83 FR 2538 - Oil and Gas and Sulfur Operations on the Outer Continental Shelf-Civil Penalty Inflation Adjustment
DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental Enforcement Federal Register Volume 83, Issue 12 (January 18, 2018)
Bureau of Safety and Environmental Enforcement
Federal Register Volume 83, Issue 12 (January 18, 2018)
| Page Range | 2538-2540 | |
| FR Document | 2018-00920 |
[Federal Register Volume 83, Number 12 (Thursday, January 18, 2018)] [Rules and Regulations] [Pages 2538-2540] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-00920] [[Page 2538]] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE INTERIOR Bureau of Safety and Environmental Enforcement 30 CFR Part 250 [Docket ID: BSEE-2018-0001; 189E1700D2 ET1SF0000.PSB000 EEEE500000] RIN 1014-AA36 Oil and Gas and Sulfur Operations on the Outer Continental Shelf--Civil Penalty Inflation Adjustment AGENCY: Bureau of Safety and Environmental Enforcement, Interior. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule adjusts the level of the maximum civil monetary penalty contained in the Bureau of Safety and Environmental Enforcement (BSEE) regulations pursuant to the Outer Continental Shelf Lands Act (OCSLA), the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, and Office of Management and Budget (OMB) guidance. The civil penalty inflation adjustment, using a 1.02041 multiplier, accounts for one year of inflation spanning October 2016 to October 2017. DATES: This rule is effective on January 18, 2018. FOR FURTHER INFORMATION CONTACT: Jennifer Mehaffey, Safety and Enforcement Division, Bureau of Safety and Environmental Enforcement, (202) 208-3955 or by email: [email protected]. SUPPLEMENTARY INFORMATION: I. Background and Legal Authority II. Calculation of Adjustments III. Procedural Requirements A. Regulatory Planning and Review (E.O. 12866, 13563, and 13771) 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) I. Background and Legal Authority The OCSLA, at 43 U.S.C. 1350(b)(1), directs the Secretary of the Interior (Secretary) to adjust the OCSLA maximum civil penalty amount at least once every three years to reflect any increase in the Consumer Price Index (CPI) to account for inflation. On November 2, 2015, the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L. 114-74) (FCPIA of 2015) became law. The FCPIA of 2015 required Federal agencies to adjust the level of civil monetary penalties with an initial ``catch-up'' adjustment through rulemaking, if warranted, and then to make subsequent annual adjustments for inflation. Agencies were required to publish the first annual inflation adjustments in the Federal Register by no later than January 15, 2017, and must publish recurring annual inflation adjustments by no later than January 15 each subsequent year. The purpose of these adjustments is to maintain the deterrent effect of civil penalties and to further the policy goals of the underlying statutes. BSEE last updated civil penalty amounts in BSEE regulations through a final rule (RIN 1014-AA34; 82 FR 9136), published and effective on February 3, 2017. Consistent with OMB guidance, BSEE's final rule (FR) implemented the adjustments required by the FCPIA of 2015 through October 2016. The OMB Memorandum M-18-03 (Implementation of the 2018 annual adjustment pursuant to the FCPIA of 2015; [https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf]) explains agency responsibilities for: Identifying applicable penalties and performing the annual adjustment; publishing revisions to regulations to implement the adjustment in the Federal Register; applying adjusted penalty levels; and performing agency oversight of inflation adjustments. BSEE is promulgating this 2018 inflation adjustment for civil penalties as a final rule pursuant to the provisions of the FCPIA of 2015 and OMB guidance. A proposed rule is not required because the FCPIA of 2015 states that agencies shall adjust civil monetary penalties ``notwithstanding Section 553 of the Administrative Procedure Act.'' (FCPIA of 2015 at section 4(b)(2)). Accordingly, Congress expressly exempted the annual inflation adjustments implemented pursuant to the FCPIA of 2015 from the pre-promulgation notice and comment requirements of the Administrative Procedure Act (APA), allowing them to be published as a final rule. This interpretation of the statute is confirmed by OMB Memorandum M-18-03. (OMB Memorandum M- 18-03 at 4, ``This means that the public procedure the APA generally requires--notice, an opportunity for comment, and a delay in effective date--is not required for agencies to issue regulations implementing the annual adjustment.''). II. Calculation of Adjustments Under the FCPIA of 2015 and the guidance provided in OMB Memorandum M-18-03, BSEE has identified the applicable civil monetary penalty and calculated the necessary