82_FR_6317 82 FR 6305 - Onshore Oil and Gas Operations-Annual Civil Penalties Inflation Adjustments

82 FR 6305 - Onshore Oil and Gas Operations-Annual Civil Penalties Inflation Adjustments

DEPARTMENT OF THE INTERIOR
Bureau of Land Management

Federal Register Volume 82, Issue 12 (January 19, 2017)

Page Range6305-6307
FR Document2017-00727

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

Federal Register, Volume 82 Issue 12 (Thursday, January 19, 2017)
[Federal Register Volume 82, Number 12 (Thursday, January 19, 2017)]
[Rules and Regulations]
[Pages 6305-6307]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00727]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Part 3160

[17X.LLWO310000.L13100000.PP0000]
RIN 1004-AE49


Onshore Oil and Gas Operations--Annual Civil Penalties Inflation 
Adjustments

AGENCY: Bureau of Land Management, Interior.

ACTION: Final rule.

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

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

DATES: This rule is effective on January 19, 2017.

FOR FURTHER INFORMATION CONTACT: Steven Wells, Division Chief, Fluid 
Minerals Division, 202-912-7143, for information regarding the BLM's 
Fluid Minerals Program. For questions relating to regulatory process 
issues, please contact Jennifer Noe, Division of Regulatory Affairs, at 
202-912-7442. Persons who use a telecommunications device for the deaf 
(TDD) may call the Federal Information Relay Service (FIRS) at 1-800-
877-8339, 24 hours a day, 7 days a week to contact the above 
individuals.

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

I. Background

    On November 2, 2015, the President signed the Act into law (Sec. 
701 of Pub. L. 114-74). The Act requires agencies to:
    1. Adjust the level of civil monetary penalties with an initial 
``catch-up'' adjustment through an interim final rulemaking in 2016;
    2. Make subsequent annual adjustments for inflation beginning in 
2017; and
    3. Report annually in Agency Financial Reports on these inflation 
adjustments.
    In July 2016, the BLM issued an interim final rule that adjusted 
the level of civil monetary penalties with the initial ``catch-up'' 
adjustment, which is reflected in the table below in the ``Previous 
Penalty'' column.
    With this final rule, the BLM is adjusting civil monetary penalties 
for inflation. The adjustments made by this rule are consistent with 
the requirements of the Act and OMB guidance.
    The purpose of these adjustments is to maintain the deterrent 
effect of civil penalties found in existing regulations, in order to 
further the policy goals of the underlying statutes. The BLM has 
reviewed its existing regulations and determined that only the civil 
monetary penalties found at 43 CFR 3163.2 are subject to the Act's 
requirements.
    The adjustments made by this final rule constitute the first annual 
adjustment contemplated by the Act, and include the following changes 
to the penalties:

----------------------------------------------------------------------------------------------------------------
                                                                                     Previous        Adjusted
                 CFR Citation                      Description of the penalty         penalty         penalty
----------------------------------------------------------------------------------------------------------------
43 CFR 3163.2(a)..............................  Failure to comply...............          $1,031          $1,048
43 CFR 3163.2(b)..............................  If corrective action is not               10,314          10,483
                                                 taken.
43 CFR 3163.2(d)..............................  If transporter fails to permit             1,031           1,048
                                                 inspection for documentation.
43 CFR 3163.2(e)..............................  Failure to permit inspection,             20,628          20,965
                                                 failure to notify.
43 CFR 3163.2(f)..............................  False or inaccurate documents;            51,570          52,414
                                                 unlawful transfer or purchase.
43 CFR 3163.2(g)(1)...........................  Initial penalty under 43 CFR               1,031           1,048
                                                 3163.2(a) for a major violation.
43 CFR 3163.2(g)(1)...........................  Maximum penalty under 43 CFR               2,063           2,097
                                                 3163.2(a) for a major violation.

