83_FR_2552 83 FR 2540 - Oil Spill Financial Responsibility Adjustment of the Limit of Liability for Offshore Facilities

83 FR 2540 - Oil Spill Financial Responsibility Adjustment of the Limit of Liability for Offshore Facilities

DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management

Federal Register Volume 83, Issue 12 (January 18, 2018)

Page Range2540-2542
FR Document2018-00798

The Bureau of Ocean Energy Management is issuing this final rule to adjust the offshore facility limit of liability for damages under the Oil Pollution Act of 1990 (OPA) to reflect the increase in the Consumer Price Index (CPI) since 2013. This rule increases the OPA offshore facility limit of liability for damages from $133.65 million to $137.6595 million.

Federal Register, Volume 83 Issue 12 (Thursday, January 18, 2018)
[Federal Register Volume 83, Number 12 (Thursday, January 18, 2018)]
[Rules and Regulations]
[Pages 2540-2542]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00798]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

30 CFR Part 553

[Docket ID: BOEM-2017-0048; MMAA104000]
RIN 1010-AD98


Oil Spill Financial Responsibility Adjustment of the Limit of 
Liability for Offshore Facilities

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final rule.

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

SUMMARY: The Bureau of Ocean Energy Management is issuing this final 
rule to adjust the offshore facility limit of liability for damages 
under the Oil Pollution Act of 1990 (OPA) to reflect the increase in 
the Consumer Price Index (CPI) since 2013. This rule increases the OPA 
offshore facility limit of liability for damages from $133.65 million 
to $137.6595 million.

DATES: This rule is effective on February 20, 2018.

FOR FURTHER INFORMATION CONTACT: Questions regarding the inflation 
adjustment methodology or amount should be directed to Mr. Martin 
Heinze, Economics Division, BOEM, at [email protected] or at 703-
787-1141. Questions regarding the timing of this adjustment or the 
applicability of the regulations should be directed to Deanna Meyer-
Pietruszka, Chief, Office of Policy, Regulation and Analysis, Bureau of 
Ocean Energy Management (BOEM), at [email protected] or 
at (202) 208-6352.

SUPPLEMENTARY INFORMATION:
I. Background
II. Calculation of the 2017 Adjustment
III. Effective Date
IV. 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

    The OPA established a comprehensive regime for addressing the 
consequences of oil spills, ranging from spill response to compensation 
for damages to injured parties. Under Title I of the OPA, the 
responsible parties for any vessel or facility, including any offshore 
facility that discharges or poses a substantial threat of discharge of 
oil into or upon navigable waters, adjoining shorelines, or the 
exclusive economic zone, are liable for the removal costs and damages 
that result from such discharge or threat of discharge, as specified in 
33 U.S.C. 2702(a) and (b). Under 33 U.S.C. 2704(a), however, the total 
liability of each responsible party is limited, subject to certain 
exceptions specified in 33 U.S.C. 2704(c). In 1990, the OPA provided 
that responsible parties for an offshore facility incident were liable 
for ``the total of all removal costs plus $75,000,000.'' (33 U.S.C. 
2704(a)(3)).
    To prevent the real value of the OPA limits of liability from 
declining over time as a result of inflation, and shifting the 
financial risk of oil spill incidents to the Oil Spill Liability Trust 
Fund (OSLTF), the OPA requires that the President adjust the limits of 
liability ``not less than every three years,'' by regulation, to 
reflect significant increases in the CPI. (33 U.S.C. 2704(d)(4)). This 
mandate, in place since 1990, preserves the deterrent effect and 
``polluter pays'' principle embodied in OPA.
    BOEM last adjusted for inflation the OPA offshore facility limit of 
liability for damages on December 12, 2014 (79 FR 73832). That 2014 
rule updated the offshore facility limit of liability based on the 
Consumer Price Index All Urban Consumer (CPI-U) using the 2013 annual 
average CPI-U. The Bureau of Labor Statisitcs (BLS) has published the 
2016 annual average CPI-U, which BOEM is using to calculate this three-
year inflation adjustment for the offshore facility limit of liability.
    BOEM is promulgating this rule pursuant to the provisions of Title 
I of OPA, Executive Order (E.O.) 12777, as amended, and BOEM 
regulations at 30 CFR part 553, subpart G--Limit of Liability for 
Offshore Facilities. A proposed rule is unnecessary, and BOEM thus has 
good cause for issuing this final rule under 5 U.S.C. 553(b), because 
the adjustment in the limit of liability is mandated by statute, the 
methodology for determining the amount is defined in BOEM's 
regulations, and those regulations at Sec. Sec.  553.703(b)(4) and 
553.704 provide that inflation adjustments to the offshore facilities 
limit of liability will be implemented through final rulemaking. The 
legislative and regulatory history for OPA limit of liability inflation 
adjustments can be found in the rulemaking preamble for the last 
inflation adjustment at 79 FR 73832.

