83_FR_14512 83 FR 14447 - Polaris Industries Inc., Provisional Acceptance of a Settlement Agreement and Order

83 FR 14447 - Polaris Industries Inc., Provisional Acceptance of a Settlement Agreement and Order

CONSUMER PRODUCT SAFETY COMMISSION

Federal Register Volume 83, Issue 65 (April 4, 2018)

Page Range14447-14450
FR Document2018-06820

It is the policy of the Commission to publish settlements which it provisionally accepts under the Consumer Product Safety Act in the Federal Register in accordance with the terms of the Consumer Product Safety Commission's regulations. Published below is a provisionally-accepted Settlement Agreement with Polaris Industries Inc. containing a civil penalty in the amount of twenty seven million, two hundred and fifty thousand dollars ($27,250,000), to be paid within thirty (30) days of service of the Commission's final Order accepting the Settlement Agreement.

Federal Register, Volume 83 Issue 65 (Wednesday, April 4, 2018)
[Federal Register Volume 83, Number 65 (Wednesday, April 4, 2018)]
[Notices]
[Pages 14447-14450]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-06820]


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CONSUMER PRODUCT SAFETY COMMISSION

[CPSC Docket No. 18-C0001]


Polaris Industries Inc., Provisional Acceptance of a Settlement 
Agreement and Order

AGENCY: Consumer Product Safety Commission.

ACTION: Notice.

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SUMMARY: It is the policy of the Commission to publish settlements 
which it provisionally accepts under the Consumer Product Safety Act in 
the Federal Register in accordance with the terms of the Consumer 
Product Safety Commission's regulations. Published below is a 
provisionally-accepted Settlement Agreement with Polaris Industries 
Inc. containing a civil penalty in the amount of twenty seven million, 
two hundred and fifty thousand dollars ($27,250,000), to be paid within 
thirty (30) days of service of the Commission's final Order accepting 
the Settlement Agreement.

DATES: Any interested person may ask the Commission not to accept this 
agreement or otherwise comment on its contents by filing a written 
request with the Office of the Secretary by April 19, 2018.

ADDRESSES: Persons wishing to comment on this Settlement Agreement 
should send written comments to the Comment 18-C0001, Office of the 
Secretary, Consumer Product Safety Commission, 4330 East West Highway, 
Room 820, Bethesda, Maryland 20814-4408.

FOR FURTHER INFORMATION CONTACT: Daniel R. Vice, Trial Attorney, 
Division of Compliance, Office of the General Counsel, Consumer Product 
Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814-
4408; telephone (301) 504-6996.

SUPPLEMENTARY INFORMATION: The text of the Agreement and Order appears 
below.

    Dated: March 30, 2018.
Alberta E. Mills,
Secretary.

UNITED STATES OF AMERICA

CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of: POLARIS INDUSTRIES INC.

CPSC Docket No.: 18-C0001

SETTLEMENT AGREEMENT

    1. In accordance with the Consumer Product Safety Act, 15 U.S.C. 
Sec. Sec.  2051-2089 (``CPSA'') and 16 CFR Sec.  1118.20, Polaris 
Industries Inc. (``Polaris''), and the United States Consumer 
Product Safety Commission (``Commission''), through its staff, 
hereby enter into this Settlement Agreement (``Agreement''). The 
Agreement and the incorporated attached Order resolve staff's 
charges set forth below.

THE PARTIES

    2. The Commission is an independent federal regulatory agency, 
established pursuant to, and responsible for the enforcement of, the 
CPSA, 15 U.S.C. Sec. Sec.  2051-2089. By executing the Agreement, 
staff is acting on behalf of the Commission, pursuant to 16 CFR 
Sec.  1118.20(b). The Commission issues the Order under the 
provisions of the CPSA.
    3. Polaris is a corporation, organized and existing under the 
laws of the state of Minnesota, with its principal place of business 
in Medina, Minnesota.

STAFF CHARGES

    4. Between February 2012 and April 2016, Polaris manufactured or 
imported, distributed and offered for sale in the United States 
approximately 133,000 Model Year 2013-2016 RZR 900 and Model Year 
2014-2016 RZR 1000 recreational off-road vehicles (``RZRs'').
    5. Between April 2013 and April 2017, Polaris manufactured or 
imported, distributed and offered for sale approximately 93,500 
Model Year 2014-2015 Ranger XP 900, XP 900 EPS and CREW 900 off-road 
vehicles (``Rangers'').
    6. The RZRs and Rangers (collectively, the ``Vehicles'') are 
``consumer products'' that were ``distribut[ed] in commerce,'' as 
those terms are defined or used in sections 3(a)(5) and (8) of the 
CPSA, 15 U.S.C. Sec.  2052(a)(5) and (8). Polaris is a 
``manufacturer'' of the Vehicles and imported the Vehicles, as such 
terms are defined in sections 3(a)(9) and (11) of the CPSA, 15 
U.S.C. Sec.  2052(a)(9) and (11).

Violation of CPSA Section 19(a)(4)

Staff Charges Regarding RZR 900s and 1000s

    7. The RZRs contained one or more defects which could create a 
substantial product hazard and create an unreasonable risk of 
serious injury or death because the RZRs could catch fire while 
consumers were driving, posing fire and burn hazards to drivers and 
passengers.

[[Page 14448]]

    8. Despite information that reasonably supported the conclusion 
that the RZRs contained one or more defects that could create a 
substantial product hazard or create an unreasonable risk of serious 
injury or death, Polaris did not immediately report to CPSC.
    9. Instead, Polaris filed a Full Report concerning the fire risk 
associated with MY 2014 to MY 2016 RZRs on February 19, 2016. By 
that time, Polaris reported that it had received reports of 150 
fires on MY 14-MY 16 RZRs that had resulted in the death of a 15-
year-old passenger from a rollover that resulted in a fire, 11 
reports of burn injuries, and a fire that burned ten acres of land.
    10. Polaris and the CPSC announced a recall of 133,000 MY 13-16 
RZRs on April 19, 2016, because the RZRs could catch fire while 
consumers were driving, posing fire and burn hazards to drivers and 
passengers. The repair remedy offered to consumers for this recall 
differed from the repair remedy offered for an earlier recall, 
jointly announced by Polaris and CPSC in October 2015 on MY 15 RZR 
900s and 1000s, involving a pinched fuel tank vent line. By the time 
Polaris announced the April 2016 recall, it had received more than 
160 reports of fires in MY 13-16 RZRs, including the fatality 
previously reported to CPSC and 19 reports of injuries, including 
first, second and third degree burns.