[[Page 6306]]

 
43 CFR 3163.2(g)(1)...........................  Initial penalty under 43 CFR              10,314          10,483
                                                 3163.2(b) for a major violation.
43 CFR 3163.2(g)(1)...........................  Maximum penalty under 43 CFR              20,628          20,965
                                                 3163.2(b) for a major violation.
43 CFR 3163.2(g)(1)...........................  Penalty under 43 CFR 3163.2(d)             1,031           1,048
                                                 for a major violation.
43 CFR 3163.2(g)(1)...........................  Penalty under 43 CFR 3163.2(e)            20,628          20,965
                                                 for a major violation.
43 CFR 3163.2(g)(1)...........................  Penalty under 43 CFR 3163.2(f)            51,570          52,414
                                                 for a major violation.
43 CFR 3163.2(g)(2)(iii)......................  Initial penalty under 43 CFR                 103             105
                                                 3163.2(a) for a minor violation.
43 CFR 3163.2(g)(2)(iii)......................  Initial penalty under 43 CFR               1,031           1,048
                                                 3163.2(b) for a minor violation.
43 CFR 3163.2(g)(2)(iii)......................  Maximum penalty under 43 CFR                 206             209
                                                 3163.2(a) for a minor violation.
43 CFR 3163.2(g)(2)(iii)......................  Maximum penalty under 43 CFR               2,063           2,097
                                                 3163.2(b) for a minor violation.
----------------------------------------------------------------------------------------------------------------

II. Calculation of Adjustment

    OMB issued guidance on calculating the annual adjustment for 2017 
in accordance with the Act. See December 16, 2016, Memorandum for the 
Heads of Executive Departments and Agencies, from Shaun Donovan, 
Director, Office of Management and Budget, re: Implementation of the 
2017 annual adjustment pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015. Under this guidance, 
the Department of the Interior has identified applicable civil monetary 
penalties and calculated the annual adjustment. A civil monetary 
penalty is any assessment with a dollar amount that is levied for a 
violation of a Federal civil statute or regulation, and is assessed or 
enforceable through a civil action in Federal court or an 
administrative proceeding. A civil monetary penalty does not include a 
penalty levied for violation of a criminal statute, or fees for 
services, licenses, permits, or other regulatory review. The calculated 
annual inflation adjustments are based on the percent change between 
the October CPI-U preceding the date of the adjustment, and the prior 
year's October CPI-U. In this case, October 2016 CPI-U (241.729)/
October 2015 CPI-U (237.838) = 1.01636.

III. Procedural Requirements

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

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

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires an agency to prepare 
a regulatory flexibility analysis for rules unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. The RFA applies only to rules for 
which an agency is required to first publish a proposed rule. See 5 
U.S.C. 603(a) and 604(a). The Act requires agencies to adjust civil 
penalties annually for inflation through a final rule (see Sec.  
4(b)(2) of the Act). Because the final rule in this case does not 
include publication of a proposed rule, the RFA does not apply to this 
final rule.

C. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.
    This rule will potentially affect individuals and companies who 
hold leases on Federal or Indian lands. The BLM believes that the vast 
majority of potentially affected entities will be small businesses as 
defined by the Small Business Administration. However, the BLM does not 
believe the rule will pose a significant economic impact on the 
industry, including any small entities, for two reasons. First, any 
lessee can avoid being assessed civil penalties by operating in 
compliance with BLM rules and regulations. Second, payments for 
penalties adjusted as a result of this rule will be negligible compared 
with the $23 billion worth of crude oil and natural gas produced from 
Federal and Indian leases in FY 2015.

D. Unfunded Mandates Reform Act

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

E. Takings (E.O. 12630)

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

F. Federalism (E.O. 13132)

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

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

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

[[Page 6307]]

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

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

I. Paperwork Reduction Act

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

J. National Environmental Policy Act

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

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

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

L. Administrative Procedure Act

    The BLM is promulgating this rule as a final rule because the Act 
expressly directs us to do so. In accordance with the Act, agencies 
must adjust civil monetary penalties notwithstanding Section 553 of the 
Administrative Procedure Act (APA) (see Sec.  4(b)(2) of the Act). This 
means that the notice and opportunity to comment procedures of the APA 
do not apply and are not required for agencies to issue regulations 
implementing the annual adjustment. In addition, since the Act does not 
give the BLM any discretion to vary the amount of the annual inflation 
adjustment for any given penalty to reflect any views or suggestions 
provided by commenters, it would serve no purpose to provide an 
opportunity for public comment on this rule.