II. Calculation of the 2017 Adjustment

    The methodology for calculating the offshore facilities limit of 
liability inflation adjustment is provided in Sec.  553.703.
    Section 553.703(b)(2) requires that, not later than every three 
years from the year the limit of liability was last adjusted for 
inflation, BOEM will evaluate whether the cumulative percent change in 
the annual CPI since that year has reached a significance threshold of 
three percent or greater. BOEM's regulations specify Annual CPI-U as 
the appropriate mechanism by which to measure CPI. The limit of 
liability was last adjusted using the 2013 Annual CPI-U and BOEM has 
determined that the cumulative percent change in the Annual CPI-U since 
2013

[[Page 2541]]

exceeds three percent. Therefore, as required by BOEM's regulations, 
BOEM must increase the offshore limit of liability for damages in Sec.  
553.702 by an amount equal to the cumulative percent change in the 
Annual CPI-U from the year the limit was last adjusted by regulation.
    The formula for calculating a cumulative percent change in the 
Annual CPI-U provided in Sec.  553.703(a) is as follows: The percent 
change in the Annual CPI-U = [(Annual CPI-U for Current Period - Annual 
CPI-U for Previous Period) / Annual CPI-U for Previous Period] x 100. 
Using the BLS Annual CPI-U index numbers for 2013 and 2016, the 
calculation is: (240.007-232.957) / 232.957 = 0.03026. Multiplying x 
100 yields a cumulative percent change of 3.026 percent. Section 
553.703(a) requires the cumulative percent change value to be rounded 
to one decimal place, resulting in a value of 3.0 percent.
    Under Sec.  553.703(c), BOEM calculates the adjustment to the 
offshore facilities limit of liability for inflation using the 
following formula: New limit of liability = Previous limit of liability 
+ (Previous limit of liability x the decimal equivalent of the percent 
change in the Annual CPI-U), rounded to the closest $100. The 
calculation is: $133.65 million + ($133.65 million x 0.03) = $137.6595 
million.
    Therefore, BOEM is revising the regulations at Sec.  553.702 to 
increase the limit of liability under OPA for a responsible party for 
any offshore facility, including any offshore pipeline, to the total of 
all removal costs plus $137.6595 million for damages with respect to 
each incident.
    Further information regarding the CPI and the methodology used by 
the BLS to develop the CPI is available at: https://www.bls.gov/cpi/cpi_dr.htm#2017.

III. Effective Date

    BOEM's regulations, at Sec.  553.704, provide for a 90-day delay in 
the effective date of the adjustment to the limit of liability. Section 
553.704 also provides that BOEM may, as part of a rule amending Sec.  
553.702, specify a different amount of time between the publication of 
the rule in the Federal Register and the effective date of that rule. 
The adjustment in the limit of liability is mandated by statute and the 
methodology for determining the amount of the update is defined in 
BOEM's regulations. Given that Sec.  553.704 specifically allows other 
than a 90-day delay in effective date to be announced in this rule 
amending Sec.  553.702, BOEM has determined that a 30-day delay in 
effective date is appropriate.