Staff Charges Regarding Ranger 900s

    11. The Rangers contained a defect which could create a 
substantial product hazard and create an unreasonable risk of 
serious injury or death because the heat shield could fall off the 
vehicle, posing fire and burn hazards to riders.
    12. Between December 2013 and July 2016, Polaris received 36 
reports of fires associated with the MY 14 Rangers, including two 
incidents that resulted in minor burns to consumers. Polaris also 
implemented design changes to increase the attachment screw length 
and require the attachment screws to be fastened to a steel frame 
member to prevent the heat shields from becoming loose and falling 
off. The first design change was implemented on MY 15 Rangers and 
the latter on MY 16 Rangers.
    13. Despite information that reasonably supported the conclusion 
that the MY 14 Rangers contained a defect that could create a 
substantial product hazard or created an unreasonable risk of 
serious injury or death, Polaris did not immediately report to CPSC.
    14. Instead, Polaris filed a Full Report on the MY 14 Rangers 
with the Commission, under 15 U.S.C. Sec.  2064(b), on July 12, 
2016.
    15. Polaris and the Commission jointly announced a recall of 
42,500 MY 14 Rangers on September 15, 2016 (``First Ranger Recall'') 
because the heat shields could fall off the vehicle, posing fire and 
burn hazards to riders.
    16. Subsequent to the First Ranger Recall, Polaris received 
reports of heat shields coming loose or falling off on the MY 15 
Ranger, including two reports of fire. Polaris did not immediately 
report this information to CPSC.
    17. Instead, Polaris filed a Full Report on MY 15 Ranger 900s in 
March 2017, when the number of heat shield incidents on Rangers had 
reached 10, including five reports of fires. Polaris and CPSC 
jointly announced a recall of the MY 15 Rangers on April 13, 2017.

Staff Charges of Failure to Report Immediately

    18. Despite having information reasonably supporting the 
conclusion that the Vehicles contained a defect or created an 
unreasonable risk of serious injury, Polaris did not notify the 
Commission immediately of such defect or risk, as required by 
sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. Sec.  2064(b)(3) 
and (4), in violation of section 19(a)(4) of the CPSA, 15 U.S.C. 
Sec.  2068(a)(4).
    19. Because the information in Polaris' possession about the 
Vehicles constituted actual and presumed knowledge, Polaris 
knowingly violated section 19(a)(4) of the CPSA, 15 U.S.C. Sec.  
2068(a)(4), as the term ``knowingly'' is defined in section 20(d) of 
the CPSA, 15 U.S.C. Sec.  2069(d).
    20. Pursuant to section 20 of the CPSA, 15 U.S.C. Sec.  2069, 
Polaris is subject to civil penalties for its knowing violation of 
section 19(a)(4) of the CPSA, 15 U.S.C. Sec.  2068(a)(4).

RESPONSE OF POLARIS

    21. Polaris conducted reasonable, expeditious, and diligent 
investigations into the reports of thermal events relating to the 
RZR and Ranger Vehicles. The RZR and Ranger Vehicles are four-wheel 
vehicles that have automotive-style controls and seating. 
Particularly in gasoline-powered vehicles, fires and other thermal 
events are notoriously difficult to evaluate and often do not allow 
for, and in fact impede, the prompt identification of root causes. 
Fires can, and do, occur in gasoline-powered vehicles for reasons 
unrelated to any potential defect in the vehicles. The causes of the 
fires varied. Polaris identified these causes over time in the 
course of its investigations. The issues involved in the RZR recall 
announced on April 19, 2016 were unrelated to an earlier recall, 
jointly announced in October 2015 on MY 2015 RZR 900s and 1000s, 
involving a pinched fuel tank vent line. Many of the RZR incidents 
received attention in the public media.
    22. The signing of this Agreement does not constitute an 
admission by Polaris of the staff's charges in paragraphs 4 through 
20, including, but not limited to, the charges that (a) the Vehicles 
contained defects that could create a substantial product hazard and 
created an unreasonable risk of serious injury; (b) Polaris failed 
to notify the Commission in a timely manner, in accordance with 
sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. Sec. Sec.  
2064(b)(3) and (4); (c) Polaris failed to furnish information as 
required by sections 15(b)(3) and (4) of the CPSA, 15 U.S.C. Sec.  
2064(b)(3) and (4), in violation of section 19(a)(4) of the CPSA, 15 
U.S.C. Sec.  2068(a)(4); and (d) there was any ``knowing'' violation 
of the CPSA as that term is defined in section 20(d) of the CPSA, 15 
U.S.C. Sec.  2069(d).
    23. The voluntary recalls of the RZR and Ranger Vehicles, as 
well as the voluntary section 15(b) reporting, by Polaris were 
conducted out of an abundance of caution and without Polaris having 
determined or concluded that the RZR Vehicles or Ranger Vehicles 
contained a defect or posed an unreasonable risk of serious injury.
    24. Polaris enters this Agreement to settle this matter without 
the delay and unnecessary expense of litigation.

AGREEMENT OF THE PARTIES

    25. Under the CPSA, the Commission has jurisdiction over the 
matter involving the Vehicles and over Polaris.
    26. The parties enter into the Agreement for settlement purposes 
only. The Agreement does not constitute an admission by Polaris or a 
determination by the Commission that Polaris violated the CPSA's 
reporting requirements.
    27. In settlement of staff's charges of violations of the CPSA, 
15 U.S.C. Sec.  2068(a)(4), and to avoid the cost, distraction, 
delay, uncertainty, and inconvenience of protracted litigation or 
other proceedings, Polaris shall pay a civil penalty in the amount 
of twenty seven million, two hundred and fifty thousand dollars 
($27,250,000) within thirty (30) calendar days after receiving 
service of the Commission's final Order accepting the Agreement. All 
payments to be made under the Agreement shall constitute debts owing 
to the United States and shall be made by electronic wire transfer 
to the United States via http://www.pay.gov, for allocation to, and 
credit against, the payment obligations of Polaris under this 
Agreement. Failure to make such payment by the date specified in the 
Commission's final Order shall constitute Default.
    28. All unpaid amounts, if any, due and owing under the 
Agreement, shall constitute a debt due and immediately owing by 
Polaris to the United States, and interest shall accrue and be paid 
by Polaris at the federal legal rate of interest set forth at 28 
U.S.C. Sec.  1961(a) and (b) from the date of Default, until all 
amounts due have been paid in full (hereinafter ``Default Payment 
Amount'' and ``Default Interest Balance''). Polaris shall consent to 
a Consent Judgment in the amount of the Default Payment Amount and 
Default Interest Balance, and the United States, at its sole option, 
may collect the entire Default Payment Amount and Default Interest 
Balance, or exercise any other rights granted by law or in equity, 
including, but not limited to, referring such matters for private 
collection, and Polaris agrees not to contest, and hereby waives and 
discharges any defenses to, any collection action undertaken by the 
United States, or its agents or contractors, pursuant to this 
paragraph. Polaris shall pay the United States all reasonable costs 
of collection and enforcement under this paragraph, respectively, 
including reasonable attorney's fees and expenses.
    29. After staff receives this Agreement executed on behalf of 
Polaris, staff shall promptly submit the Agreement to the Commission 
for provisional acceptance. Promptly following provisional 
acceptance of the Agreement by the Commission, the Agreement shall 
be placed on the public record and published in the Federal 
Register, in accordance with the procedures set forth in 16 CFR 
Sec.  1118.20(e). If the Commission does not receive any written 
request not to