List of Subjects 43 CFR Part 3160

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

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

PART 3160--ONSHORE OIL AND GAS OPERATIONS

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

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

Subpart 3163--Noncompliance, Assessments, and Penalties


Sec.  3163.2  [Amended]

0
2. In Sec.  3163.2:
0
a. In paragraph (a), remove ``$1,031'' and add in its place ``$1,048''.
0
b. In paragraph (b), remove ``$10,314'' and add in its place 
``$10,483''.
0
c. In paragraph (d), remove ``$1,031'' and add in its place ``$1,048''.
0
d. In paragraph (e) introductory text, remove ``$20,628'' and add in 
its place ``$20,965''.
0
e. In paragraph (f) introductory text, remove ``$51,570'' and add in 
its place ``$52,414''.
0
f. In paragraph (g)(1), remove ``$1,031'' each place that it occurs and 
add in its place ``$1,048''; remove ``$10,314'' and add in its place 
``$10,483''; remove ``$2,063 and add in its place ``$2,097''; remove 
``$20,628''each place that it occurs and add in its place ``$20,965''; 
remove ``$51,570'' and add in its place ``$52,414''.
0
g. In paragraph (g)(2)(iii), remove ``$103'' and add in its place 
``$105''; remove ``$1,031'' and add in its place ``$1,048''; remove 
``$206'' and add in its place ``$209''; remove ``$2,063'' and add in 
its place ``$2,097''.

    Dated: January 10, 2017.
Amanda C. Leiter,
Acting Assistant Secretary, Land and Minerals Management.
[FR Doc. 2017-00727 Filed 1-18-17; 8:45 am]
 BILLING CODE 4310-84-P



                                                                       Federal Register / Vol. 82, No. 12 / Thursday, January 19, 2017 / Rules and Regulations                                                                      6305