inflation adjustment. The previous OCSLA civil penalty inflation adjustment accounted for inflation through October 2016. The required annual civil penalty inflation adjustment promulgated through this rule accounts for inflation through October 2017. Annual inflation adjustments are based on the percentage change between the Consumer Price Index for all Urban Consumers (CPI-U) for the October preceding the date of the adjustment and the prior year's October CPI-U. Consistent with the guidance in OMB Memorandum M-18-03, BSEE divided the October 2017 CPI-U by the October 2016 CPI-U to calculate the multiplying factor. In this case, October 2017 CPI-U (246.663)/October 2016 CPI-U (241.729) = 1.02041. OMB Memorandum M-18- 03 confirms that this is the proper multiplier. (OMB Memorandum M-18-03 at 1 and n.4.). For 2018, OCSLA and the FCPIA of 2015 require that BSEE adjust the OCSLA maximum civil penalty amount. To accomplish this, BSEE multiplied the existing OCSLA maximum civil penalty amount ($42,704) by the multiplying factor ($42,704 x 1.02041 = $43,575.59). The FCPIA of 2015 requires that the resulting amount be rounded to the nearest $1.00 at the end of the calculation process. Accordingly, the adjusted OCSLA maximum civil penalty is $43,576. The adjusted penalty levels take effect immediately upon publication of this rule. Pursuant to the FCPIA of 2015, the increase in the OCSLA maximum civil penalty amount applies to civil penalties assessed after the date the increase takes effect, even when the associated violation(s) predates such increase. Consistent with the provisions of OCSLA and the FCPIA of 2015, this rule adjusts the following maximum civil monetary penalty per day per violation: [[Page 2539]] ---------------------------------------------------------------------------------------------------------------- Current Adjusted CFR citation Description of the maximum Multiplier maximum penalty penalty penalty ---------------------------------------------------------------------------------------------------------------- 30 CFR 250.1403....................... Failure to comply per- $42,704 1.02041 $43,576 day, per-violation. ---------------------------------------------------------------------------------------------------------------- III. Procedural Requirements A. Regulatory Planning and Review (Executive Orders 12866, 13563, and 13771) Executive Order (E.O.) 12866 provides that the OMB Office of Information and Regulatory Affairs will review all significant rules. The OMB Office of Information and Regulatory Affairs (OIRA) has determined that this rule is not significant. (See OMB Memorandum M-18- 03 at 3). E.O. 13563 reaffirms the principles of E.O. 12866 while calling for improvements in the Nation's regulatory system to promote predictability, to reduce uncertainty, and to use the best, most innovative, and least burdensome tools for achieving regulatory ends. E.O. 13563 directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. E.O. 13563 further emphasizes 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, to the extent permitted by statute. E.O. 13771 of January 30, 2017, directs Federal agencies to reduce the regulatory burden on regulated entities and control regulatory costs. E.O. 13771, however, applies only to significant regulatory actions, as defined in Section 3(f) of E.O. 12866. OIRA has determined that agency regulations exclusively implementing the annual adjustment are not significant regulatory actions under E.O. 12866, provided they are consistent with OMB Memorandum M-18-03 (See OMB Memorandum M-18-03 at 4); thus, E.O. 13771 does not apply to this rulemaking. B. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) requires an agency to prepare a regulatory flexibility analysis for all 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 FCPIA of 2015 expressly exempts these annual inflation adjustments from the requirement to publish a proposed rule for notice and comment. (See FCPIA of 2015 at section 4(b)(2); OMB Memorandum M-18-03 at 4). Thus, the RFA does not apply to this rulemaking. C. Small Business Regulatory Enforcement Fairness Act This rule is not a major rule under 5 U.S.C. 804(2), the Small Business Regulatory Enforcement Fairness Act. This rule: (1) Does not have an annual effect on the economy of $100 million or more; (2) Will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; and (3) 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. 