IV. Procedural Requirements

A. Regulatory Planning and Review (E.O. 12866, 13563 and 13771)

    E.O. 12866 provides that the Office of Information and Regulatory 
Affairs (OIRA) in the Office of Management and Budget (OMB) will review 
all significant rules. OIRA has determined that this rule is not 
significant.
    This rule is an update to the offshore facility limit of liability 
under the OPA. It is neither a new regulation, nor does it increase the 
regulatory burden on regulated entities. This final rule simply 
maintains the value of the limit of liability set by the OPA in 1990 by 
updating the limit of liability for three years of inflation as 
required by the OPA at 33 U.S.C. 2704(d)(4).
    E.O. 13563 reaffirms the principles of E.O. 12866 while calling for 
improvements in the nation's regulatory system to reduce uncertainty 
and to promote predictability and the use of 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. The OPA statutory mandate does not give BOEM the discretion 
to reduce burdens or maintain freedom of choice.
    E.O. 13771 of January 30, 2017, directs Federal agencies to reduce 
the regulatory burden on regulated entities and control regulatory 
costs. The E.O., however, applies only to significant regulatory 
actions, as defined in Section 3(f) of E.O. 12866. This rulemaking does 
not meet the definition for a significant regulatory action; 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)). 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.
    Implementation of this rule will not:
    (a) Have an annual effect on the economy of $100 million or more;
    (b) cause a major increase in costs or prices for consumers, 
individual industries, Federal, State, or local government agencies, or 
geographic regions; or
    (c) result in 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. This rule does not have a significant or unique effect on state, 
local, or tribal governments or the private sector. A statement 
containing the information required by the Unfunded Mandates Reform Act 
(2 U.S.C. 1531 et seq.) is not required.

E. Takings (E.O. 12630)

    This rule does not effect a taking of private property or otherwise 
have takings implications under 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:
    (a) Meets the criteria of section 3(a) requiring that all 
regulations be reviewed to eliminate errors and ambiguity and be 
written to minimize litigation; and
    (b) Meets the criteria of section 3(b)(2) requiring that all 
regulations be written in clear language and contain clear legal 
standards.

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

    E.O. 13175 provides that tribal consultation is not necessary for 
regulations required by statute. Because this rule simply implements a 
statutory mandate, tribal consultation is not required by this 
Executive Order.
    The Department of the Interior continually strives to strengthen 
its government-to-government relationship with Indian tribes through a

[[Page 2542]]

commitment to consultation with Indian tribes and recognizes their 
right to self-governance and tribal sovereignty. BOEM is also 
respectful of its responsibilities for consultation with corporations 
established pursuant to the Alaska Native Claims Settlement Act, 43 
U.S.C. 1601 et seq. (ANCSA).
    BOEM has evaluated this rule under the consultation policy of the 
Department of the Interior in Chapters 4 and 5 of Series 512 of the 
Departmental Manual and has determined that this rule has no 
substantial direct effects on any Tribe or ANCSA Corporation, as 
defined in 512 DM 4.3 to include, among others, Federally-recognized 
Alaska Native tribes. On the basis of this evaluation, BOEM has 
determined that consultation is not necessary to comply with any DOI 
policy.

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

    A detailed environmental analysis under the National Environmental 
Policy Act of 1969 (NEPA) is not required if the rule is covered by a 
categorical exclusion (see 43 CFR 46.205). This final rule meets the 
criteria set forth at 43 CFR 46.210(i) for a Departmental Categorical 
Exclusion in that this final rule is ``. . . of an administrative, 
financial, legal, technical, or procedural nature . . .'' We have also 
determined that the rule does not involve any of the extraordinary 
circumstances listed in 43 CFR 46.215 that would require further 
analysis under NEPA.

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

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

List of Subjects in 30 CFR Part 553

    Administrative practice and procedure, Continental shelf, Financial 
responsibility, Liability, Limit of liability, Oil and gas exploration, 
Oil pollution, Oil spill, Outer Continental Shelf, Penalties, 
Pipelines, Rights-of-way, Reporting and recordkeeping requirements, 
Surety bonds, Treasury securities.

    Dated: January 9, 2018.
Joseph R. Balash,
Assistant Secretary--Land and Minerals Management.

    For the reasons stated in the preamble, BOEM amends 30 CFR part 553 
as follows:

PART 553--OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE 
FACILITIES

0
1. The authority citation for part 553 continues to read as follows:

    Authority:  33 U.S.C. 2704, 2716; E.O. 12777, as amended.