                                                  subcutaneous needle administration of a                             as of the effective date of a tax enacted                               I. Background
                                                  vaccine.                                                            to provide funds for compensation paid                                  II. Calculation of Adjustment
                                                     (3) Sequela means a condition or                                 with respect to such vaccines. An                                       III. Procedural Requirements
                                                  event which was actually caused by a                                amendment to this section will be                                          A. Regulatory Planning and Review (E.O.
                                                                                                                                                                                                    12866 and 13563)
                                                  condition listed in the Vaccine Injury                              published in the Federal Register to                                       B. Regulatory Flexibility Act
                                                  Table.                                                              announce the effective date of such a                                      C. Small Business Regulatory Enforcement
                                                     (4) Significantly decreased level of                             tax.                                                                          Fairness Act
                                                  consciousness is indicated by the                                   [FR Doc. 2017–00701 Filed 1–18–17; 8:45 am]                                D. Unfunded Mandates Reform Act
                                                  presence of one or more of the following                            BILLING CODE 4160–15–P                                                     E. Takings (E.O. 12630)
                                                  clinical signs:                                                                                                                                F. Federalism (E.O. 13132)
                                                     (i) Decreased or absent response to                                                                                                         G. Civil Justice Reform (E.O. 12988)
                                                  environment (responds, if at all, only to                                                                                                      H. Consultation with Indian Tribes (E.O.
                                                  loud voice or painful stimuli);                                     DEPARTMENT OF THE INTERIOR                                                    13175 and Departmental Policy)
                                                     (ii) Decreased or absent eye contact                                                                                                        I. Paperwork Reduction Act
                                                                                                                      Bureau of Land Management                                                  J. National Environmental Policy Act
                                                  (does not fix gaze upon family members
                                                                                                                                                                                                 K. Effects on the Energy Supply (E.O.
                                                  or other individuals); or
                                                     (iii) Inconsistent or absent responses                           43 CFR Part 3160                                                              13211)
                                                                                                                                                                                                 L. Administrative Procedure Act
                                                  to external stimuli (does not recognize                             [17X.LLWO310000.L13100000.PP0000]
                                                  familiar people or things).                                                                                                                 I. Background
                                                                                                                      RIN 1004–AE49
                                                     (5) Seizure includes myoclonic,                                                                                                             On November 2, 2015, the President
                                                  generalized tonic-clonic (grand mal),                               Onshore Oil and Gas Operations—                                         signed the Act into law (Sec. 701 of Pub.
                                                  and simple and complex partial                                      Annual Civil Penalties Inflation                                        L. 114–74). The Act requires agencies to:
                                                  seizures, but not absence (petit mal), or                           Adjustments                                                                1. Adjust the level of civil monetary
                                                  pseudo seizures. Jerking movements or                                                                                                       penalties with an initial ‘‘catch-up’’
                                                  staring episodes alone are not                                      AGENCY:   Bureau of Land Management,
                                                                                                                                                                                              adjustment through an interim final
                                                  necessarily an indication of seizure                                Interior.
                                                                                                                                                                                              rulemaking in 2016;
                                                  activity.                                                           ACTION: Final rule.                                                        2. Make subsequent annual
                                                     (e) Coverage provisions. (1) Except as
                                                                                                                      SUMMARY:   This rule adjusts the level of                               adjustments for inflation beginning in
                                                  provided in paragraph (e)(2), (3), (4), (5),
                                                                                                                      civil monetary penalties contained in                                   2017; and
                                                  (6), (7), or (8) of this section, this section
                                                                                                                      the Bureau of Land Management’s                                            3. Report annually in Agency
                                                  applies only to petitions for
                                                                                                                      regulations governing onshore oil and                                   Financial Reports on these inflation
                                                  compensation under the program filed
                                                                                                                      gas operations as required by the                                       adjustments.
                                                  with the United States Court of Federal
                                                                                                                      Federal Civil Penalties Inflation                                          In July 2016, the BLM issued an
                                                  Claims on or after February 21, 2017.
                                                     (2) Hepatitis B, Hib, and varicella                              Adjustment Act Improvements Act of                                      interim final rule that adjusted the level
                                                  vaccines (Items VIII, IX, and X of the                              2015 (the ‘‘Act’’). The adjustments made                                of civil monetary penalties with the
                                                  Table) are included in the Table as of                              by this final rule constitute the annual                                initial ‘‘catch-up’’ adjustment, which is
                                                  August 6, 1997.                                                     inflation adjustments contemplated by                                   reflected in the table below in the
                                                     (3) Rotavirus vaccines (Item XI of the                           the Act, and are consistent with                                        ‘‘Previous Penalty’’ column.
                                                  Table) are included in the Table as of                              applicable Office of Management and                                        With this final rule, the BLM is
                                                  October 22, 1998.                                                   Budget (OMB) guidance.                                                  adjusting civil monetary penalties for
                                                     (4) Pneumococcal conjugate vaccines                                                                                                      inflation. The adjustments made by this
                                                                                                                      DATES: This rule is effective on January
                                                  (Item XII of the Table) are included in                                                                                                     rule are consistent with the
                                                                                                                      19, 2017.                                                               requirements of the Act and OMB
                                                  the Table as of December 18, 1999.
                                                                                                                      FOR FURTHER INFORMATION CONTACT:                                        guidance.
                                                     (5) Hepatitis A vaccines (Item XIII of
                                                  the Table) are included on the Table as                             Steven Wells, Division Chief, Fluid                                        The purpose of these adjustments is to
                                                  of December 1, 2004.                                                Minerals Division, 202–912–7143, for                                    maintain the deterrent effect of civil
                                                     (6) Trivalent influenza vaccines                                 information regarding the BLM’s Fluid                                   penalties found in existing regulations,
                                                  (Included in item XIV of the Table) are                             Minerals Program. For questions                                         in order to further the policy goals of the
                                                  included on the Table as of July 1, 2005.                           relating to regulatory process issues,                                  underlying statutes. The BLM has
                                                  All other seasonal influenza vaccines                               please contact Jennifer Noe, Division of                                reviewed its existing regulations and
                                                  (Item XIV of the Table) are included on                             Regulatory Affairs, at 202–912–7442.                                    determined that only the civil monetary
                                                  the Table as of November 12, 2013.                                  Persons who use a telecommunications                                    penalties found at 43 CFR 3163.2 are
                                                     (7) Meningococcal vaccines and                                   device for the deaf (TDD) may call the                                  subject to the Act’s requirements.
                                                  human papillomavirus vaccines (Items                                Federal Information Relay Service                                          The adjustments made by this final
                                                  XV and XVI of the Table) are included                               (FIRS) at 1–800–877–8339, 24 hours a                                    rule constitute the first annual
                                                  on the Table as of February 1, 2007.                                day, 7 days a week to contact the above                                 adjustment contemplated by the Act,
                                                     (8) Other new vaccines (Item XVII of                             individuals.                                                            and include the following changes to
                                                  the Table) will be included in the Table                            SUPPLEMENTARY INFORMATION:                                              the penalties:

                                                                                                                                                                                                                   Previous     Adjusted
                                                                 CFR Citation                                                           Description of the penalty
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                                                                                                                                                                                    penalty      penalty