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. Therefore, 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 E.O. 12630. Therefore, a takings implication assessment is not required. F. Federalism (E.O. 13132) Under the criteria in section 1 of E.O. 13132, this rule does not have sufficient federalism implications to warrant the preparation of a federalism summary impact statement. Therefore, a federalism summary impact statement is not required. G. Civil Justice Reform (E.O. 12988) This rule complies with the requirements of E.O. 12988. Specifically, this rule: (1) 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 (2) Meets the criteria of section 3(b)(2) requiring that all regulations be written in clear language and contain clear legal standards. 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 of the Interior's consultation policy, under Departmental Manual Part 512 Chapters 4 and 5, and under the criteria in E.O. 13175. We have determined that it has no substantial direct effects on Federally-recognized Indian tribes or Alaska Native Claims Settlement Act (ANCSA) Corporations, and that consultation under the Department of the Interior's tribal and ANCSA consultation policies is not required. I. Paperwork Reduction Act This rule does not contain information collection requirements and a submission to the 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 This rule does not constitute a major Federal action significantly affecting the quality of the human environment. A detailed statement under the National Environmental Policy Act of 1969 (NEPA) is not required because, as a regulation of an administrative nature, this rule is covered by a categorical exclusion (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. Therefore, a detailed statement under NEPA is not required. [[Page 2540]] K. Effects on the Energy Supply (E.O. 13211) This rule is not a significant energy action under the definition in E.O. 13211. Therefore, a Statement of Energy Effects is not required. List of Subjects in 30 CFR Part 250 Administrative practice and procedure, Continental shelf, Continental Shelf--mineral resources, Continental Shelf--rights-of-way, Environmental impact statements, Environmental protection, Government contracts, Investigations, Oil and gas exploration, Penalties, Pipelines, Reporting and recordkeeping requirements, Sulfur. Joseph R. Balash, Assistant Secretary--Land and Minerals Management, U.S. Department of the Interior. For the reasons given in the preamble, the Bureau of Safety and Environmental Enforcement amends title 30, chapter II, subchapter B, part 250 Code of Federal Regulations as follows. PART 250--OIL AND GAS AND SULFUR OPERATIONS IN THE OUTER CONTINENTAL SHELF 0 1. The authority citation for 30 CFR part 250 continues to read as follows: Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 33 U.S.C. 1321(j)(1)(C), 43 U.S.C. 1334. 0 2. Revise Sec. 250.1403 to read as follows: Sec. 250.1403 What is the maximum civil penalty? The maximum civil penalty is $43,576 per day per violation. [FR Doc. 2018-00920 Filed 1-17-18; 8:45 am] BILLING CODE 4310-VH-P
![2538 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Rules and Regulations
DEPARTMENT OF THE INTERIOR increase in the Consumer Price Index Memorandum M–18–03 at 4, ‘‘This
(CPI) to account for inflation. On means that the public procedure the
Bureau of Safety and Environmental November 2, 2015, the Federal Civil APA generally requires—notice, an
Enforcement Penalties Inflation Adjustment Act opportunity for comment, and a delay in
Improvements Act of 2015 (Sec. 701 of effective date—is not required for
30 CFR Part 250 Pub. L. 114–74) (FCPIA of 2015) became agencies to issue regulations
[Docket ID: BSEE–2018–0001; 189E1700D2 law. The FCPIA of 2015 required implementing the annual adjustment.’’).
ET1SF0000.PSB000 EEEE500000] Federal agencies to adjust the level of
II. Calculation of Adjustments
civil monetary penalties with an initial
RIN 1014–AA36 ‘‘catch-up’’ adjustment through Under the FCPIA of 2015 and the
rulemaking, if warranted, and then to guidance provided in OMB
Oil and Gas and Sulfur Operations on Memorandum M–18–03, BSEE has
make subsequent annual adjustments
the Outer Continental Shelf—Civil identified the applicable civil monetary
for inflation. Agencies were required to
Penalty Inflation Adjustment penalty and calculated the necessary
publish the first annual inflation
AGENCY: Bureau of Safety and adjustments in the Federal Register by inflation adjustment. The previous
Environmental Enforcement, Interior. no later than January 15, 2017, and must OCSLA civil penalty inflation
ACTION: Final rule. publish recurring annual inflation adjustment accounted for inflation
adjustments by no later than January 15 through October 2016. The required
SUMMARY: This final rule adjusts the each subsequent year. The purpose of annual civil penalty inflation
level of the maximum civil monetary these adjustments is to maintain the adjustment promulgated through this
penalty contained in the Bureau of deterrent effect of civil penalties and to rule accounts for inflation through
Safety and Environmental Enforcement further the policy goals of the October 2017.
