[Federal Register Volume 61, Number 245 (Thursday, December 19, 1996)]
[Proposed Rules]
[Pages 66966-66967]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31797]
[[Page 66966]]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Part 250
RIN 1010-AC11
Outer Continental Shelf Civil Penalties
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This notice of proposed rulemaking (NPR) would revise MMS
regulations governing the Outer Continental Shelf (OCS) Civil Penalty
Program. MMS is amending these regulations to clarify and simplify
assessing and collecting OCS civil penalties. In addition, MMS is
adjusting the maximum civil penalty per day per violation from $20,000
to $25,000 due to inflation.
DATES: MMS will consider all comments received by March 19, 1997. Any
comments received after March 19, 1997 may not be fully considered.
ADDRESSES: Mail or hand-carry comments to the Department of the
Interior; Minerals Management Service; Mail Stop 4700; 381 Elden
Street; Herndon, Virginia 20170-4817; Attention: Chief, Engineering and
Standards Branch.
FOR FURTHER INFORMATION CONTACT: Greg Gould, Program Coordinator,
telephone (703) 787-1591 or fax (703) 787-1575.
SUPPLEMENTARY INFORMATION: The Oil Pollution Act of 1990 (OPA 90),
(Pub.L. 101-380) expanded and strengthened MMS's authority to impose
penalties for violating its regulations.
Section 8201 of OPA 90 authorizes the Secretary of the Interior
(Secretary) to assess a civil penalty without providing notice and time
for corrective action where a failure to comply with applicable
regulations results in a threat of serious, irreparable, or immediate
harm or damage to human life or the environment.
The goal of the MMS OCS Civil Penalty Program is to ensure safe and
clean operations on the OCS. By pursuing, assessing, and collecting
civil penalties, the program is designed to encourage compliance with
OCS statutes and regulations.
Not all regulatory violations warrant a review to initiate civil
penalty proceedings. However, violations that cause injury, death, or
environmental damage, or pose a threat to human life or the
environment, will trigger such review. Examples of such violations
include:
Unsafe and unworkmanlike operations involving injury to
humans or pollution.
Safety devices; e.g., surface and subsurface safety
valves, emergency shut-down systems, etc. that are:
(a) Bypassed or removed without (1) a valid reason, (2) prior
approval, or (3) lockout-tagout, flagging or monitoring, or
(b) Inoperable (i.e., failures) but are left in service without
repair.
The provisions of OPA 90, amending the regulations at 30 CFR part
250, Subpart N, were published as a notice of final rulemaking the
Federal Register on May 13, 1991. As of February 1996, MMS had
Initiated 87 compliance reviews that resulted in 78 civil
penalty cases,
Assessed 41 civil penalties, and
Collected over $346,292 in fines.
Fourteen cases were dismissed, and 23 are still in review.
Over the past several years, MMS has had internal reviews of the
OCS Civil Penalty Program. These reviews resulted in a rewrite of the
regulations at 30 CFR part 250, Subpart N to simplify the language into
``plain English.'' The new question-and-answer format should provide a
better understanding of the OCS civil penalty process.
Besides simplifying the regulations, MMS is proposing to increase
the maximum civil penalty to $25,000 per day per violation. The
provisions of OPA 90 require the Secretary to adjust at least every 3
years the maximum civil penalty to reflect any increases in the
Consumer Price Index for all-urban consumers (CPI-U) as prepared by the
Department of Labor.
In accord with Public Law 101-410, MMS divided the August 1995 CPI-
U by the August 1990 CPI-U. The resulting value was multiplied by the
current maximum civil penalty, rounding the new value to the nearest
$5,000 (152.5/131.6=1.159; 1.159x20,000=23,180) we rounded $23,180 to
$25,000.
Author: Greg Gould, Inspection and Enforcement Branch, MMS, prepared
this document.
Executive Order (E.O.) 12866
This rule is significant under E.O. 12866 and has been reviewed by
the Office of Management and Budget (OMB).
Regulatory Flexibility Act
The Department of the Interior (DOI) determined that this NPR will
not have a significant effect on a substantial number of small
entities. In general, the entities that engage in offshore activities
are not considered small due to the technical and financial resources
and experience necessary to safely conduct such activities. The DOI
also determined that the indirect effects of this NPR on small entities
that provide support for offshore activities are small.
Paperwork Reduction Act
The NPR does not contain collections of information that require
approval by OMB under 44 U.S.C. 3501 et seq.
Takings Implication Assessment
The DOI determined that this NPR does not represent a governmental
action capable of interference with constitutionally protected property
rights. Thus, DOI does not need to prepare a Takings Implication
Assessment pursuant to E.O. 12630, Government Action and Interference
with Constitutionally Protected Property Rights.
Unfunded Mandate Reform Act of 1995
This NPR does not contain any unfunded mandates to State, local, or
tribal governments or the private sector.
E.O. 12988
The DOI has certified to OMB that the rule meets the applicable
reform standards provided in Sections 3(a) and 3(b)(2) of Executive
Order 12988.
National Environmental Policy Act
The DOI determined that this action does not constitute a major
Federal action significantly affecting the quality of the human
environment; therefore, an Environmental Impact Statement is not
required.
List of Subjects in 30 CFR Part 250
Continental shelf, Environmental impact statements, Environmental
protection, Government contracts, Investigations, Mineral royalties,
Oil and gas development and production, Oil and gas exploration, Oil
and gas reserves, Penalties, Pipelines, Public lands--mineral
resources, Public lands--rights-of-way, Reporting and recordkeeping
requirements, Sulphur development and production, Sulphur exploration,
Surety bonds.
Dated: October 2, 1996.
Sylvia V. Baca,
Assistant Secretary, Land and Minerals Management.