                                                  43   CFR   3163.2(a) ............................    Failure to comply .......................................................................................       $1,031       $1,048
                                                  43   CFR   3163.2(b) ............................    If corrective action is not taken .................................................................             10,314       10,483
                                                  43   CFR   3163.2(d) ............................    If transporter fails to permit inspection for documentation .......................                              1,031        1,048
                                                  43   CFR   3163.2(e) ............................    Failure to permit inspection, failure to notify .............................................                   20,628       20,965
                                                  43   CFR   3163.2(f) .............................   False or inaccurate documents; unlawful transfer or purchase ................                                   51,570       52,414
                                                  43   CFR   3163.2(g)(1) .......................      Initial penalty under 43 CFR 3163.2(a) for a major violation ...................                                 1,031        1,048
                                                  43   CFR   3163.2(g)(1) .......................      Maximum penalty under 43 CFR 3163.2(a) for a major violation ............                                        2,063        2,097



                                             VerDate Sep<11>2014      20:34 Jan 18, 2017      Jkt 241001      PO 00000      Frm 00109       Fmt 4700      Sfmt 4700      E:\FR\FM\19JAR1.SGM            19JAR1


                                                  6306                Federal Register / Vol. 82, No. 12 / Thursday, January 19, 2017 / Rules and Regulations

                                                                                                                                                                                           Previous       Adjusted
                                                                 CFR Citation                                                  Description of the penalty                                   penalty        penalty

                                                  43   CFR   3163.2(g)(1) .......................    Initial penalty under 43 CFR 3163.2(b) for a major violation ...................          10,314         10,483
                                                  43   CFR   3163.2(g)(1) .......................    Maximum penalty under 43 CFR 3163.2(b) for a major violation ............                 20,628         20,965
                                                  43   CFR   3163.2(g)(1) .......................    Penalty under 43 CFR 3163.2(d) for a major violation .............................         1,031          1,048
                                                  43   CFR   3163.2(g)(1) .......................    Penalty under 43 CFR 3163.2(e) for a major violation .............................        20,628         20,965
                                                  43   CFR   3163.2(g)(1) .......................    Penalty under 43 CFR 3163.2(f) for a major violation ..............................       51,570         52,414
                                                  43   CFR   3163.2(g)(2)(iii) ...................   Initial penalty under 43 CFR 3163.2(a) for a minor violation ...................             103            105
                                                  43   CFR   3163.2(g)(2)(iii) ...................   Initial penalty under 43 CFR 3163.2(b) for a minor violation ...................           1,031          1,048
                                                  43   CFR   3163.2(g)(2)(iii) ...................   Maximum penalty under 43 CFR 3163.2(a) for a minor violation ............                    206            209
                                                  43   CFR   3163.2(g)(2)(iii) ...................   Maximum penalty under 43 CFR 3163.2(b) for a minor violation ............                  2,063          2,097