0
2. Revise Sec.  553.702 to read as follows:


Sec.  553.702  What limit of liability applies to my offshore facility?

    Except as provided in 33 U.S.C. 2704(c), the limit of liability 
under OPA for a responsible party for any offshore facility, including 
any offshore pipeline, is the total of all removal costs plus $137.6595 
million for damages with respect to each incident.

[FR Doc. 2018-00798 Filed 1-17-18; 8:45 am]
 BILLING CODE 4310-MR-P



                                              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


                                                               Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Rules and Regulations                                            2541

                                              exceeds three percent. Therefore, as                    30-day delay in effective date is                        Implementation of this rule will not:
                                              required by BOEM’s regulations, BOEM                    appropriate.                                             (a) Have an annual effect on the
                                              must increase the offshore limit of                                                                            economy of $100 million or more;
                                                                                                      IV. Procedural Requirements
                                              liability for damages in § 553.702 by an                                                                         (b) cause a major increase in costs or
                                              amount equal to the cumulative percent                  A. Regulatory Planning and Review                      prices for consumers, individual
                                              change in the Annual CPI–U from the                     (E.O. 12866, 13563 and 13771)                          industries, Federal, State, or local
                                              year the limit was last adjusted by                        E.O. 12866 provides that the Office of              government agencies, or geographic
                                              regulation.                                             Information and Regulatory Affairs                     regions; or
                                                 The formula for calculating a                        (OIRA) in the Office of Management and                   (c) result in significant adverse effects
                                              cumulative percent change in the                        Budget (OMB) will review all significant               on competition, employment,
                                              Annual CPI–U provided in § 553.703(a)                   rules. OIRA has determined that this                   investment, productivity, innovation, or
                                              is as follows: The percent change in the                rule is not significant.                               the ability of U.S.-based enterprises to
                                              Annual CPI–U = [(Annual CPI–U for                          This rule is an update to the offshore              compete with foreign-based enterprises.
                                              Current Period ¥ Annual CPI–U for                       facility limit of liability under the OPA.
                                              Previous Period) ÷ Annual CPI–U for                                                                            D. Unfunded Mandates Reform Act
                                                                                                      It is neither a new regulation, nor does
                                              Previous Period] × 100. Using the BLS                   it increase the regulatory burden on                      This rule does not impose an
                                              Annual CPI–U index numbers for 2013                     regulated entities. This final rule simply             unfunded mandate on State, local, or
                                              and 2016, the calculation is:                           maintains the value of the limit of                    tribal governments, or the private sector
                                              (240.007¥232.957) ÷ 232.957 = 0.03026.                  liability set by the OPA in 1990 by                    of more than $100 million per year. This
                                              Multiplying × 100 yields a cumulative                   updating the limit of liability for three              rule does not have a significant or
                                              percent change of 3.026 percent. Section                years of inflation as required by the                  unique effect on state, local, or tribal
                                              553.703(a) requires the cumulative                      OPA at 33 U.S.C. 2704(d)(4).                           governments or the private sector. A
                                              percent change value to be rounded to                      E.O. 13563 reaffirms the principles of              statement containing the information
                                              one decimal place, resulting in a value                 E.O. 12866 while calling for                           required by the Unfunded Mandates
                                              of 3.0 percent.                                         improvements in the nation’s regulatory                Reform Act (2 U.S.C. 1531 et seq.) is not
                                                 Under § 553.703(c), BOEM calculates                  system to reduce uncertainty and to                    required.
                                              the adjustment to the offshore facilities               promote predictability and the use of
                                              limit of liability for inflation using the                                                                     E. Takings (E.O. 12630)
                                                                                                      the best, most innovative, and least
                                              following formula: New limit of liability               burdensome tools for achieving                           This rule does not effect a taking of
                                              = Previous limit of liability + (Previous               regulatory ends. E.O. 13563 directs                    private property or otherwise have
                                              limit of liability × the decimal                        agencies to consider regulatory                        takings implications under E.O. 12630.
                                              equivalent of the percent change in the                 approaches that reduce burdens and                     Therefore, a takings implication
                                              Annual CPI–U), rounded to the closest                   maintain flexibility and freedom of                    assessment is not required.
