes adjustments 
for inflation. The Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 requires agencies to adjust civil penalties 
with a subsequent annual inflation adjustment through a final rule. 
Therefore, the RFA does not apply to this rulemaking.

C. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    a. Does not have an annual effect on the economy of $100 million or 
more.
    b. Will not cause a major increase in costs or prices for 
consumers; individual industries; Federal, State, local government 
agencies; or geographic regions.
    c. Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
United States-based enterprises to compete with foreign-based 
enterprises.

D. Unfunded Mandates Reform Act

    This rule does not impose an unfunded mandate on State, local, or 
Tribal governments or the private sector of more than $100 million per 
year. This rule does not have a significant or unique effect on State, 
local, or Tribal governments or the private sector. Therefore, we are 
not required to provide a statement containing the information that the 
Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) requires because 
this rule is not an unfunded mandate.

E. Takings (E.O. 12630)

    This rule does not affect a taking of private property or otherwise 
have taking implications under E.O. 12630. Therefore, this rule does 
not require a takings implication assessment.

F. Federalism (E.O. 13132)

    Under the criteria in section 1 of E.O. 13132, this rule does not 
have sufficient Federalism implications to warrant the preparation of a 
Federalism summary impact statement. Therefore, this rule does not 
require a Federalism summary impact statement.

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

    This rule complies with the requirements of E.O. 12988. 
Specifically, this rule:
    a. Meets the criteria of section 3(a), which requires that we 
review all regulations to eliminate errors and ambiguity and to write 
them to minimize litigation.
    b. Meets the criteria of section 3(b)(2), which requires that we 
write all regulations in clear language using clear legal standards.

H. Consultation With Indian Tribal Governments (E.O. 13175)

    The Department strives to strengthen its government-to-government 
relationship with the Indian Tribes through a commitment to 
consultation with the Indian Tribes and recognition of their right to 
self-governance and Tribal sovereignty. Under the Department's 
consultation policy and the criteria in E.O. 13175, we evaluated this 
rule and determined that it will have no substantial direct effects on 
Federally-recognized Indian Tribes and does not require consultation.

I. Paperwork Reduction Act

    This rule:
    (a) Does not contain any new information collection requirements.
    (b) Does not require a submission to OMB under the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.). See 5 CFR 1320.4(a)(2).

J. National Environmental Policy Act of 1969 (NEPA)

    This rule does not constitute a major Federal action, significantly 
affecting the quality of the human environment. We are not required to 
provide a detailed statement under NEPA because this rule qualifies for 
categorical exclusion under 43 CFR 46.210(i) in that this rule is ``. . 
. of an administrative, financial, legal, technical, or procedural 
nature. . . .'' We also have determined that this rule is not involved 
in any of the extraordinary circumstances listed in 43 CFR 46.215 that 
would require further analysis under NEPA.

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

    This rule is not a significant energy action under the definition 
in E.O.

[[Page 18860]]

13211 and, therefore, does not require a Statement of Energy Effects.

L. Clarity of This Regulation

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

M. Administrative Procedure Act (APA)

    The Act requires agencies to publish annual inflation adjustments 
by no later than January 15, 2017, and by no later than January 15 each 
subsequent year, notwithstanding section 553 of the Administrative 
Procedure Act (APA) (5 U.S.C. 553). OMB has interpreted this direction 
to mean that the usual APA public procedure for rulemaking--which 
includes public notice of a proposed rule, an opportunity for public 
comment, and a delay in the effective date of a final rule--is not 
required when agencies issue regulations to implement the annual 
adjustments to civil penalties that the Act requires. Accordingly, we 
are issuing the 2017 annual adjustments as a final rule without prior 
notice or an opportunity for comment and with an effective date 
immediately upon publication in the Federal Register.
    Section 553(b) of the Administrative Procedure Act (APA) provides 
that, when an agency for good cause finds that ``notice and public 
procedure . . . are impracticable, unnecessary, or contrary to the 
public interest,'' the agency may issue a rule without providing notice 
and an opportunity for prior public comment. Under section 553(b), ONRR 
finds that there is good cause to promulgate this rule without first 
providing for public comment. It would not be possible to meet the 
deadlines imposed by the Act if we were to first publish a proposed 
rule, allow the public sufficient time to submit comments, analyze the 
comments, and publish a final rule. Also, ONRR is promulgating this 
final rule to implement the statutory directive in the Act, which 
requires agencies to publish a final rule and to update the civil 
penalty amounts by applying a specified formula. We have no discretion 
to vary the amount of the adjustment to reflect any views or 
suggestions provided by commenters. Accordingly, it would serve no 
purpose to provide an opportunity for public comment on this rule prior 
to promulgation. Thus, providing for notice and public comment is 
impracticable and unnecessary.
    Furthermore, ONRR finds under section 553(d)(3) of the APA that 
good cause exists to make this final rule effective immediately upon 
publication in the Federal Register. In the Act, Congress expressly 
required Federal agencies to publish annual inflation adjustments to 
civil penalties in the Federal Register by January 15, 2017, and not 
later than January 15 of every subsequent year, notwithstanding section 
553 of the APA. Under the statutory framework and OMB guidance, the new 
penalty levels take effect immediately upon the effective date of the 
adjustment. The statutory deadline does not allow time to delay this 
rule's effective date beyond publication. Moreover, an effective date 
after January 15 would delay application of the new penalty levels, 
contrary to Congress's intent.