[[Page 14449]]

accept the Agreement within fifteen (15) calendar days, the 
Agreement shall be deemed finally accepted on the 16th calendar day 
after the date the Agreement is published in the Federal Register, 
in accordance with 16 CFR Sec.  1118.20(f).
    30. This Agreement is conditioned upon, and subject to, the 
Commission's final acceptance, as set forth above, and it is subject 
to the provisions of 16 CFR Sec.  1118.20(h). Upon the later of: (i) 
Commission's final acceptance of this Agreement and service of the 
accepted Agreement upon Polaris, and (ii) the date of issuance of 
the final Order, this Agreement shall be in full force and effect, 
and shall be binding upon the parties.
    31. Effective upon the later of: (i) the Commission's final 
acceptance of the Agreement and service of the accepted Agreement 
upon Polaris and (ii) the date of issuance of the final Order, for 
good and valuable consideration, Polaris hereby expressly and 
irrevocably waives and agrees not to assert any past, present, or 
future rights to the following, in connection with the matter 
described in this Agreement: (i) an administrative or judicial 
hearing; (ii) judicial review or other challenge or contest of the 
Commission's actions; (iii) a determination by the Commission of 
whether Polaris failed to comply with the CPSA and the underlying 
regulations; (iv) a statement of findings of fact and conclusions of 
law; and (v) any claims under the Equal Access to Justice Act.
    32. After receipt of the payment set forth in paragraph 27 
above, the Commission releases and agrees that it will not seek 
civil penalties from Polaris, including its current and former 
directors, officers, employees, successors and assigns, for any 
violation of section 19(a)(4) of the CPSA, 15 U.S.C. Sec.  
2068(a)(4), regarding a hazard or defect reported in connection with 
a model year vehicle for which Polaris, as of June 29, 2017, had 
submitted an Initial or Full Report under CPSA section 15(b), 15 
U.S.C. Sec.  2064(b), and 16 CFR Sec.  1115.13(c) and (d). This 
paragraph does not relieve Polaris from the continuing duty to 
report to the Commission any new, additional or different 
information as required by CPSA section 15(b), 15 U.S.C. Sec.  
2064(b), and the regulations at 16 CFR part 1115.
    33. Polaris represents and warrants that the information 
supplied by Polaris to the Commission in connection with the matters 
addressed in the Agreement was, at the time provided to the 
Commission, full, complete and accurate, to the best of Polaris' 
knowledge.
    34. Polaris shall maintain a compliance program designed to 
ensure compliance with the CPSA with respect to any consumer product 
imported, manufactured, distributed or sold by Polaris, and which 
shall contain the following elements: (i) written standards, 
policies and procedures, including those designed to ensure that 
information that may relate to or impact CPSA compliance is conveyed 
effectively to personnel responsible for CPSA compliance, whether or 
not an injury is referenced; (ii) a mechanism for confidential 
employee reporting of compliance-related questions or concerns to 
either a compliance officer or to another senior manager with 
authority to act as necessary; (iii) effective communication of 
company compliance-related policies and procedures regarding the 
CPSA to all applicable employees through training programs or 
otherwise; (iv) Polaris' senior management responsibility for, and 
general board oversight of, CPSA compliance; and (v) retention of 
all CPSA compliance-related records for at least five (5) years, and 
availability of such records to staff upon request.
    35. Polaris shall maintain and enforce a system of internal 
controls and procedures designed to ensure that, with respect to all 
consumer products imported, manufactured, distributed or sold by 
Polaris: (i) information required to be disclosed by Polaris to the 
Commission is recorded, processed and reported in accordance with 
applicable law; (ii) all reporting made to the Commission is timely, 
truthful, complete, accurate and in accordance with applicable law; 
and (iii) prompt disclosure is made to Polaris' management of any 
significant deficiencies or material weaknesses in the design or 
operation of such internal controls that are reasonably likely to 
affect adversely, in any material respect, Polaris' ability to 
record, process and report to the Commission in accordance with 
applicable law.
    36. Upon reasonable request of staff, Polaris shall provide 
written documentation of its internal controls and procedures, 
including, but not limited to, the effective dates of the procedures 
and improvements thereto. Polaris shall cooperate fully and 
truthfully with staff and shall make available all non-privileged 
information and materials, and personnel deemed necessary by staff 
to evaluate Polaris' compliance with the terms of the Agreement.
    37. The parties acknowledge and agree that the Commission may 
publicize the terms of the Agreement and the Order.
    38. Polaris represents that the Agreement: (i) is entered into 
freely and voluntarily, without any degree of duress or compulsion 
whatsoever; (ii) has been duly authorized; and (iii) constitutes the 
valid and binding obligation of Polaris, enforceable against Polaris 
in accordance with its terms. Polaris will not directly or 
indirectly receive any reimbursement, indemnification, insurance-
related payment, or other payment in connection with the civil 
penalty to be paid by Polaris pursuant to the Agreement and Order. 
The individuals signing the Agreement on behalf of Polaris represent 
and warrant that they are duly authorized by Polaris to execute the 
Agreement.
    39. The signatories represent that they are authorized to 
execute this Agreement.
    40. The Agreement is governed by the laws of the United States.
    41. The Agreement and the Order shall apply to, and be binding 
upon, Polaris and each of its successors, transferees, and assigns; 
and a violation of the Agreement or Order may subject Polaris, and 
each of its successors, transferees, and assigns, to appropriate 
legal action.
    42. The Agreement and the Order constitute the complete 
agreement between the parties on the subject matter contained 
therein.
    43. The Agreement may be used in interpreting the Order. 
Understandings, agreements, representations, or interpretations 
apart from those contained in the Agreement and the Order may not be 
used to vary or contradict their terms. For purposes of 
construction, the Agreement shall be deemed to have been drafted by 
both of the parties and shall not, therefore, be construed against 
any party, for that reason, in any subsequent dispute.
    44. The Agreement may not be waived, amended, modified, or 
otherwise altered, except as in accordance with the provisions of 16 
CFR Sec.  1118.20(h). The Agreement may be executed in counterparts.
    45. If any provision of the Agreement or the Order is held to be 
illegal, invalid, or unenforceable under present or future laws 
effective during the terms of the Agreement and the Order, such 
provision shall be fully severable. The balance of the Agreement and 
the Order shall remain in full force and effect, unless the 
Commission and Polaris agree in writing that severing the provision 
materially affects the purpose of the Agreement and the Order.

POLARIS INDUSTRIES INC.

Dated: March 16, 2018
By:
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Lucy Clark-Dougherty
Senior Vice President, General Counsel, Compliance Officer and 
Secretary

POLARIS INDUSTRIES INC.

Dated: March 16, 2018
By:
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Erika Z. Jones
Counsel to Polaris Industries Inc.

U.S. CONSUMER PRODUCT SAFETY

COMMISSION

Patricia Hanz
General Counsel
Dated: March 16, 2018
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Mary B. Murphy
Assistant General Counsel
Dated: March 16, 2018
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Daniel R. Vice
Trial Attorney
Division of Compliance
Office of the General Counsel

UNITED STATES OF AMERICA

CONSUMER PRODUCT SAFETY COMMISSION

    In the Matter of: POLARIS INDUSTRIES, INC.