(BSEE) regulations pursuant to the underlying statutes. Annual inflation adjustments are
Outer Continental Shelf Lands Act BSEE last updated civil penalty based on the percentage change between
(OCSLA), the Federal Civil Penalties amounts in BSEE regulations through a the Consumer Price Index for all Urban
Inflation Adjustment Act Improvements final rule (RIN 1014–AA34; 82 FR 9136), Consumers (CPI–U) for the October
Act of 2015, and Office of Management published and effective on February 3, preceding the date of the adjustment
and Budget (OMB) guidance. The civil 2017. Consistent with OMB guidance, and the prior year’s October CPI–U.
penalty inflation adjustment, using a BSEE’s final rule (FR) implemented the Consistent with the guidance in OMB
1.02041 multiplier, accounts for one adjustments required by the FCPIA of Memorandum M–18–03, BSEE divided
year of inflation spanning October 2016 2015 through October 2016. the October 2017 CPI–U by the October
to October 2017. The OMB Memorandum M–18–03 2016 CPI–U to calculate the multiplying
DATES: This rule is effective on January (Implementation of the 2018 annual factor. In this case, October 2017 CPI–
18, 2018. adjustment pursuant to the FCPIA of U (246.663)/October 2016 CPI–U
FOR FURTHER INFORMATION CONTACT: 2015; [https://www.whitehouse.gov/wp- (241.729) = 1.02041. OMB
Jennifer Mehaffey, Safety and content/uploads/2017/11/M-18-03.pdf]) Memorandum M–18–03 confirms that
Enforcement Division, Bureau of Safety explains agency responsibilities for: this is the proper multiplier. (OMB
and Environmental Enforcement, (202) Identifying applicable penalties and Memorandum M–18–03 at 1 and n.4.).
208–3955 or by email: regs@bsee.gov. performing the annual adjustment; For 2018, OCSLA and the FCPIA of
publishing revisions to regulations to 2015 require that BSEE adjust the
SUPPLEMENTARY INFORMATION:
implement the adjustment in the OCSLA maximum civil penalty amount.
I. Background and Legal Authority Federal Register; applying adjusted To accomplish this, BSEE multiplied
II. Calculation of Adjustments penalty levels; and performing agency the existing OCSLA maximum civil
III. Procedural Requirements oversight of inflation adjustments. penalty amount ($42,704) by the
A. Regulatory Planning and Review (E.O.
12866, 13563, and 13771)
BSEE is promulgating this 2018 multiplying factor ($42,704 × 1.02041 =
B. Regulatory Flexibility Act inflation adjustment for civil penalties $43,575.59). The FCPIA of 2015 requires
C. Small Business Regulatory Enforcement as a final rule pursuant to the provisions that the resulting amount be rounded to
