[Federal Register Volume 65, Number 242 (Friday, December 15, 2000)]
[Proposed Rules]
[Pages 78432-78434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31950]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 256

RIN 1010-AC74


Leasing of Sulphur or Oil and Gas in the Outer Continental 
Shelf--Definition of Affected State

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: This proposed rule would eliminate the definition of 
``Affected State'' from Subpart B, the Oil and Gas Leasing Program. 
This would mean that the definition of ``Affected State'' in Subpart A 
would apply and would eliminate the need for unaffected coastal States 
to participate in the preparation of a 5-year program.

DATES: We will consider all comments received by February 13, 2001. We 
will begin reviewing comments then and may not fully consider comments 
we receive after February 13, 2001.

ADDRESSES: Mail or hand-carry comments to the Department of the 
Interior; Minerals Management Service; Mail Stop 4024; 381 Elden 
Street; Herndon, Virginia 20170-4817; Attention: Rules Processing Team.

FOR FURTHER INFORMATION CONTACT: Ralph Ainger or Jane Roberts at (703) 
787-1215.

SUPPLEMENTARY INFORMATION: This proposed rule would eliminate the 
definition of ``Affected State'' at 30 CFR 256.14 as it applies only to 
the ``Subpart B, Oil and Gas Leasing Program.'' Because of the 
Presidential proclamation withdrawing areas of the Outer Continental 
Shelf (OCS) from leasing consideration, it is virtually impossible for 
many currently listed States to be affected under the Act. The 
definition in subpart B is therefore erroneous.
    The definition of the term already is found at 30 CFR 256.5(g), 
which applies to the entire part and follows the definition in the 
Outer Continental Shelf (OCS) Lands Act, 43 U.S.C. 1331(f). The 
definition at Sec. 256.5(g) reads as follows: ```Affected State' means, 
with respect to any program, plan, lease sale, or other activity, 
proposed, conducted, or approved pursuant to the provisions of the act, 
any State--
    (1) The laws of which are declared, pursuant to section 4(a)(2) of 
the Act, to be the law of the United States for the portion of the 
Outer Continental Shelf on which such activity is, or proposed to be 
conducted;
    (2) Which is, or is proposed to be, directly connected by 
transportation facilities to any artificial island or structure 
referred to in section 4(a)(1) of the Act;
    (3) Which is receiving, or in accordance with the proposed activity 
will receive, oil for processing, refining, or transshipment which was 
extracted from the Outer Continental Shelf and transported directly to 
such State by means of vessels or by a combination of means including 
vessels;
    (4) Which is designated by the Secretary as a State in which there 
is a substantial probability of significant impact on or damage to the 
coastal, marine, or human environment, or a State in which there will 
be significant changes in the social, governmental, or economic 
infrastructure, resulting from the exploration, development, and 
production of oil and gas anywhere on the Outer Continental Shelf; or
    (5) In which the Secretary finds that because of such activity 
there is, or will be a significant risk of serious damage, due to 
factors such as prevailing winds and currents, to the marine or coastal 
environment in the event of any oilspill, blowout, or release of oil or 
gas from vessels, pipelines, or other transshipment facilities.''
    At this time, listing all the States adjacent to the OCS as 
``affected'' is contrary to the intent as well as the letter of the 
statute and may cause unnecessary administrative burden for those 
States that are not affected under the legal definition. In June 1998, 
President Clinton acted under the authority of section 12 of the OCS 
Lands Act to withdraw the Atlantic and Pacific coasts from leasing 
until the year 2012.
    As a result of Presidential and congressional actions, there can be 
no leasing off the Atlantic coast until 2012. The other criteria in the 
statutory definition of affected State relate to post-lease activity. 
As there are no active leases off the Atlantic coast, it is virtually 
impossible for any Atlantic States to be affected by the 5-year 
program. Automatically treating such States as affected requires the 
Federal Government to involve them in the preparation of the multi-
phased 5-year program that would not affect them. In addition, some 
States have their own administrative processes that come into play if 
they are deemed affected. These States should not be automatically 
involved if they do not meet the statutory definition. Because of the 
Presidential Proclamation, these States cannot be affected under the 
Act; therefore, the definition in Subpart B is erroneous. However, 
there is nothing that precludes any State's participation if they wish 
and to the extent they wish, as the 5-year process contains multiple 
periods for public comment. Elimination of the definition also reduces 
the burden on the Government to involve States that are not affected by 
the program.

Procedural Matters

Public Comments Procedure

    Our practice is to make comments, including names and home 
addresses of respondents, available for public review during regular 
business hours. Individual respondents may request that we withhold 
their home address from the rulemaking record, which we will honor to 
the extent allowable by law. There may be circumstances in which we 
would withhold from the rulemaking record a respondent's identity, as 
allowable by law. If you wish us to withhold your name and/or address, 
you must state this prominently at the beginning of your comment. 
However, we will not consider anonymous comments. We will make all 
submissions from organizations or businesses, and from individuals 
identifying themselves as representatives or officials of organizations 
or businesses, available for public inspection in their entirety.

Federalism (Executive Order 13132)

    According to Executive Order 13132, this rule does not have 
Federalism implications. This rule does not substantially and directly 
affect the relationship between the Federal and State Governments. 
Elimination of the redundant and unnecessary definition of an Affected 
State could reduce costs on States that are not affected by the 5-year 
program and the cost to the Federal Government of involving unaffected 
States.

Takings Implications Assessment (Executive Order 12630)

    According to Executive Order 12630, the rule does not have 
significant Takings implications. A Takings Implication Assessment is 
not required. This rule has no effect on Takings, as it only applies to 
States that would no longer be automatically involved in the

[[Page 78433]]

preparation of a program that has no affect on them, thereby 
eliminating the possible burden of doing so.

Regulatory Planning and Review (Executive Order 12866)

    This document is not a significant rule and is not subject to 
review by the Office of Management and Budget (OMB) under Executive 
Order 12866.
    (1) This rule will not have an effect of $100 million or more on 
the economy. It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities. Ultimately, this rule is advantageous to the Federal 
Government in that it would not have to involve certain unaffected 
States in the complex, multi-step process of preparing a 5-year program 
and to those States that would not have to participate during program 
preparation, when the Federal Government makes three requests for 
comments and recommendations from affected States. Because of 
Presidential withdrawals and congressional moratoria, an average of 14 
of the 23 coastal States could be deemed unaffected by a proposed 5-
year program. If those 14 States were deemed unaffected, there could be 
a maximum savings of $170,100 ($2,100 + $168,000). At a minimum, a 
State must spend 1 hour deciding whether or not to respond. Therefore, 
there would be a minimum expenditure of $2,100 (14 States  x 3 requests 
 x 1 hour  x $ 50 per hour). If a State decides, or in some cases is 
required to, participate by its own laws, that State could spend up to 
80 hours preparing each response, for a maximum expenditure of $168,000 
(14 States  x 3 requests  x 80 hours  x $50 per hour).
    (2) This will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. There are 
no other Federal agencies involved in this process as it relates to 
participation by coastal States.
    (3) This rule does not alter the budgetary effects or entitlements, 
grants, user fees, or loan programs or rights or obligations of their 
recipients. This rule has no effect on these programs or such rights.
    (4) This rule does not raise novel legal or policy issues. As 
previously stated, the intent of this rule is to eliminate the 
redundant and unnecessary definition of Affected State at 30 CFR 
256.14. The term already is defined at 30 CFR 256.5(g) and applies to 
the entire part.

Civil Justice Reform (Executive Order 12899)

    According to Executive Order 12988, the Office of the Solicitor has 
determined that this rule does not unduly burden the judicial system 
and meets the requirements of sections 3(a) and 3(b)(2) or the Order.

National Environment Policy Act (NEPA)

    We have analyzed this rule according to the criteria of the NEPA 
and 516 DM. This rule does not constitute a major Federal action 
significantly affecting the quality of the human environment. An 
environmental assessment is not required. This rule will have no impact 
regarding the criteria of the NEPA.

Paperwork Reduction Act (PRA) of 1995

    This regulation does not affect an existing OMB-approved 
information collection and an OMB Form 83-I is not required. The 
proposed rule simply removes a definition. OMB approved the information 
collection requirements in part 256 under OMB control number 1010-0006, 
with an expiration date of March 31, 2001.

Regulatory Flexibility (RF) Act

    The Department certifies that this document will not have a 
significant economic effect on a substantial number of small entities 
under the RF Act (5 U.S.C. 601 et seq.). This revised rule would 
eliminate the redundant and unnecessary definition of Affected State at 
30 CFR 256.14. The only entities impacted by this rule change are 
certain coastal States that we would no longer automatically involve in 
a complex, multi-step process of preparing a 5-year program that would 
not affect them.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
business. If you wish to comment on the enforcement actions of MMS, 
call toll-free (888) 734-3247.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This rule is not a major rule under the SBREFA, 5 U.S.C. 804(2). 
This rule:
    (1) Does not have an annual effect on the economy of $100 million 
or more. This rule would eliminate the need for the Federal Government 
to automatically involve some coastal States in a complex, multi-step 
process to prepare a program that would not affect them.
    (2) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic areas. This rule would eliminate the need for 
some coastal States that would not be affected by a 5-year oil and gas 
program from participating in its preparation unless they chose to do 
so.
    (3) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, ability of United 
States-based enterprises to compete with foreign-based enterprises. 
There are no United States- or foreign-based enterprises involved in 
this rule.

Unfunded Mandate Reform Act (UMRA) of 1995

    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 create any kind of a mandate for State, local, 
or tribal governments or the private sector. In fact, it eliminates the 
need for the Federal Government to involve certain States in the 
preparation of a program that will not affect them. A statement 
containing the information required by the UMRA, 2 U.S.C. 1501 et seq. 
is not required.

List of Subjects in 30 CFR Part 256

    Administrative practice and procedure, Continental shelf, 
Environmental protection, Government contracts, Intergovernmental 
relations, Minerals Management Service, Oil and gas exploration, Public 
lands-mineral resources; Public lands-rights-of-way, Reporting and 
recordkeeping requirements, Surety bonds.

    Dated: October 19, 2000.
Sylvia V. Baca,
Assistant Secretary, Land and Minerals Management.
    For the reasons stated in the preamble, MMS proposes to amend 30 
CFR part 256 as follows:

PART 256--LEASING OF SULPHUR OR OIL AND GAS IN THE OUTER 
CONTINENTAL SHELF

    1. The authority citation for Part 256 continues to read as 
follows:

    Authority: 42 U.S.C 6213, 43 U.S.C. 1331 et seq.


[[Page 78434]]




Sec. 256.14  [Removed]

    2. Section 256.14 is removed.
[FR Doc. 00-31950 Filed 12-14-00; 8:45 am]
BILLING CODE 4310-MR-P