CPSC Docket No.: 18-C0001

ORDER

    Upon consideration of the Settlement Agreement entered into 
between Polaris Industries Inc. (``Polaris''), and the U.S. Consumer 
Product Safety Commission (``Commission''), and the Commission 
having jurisdiction over the subject matter and over Polaris, and it 
appearing that the Settlement Agreement and the Order are in the 
public interest, it is:
    ORDERED that the Settlement Agreement be, and is, hereby, 
accepted; and it is

[[Page 14450]]

    FURTHER ORDERED that Polaris shall comply with the terms of the 
Settlement Agreement and shall pay a civil penalty in the amount of 
twenty seven million, two hundred and fifty thousand dollars 
($27,250,000), within thirty (30) days after service of the 
Commission's final Order accepting the Settlement Agreement. The 
payment shall be made by electronic wire transfer to the Commission 
via: http://www.pay.gov. Upon the failure of Polaris to make the 
foregoing payment when due, interest on the unpaid amount shall 
accrue and be paid by Polaris at the federal legal rate of interest 
set forth at 28 U.S.C. Sec.  1961(a) and (b). If Polaris fails to 
make such payment or to comply in full with any other provision of 
the Settlement Agreement, such conduct will be considered a 
violation of the Settlement Agreement and Order.
    Provisionally accepted and provisional Order issued on the 20th 
day of March, 2018.

BY ORDER OF THE COMMISSION:

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Alberta E. Mills, Secretary
U.S. Consumer Product Safety Commission
[FR Doc. 2018-06820 Filed 4-3-18; 8:45 am]
 BILLING CODE 6355-01-P



                                                                           Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 / Notices                                              14447

                                             Coordinator, NMFS. The report must                      Request for Public Comments                           SUPPLEMENTARY INFORMATION: The text of
                                             include the following information:                         We request comment on our analyses,                the Agreement and Order appears
                                                A. Time and date of the incident;                    the draft authorization, and any other                below.
                                                B. Description of the incident;
                                                                                                     aspect of this Notice of Proposed IHA                   Dated: March 30, 2018.
                                                C. Environmental conditions (e.g.,
                                                                                                     for Navy’s Bravo wharf construction                   Alberta E. Mills,
                                             wind speed and direction, Beaufort sea
                                                                                                     activities. Please include with your                  Secretary.
                                             state, cloud cover, and visibility);
                                                D. Description of all marine mammal                  comments any supporting data or
                                                                                                     literature citations to help inform our               UNITED STATES OF AMERICA
                                             observations in the 24 hours preceding
                                             the incident;                                           final decision on Navy’s request for an               CONSUMER PRODUCT SAFETY
                                                E. Species identification or                         MMPA authorization.                                   COMMISSION
                                             description of the animal(s) involved;                    Dated: March 29, 2018.                                In the Matter of: POLARIS INDUSTRIES
                                                F. Fate of the animal(s); and                        Elaine T. Saiz,                                       INC.
                                                G. Photographs or video footage of the               Acting Deputy Director, Office of Protected           CPSC Docket No.: 18–C0001
                                             animal(s).                                              Resources, National Marine Fisheries Service.         SETTLEMENT AGREEMENT
                                                Activities shall not resume until                    [FR Doc. 2018–06772 Filed 4–3–18; 8:45 am]
                                             NMFS is able to review the                                                                                       1. In accordance with the Consumer
                                                                                                     BILLING CODE 3510–22–P                                Product Safety Act, 15 U.S.C. §§ 2051–2089
                                             circumstances of the prohibited take.
                                                                                                                                                           (‘‘CPSA’’) and 16 CFR § 1118.20, Polaris
                                             NMFS will work with Navy to
                                                                                                                                                           Industries Inc. (‘‘Polaris’’), and the United
                                             determine what measures are necessary                                                                         States Consumer Product Safety Commission
                                             to minimize the likelihood of further                   CONSUMER PRODUCT SAFETY
                                                                                                     COMMISSION                                            (‘‘Commission’’), through its staff, hereby
                                             prohibited take and ensure MMPA                                                                               enter into this Settlement Agreement
                                             compliance. Navy may not resume their                   [CPSC Docket No. 18–C0001]                            (‘‘Agreement’’). The Agreement and the
                                             activities until notified by NMFS.                                                                            incorporated attached Order resolve staff’s
                                                ii. In the event that Navy discovers an              Polaris Industries Inc., Provisional                  charges set forth below.
                                             injured or dead marine mammal, and                      Acceptance of a Settlement Agreement                  THE PARTIES
                                             the lead observer determines that the                   and Order                                                2. The Commission is an independent
                                             cause of the injury or death is unknown                 AGENCY: Consumer Product Safety                       federal regulatory agency, established
                                             and the death is relatively recent (e.g.,               Commission.                                           pursuant to, and responsible for the
                                             in less than a moderate state of                                                                              enforcement of, the CPSA, 15 U.S.C. §§ 2051–
                                                                                                     ACTION: Notice.
                                             decomposition), Navy shall immediately                                                                        2089. By executing the Agreement, staff is
                                             report the incident to the Office of                    SUMMARY:   It is the policy of the                    acting on behalf of the Commission, pursuant