List of Subjects in 30 CFR Part 1241

    Administrative practice and procedure, Civil penalties, Coal, 
Geothermal, Inflation, Mineral resources, Natural gas, Notices of non-
compliance, Oil.

Amy Holley,
Acting Assistant Secretary for Policy, Management and Budget.

Authority and Issuance

    For the reasons discussed in the preamble, ONRR amends 30 CFR part 
1241 as set forth below:

PART 1241--PENALTIES

0
1. The authority citation for part 1241 continues to read as follows:

    Authority: 25 U.S.C. 396 et seq., 396a et seq., 2101 et seq.; 30 
U.S.C. 181 et seq., 351 et seq., 1001 et seq., 1701 et seq.; 43 
U.S.C. 1301 et seq., 1331 et seq., 1801 et seq.


Sec.  1241.52  [Amended]

0
2. Amend Sec.  1241.52 by:
0
a. In paragraph (a)(2), removing ``$1,177'' and adding in its place 
``$1,196.''
0
b. In paragraph (b) introductory text, removing ``$11,774'' and adding 
in its place ``$11,967.''


Sec.  1241.60  [Amended]

0
3. Amend Sec.  1241.60 by:
0
a. In paragraph (b)(1), removing ``$23,548'' and adding in its place 
``$23,933.''
0
b. In paragraph (b)(2), removing ``$58,871'' and adding in its place 
``$59,834.''

[FR Doc. 2017-08225 Filed 4-21-17; 8:45 am]
BILLING CODE 4335-30-P

Federal Register / Vol. 82, No. 77 / Monday, April 24, 2017 / Rules and Regulations 18859

penalty rates will apply only to CMPs, III. Summary of Final Rule 1719(a)–(d). The following list identifies
including those which are associated the existing ONRR regulations
with violations predating the increase, This final rule adjusts the maximum containing CMP rates and shows those
that are assessed after the date the CMP rates for each of the four categories rates before and after adjustment.
increase takes effect. of violations identified in 30 U.S.C.

2017 inflation
Current 2017 adjusted
30 CFR citation adjustment
penalty rate penalty rate
multiplier

1241.52(a)(2) ............................................................................................................................... 1,177 1.01636 1,196
1241.52(b) .................................................................................................................................... 11,774 1.01636 11,967
1241.60(b)(1) ............................................................................................................................... 23,548 1.01636 23,933
1241.60(b)(2) ............................................................................................................................... 58,871 1.01636 59,834
Note: The CMP rates under 30 CFR part 1241 are authorized by 30 U.S.C. 1719(a)–(d).