                                              $100. The calculation is: $133.65                       choice for the public where these
                                              million + ($133.65 million × 0.03) =                                                                           F. Federalism (E.O. 13132)
                                                                                                      approaches are relevant, feasible, and
                                              $137.6595 million.                                      consistent with regulatory objectives.                   Under the criteria in section 1 of E.O.
                                                 Therefore, BOEM is revising the                      The OPA statutory mandate does not                     13132, this rule does not have sufficient
                                              regulations at § 553.702 to increase the                give BOEM the discretion to reduce                     federalism implications to warrant the
                                              limit of liability under OPA for a                      burdens or maintain freedom of choice.                 preparation of a federalism summary
                                              responsible party for any offshore                         E.O. 13771 of January 30, 2017,                     impact statement. Therefore, a
                                              facility, including any offshore pipeline,              directs Federal agencies to reduce the                 federalism summary impact statement is
                                              to the total of all removal costs plus                  regulatory burden on regulated entities                not required.
                                              $137.6595 million for damages with                      and control regulatory costs. The E.O.,                G. Civil Justice Reform (E.O. 12988)
                                              respect to each incident.                               however, applies only to significant
                                                 Further information regarding the CPI                regulatory actions, as defined in Section                 This rule complies with the
                                              and the methodology used by the BLS                     3(f) of E.O. 12866. This rulemaking does               requirements of E.O. 12988.
                                              to develop the CPI is available at:                     not meet the definition for a significant              Specifically, this rule:
                                              https://www.bls.gov/cpi/cpi_                            regulatory action; thus, E.O. 13771 does                  (a) Meets the criteria of section 3(a)
                                              dr.htm#2017.                                            not apply to this rulemaking.                          requiring that all regulations be
                                                                                                                                                             reviewed to eliminate errors and
                                              III. Effective Date                                     B. Regulatory Flexibility Act                          ambiguity and be written to minimize
                                                 BOEM’s regulations, at § 553.704,                      The Regulatory Flexibility Act (RFA)                 litigation; and
                                              provide for a 90-day delay in the                       requires an agency to prepare a                           (b) Meets the criteria of section 3(b)(2)
                                              effective date of the adjustment to the                 regulatory flexibility analysis for all                requiring that all regulations be written
                                              limit of liability. Section 553.704 also                rules unless the agency certifies that the             in clear language and contain clear legal
                                              provides that BOEM may, as part of a                    rule will not have a significant                       standards.
                                              rule amending § 553.702, specify a                      economic impact on a substantial
                                              different amount of time between the                                                                           H. Consultation With Indian Tribes
                                                                                                      number of small entities. The RFA                      (E.O. 13175 and Departmental Policy)
                                              publication of the rule in the Federal                  applies only to rules for which an
                                              Register and the effective date of that                 agency is required to first publish a                    E.O. 13175 provides that tribal
                                              rule. The adjustment in the limit of                    proposed rule (see 5 U.S.C. 603(a) and                 consultation is not necessary for
                                              liability is mandated by statute and the                604(a)). Thus, the RFA does not apply                  regulations required by statute. Because
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                                              methodology for determining the                         to this rulemaking.                                    this rule simply implements a statutory
                                              amount of the update is defined in                                                                             mandate, tribal consultation is not
                                              BOEM’s regulations. Given that                          C. Small Business Regulatory                           required by this Executive Order.
                                              § 553.704 specifically allows other than                Enforcement Fairness Act                                 The Department of the Interior
                                              a 90-day delay in effective date to be                    This rule is not a major rule under 5                continually strives to strengthen its
                                              announced in this rule amending                         U.S.C. 804(2), the Small Business                      government-to-government relationship
                                              § 553.702, BOEM has determined that a                   Regulatory Enforcement Fairness Act.                   with Indian tribes through a


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                                              2542             Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Rules and Regulations