                                             Protected Resources, NMFS, and the                                                                            to 16 CFR § 1118.20(b). The Commission
                                                                                                     Commission to publish settlements                     issues the Order under the provisions of the
                                             Southeast Regional Stranding                            which it provisionally accepts under the              CPSA.
                                             Coordinator, NMFS.                                      Consumer Product Safety Act in the                       3. Polaris is a corporation, organized and
                                                The report must include the same                     Federal Register in accordance with the               existing under the laws of the state of
                                             information identified in 6(b)(i) of this               terms of the Consumer Product Safety                  Minnesota, with its principal place of
                                             IHA. Activities may continue while                      Commission’s regulations. Published                   business in Medina, Minnesota.
                                             NMFS reviews the circumstances of the                   below is a provisionally-accepted                     STAFF CHARGES
                                             incident. NMFS will work with Navy to                   Settlement Agreement with Polaris                        4. Between February 2012 and April 2016,
                                             determine whether additional                            Industries Inc. containing a civil penalty            Polaris manufactured or imported,
                                             mitigation measures or modifications to                 in the amount of twenty seven million,                distributed and offered for sale in the United
                                             the activities are appropriate.                         two hundred and fifty thousand dollars                States approximately 133,000 Model Year
                                                iii. In the event that Navy discovers                ($27,250,000), to be paid within thirty               2013–2016 RZR 900 and Model Year 2014–
                                             an injured or dead marine mammal, and                   (30) days of service of the Commission’s              2016 RZR 1000 recreational off-road vehicles
                                             the lead observer determines that the                   final Order accepting the Settlement                  (‘‘RZRs’’).
                                             injury or death is not associated with or               Agreement.                                               5. Between April 2013 and April 2017,
                                             related to the activities authorized in the                                                                   Polaris manufactured or imported,
                                             IHA (e.g., previously wounded animal,                   DATES: Any interested person may ask                  distributed and offered for sale
                                             carcass with moderate to advanced                       the Commission not to accept this                     approximately 93,500 Model Year 2014–2015
                                                                                                     agreement or otherwise comment on its                 Ranger XP 900, XP 900 EPS and CREW 900
                                             decomposition, scavenger damage),                                                                             off-road vehicles (‘‘Rangers’’).
                                             Navy shall report the incident to the                   contents by filing a written request with
                                                                                                     the Office of the Secretary by April 19,                 6. The RZRs and Rangers (collectively, the
                                             Office of Protected Resources, NMFS,                                                                          ‘‘Vehicles’’) are ‘‘consumer products’’ that
                                             and the Southeast Regional Stranding                    2018.
                                                                                                                                                           were ‘‘distribut[ed] in commerce,’’ as those
                                             Coordinator, NMFS, within 24 hours of                   ADDRESSES: Persons wishing to                         terms are defined or used in sections 3(a)(5)
                                             the discovery. Navy shall provide                       comment on this Settlement Agreement                  and (8) of the CPSA, 15 U.S.C. § 2052(a)(5)
                                             photographs or video footage or other                   should send written comments to the                   and (8). Polaris is a ‘‘manufacturer’’ of the
                                             documentation of the stranded animal                    Comment 18–C0001, Office of the                       Vehicles and imported the Vehicles, as such
                                             sighting to NMFS. The Navy can                          Secretary, Consumer Product Safety                    terms are defined in sections 3(a)(9) and (11)
                                                                                                     Commission, 4330 East West Highway,                   of the CPSA, 15 U.S.C. § 2052(a)(9) and (11).
                                             continue its operations under such a
                                             case.                                                   Room 820, Bethesda, Maryland 20814–                   Violation of CPSA Section 19(a)(4)
                                                7. This Authorization may be                         4408.
                                                                                                                                                           Staff Charges Regarding RZR 900s and 1000s
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                                             modified, suspended or withdrawn if                     FOR FURTHER INFORMATION CONTACT:
                                             the holder fails to abide by the                                                                                7. The RZRs contained one or more defects
                                                                                                     Daniel R. Vice, Trial Attorney, Division
                                                                                                                                                           which could create a substantial product
                                             conditions prescribed herein, or if                     of Compliance, Office of the General                  hazard and create an unreasonable risk of
                                             NMFS determines the authorized taking                   Counsel, Consumer Product Safety                      serious injury or death because the RZRs
                                             is having more than a negligible impact                 Commission, 4330 East West Highway,                   could catch fire while consumers were
                                             on the species or stock of affected                     Bethesda, Maryland 20814–4408;                        driving, posing fire and burn hazards to
                                             marine mammals.                                         telephone (301) 504–6996.                             drivers and passengers.