                                                  II. Calculation of Adjustment                                  and freedom of choice for the public                    However, the BLM does not believe the
                                                                                                                 where these approaches are relevant,                    rule will pose a significant economic
                                                     OMB issued guidance on calculating
                                                                                                                 feasible, and consistent with regulatory                impact on the industry, including any
                                                  the annual adjustment for 2017 in
                                                                                                                 objectives. E.O. 13563 emphasizes                       small entities, for two reasons. First, any
                                                  accordance with the Act. See December
                                                                                                                 further that regulations must be based                  lessee can avoid being assessed civil
                                                  16, 2016, Memorandum for the Heads of
                                                                                                                 on the best available science, and that                 penalties by operating in compliance
                                                  Executive Departments and Agencies,                            the rulemaking process must allow for                   with BLM rules and regulations.
                                                  from Shaun Donovan, Director, Office of                        public participation and an open                        Second, payments for penalties adjusted
                                                  Management and Budget, re:                                     exchange of ideas. We have developed                    as a result of this rule will be negligible
                                                  Implementation of the 2017 annual                              this rule in a manner consistent with                   compared with the $23 billion worth of
                                                  adjustment pursuant to the Federal Civil                       these requirements.                                     crude oil and natural gas produced from
                                                  Penalties Inflation Adjustment Act
                                                                                                                 B. Regulatory Flexibility Act                           Federal and Indian leases in FY 2015.
                                                  Improvements Act of 2015. Under this
                                                  guidance, the Department of the Interior                         The Regulatory Flexibility Act (RFA)                  D. Unfunded Mandates Reform Act
                                                  has identified applicable civil monetary                       requires an agency to prepare a                            This rule does not impose an
                                                  penalties and calculated the annual                            regulatory flexibility analysis for rules               unfunded mandate on State, local, or
                                                  adjustment. A civil monetary penalty is                        unless the agency certifies that the rule               tribal governments, or the private sector
                                                  any assessment with a dollar amount                            will not have a significant economic                    of more than $100 million per year. The
                                                  that is levied for a violation of a Federal                    impact on a substantial number of small                 rule does not have a significant or
                                                  civil statute or regulation, and is                            entities. The RFA applies only to rules                 unique effect on State, local, or tribal
                                                  assessed or enforceable through a civil                        for which an agency is required to first                governments or the private sector. A
                                                  action in Federal court or an                                  publish a proposed rule. See 5 U.S.C.                   statement containing the information
                                                  administrative proceeding. A civil                             603(a) and 604(a). The Act requires                     required by the Unfunded Mandates
                                                  monetary penalty does not include a                            agencies to adjust civil penalties                      Reform Act (2 U.S.C. 1531 et seq.) is not
                                                  penalty levied for violation of a criminal                     annually for inflation through a final                  required.
                                                  statute, or fees for services, licenses,                       rule (see § 4(b)(2) of the Act). Because
                                                  permits, or other regulatory review. The                       the final rule in this case does not                    E. Takings (E.O. 12630)
                                                  calculated annual inflation adjustments                        include publication of a proposed rule,                   This rule does not effect a taking of
                                                  are based on the percent change                                the RFA does not apply to this final                    private property or otherwise have
                                                  between the October CPI–U preceding                            rule.                                                   takings implications under Executive
                                                  the date of the adjustment, and the prior                                                                              Order 12630. A takings implication
                                                                                                                 C. Small Business Regulatory
                                                  year’s October CPI–U. In this case,                                                                                    assessment is not required.
                                                                                                                 Enforcement Fairness Act
                                                  October 2016 CPI–U (241.729)/October
                                                  2015 CPI–U (237.838) = 1.01636.                                   This rule is not a major rule under 5                F. Federalism (E.O. 13132)
                                                                                                                 U.S.C. 804(2), the Small Business
                                                  III. Procedural Requirements                                   Regulatory Enforcement Fairness Act.                      Under the criteria in section 1 of
                                                                                                                 This rule:                                              Executive Order 13132, this rule does
                                                  A. Regulatory Planning and Review                                                                                      not have sufficient federalism
                                                  (E.O. 12866 and 13563)                                            (a) Does not have an annual effect on
                                                                                                                 the economy of $100 million or more.                    implications to warrant the preparation
                                                    Executive Order 12866 provides that                             (b) Will not cause a major increase in               of a federalism summary impact
                                                  the Office of Information and Regulatory                       costs or prices for consumers,                          statement. A federalism summary
                                                  Affairs in the Office of Management and                        individual industries, Federal, State, or               impact statement is not required.
                                                  Budget will review all significant rules.                      local government agencies, or                           G. Civil Justice Reform (E.O. 12988)
                                                  The Office of Information and                                  geographic regions.
                                                  Regulatory Affairs has determined that                            (c) Does not have significant adverse                   This rule complies with the
                                                  this rule is not significant. Executive                        effects on competition, employment,                     requirements of Executive Order 12988.
                                                  Order 13563 reaffirms the principles of                        investment, productivity, innovation, or                Specifically, this rule:
                                                  E.O. 12866 while calling for                                   the ability of U.S.-based enterprises to                   (a) Meets the criteria of section 3(a)
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                                                  improvements in the nation’s regulatory                        compete with foreign-based enterprises.                 requiring that all regulations be
                                                  system to promote predictability, to                              This rule will potentially affect                    reviewed to eliminate errors and
                                                  reduce uncertainty, and to use the best,                       individuals and companies who hold                      ambiguity and be written to minimize
                                                  most innovative, and least burdensome                          leases on Federal or Indian lands. The                  litigation; and
                                                  tools for achieving regulatory ends. The                       BLM believes that the vast majority of                     (b) Meets the criteria of section 3(b)(2)
                                                  executive order directs agencies to                            potentially affected entities will be                   requiring that all regulations be written
                                                  consider regulatory approaches that                            small businesses as defined by the                      in clear language and contain clear legal
                                                  reduce burdens and maintain flexibility                        Small Business Administration.                          standards.