Fairness Act of the FCPIA of 2015 and OMB the nearest $1.00 at the end of the
D. Unfunded Mandates Reform Act guidance. A proposed rule is not calculation process. Accordingly, the
E. Takings (E.O. 12630) required because the FCPIA of 2015 adjusted OCSLA maximum civil penalty
F. Federalism (E.O. 13132) states that agencies shall adjust civil is $43,576.
G. Civil Justice Reform (E.O. 12988) monetary penalties ‘‘notwithstanding The adjusted penalty levels take effect
H. Consultation With Indian Tribes (E.O. Section 553 of the Administrative immediately upon publication of this
13175 and Departmental Policy)
I. Paperwork Reduction Act
Procedure Act.’’ (FCPIA of 2015 at rule. Pursuant to the FCPIA of 2015, the
J. National Environmental Policy Act section 4(b)(2)). Accordingly, Congress increase in the OCSLA maximum civil
K. Effects on the Energy Supply (E.O. expressly exempted the annual inflation penalty amount applies to civil
13211) adjustments implemented pursuant to penalties assessed after the date the
the FCPIA of 2015 from the pre- increase takes effect, even when the
I. Background and Legal Authority promulgation notice and comment associated violation(s) predates such
The OCSLA, at 43 U.S.C. 1350(b)(1), requirements of the Administrative increase. Consistent with the provisions
directs the Secretary of the Interior Procedure Act (APA), allowing them to of OCSLA and the FCPIA of 2015, this
sradovich on DSK3GMQ082PROD with RULES
(Secretary) to adjust the OCSLA be published as a final rule. This rule adjusts the following maximum
maximum civil penalty amount at least interpretation of the statute is confirmed civil monetary penalty per day per
once every three years to reflect any by OMB Memorandum M–18–03. (OMB violation:
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![2540 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Rules and Regulations
K. Effects on the Energy Supply (E.O. the increase in the Consumer Price the financial risk of oil spill incidents to
13211) Index (CPI) since 2013. This rule the Oil Spill Liability Trust Fund
This rule is not a significant energy increases the OPA offshore facility limit (OSLTF), the OPA requires that the
action under the definition in E.O. of liability for damages from $133.65 President adjust the limits of liability
13211. Therefore, a Statement of Energy million to $137.6595 million. ‘‘not less than every three years,’’ by
Effects is not required. DATES: This rule is effective on February regulation, to reflect significant
20, 2018. increases in the CPI. (33 U.S.C.
List of Subjects in 30 CFR Part 250 FOR FURTHER INFORMATION CONTACT: 2704(d)(4)). This mandate, in place
Administrative practice and Questions regarding the inflation since 1990, preserves the deterrent
procedure, Continental shelf, adjustment methodology or amount effect and ‘‘polluter pays’’ principle
Continental Shelf—mineral resources, should be directed to Mr. Martin embodied in OPA.
Continental Shelf—rights-of-way, Heinze, Economics Division, BOEM, at BOEM last adjusted for inflation the
Environmental impact statements, martin.heinze@boem.gov or at 703–787– OPA offshore facility limit of liability
Environmental protection, Government 1141. Questions regarding the timing of for damages on December 12, 2014 (79
contracts, Investigations, Oil and gas FR 73832). That 2014 rule updated the
this adjustment or the applicability of
exploration, Penalties, Pipelines, offshore facility limit of liability based
the regulations should be directed to
Reporting and recordkeeping on the Consumer Price Index All Urban
Deanna Meyer-Pietruszka, Chief, Office
requirements, Sulfur. Consumer (CPI–U) using the 2013
of Policy, Regulation and Analysis,
annual average CPI–U. The Bureau of
Joseph R. Balash,
Bureau of Ocean Energy Management
Labor Statisitcs (BLS) has published the
(BOEM), at deanna.meyer-pietruszka@
Assistant Secretary—Land and Minerals 2016 annual average CPI–U, which
boem.gov or at (202) 208–6352.
Management, U.S. Department of the Interior. BOEM is using to calculate this three-
SUPPLEMENTARY INFORMATION: year inflation adjustment for the
For the reasons given in the preamble, I. Background
the Bureau of Safety and Environmental offshore facility limit of liability.
II. Calculation of the 2017 Adjustment
Enforcement amends title 30, chapter II, III. Effective Date
BOEM is promulgating this rule
subchapter B, part 250 Code of Federal IV. Procedural Requirements pursuant to the provisions of Title I of
Regulations as follows. A. Regulatory Planning and Review (E.O. OPA, Executive Order (E.O.) 12777, as
12866, 13563 and 13771) amended, and BOEM regulations at 30
PART 250—OIL AND GAS AND B. Regulatory Flexibility Act CFR part 553, subpart G—Limit of
SULFUR OPERATIONS IN THE OUTER C. Small Business Regulatory Enforcement Liability for Offshore Facilities. A
CONTINENTAL SHELF Fairness Act proposed rule is unnecessary, and
D. Unfunded Mandates Reform Act BOEM thus has good cause for issuing
■ 1. The authority citation for 30 CFR E. Takings (E.O. 12630) this final rule under 5 U.S.C. 553(b),
part 250 continues to read as follows: F. Federalism (E.O. 13132) because the adjustment in the limit of
G. Civil Justice Reform (E.O. 12988)
Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, H. Consultation With Indian Tribes (E.O.