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                                             14448                         Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 / Notices

                                                8. Despite information that reasonably               number of heat shield incidents on Rangers            concluded that the RZR Vehicles or Ranger
                                             supported the conclusion that the RZRs                  had reached 10, including five reports of             Vehicles contained a defect or posed an
                                             contained one or more defects that could                fires. Polaris and CPSC jointly announced a           unreasonable risk of serious injury.
                                             create a substantial product hazard or create           recall of the MY 15 Rangers on April 13,                 24. Polaris enters this Agreement to settle
                                             an unreasonable risk of serious injury or               2017.                                                 this matter without the delay and
                                             death, Polaris did not immediately report to                                                                  unnecessary expense of litigation.
                                             CPSC.                                                   Staff Charges of Failure to Report
                                                                                                     Immediately                                           AGREEMENT OF THE PARTIES
                                                9. Instead, Polaris filed a Full Report
                                             concerning the fire risk associated with MY                18. Despite having information reasonably             25. Under the CPSA, the Commission has
                                             2014 to MY 2016 RZRs on February 19, 2016.              supporting the conclusion that the Vehicles           jurisdiction over the matter involving the
                                             By that time, Polaris reported that it had              contained a defect or created an unreasonable         Vehicles and over Polaris.
                                             received reports of 150 fires on MY 14–MY               risk of serious injury, Polaris did not notify           26. The parties enter into the Agreement
                                             16 RZRs that had resulted in the death of a             the Commission immediately of such defect             for settlement purposes only. The Agreement
                                                                                                     or risk, as required by sections 15(b)(3) and         does not constitute an admission by Polaris
                                             15-year-old passenger from a rollover that
                                                                                                     (4) of the CPSA, 15 U.S.C. § 2064(b)(3) and           or a determination by the Commission that
                                             resulted in a fire, 11 reports of burn injuries,
                                                                                                     (4), in violation of section 19(a)(4) of the          Polaris violated the CPSA’s reporting
                                             and a fire that burned ten acres of land.
                                                                                                     CPSA, 15 U.S.C. § 2068(a)(4).                         requirements.
                                                10. Polaris and the CPSC announced a
                                                                                                        19. Because the information in Polaris’               27. In settlement of staff’s charges of
                                             recall of 133,000 MY 13–16 RZRs on April
                                                                                                     possession about the Vehicles constituted             violations of the CPSA, 15 U.S.C.
                                             19, 2016, because the RZRs could catch fire
                                                                                                     actual and presumed knowledge, Polaris                § 2068(a)(4), and to avoid the cost,
                                             while consumers were driving, posing fire
                                                                                                     knowingly violated section 19(a)(4) of the            distraction, delay, uncertainty, and
                                             and burn hazards to drivers and passengers.
                                                                                                     CPSA, 15 U.S.C. § 2068(a)(4), as the term             inconvenience of protracted litigation or
                                             The repair remedy offered to consumers for
                                                                                                     ‘‘knowingly’’ is defined in section 20(d) of          other proceedings, Polaris shall pay a civil
                                             this recall differed from the repair remedy                                                                   penalty in the amount of twenty seven
                                             offered for an earlier recall, jointly                  the CPSA, 15 U.S.C. § 2069(d).
                                                                                                        20. Pursuant to section 20 of the CPSA, 15         million, two hundred and fifty thousand
                                             announced by Polaris and CPSC in October                                                                      dollars ($27,250,000) within thirty (30)
                                             2015 on MY 15 RZR 900s and 1000s,                       U.S.C. § 2069, Polaris is subject to civil
                                                                                                     penalties for its knowing violation of section        calendar days after receiving service of the
                                             involving a pinched fuel tank vent line. By                                                                   Commission’s final Order accepting the
                                             the time Polaris announced the April 2016               19(a)(4) of the CPSA, 15 U.S.C. § 2068(a)(4).
                                                                                                                                                           Agreement. All payments to be made under
                                             recall, it had received more than 160 reports           RESPONSE OF POLARIS                                   the Agreement shall constitute debts owing
                                             of fires in MY 13–16 RZRs, including the                   21. Polaris conducted reasonable,                  to the United States and shall be made by
                                             fatality previously reported to CPSC and 19             expeditious, and diligent investigations into         electronic wire transfer to the United States
                                             reports of injuries, including first, second            the reports of thermal events relating to the         via http://www.pay.gov, for allocation to, and
                                             and third degree burns.                                 RZR and Ranger Vehicles. The RZR and                  credit against, the payment obligations of
                                             Staff Charges Regarding Ranger 900s                     Ranger Vehicles are four-wheel vehicles that          Polaris under this Agreement. Failure to
                                                                                                     have automotive-style controls and seating.           make such payment by the date specified in
                                                11. The Rangers contained a defect which             Particularly in gasoline-powered vehicles,            the Commission’s final Order shall constitute
                                             could create a substantial product hazard and           fires and other thermal events are notoriously        Default.
                                             create an unreasonable risk of serious injury           difficult to evaluate and often do not allow             28. All unpaid amounts, if any, due and
                                             or death because the heat shield could fall off         for, and in fact impede, the prompt                   owing under the Agreement, shall constitute
                                             the vehicle, posing fire and burn hazards to            identification of root causes. Fires can, and         a debt due and immediately owing by Polaris
                                             riders.                                                 do, occur in gasoline-powered vehicles for            to the United States, and interest shall accrue
                                                12. Between December 2013 and July 2016,             reasons unrelated to any potential defect in          and be paid by Polaris at the federal legal rate
                                             Polaris received 36 reports of fires associated         the vehicles. The causes of the fires varied.         of interest set forth at 28 U.S.C. § 1961(a) and
                                             with the MY 14 Rangers, including two                   Polaris identified these causes over time in          (b) from the date of Default, until all amounts
                                             incidents that resulted in minor burns to               the course of its investigations. The issues          due have been paid in full (hereinafter
                                             consumers. Polaris also implemented design              involved in the RZR recall announced on               ‘‘Default Payment Amount’’ and ‘‘Default
                                             changes to increase the attachment screw                April 19, 2016 were unrelated to an earlier           Interest Balance’’). Polaris shall consent to a
                                             length and require the attachment screws to             recall, jointly announced in October 2015 on          Consent Judgment in the amount of the
                                             be fastened to a steel frame member to                  MY 2015 RZR 900s and 1000s, involving a               Default Payment Amount and Default Interest
                                             prevent the heat shields from becoming loose            pinched fuel tank vent line. Many of the RZR          Balance, and the United States, at its sole
                                             and falling off. The first design change was            incidents received attention in the public            option, may collect the entire Default
                                             implemented on MY 15 Rangers and the                    media.                                                Payment Amount and Default Interest
                                             latter on MY 16 Rangers.                                   22. The signing of this Agreement does not         Balance, or exercise any other rights granted
                                                13. Despite information that reasonably              constitute an admission by Polaris of the             by law or in equity, including, but not
                                             supported the conclusion that the MY 14                 staff’s charges in paragraphs 4 through 20,           limited to, referring such matters for private
                                             Rangers contained a defect that could create            including, but not limited to, the charges that       collection, and Polaris agrees not to contest,
                                             a substantial product hazard or created an              (a) the Vehicles contained defects that could         and hereby waives and discharges any
                                             unreasonable risk of serious injury or death,           create a substantial product hazard and               defenses to, any collection action undertaken
                                             Polaris did not immediately report to CPSC.             created an unreasonable risk of serious               by the United States, or its agents or
                                                14. Instead, Polaris filed a Full Report on          injury; (b) Polaris failed to notify the              contractors, pursuant to this paragraph.
                                             the MY 14 Rangers with the Commission,                  Commission in a timely manner, in                     Polaris shall pay the United States all
                                             under 15 U.S.C. § 2064(b), on July 12, 2016.            accordance with sections 15(b)(3) and (4) of          reasonable costs of collection and
                                                15. Polaris and the Commission jointly               the CPSA, 15 U.S.C. §§ 2064(b)(3) and (4); (c)        enforcement under this paragraph,
                                             announced a recall of 42,500 MY 14 Rangers              Polaris failed to furnish information as              respectively, including reasonable attorney’s
                                             on September 15, 2016 (‘‘First Ranger                   required by sections 15(b)(3) and (4) of the          fees and expenses.
                                             Recall’’) because the heat shields could fall           CPSA, 15 U.S.C. § 2064(b)(3) and (4), in                 29. After staff receives this Agreement
                                             off the vehicle, posing fire and burn hazards           violation of section 19(a)(4) of the CPSA, 15         executed on behalf of Polaris, staff shall
                                             to riders.                                              U.S.C. § 2068(a)(4); and (d) there was any            promptly submit the Agreement to the
                                                16. Subsequent to the First Ranger Recall,
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                                                                                                     ‘‘knowing’’ violation of the CPSA as that term        Commission for provisional acceptance.
                                             Polaris received reports of heat shields                is defined in section 20(d) of the CPSA, 15           Promptly following provisional acceptance of
                                             coming loose or falling off on the MY 15                U.S.C. § 2069(d).                                     the Agreement by the Commission, the
                                             Ranger, including two reports of fire. Polaris             23. The voluntary recalls of the RZR and           Agreement shall be placed on the public
                                             did not immediately report this information             Ranger Vehicles, as well as the voluntary             record and published in the Federal Register,
                                             to CPSC.                                                section 15(b) reporting, by Polaris were              in accordance with the procedures set forth
                                                17. Instead, Polaris filed a Full Report on          conducted out of an abundance of caution              in 16 CFR § 1118.20(e). If the Commission
                                             MY 15 Ranger 900s in March 2017, when the               and without Polaris having determined or              does not receive any written request not to