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                                                                   Federal Register / Vol. 82, No. 12 / Thursday, January 19, 2017 / Rules and Regulations                                          6307

                                                  H. Consultation With Indian Tribes                      adjustment for any given penalty to                    DEPARTMENT OF THE INTERIOR
                                                  (E.O. 13175 and Departmental policy)                    reflect any views or suggestions
                                                     The Department of the Interior strives               provided by commenters, it would serve                 Fish and Wildlife Service
                                                  to strengthen its government-to-                        no purpose to provide an opportunity
                                                  government relationship with Indian                     for public comment on this rule.                       50 CFR Part 11
                                                  tribes through a commitment to                          List of Subjects 43 CFR Part 3160                      [Docket No. FWS–HQ–LE–2017–0001;
                                                  consultation with Indian tribes and                                                                            FF09L00200–FX–LE18110900000]
                                                  recognition of their right to self-                       Administrative practice and
                                                                                                          procedure; Government contracts;                       RIN 1018–BB97
                                                  governance and tribal sovereignty. We
                                                  have evaluated this rule under the                      Indians-lands; Mineral royalties; Oil and
                                                                                                          gas exploration; Penalties; Public lands-              Civil Penalties; 2017 Inflation
                                                  Department’s consultation policy and                                                                           Adjustments for Civil Monetary
                                                  under the criteria in Executive Order                   mineral resources; Reporting and
                                                                                                          recordkeeping requirements.                            Penalties
                                                  13175 and have determined that it has
                                                  no substantial direct effects on federally                For the reasons given in the preamble,               AGENCY:   Fish and Wildlife Service,
                                                  recognized Indian tribes and that                       the BLM amends Chapter II of Title 43                  Interior.
                                                  consultation under the Department’s                     of the Code of Federal Regulations as                  ACTION: Final rule.
                                                  tribal consultation policy is not                       follows:
                                                  required.                                                                                                      SUMMARY:    The U.S. Fish and Wildlife
                                                                                                          PART 3160—ONSHORE OIL AND GAS                          Service (Service or we) is issuing this
                                                  I. Paperwork Reduction Act                              OPERATIONS                                             final rule, in accordance with the
                                                     This rule does not contain                                                                                  Federal Civil Penalties Inflation
                                                  information collection requirements,                    ■  1. The authority citation for part 3160             Adjustment Act Improvements Act of
                                                  and a submission to OMB under the                       is revised to read as follows:                         2015 (Inflation Adjustment Act) and
                                                  Paperwork Reduction Act (44 U.S.C.                        Authority: 25 U.S.C. 396d and 2107; 30               Office of Management and Budget
                                                  3501 et seq.) is not required. We may                   U.S.C. 189, 306, 359, and 1751; 43 U.S.C.              (OMB) guidance, to adjust for inflation
                                                  not conduct or sponsor, and you are not                 1732(b), 1733, 1740; and Sec. 107, Pub. L.             the statutory civil monetary penalties
                                                  required to respond to, a collection of                 114–74, 129 Stat. 599, unless otherwise                that may be assessed for violations of
                                                  information unless it displays a                        noted.                                                 Service-administered statutes and their
                                                  currently valid OMB control number.                                                                            implementing regulations. We are
                                                                                                          Subpart 3163—Noncompliance,                            required to adjust civil monetary
                                                  J. National Environmental Policy Act                    Assessments, and Penalties                             penalties annually for inflation
                                                     A detailed statement under the                       § 3163.2    [Amended]                                  according to a formula specified in the
                                                  National Environmental Policy Act of                                                                           Inflation Adjustment Act. This rule
                                                  1969 (NEPA) is not required because the                 ■  2. In § 3163.2:                                     replaces the previously issued amounts
                                                  rule is covered by a categorical                        ■  a. In paragraph (a), remove ‘‘$1,031’’              with the updated amounts after using
                                                  exclusion. This rule is excluded from                   and add in its place ‘‘$1,048’’.                       the 2017 inflation adjustment multiplier
                                                  the requirement to prepare a detailed                   ■ b. In paragraph (b), remove ‘‘$10,314’’              provided in the OMB guidance.
                                                  statement because it is a regulation of an              and add in its place ‘‘$10,483’’.
                                                                                                                                                                 DATES: This rule is effective January 19,
                                                  administrative nature. (For further                     ■ c. In paragraph (d), remove ‘‘$1,031’’