For the reasons in the preamble, Minerals Management Service (MMS)
proposes to amend 30 CFR part 250 as follows:
[[Page 66967]]
PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
1. Authority citation for part 250 continues to read as follows:
Authority: 43 U.S.C. 1334.
2. Subpart N is revised to read as follows:
Subpart N--Outer Continental Shelf (OCS) Civil Penalties
Sec.
250.200 Initiation of civil penalty process.
250.201 Index table.
250.202 Definitions.
250.203 What is the maximum civil penalty?
250.204 Which violations will MMS review for potential civil
penalties?
250.205 When is a case file developed?
250.206 When will MMS notify me and provide penalty information?
250.207 How do I respond to the letter of notification?
250.208 When will I be notified of the Reviewing Officer's
decision?
250.209 What are my appeal rights?
Subpart N--Outer Continental Shelf (OCS) Civil Penalties
Sec. 250.200 Initiation of civil penalty process.
Whenever MMS determines, on the basis of available evidence, that a
violation may have occurred, it will prepare a case file. MMS will
appoint a Reviewing Officer.
Sec. 250.201 Index table.
The following table is an index of the sections in this subpart:
Table Sec. 250.201
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Section
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Definitions................................................... 250.202
What is the maximum civil penalty?............................ 250.203
Which violations will MMS review for potential civil
penalties?................................................... 250.204
When is a case file developed?................................ 250.205
When will MMS notify me and provide penalty information?...... 250.206
May I request a meeting with the MMS Reviewing Officer?....... 250.207
When will I be notified of the Reviewing Officer's decision?.. 250.208
What are my appeal rights?.................................... 250.209
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Sec. 250.202 Definitions.
Terms used in this subpart have the following meaning:
Case file means an MMS document file containing information and the
record of evidence related to the alleged violation.
Civil penalty is a fine. It is an MMS regulatory enforcement tool
used in addition to Notices of Incidents of Noncompliance and directed
suspensions of production or other operations.
I, me in a question or you in a response means the person, or agent
of a person engaged in oil, gas, sulphur, or other minerals operations
in the Outer Continental Shelf (OCS).
Person means, in addition to a natural person, an association
(including partnerships and joint ventures), a State, a political
subdivision of a State, or a private, public, or municipal corporation.
Reviewing Officer means an MMS employee assigned to review case
files and assess civil penalties.
Violation means failure to comply with the Outer Continental Shelf
Lands Act (OCSLA) or any other applicable laws, with any regulations
issued under the OCSLA, or with the terms or provisions of leases,
licenses, permits, rights-of-way, or other approvals issued under the
OCSLA.
Violator is a person who fails to comply with the OCSLA or any
other applicable laws, with any regulations, or the terms or provisions
of leases or rights-of-way, licenses, permits, or other approvals
issued under the OCSLA.
Sec. 250.203 What is the maximum civil penalty?
The maximum civil penalty is $25,000 per day per violation.
Sec. 250.204 Which violations will MMS review for potential civil
penalties?
MMS will review each of the following violations for potential
civil penalties:
(a) Violations that you don't correct within the period MMS grants;
(b) Violations that MMS determines may constitute a threat of
serious, irreparable, or immediate harm or damage to life (including
fish and other aquatic life), property, any mineral deposit, or the
marine, coastal, or human environment; or
(c) Violations that cause serious, irreparable, or immediate harm
or damage to life (including fish and other aquatic life), property,
any mineral deposit, or the marine, coastal, or human environment.
Sec. 250.205 When is a case file developed?
MMS will develop a case file during its investigation of the
violation, and forward it to an MMS Reviewing Officer if any of the
conditions in Sec. 250.204 exist. The Reviewing Officer will review the
case file and determine if a civil penalty is appropriate. The
Reviewing Officer may administer oaths and issue subpoenas requiring
witnesses to attend meetings, submit depositions, or produce evidence.
Sec. 250.206 When will MMS notify me and provide penalty information?
If the MMS Reviewing Officer determines that a civil penalty should
be assessed, the Reviewing Officer will send the violator a letter of
notification. The letter of notification will include:
(a) The amount of the proposed civil penalty;
(b) Information on the alleged violation(s); and
(c) Instructions on how to obtain a copy of the case file.
Sec. 250.207 How do I respond to the letter of notification?
(a) You have 30 calendar days after you receive the Reviewing
Officer's letter to either:
(1) Request, in writing, a meeting the MMS Reviewing Officer;
(2) Submit additional information; or
(3) Pay the proposed civil penalty.
(b) The Reviewing Officer's letter will include instructions for
scheduling a meeting, submitting information, or paying the penalty.
Sec. 250.208 When will I be notified of the Reviewing Officer's
decision?
At the end of the 30-day response period, the MMS Reviewing Officer
will review the case file, including all information you submitted, and
send you a decision. The decision will include the amount of any final
civil penalty and the basis for the civil penalty. Instructions for
paying the civil penalty will be included in the decision.
Sec. 250.209 What are my appeal rights?
When you receive the Reviewing Officer's decision, you must either
pay the penalty or file an appeal with MMS under part 290 of this
chapter. If you do not either pay the penalty or file a timely appeal,
MMS will take one or more the following actions:
(a) MMS will collect the amount you were assessed, plus interest,
late payment charges, and other fees as provided by law, from the date
of assessment until the date MMS receives payment.
(b) MMS may initiate additional enforcement proceedings including,
if appropriate, cancellation of the lease, right-of-way, license,
permit, or approval, or the forfeiture of a bond under this part.
(c) MMS may bar you from doing further business with the Federal
Government.
[FR Doc. 96-31797 Filed 12-18-96; 8:45 am]
BILLING CODE 4310-MR-M