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                                                                           Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 / Notices                                              14449

                                             accept the Agreement within fifteen (15)                either a compliance officer or to another                43. The Agreement may be used in
                                             calendar days, the Agreement shall be                   senior manager with authority to act as               interpreting the Order. Understandings,
                                             deemed finally accepted on the 16th calendar            necessary; (iii) effective communication of           agreements, representations, or
                                             day after the date the Agreement is published           company compliance-related policies and               interpretations apart from those contained in
                                             in the Federal Register, in accordance with             procedures regarding the CPSA to all                  the Agreement and the Order may not be
                                             16 CFR § 1118.20(f).                                    applicable employees through training                 used to vary or contradict their terms. For
                                                30. This Agreement is conditioned upon,              programs or otherwise; (iv) Polaris’ senior           purposes of construction, the Agreement
                                             and subject to, the Commission’s final                  management responsibility for, and general            shall be deemed to have been drafted by both
                                             acceptance, as set forth above, and it is               board oversight of, CPSA compliance; and (v)          of the parties and shall not, therefore, be
                                             subject to the provisions of 16 CFR                     retention of all CPSA compliance-related              construed against any party, for that reason,
                                             § 1118.20(h). Upon the later of: (i)                    records for at least five (5) years, and              in any subsequent dispute.
                                             Commission’s final acceptance of this                   availability of such records to staff upon               44. The Agreement may not be waived,
                                             Agreement and service of the accepted                   request.                                              amended, modified, or otherwise altered,
                                             Agreement upon Polaris, and (ii) the date of               35. Polaris shall maintain and enforce a           except as in accordance with the provisions
                                             issuance of the final Order, this Agreement             system of internal controls and procedures            of 16 CFR § 1118.20(h). The Agreement may
                                             shall be in full force and effect, and shall be         designed to ensure that, with respect to all          be executed in counterparts.
                                             binding upon the parties.                               consumer products imported, manufactured,                45. If any provision of the Agreement or
                                                31. Effective upon the later of: (i) the             distributed or sold by Polaris: (i) information       the Order is held to be illegal, invalid, or
                                             Commission’s final acceptance of the                    required to be disclosed by Polaris to the            unenforceable under present or future laws
                                             Agreement and service of the accepted                   Commission is recorded, processed and                 effective during the terms of the Agreement
                                             Agreement upon Polaris and (ii) the date of             reported in accordance with applicable law;           and the Order, such provision shall be fully
                                             issuance of the final Order, for good and               (ii) all reporting made to the Commission is          severable. The balance of the Agreement and
                                             valuable consideration, Polaris hereby                  timely, truthful, complete, accurate and in           the Order shall remain in full force and
                                             expressly and irrevocably waives and agrees             accordance with applicable law; and (iii)             effect, unless the Commission and Polaris
                                             not to assert any past, present, or future              prompt disclosure is made to Polaris’                 agree in writing that severing the provision
                                             rights to the following, in connection with             management of any significant deficiencies            materially affects the purpose of the
                                             the matter described in this Agreement: (i) an          or material weaknesses in the design or               Agreement and the Order.
                                             administrative or judicial hearing; (ii)                operation of such internal controls that are          POLARIS INDUSTRIES INC.
                                             judicial review or other challenge or contest           reasonably likely to affect adversely, in any
                                                                                                     material respect, Polaris’ ability to record,         Dated: March 16, 2018
                                             of the Commission’s actions; (iii) a                                                                          By:
                                             determination by the Commission of whether              process and report to the Commission in
                                                                                                     accordance with applicable law.                       lllllllllllllllllllll
                                             Polaris failed to comply with the CPSA and                                                                    Lucy Clark-Dougherty
                                                                                                        36. Upon reasonable request of staff,
                                             the underlying regulations; (iv) a statement of                                                               Senior Vice President, General Counsel,
                                                                                                     Polaris shall provide written documentation
                                             findings of fact and conclusions of law; and                                                                  Compliance Officer and Secretary
                                                                                                     of its internal controls and procedures,
                                             (v) any claims under the Equal Access to
                                                                                                     including, but not limited to, the effective          POLARIS INDUSTRIES INC.
                                             Justice Act.                                            dates of the procedures and improvements
                                                32. After receipt of the payment set forth                                                                 Dated: March 16, 2018
                                                                                                     thereto. Polaris shall cooperate fully and            By:
                                             in paragraph 27 above, the Commission                   truthfully with staff and shall make available
                                             releases and agrees that it will not seek civil                                                               lllllllllllllllllllll
                                                                                                     all non-privileged information and materials,         Erika Z. Jones
                                             penalties from Polaris, including its current           and personnel deemed necessary by staff to
                                             and former directors, officers, employees,                                                                    Counsel to Polaris Industries Inc.
                                                                                                     evaluate Polaris’ compliance with the terms
                                             successors and assigns, for any violation of            of the Agreement.                                     U.S. CONSUMER PRODUCT SAFETY
                                             section 19(a)(4) of the CPSA, 15 U.S.C.                    37. The parties acknowledge and agree that         COMMISSION
                                             § 2068(a)(4), regarding a hazard or defect              the Commission may publicize the terms of
                                             reported in connection with a model year                                                                      Patricia Hanz
                                                                                                     the Agreement and the Order.
                                             vehicle for which Polaris, as of June 29, 2017,                                                               General Counsel
                                                                                                        38. Polaris represents that the Agreement:
                                             had submitted an Initial or Full Report under                                                                 Dated: March 16, 2018
                                                                                                     (i) is entered into freely and voluntarily,           lllllllllllllllllllll
                                             CPSA section 15(b), 15 U.S.C. § 2064(b), and            without any degree of duress or compulsion
                                             16 CFR § 1115.13(c) and (d). This paragraph                                                                   Mary B. Murphy
                                                                                                     whatsoever; (ii) has been duly authorized;            Assistant General Counsel
                                             does not relieve Polaris from the continuing            and (iii) constitutes the valid and binding
                                             duty to report to the Commission any new,                                                                     Dated: March 16, 2018
                                                                                                     obligation of Polaris, enforceable against            lllllllllllllllllllll
                                             additional or different information as                  Polaris in accordance with its terms. Polaris
                                             required by CPSA section 15(b), 15 U.S.C.                                                                     Daniel R. Vice
                                                                                                     will not directly or indirectly receive any           Trial Attorney
                                             § 2064(b), and the regulations at 16 CFR part           reimbursement, indemnification, insurance-
                                             1115.                                                                                                         Division of Compliance
                                                                                                     related payment, or other payment in                  Office of the General Counsel
                                                33. Polaris represents and warrants that the         connection with the civil penalty to be paid
                                             information supplied by Polaris to the                  by Polaris pursuant to the Agreement and              UNITED STATES OF AMERICA
                                             Commission in connection with the matters               Order. The individuals signing the
                                             addressed in the Agreement was, at the time                                                                   CONSUMER PRODUCT SAFETY
                                                                                                     Agreement on behalf of Polaris represent and
                                             provided to the Commission, full, complete                                                                    COMMISSION
                                                                                                     warrant that they are duly authorized by
                                             and accurate, to the best of Polaris’                   Polaris to execute the Agreement.                       In the Matter of: POLARIS INDUSTRIES,
                                             knowledge.                                                 39. The signatories represent that they are        INC.
                                                34. Polaris shall maintain a compliance              authorized to execute this Agreement.                 CPSC Docket No.: 18–C0001
                                             program designed to ensure compliance with                 40. The Agreement is governed by the laws
                                             the CPSA with respect to any consumer                   of the United States.                                 ORDER
                                             product imported, manufactured, distributed                41. The Agreement and the Order shall                 Upon consideration of the Settlement
                                             or sold by Polaris, and which shall contain             apply to, and be binding upon, Polaris and            Agreement entered into between Polaris
                                             the following elements: (i) written standards,          each of its successors, transferees, and              Industries Inc. (‘‘Polaris’’), and the U.S.
                                             policies and procedures, including those
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                                                                                                     assigns; and a violation of the Agreement or          Consumer Product Safety Commission
                                             designed to ensure that information that may            Order may subject Polaris, and each of its            (‘‘Commission’’), and the Commission having
                                             relate to or impact CPSA compliance is                  successors, transferees, and assigns, to              jurisdiction over the subject matter and over
                                             conveyed effectively to personnel responsible           appropriate legal action.                             Polaris, and it appearing that the Settlement
                                             for CPSA compliance, whether or not an                     42. The Agreement and the Order                    Agreement and the Order are in the public
                                             injury is referenced; (ii) a mechanism for              constitute the complete agreement between             interest, it is:
                                             confidential employee reporting of                      the parties on the subject matter contained              ORDERED that the Settlement Agreement
                                             compliance-related questions or concerns to             therein.                                              be, and is, hereby, accepted; and it is



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                                             14450                         Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 / Notices