                                              commitment to consultation with Indian                    Dated: January 9, 2018.                              effect for the time being. The final rule
                                              tribes and recognizes their right to self-              Joseph R. Balash,                                      modernizes the deposit requirements by
                                              governance and tribal sovereignty.                      Assistant Secretary—Land and Minerals                  requiring applicants to submit their
                                              BOEM is also respectful of its                          Management.                                            photographs in a digital format when
                                              responsibilities for consultation with                    For the reasons stated in the                        using GRPPH, GRUPH, or the pilot
                                              corporations established pursuant to the                preamble, BOEM amends 30 CFR part                      program for photographic databases,
                                              Alaska Native Claims Settlement Act, 43                 553 as follows:                                        along with a separate document
                                              U.S.C. 1601 et seq. (ANCSA).                                                                                   containing a list of the titles and file
                                                 BOEM has evaluated this rule under                   PART 553—OIL SPILL FINANCIAL                           names for each photograph. The final
                                              the consultation policy of the                          RESPONSIBILITY FOR OFFSHORE                            rule revises the eligibility requirements
                                              Department of the Interior in Chapters 4                FACILITIES                                             for GRPPH and GRUPH by providing
                                              and 5 of Series 512 of the Departmental                                                                        that all the photographs must be created
                                              Manual and has determined that this                     ■ 1. The authority citation for part 553               by the same ‘‘author’’ (a term that
                                              rule has no substantial direct effects on               continues to read as follows:                          includes an employer or other person
                                              any Tribe or ANCSA Corporation, as                        Authority: 33 U.S.C. 2704, 2716; E.O.                for whom a work is made for hire), and
                                              defined in 512 DM 4.3 to include,                       12777, as amended.                                     clarifying that they do not need to be
                                              among others, Federally-recognized                                                                             created by the same photographer or
                                                                                                      ■   2. Revise § 553.702 to read as follows:            published within the same country. It
                                              Alaska Native tribes. On the basis of this
                                              evaluation, BOEM has determined that                    § 553.702 What limit of liability applies to           also confirms that a group registration
                                              consultation is not necessary to comply                 my offshore facility?                                  issued under GRPHH or GRUPH covers
                                              with any DOI policy.                                       Except as provided in 33 U.S.C.                     each photograph in the group, each
                                                                                                      2704(c), the limit of liability under OPA              photograph is registered as a separate
                                              I. Paperwork Reduction Act                                                                                     work, and the group as a whole is not
                                                                                                      for a responsible party for any offshore
                                                This rule does not contain                            facility, including any offshore pipeline,             considered a compilation or a collective
                                              information collection requirements,                    is the total of all removal costs plus                 work.
                                              and a submission to the OMB under the                   $137.6595 million for damages with                     DATES: Effective February 20, 2018.
                                              Paperwork Reduction Act (44 U.S.C.                      respect to each incident.                              FOR FURTHER INFORMATION CONTACT:
                                              3501 et seq.) is not required. We may                   [FR Doc. 2018–00798 Filed 1–17–18; 8:45 am]            Robert J. Kasunic, Associate Register of
                                              not conduct or sponsor, and you are not                 BILLING CODE 4310–MR–P                                 Copyrights and Director of Registration
                                              required to respond to, a collection of                                                                        Policy and Practice; Sarang Vijay Damle,
                                              information unless it displays a                                                                               General Counsel and Associate Register
                                              currently valid OMB control number.                                                                            of Copyrights; Erik Bertin, Deputy
                                                                                                      LIBRARY OF CONGRESS
                                              J. National Environmental Policy Act                                                                           Director of Registration Policy and
                                                                                                      U.S. Copyright Office                                  Practice by telephone at 202–707–8040
                                                A detailed environmental analysis                                                                            or by email at rkas@loc.gov, sdam@
                                              under the National Environmental                        37 CFR Parts 201, 202                                  loc.gov, and ebertin@loc.gov.
                                              Policy Act of 1969 (NEPA) is not                                                                               SUPPLEMENTARY INFORMATION:
                                              required if the rule is covered by a                    [Docket No. 2016–10]
                                              categorical exclusion (see 43 CFR                                                                              I. Background
                                                                                                      Group Registration of Photographs
                                              46.205). This final rule meets the                                                                                The Copyright Act gives the Register
                                              criteria set forth at 43 CFR 46.210(i) for              AGENCY:  U.S. Copyright Office, Library                of Copyrights (the ‘‘Register’’) the
                                              a Departmental Categorical Exclusion in                 of Congress.                                           discretion to allow groups of related
                                              that this final rule is ‘‘. . . of an                   ACTION: Final rule.                                    works to be registered with one
                                              administrative, financial, legal,                                                                              application and one filing fee. See 17
                                              technical, or procedural nature . . .’’ We              SUMMARY:   The U.S. Copyright Office is                U.S.C. 408(c)(1). Congress cited ‘‘a
                                              have also determined that the rule does                 modernizing its practices to increase the              group of photographs by one
                                              not involve any of the extraordinary                    efficiency of the group registration                   photographer’’ as an example of a
                                              circumstances listed in 43 CFR 46.215                   option for photographs. This final rule                ‘‘group of related works’’ that would be
                                              that would require further analysis                     modifies the procedure for registering                 suitable for a group registration. H.R.
                                              under NEPA.                                             groups of published photographs                        Rep. No. 94–1476, at 154 (1976),
                                                                                                      (GRPPH), and establishes a similar                     reprinted in 1976 U.S.C.C.A.N. 5659,
                                              K. Effects on the Energy Supply (E.O.
                                                                                                      procedure for registering groups of                    5770; S. Rep. No. 94–473, at 136 (1975).
                                              13211)
                                                                                                      unpublished photographs (GRUPH).                       When large numbers of photographs are
                                                This rule is not a significant energy                 Applicants will be required to use a new               grouped together in one application,
                                              action under the definition in E.O.                     online application specifically designed               however, information about the
                                              13211. Therefore, a Statement of Energy                 for each option, instead of using a paper              individual works may not be adequately
                                              Effects is not required.                                application, and will be allowed to                    captured. Group registration options
                                                                                                      include up to 750 photographs in each                  therefore require careful balancing of
                                              List of Subjects in 30 CFR Part 553
                                                                                                      claim. The ‘‘unpublished collection’’                  the need for an accurate public record
                                                 Administrative practice and                          option (which allows an unlimited                      and the need for an efficient method of
                                              procedure, Continental shelf, Financial                 number of photographs to be registered                 facilitating the examination of those
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                                              responsibility, Liability, Limit of                     with one application), and the ‘‘pilot                 works.
                                              liability, Oil and gas exploration, Oil                 program’’ (which allows an unlimited                      On December 1, 2016, the Copyright
                                              pollution, Oil spill, Outer Continental                 number of published photographs to be                  Office (the ‘‘Office’’) published a Notice
                                              Shelf, Penalties, Pipelines, Rights-of-                 registered with the application designed               of Proposed Rulemaking (‘‘NPRM’’)
                                              way, Reporting and recordkeeping                        for one work) will be eliminated. The                  setting forth proposed amendments to
                                              requirements, Surety bonds, Treasury                    corresponding ‘‘pilot program’’ for                    the current regulation governing the
                                              securities.                                             photographic databases will remain in                  group registration option for published


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Document Created: 2018-01-18 00:42:20
Document Modified: 2018-01-18 00:42:20
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective on February 20, 2018.
ContactQuestions regarding the inflation adjustment methodology or amount should be directed to Mr. Martin Heinze, Economics Division, BOEM, at [email protected] or at 703- 787-1141. Questions regarding the timing of this adjustment or the applicability of the regulations should be directed to Deanna Meyer- Pietruszka, Chief, Office of Policy, Regulation and Analysis, Bureau of Ocean Energy Management (BOEM), at [email protected] or at (202) 208-6352.
FR Citation83 FR 2540 
RIN Number1010-AD98
CFR AssociatedAdministrative Practice and Procedure; Continental Shelf; Financial Responsibility; Liability; Limit of Liability; Oil and Gas Exploration; Oil Pollution; Oil Spill; Outer Continental Shelf; Penalties; Pipelines; Rights-Of-Way; Reporting and Recordkeeping Requirements; Surety Bonds and Treasury Securities

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