liability is mandated by statute, the
33 U.S.C. 1321(j)(1)(C), 43 U.S.C. 1334. 13175 and Departmental Policy) methodology for determining the
■ 2. Revise § 250.1403 to read as I. Paperwork Reduction Act amount is defined in BOEM’s
follows: J. National Environmental Policy Act regulations, and those regulations at
K. Effects on the Energy Supply (E.O. §§ 553.703(b)(4) and 553.704 provide
§ 250.1403 What is the maximum civil 13211) that inflation adjustments to the
penalty? offshore facilities limit of liability will
The maximum civil penalty is I. Background
be implemented through final
$43,576 per day per violation. The OPA established a rulemaking. The legislative and
[FR Doc. 2018–00920 Filed 1–17–18; 8:45 am] comprehensive regime for addressing regulatory history for OPA limit of
BILLING CODE 4310–VH–P
the consequences of oil spills, ranging liability inflation adjustments can be
from spill response to compensation for found in the rulemaking preamble for
damages to injured parties. Under Title the last inflation adjustment at 79 FR
DEPARTMENT OF THE INTERIOR I of the OPA, the responsible parties for 73832.
any vessel or facility, including any
Bureau of Ocean Energy Management offshore facility that discharges or poses II. Calculation of the 2017 Adjustment
a substantial threat of discharge of oil The methodology for calculating the
30 CFR Part 553 into or upon navigable waters, adjoining offshore facilities limit of liability
shorelines, or the exclusive economic inflation adjustment is provided in
[Docket ID: BOEM–2017–0048;
MMAA104000] zone, are liable for the removal costs § 553.703.
and damages that result from such Section 553.703(b)(2) requires that,
RIN 1010–AD98 discharge or threat of discharge, as not later than every three years from the
specified in 33 U.S.C. 2702(a) and (b). year the limit of liability was last
Oil Spill Financial Responsibility Under 33 U.S.C. 2704(a), however, the adjusted for inflation, BOEM will
Adjustment of the Limit of Liability for total liability of each responsible party evaluate whether the cumulative
Offshore Facilities is limited, subject to certain exceptions percent change in the annual CPI since
AGENCY: Bureau of Ocean Energy specified in 33 U.S.C. 2704(c). In 1990, that year has reached a significance
Management, Interior. the OPA provided that responsible threshold of three percent or greater.
sradovich on DSK3GMQ082PROD with RULES
ACTION: Final rule. parties for an offshore facility incident BOEM’s regulations specify Annual
were liable for ‘‘the total of all removal CPI–U as the appropriate mechanism by
SUMMARY: The Bureau of Ocean Energy costs plus $75,000,000.’’ (33 U.S.C. which to measure CPI. The limit of
Management is issuing this final rule to 2704(a)(3)). liability was last adjusted using the
adjust the offshore facility limit of To prevent the real value of the OPA 2013 Annual CPI–U and BOEM has
liability for damages under the Oil limits of liability from declining over determined that the cumulative percent
Pollution Act of 1990 (OPA) to reflect time as a result of inflation, and shifting change in the Annual CPI–U since 2013
VerDate Sep<11>2014 15:51 Jan 17, 2018 Jkt 244001 PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 E:\FR\FM\18JAR1.SGM 18JAR1](https://thefederalregister.org/doc/83_FR_2550/page/3.svg)
Document Created: 2018-01-18 00:42:29
Document Modified: 2018-01-18 00:42:29
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective on January 18, 2018. | |
| Contact | Jennifer Mehaffey, Safety and Enforcement Division, Bureau of Safety and Environmental Enforcement, (202) 208-3955 or by email: [email protected] | |
| FR Citation | 83 FR 2538 | |
| RIN Number | 1014-AA36 | |
| CFR Associated | Administrative Practice and Procedure; Continental Shelf; Continental Shelf-Mineral Resources; Continental Shelf-Rights-Of-Way; Environmental Impact Statements; Environmental Protection; Government Contracts; Investigations; Oil and Gas Exploration; Penalties; Pipelines; Reporting and Recordkeeping Requirements and Sulfur |
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