                                                FURTHER ORDERED that Polaris shall         Send your comments to: U.S. Energy                              available NGL production reported in
                                             comply with the terms of the Settlement    Information Administration, EI–25                                  the Petroleum Supply Monthly (PSM) as
                                             Agreement and shall pay a civil penalty in Room BG–041, 1000 Independence Ave.                                a constant value until a new PSM
                                             the amount of twenty seven million, two    SW, Washington, DC 20585, Attn: Sasha                              number is published. Form EIA–806
                                             hundred and fifty thousand dollars         Abdalla.                                                           will provide weekly estimates of total
                                             ($27,250,000), within thirty (30) days after
                                                                                           If you prefer, you can email your                               NGL production based on actual values.
                                             service of the Commission’s final Order
                                             accepting the Settlement Agreement. The
                                                                                        comments to sasha.abdalla@eia.gov.                                 These weekly estimates will replace the
                                             payment shall be made by electronic wire   FOR FURTHER INFORMATION CONTACT: If                                monthly values that are derived from
                                             transfer to the Commission via: http://    you need additional information or                                 data reported on Form EIA–816. EIA
                                             www.pay.gov. Upon the failure of Polaris tocopies of the information collection                               estimates the burden per response to
                                             make the foregoing payment when due,       instrument, send your request to Sasha                             Form EIA–806 to be thirty (30) minutes.
                                             interest on the unpaid amount shall accrue Abdalla at 202–287–6323 or email it to                             NGL production from gas processing
                                             and be paid by Polaris at the federal legal rate
                                                                                        Sasha.Abdalla@eia.gov. The draft form                              plants is used in the WPSR calculation
                                             of interest set forth at 28 U.S.C. § 1961(a) and
                                                                                        and instructions are available at https://                         of U.S. total petroleum demand. Annual
                                             (b). If Polaris fails to make such payment or
                                                                                        www.eia.gov/survey/#eia-806.
                                             to comply in full with any other provision of                                                                 NGL production from gas processing
                                             the Settlement Agreement, such conduct willSUPPLEMENTARY INFORMATION: This                                    plants increased as a percent of U.S.
                                             be considered a violation of the Settlementinformation collection request contains:                           total petroleum demand from just under
                                             Agreement and Order.                          (1) OMB No.: New Survey;                                        10 percent in 2000 to nearly 18 percent
                                                Provisionally accepted and provisional     (2) Information Collection Request                              in 2016.
                                                                                        Title: Weekly Natural Gas Liquids
                                             Order issued on the 20th day of March, 2018.
                                                                                        Report;                                                              (5) Annual Estimated Number of
                                             BY ORDER OF THE COMMISSION:                                                                                   Respondents: 275;
                                                                                           (3) Type of Request: New;
                                             lllllllllllllllllll                           (4) Purpose: Weekly petroleum and                                 (6) Annual Estimated Number of
                                             Alberta E. Mills, Secretary                biofuels supply surveys are used to                                Total Responses: 14,300;
                                             U.S. Consumer Product Safety               gather data on petroleum refinery                                    (7) Annual Estimated Number of
                                             Commission                                 operations, blending, biofuels
                                                                                                                                                           Burden Hours: 7,150;
                                             [FR Doc. 2018–06820 Filed 4–3–18; 8:45 am] production, inventory levels, and
                                             BILLING CODE 6355–01–P                     imports of crude oil, petroleum                                      (8) Annual Estimated Reporting and
                                                                                        products, and biofuels from samples of                             Recordkeeping Cost Burden: The cost of
                                                                                        operating companies, with the sampling                             the burden hours is estimated to be
                                                                                        frame and sampled companies being                                  $541,183.50 (7,150 burden hours times
                                             DEPARTMENT OF ENERGY                       different for the various surveys. EIA’s                           $75.69 per hour). EIA estimates that
                                                                                        Office of Petroleum and Biofuels                                   respondents will have no additional
                                             Energy Information Administration          Statistics (PBS) proposes to begin                                 costs associated with the surveys other
                                                                                        collecting weekly production and                                   the burden hours.
                                             Agency Information Collection
                                                                                        inventory of natural gas liquids (NGL)                               Comments are invited on whether or
                                             Proposed New Survey
                                                                                        from operators of natural gas processing
                                                                                                                                                           not: (a) The proposed collection of
                                             AGENCY: U.S. Energy Information            plants and inventory data from
                                                                                                                                                           information is necessary for the proper
                                             Administration (EIA), Department of        operators of natural gas liquids
                                                                                                                                                           performance of agency functions,
                                             Energy (DOE).                              fractionation plants using a new Form
                                                                                        EIA–806 ‘‘Weekly Natural Gas Liquids                               including whether the information will
                                             ACTION: Notice and request for                                                                                have a practical utility; (b) EIA’s
                                                                                        Report.’’ Data collected on Form EIA–
                                             comments.                                                                                                     estimate of the burden of the proposed
                                                                                        806 will be comparable but less detailed
                                                                                        than the data collected on Form EIA–                               collection of information, including the
                                             SUMMARY: EIA invites public comment                                                                           validity of the methodology and
                                             on the proposed collection of              816 ‘‘Monthly Natural Gas Liquids
                                                                                        Report’’. Implementing Form EIA–806                                assumptions used, is accurate; (c) EIA
                                             information, Form EIA–806, Weekly                                                                             can improve the quality, utility, and
                                             Natural Gas Liquids Report, as required will allow EIA to improve timeliness                                  clarity of the information it will collect;
                                             under the Paperwork Reduction Act of       and accuracy of product supplied data
                                                                                                                                                           and (d) EIA can minimize the burden of
                                             1995. Form EIA–806 will collect data on in the Weekly Petroleum Status Report                                 the collection of information on
                                             production and stocks of natural gas       in order to better support policy and
                                                                                        business decisions relating to the                                 respondents, such as automated
                                             liquids (NGL) on a weekly basis. The                                                                          collection techniques or other forms of
                                             new survey will allow EIA to improve       natural gas processing industry and
                                                                                                                                                           information technology.
                                             accuracy of weekly propane production NGL markets such as heating fuels,
                                             and, for the first time, allow EIA to      transportation fuels, and                                            Statutory Authority: Section 13(b) of the
                                             report weekly natural gas liquids          petrochemicals. Production of NGL from                             Federal Energy Administration Act of 1974,
                                             production using actual data collected     gas processors has increased in recent                             Pub. L. 93–275, codified as 15 U.S.C. 772(b)
                                             from gas processing plants.                years, and EIA projections show                                    and the DOE Organization Act of 1977, Pub.
                                                                                        continued growth of natural gas liquids                            L. 95–91, codified at 42 U.S.C. 7101 et seq.
                                             DATES: EIA must receive all comments
                                                                                        production through 2025. Form EIA–
                                             on this proposed information collection                                                                         Issued in Washington, DC, on March 28,
                                                                                        806 will allow EIA to improve the
                                             no later than June 4, 2018. If you                                                                            2018.
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                                                                                        accuracy of weekly propane production
                                             anticipate any difficulties in submitting                                                                     Nanda Srinivasan,
                                                                                        and, for the first time, allow EIA to
                                             your comments by the deadline, contact                                                                        Director, Office of Survey Development and
                                                                                        report weekly natural gas liquids
                                             the person listed in the ADDRESSES                                                                            Statistical Integration, U.S. Energy
                                                                                        production using actual data collected
                                             section of this notice as soon as          from gas processing plants. Current                                Information Administration.
                                             possible.                                  Weekly Petroleum Status Report                                     [FR Doc. 2018–06866 Filed 4–3–18; 8:45 am]
                                             ADDRESSES:                                 (WPSR) methodology uses the last-                                  BILLING CODE 6450–01–P




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Document Created: 2018-11-01 09:10:50
Document Modified: 2018-11-01 09:10:50
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesAny interested person may ask the Commission not to accept this agreement or otherwise comment on its contents by filing a written request with the Office of the Secretary by April 19, 2018.
ContactDaniel R. Vice, Trial Attorney, Division of Compliance, Office of the General Counsel, Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814- 4408; telephone (301) 504-6996.
FR Citation83 FR 14447 

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