IV. Procedural Requirements a. Does not have an annual effect on ambiguity and to write them to
the economy of $100 million or more. minimize litigation.
A. Regulatory Planning and Review b. Meets the criteria of section 3(b)(2),
(Executive Orders 12866 and 13563) b. Will not cause a major increase in
costs or prices for consumers; which requires that we write all
Executive Order (E.O.) 12866 provides individual industries; Federal, State, regulations in clear language using clear
that the Office of Information and local government agencies; or legal standards.
Regulatory Affairs (OIRA) in OMB will geographic regions. H. Consultation With Indian Tribal
review all significant rules. OIRA has c. Does not have significant adverse Governments (E.O. 13175)
determined that this rule is not effects on competition, employment,
significant. investment, productivity, innovation, or The Department strives to strengthen
E.O. 13563 reaffirms the principles of the ability of United States-based its government-to-government
E.O. 12866, while calling for enterprises to compete with foreign- relationship with the Indian Tribes
improvements in the Nation’s regulatory based enterprises. through a commitment to consultation
system to promote predictability, to with the Indian Tribes and recognition
reduce uncertainty, and to use the best, D. Unfunded Mandates Reform Act of their right to self-governance and
most innovative, and least burdensome This rule does not impose an Tribal sovereignty. Under the
tools for achieving regulatory ends. E.O. unfunded mandate on State, local, or Department’s consultation policy and
13563 directs agencies to consider Tribal governments or the private sector the criteria in E.O. 13175, we evaluated
regulatory approaches that reduce of more than $100 million per year. This this rule and determined that it will
burdens and maintain flexibility and rule does not have a significant or have no substantial direct effects on
freedom of choice for the public, where unique effect on State, local, or Tribal Federally-recognized Indian Tribes and
these approaches are relevant, feasible, governments or the private sector. does not require consultation.
and consistent with regulatory Therefore, we are not required to I. Paperwork Reduction Act
objectives. E.O. 13563 emphasizes provide a statement containing the This rule:
further that regulations must be based information that the Unfunded (a) Does not contain any new
on the best available science and that Mandates Reform Act (2 U.S.C. 1531 et information collection requirements.
the rulemaking process must allow for seq.) requires because this rule is not an (b) Does not require a submission to
public participation and an open unfunded mandate. OMB under the Paperwork Reduction
exchange of ideas. We developed this Act of 1995 (44 U.S.C. 3501 et seq.). See
E. Takings (E.O. 12630)
rule in a manner consistent with these 5 CFR 1320.4(a)(2).
requirements. This rule does not affect a taking of
private property or otherwise have J. National Environmental Policy Act of
B. Regulatory Flexibility Act 1969 (NEPA)
taking implications under E.O. 12630.
This rule will not have a significant Therefore, this rule does not require a This rule does not constitute a major
economic effect on a substantial number takings implication assessment. Federal action, significantly affecting
of small entities under the Regulatory the quality of the human environment.
F. Federalism (E.O. 13132)
Flexibility Act (RFA, 5 U.S.C. 601 et We are not required to provide a
seq.) because the rule only makes Under the criteria in section 1 of E.O. detailed statement under NEPA because
adjustments for inflation. The Federal 13132, this rule does not have sufficient this rule qualifies for categorical
Civil Penalties Inflation Adjustment Act Federalism implications to warrant the exclusion under 43 CFR 46.210(i) in that
Improvements Act of 2015 requires preparation of a Federalism summary this rule is ‘‘. . . of an administrative,
agencies to adjust civil penalties with a impact statement. Therefore, this rule financial, legal, technical, or procedural
subsequent annual inflation adjustment does not require a Federalism summary nature. . . .’’ We also have determined
through a final rule. Therefore, the RFA impact statement. that this rule is not involved in any of
does not apply to this rulemaking. the extraordinary circumstances listed
G. Civil Justice Reform (E.O. 12988)
jstallworth on DSK7TPTVN1PROD with RULES

C. Small Business Regulatory in 43 CFR 46.215 that would require
This rule complies with the further analysis under NEPA.
Enforcement Fairness Act requirements of E.O. 12988.
This rule is not a major rule under 5 Specifically, this rule: K. Effects on the Energy Supply (E.O.
U.S.C. 804(2), the Small Business a. Meets the criteria of section 3(a), 13211)
Regulatory Enforcement Fairness Act. which requires that we review all This rule is not a significant energy
This rule: regulations to eliminate errors and action under the definition in E.O.

VerDate Sep<11>2014 13:01 Apr 21, 2017 Jkt 241001 PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 E:\FR\FM\24APR1.SGM 24APR1

Document Created: 2017-04-22 00:11:21
Document Modified: 2017-04-22 00:11:21

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		This rule is effective on April 24, 2017.
Contact		For questions on procedural issues, contact Armand Southall, Regulatory Specialist, by telephone at (303) 231-3221 or email to [email protected] For questions on technical issues, contact Geary Keeton, Chief of Enforcement, by telephone at (303) 231-3096 or email to [email protected] You may obtain a paper copy of this rule by contacting Mr. Southall by phone or email.
FR Citation		82 FR 18858
RIN Number		1012-AA17
CFR Associated		Administrative Practice and Procedure; Civil Penalties; Coal; Geothermal; Inflation; Mineral Resources; Natural Gas; Notices of Non-Compliance and Oil

82 FR 18858 - Civil Monetary Penalty Rates Inflation Adjustments for Calendar Year 2017 and Initial “Catch-Up” Adjustments

DEPARTMENT OF THE INTERIOROffice of Natural Resources Revenue

Federal Register Volume 82, Issue 77 (April 24, 2017)

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue