[Federal Register Volume 81, Number 104 (Tuesday, May 31, 2016)]
[Rules and Regulations]
[Pages 34274-34275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12095]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

30 CFR Part 556

[Docket ID: BOEM-2016-0031]
RIN 1010-AD06


Leasing of Sulfur or Oil and Gas in the Outer Continental Shelf; 
Correction MMAA104000

AGENCY: Bureau of Ocean Energy Management (BOEM), Interior.

ACTION: Final rule; correction.

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SUMMARY: On March 30, 2016, the Bureau of Ocean Energy Management 
(BOEM) published in the Federal Register a final rule that updates and 
streamlines the Outer Continental Shelf (OCS) oil and gas and sulfur 
leasing regulations, which will become effective on May 31, 2016 (81 FR 
18111) (``Leasing Rule''). One of the regulations contained in the 
final rule was incorrectly stated. This document corrects that error

DATES: This correction is effective on May 31, 2016.

FOR FURTHER INFORMATION CONTACT: Robert Sebastian, Office of Policy, 
Regulation and Analysis at (504) 736-2761 or email at 
[email protected].

SUPPLEMENTARY INFORMATION:

Need for Correction

    BOEM has the authority, under certain conditions, to disqualify a 
party from acquiring a lease or an interest in a lease on the Outer 
Continental Shelf (OCS). The title, as well as the verbiage, of Sec.  
556.403 in the final Leasing Rule, states that BOEM may disqualify 
entities from ``holding,'' a lease or lease interest on the OCS. This 
could be interpreted to imply that BOEM would not allow a disqualified 
party to retain a pre-existing OCS lease interest. That interpretation 
is incorrect. Disqualified entities may not acquire new leases or lease 
interests, but they may continue to hold existing leases or lease 
interests. BOEM is correcting the wording of Sec.  556.403 to avoid the 
implication that the use of the word ``hold'' might authorize BOEM, 
under the conditions stated in Sec.  556.403, to require forfeiture of 
leases already acquired. The final rule was issued under Docket ID: 
MMS-2007-OMM-0069, which has expired and is no longer accessible. 
Therefore, BOEM is utilizing a new Docket ID for this correction (BOEM-
2016-0031).

Procedural Requirements

    Section V, Legal and Regulatory Analyses, of the final rule issued 
on March 30, 2016 (81 FR 18145), summarizes BOEM's analyses of that 
rule pursuant to applicable statutes and executive orders. This 
amendment does not change the conclusions described in that section 
because the amendment conforms the regulatory text to BOEM's intent in 
the final rule, as then analyzed. Therefore, no additional analysis is 
necessary.
    The Administrative Procedure Act, 5 U.S.C. 553(b), provides that, 
when an agency for good cause finds that ``notice and public procedure 
. . . are impracticable, unnecessary, or contrary to the public 
interest,'' the agency may issue a rule without providing notice and an 
opportunity for prior public comment. To the extent this rule has 
substantive effects, it is to relieve regulated parties from sanctions. 
It does not require any party to change its conduct, and it does not 
change the rights of any party affected by the final rule. Therefore, 
BOEM believes that the public would not be interested in commenting on 
this correction, and thus notice and comment are unnecessary. Moreover, 
if BOEM were to first publish a proposed rule, allow the public 
sufficient time to submit comments, analyze the comments, and then 
publish a final rule, it would not be possible to correct this error 
and make it effective on the same day as the earlier final rule, May 
31, 2016. Accordingly, notice and comment is impracticable. For these 
reasons, BOEM finds that soliciting public comment is unnecessary and 
impracticable and that there is good

[[Page 34275]]

cause to promulgate this rule without first providing for public 
comment.
    Similarly, BOEM finds that there is good cause to waive the usual 
30-day delay in the effective date for this correction. This correction 
will not require any party to adjust its conduct and will not change 
the effect of the already published final rule. For these reasons, BOEM 
believes that the public does not need 30 days advance notice of this 
correction and that a delay in effectiveness is unnecessary. If this 
correction is not made effective on the same date, it would not become 
effective until after the erroneous language in the already published 
rule becomes effective, May 31, 2016. This could cause confusion to 
anyone potentially affected by Sec.  556.403, making a 30-day delay in 
effectiveness impracticable. Therefore, pursuant to 5 U.S.C. 553(d), 
BOEM has determined that a 30-day delay in the effective date is 
unnecessary and impractical, and there is good cause to waive the 
delayed effective date for this final rule.

    Dated: May 16, 2016.
Amanda C. Leiter,
Acting Assistant Secretary--Land and Minerals Management.

    For the reasons stated in the preamble, BOEM amends 30 CFR part 556 
(as amended by the final rule published on March 30, 2016, at 81 FR 
18111) as follows:

PART 556--LEASING OF SULFUR OR OIL AND GAS AND BONDING REQUIREMENTS 
IN THE OUTER CONTINENTAL SHELF

0
1. The authority citation for part 556 continues to read as follows:

    Authority: 30 U.S.C. 1701 note, 30 U.S.C. 1711, 31 U.S.C. 9701, 
42 U.S.C. 6213, 43 U.S.C. 1331 note, 43 U.S.C. 1334, 43 U.S.C. 1801-
1802.

0
2. Revise Sec.  556.403 to read as follows:


Sec.  556.403  Under what circumstances may I be disqualified from 
acquiring a lease or an interest in a lease on the OCS?

    You may be disqualified from acquiring a lease or an interest in a 
lease on the OCS if:
    (a) You or your principals are excluded or disqualified from 
participating in a transaction covered by Federal non-procurement 
debarment and suspension (2 CFR parts 180 and 1400), unless the 
Department explicitly approves an exception for a transaction pursuant 
to the regulations in those parts;
    (b) The Secretary finds, after notice and hearing, that you or your 
principals (including in the meaning of ``you,'' for purposes of this 
subparagraph, a bidder or prospective bidder) fail to meet due 
diligence requirements or to exercise due diligence under section 8(d) 
of OCSLA (43 U.S.C. 1337(d)) on any OCS lease; or
    (c) BOEM disqualifies you from acquiring a lease or an interest in 
a lease on the OCS based on your unacceptable operating performance. 
BOEM will give you adequate notice and opportunity for a hearing before 
imposing a disqualification, unless BSEE has already provided such 
notice and opportunity for a hearing.

[FR Doc. 2016-12095 Filed 5-27-16; 8:45 am]
 BILLING CODE 4310-MR-P