                                                                                                                                                                 2017.
                                                  information see 43 CFR 46.210(i).) We                   and add in its place ‘‘$1,048’’.
                                                                                                                                                                 ADDRESSES: This rule may be found on
                                                  have also determined that the rule does                 ■ d. In paragraph (e) introductory text,
                                                                                                                                                                 the internet at www.regulations.gov in
                                                  not involve any of the extraordinary                    remove ‘‘$20,628’’ and add in its place
                                                                                                                                                                 Docket No. FWS–HQ–LE–2017–0001.
                                                  circumstances listed in 43 CFR 46.215                   ‘‘$20,965’’.
                                                                                                                                                                 The previous rulemaking action related
                                                  that would require further analysis                     ■ e. In paragraph (f) introductory text,
                                                                                                                                                                 to this rule and described below in
                                                  under NEPA.                                             remove ‘‘$51,570’’ and add in its place
                                                                                                                                                                 SUPPLEMENTARY INFORMATION may be
                                                                                                          ‘‘$52,414’’.
                                                  K. Effects on the Energy Supply (E.O.                                                                          found at www.regulations.gov in Docket
                                                                                                          ■ f. In paragraph (g)(1), remove
                                                  13211)                                                                                                         No. FWS–HQ–LE–2016–0045.
                                                                                                          ‘‘$1,031’’ each place that it occurs and
                                                    This rule is not a significant energy                 add in its place ‘‘$1,048’’; remove                    FOR FURTHER INFORMATION CONTACT: Paul
                                                  action under the definition in Executive                ‘‘$10,314’’ and add in its place                       Beiriger, Special Agent in Charge,
                                                  Order 13211. Therefore, a Statement of                  ‘‘$10,483’’; remove ‘‘$2,063 and add in                Branch of Investigations, U.S. Fish and
                                                  Energy Effects is not required.                         its place ‘‘$2,097’’; remove                           Wildlife Service, Office of Law
                                                                                                          ‘‘$20,628’’each place that it occurs and               Enforcement, (703) 358–1949.
                                                  L. Administrative Procedure Act
                                                                                                          add in its place ‘‘$20,965’’; remove                   SUPPLEMENTARY INFORMATION:
                                                     The BLM is promulgating this rule as                 ‘‘$51,570’’ and add in its place
                                                  a final rule because the Act expressly                                                                         Background
                                                                                                          ‘‘$52,414’’.
                                                  directs us to do so. In accordance with                 ■ g. In paragraph (g)(2)(iii), remove                    The regulations in title 50 of the Code
                                                  the Act, agencies must adjust civil                     ‘‘$103’’ and add in its place ‘‘$105’’;                of Federal Regulations at 50 CFR part 11
                                                  monetary penalties notwithstanding                      remove ‘‘$1,031’’ and add in its place                 provide uniform rules and procedures
                                                  Section 553 of the Administrative                       ‘‘$1,048’’; remove ‘‘$206’’ and add in its             for the assessment of civil penalties
                                                  Procedure Act (APA) (see § 4(b)(2) of the               place ‘‘$209’’; remove ‘‘$2,063’’ and add              resulting from violations of certain laws
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                                                  Act). This means that the notice and                    in its place ‘‘$2,097’’.                               and regulations enforced by the Service.
                                                  opportunity to comment procedures of                                                                             On November 2, 2015, the President
                                                  the APA do not apply and are not                         Dated: January 10, 2017.                              signed into law the Federal Civil
                                                  required for agencies to issue                          Amanda C. Leiter,                                      Penalties Inflation Adjustment Act
                                                  regulations implementing the annual                     Acting Assistant Secretary, Land and                   Improvements Act of 2015 (sec. 701 of
                                                  adjustment. In addition, since the Act                  Minerals Management.                                   Pub. L. 114–74) (Inflation Adjustment
                                                  does not give the BLM any discretion to                 [FR Doc. 2017–00727 Filed 1–18–17; 8:45 am]            Act). The Inflation Adjustment Act
                                                  vary the amount of the annual inflation                 BILLING CODE 4310–84–P                                 requires Federal agencies to adjust the


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Document Created: 2018-02-01 15:16:02
Document Modified: 2018-02-01 15:16:02
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective on January 19, 2017.
ContactSteven Wells, Division Chief, Fluid Minerals Division, 202-912-7143, for information regarding the BLM's Fluid Minerals Program. For questions relating to regulatory process issues, please contact Jennifer Noe, Division of Regulatory Affairs, at 202-912-7442. Persons who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800- 877-8339, 24 hours a day, 7 days a week to contact the above individuals.
FR Citation82 FR 6305 
RIN Number1004-AE49

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