[Federal Register Volume 81, Number 111 (Thursday, June 9, 2016)]
[Rules and Regulations]
[Pages 37153-37156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-13462]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

30 CFR Part 1241

[Docket No. ONRR-2016-0002; DS63644000 DR2PS0000.CH7000167D0102R2]
RIN 1012-AA17


Civil Monetary Penalties Inflation Adjustment

AGENCY: Office of the Secretary, Office of Natural Resources Revenue, 
Interior.

ACTION: Interim final rule.

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SUMMARY: The Office of Natural Resources Revenue (ONRR) publishes this 
interim final rule to adjust the amount of our civil monetary penalties 
(CMPs) for inflation with an initial ``catch-up'' adjustment under the 
Federal Civil Penalties Inflation Adjustment Act Improvements Act of 
2015 and Office of Management and Budget (OMB) guidance.

DATES: This rule is effective July 11, 2016. Comments will be accepted 
until August 8, 2016.

ADDRESSES: You may submit comments to ONRR by one of the following 
three methods. (Please reference the Regulation Identifier Number (RIN) 
1012-AA17 in your comments.). See also Public Availability of Comments 
under Procedural Requirements.
    1. Electronically, go to www.regulations.gov. In the entry titled 
``Enter Keyword or ID,'' enter ``ONRR-2016-0002,'' and then click 
``Search.'' Follow the instructions to submit public comments. ONRR 
will post all comments.
    2. Mail comments to Luis Aguilar, Regulatory Specialist, ONRR, P.O. 
Box 25165, MS 64400B, Denver, Colorado 80225.
    3. Hand-carry comments, or use an overnight courier service to the 
Office of Natural Resources Revenue, Building 53, Entrance E-20, Denver 
Federal Center, West 6th Ave. and Kipling St., Denver, Colorado 80225.

FOR FURTHER INFORMATION CONTACT: For comments or questions on 
procedural issues, contact Luis Aguilar, Regulatory Specialist, by 
telephone at (303) 231-3418 or email to [email protected]. For 
questions on technical issues, contact Geary Keeton, Chief of 
Enforcement, by telephone at (303) 231-3096 or email to 
[email protected].

SUPPLEMENTARY INFORMATION: 

I. Background
II. Method of Calculation
III. Summary of Final Rule
IV. Procedural Requirements

[[Page 37154]]

I. Background

    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 
701 of Pub. L. 114-74) (the Act). The Act requires Federal agencies to 
adjust each CMP amount with an initial catch-up adjustment through 
rulemaking and then make subsequent annual inflationary adjustments. 
The new CMP amounts must be published by July 1, 2016, and take effect 
no later than August 1, 2016. The purpose of these adjustments is to 
maintain the deterrent effect of civil penalties and to foster 
compliance with the law.
    The Act provides that any increase in a CMP due to the calculated 
inflation adjustments shall apply only to a violation that occurs after 
the date when the increase takes effect and states that the initial 
inflation adjustment may not exceed 150 percent of the amount of the 
CMP on November 2, 2015.

II. Method of Calculation

    OMB issued guidance on calculating the catch-up adjustments. See 
February 24, 2016, Memorandum for the Heads of Executive Departments 
and Agencies, from Shaun Donovan, Director, Office of Management and 
Budget, re: Implementation of the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015. Under this guidance, the 
Department of the Interior (Department) has identified applicable CMPs 
and calculated the catch-up adjustments. A CMP is any assessment with a 
dollar amount that is levied for a violation of a Federal civil statute 
or regulation and is assessed or enforceable through a civil action in 
Federal court or an administrative proceeding. A CMP does not include a 
penalty levied for violation of a criminal statute, fees for services, 
licenses, permits, or other regulatory review.
    Under the Act, the inflation adjustment for each applicable CMP is 
determined by increasing the maximum CMP amount per violation by the 
cost-of-living adjustment. The cost-of-living adjustment is defined as 
the percent by which the Consumer Price Index for all Urban Consumers 
(CPI-U) for the month of October of the calendar year preceding the 
adjustment exceeds the CPI-U for the month of October of the year in 
which the amount of such CMP was last set or adjusted pursuant to law.
    The maximum CMP amounts for ONRR penalties under 30 U.S.C. 1719(a)-
(d) were established in 1983 in the Federal Oil and Gas Management Act 
(FOGRMA). Since we have not updated the maximum CMP amounts for 
inflation since their establishment, we must calculate a new maximum 
CMP with an initial catch-up adjustment. The inflation adjustment 
amount for each maximum CMP amount is calculated by multiplying the 
1983 maximum CMP amount by the 2016 CMP catch-up adjustment multiplier 
for 1983, which is 2.35483. In accordance with the Act, the new maximum 
CMP amount is rounded to the nearest dollar. For example:
    [ssquf] The maximum CMP amount under 30 U.S.C. 1719(a) established 
in 1983 is $500.
    [ssquf] The 2016 CMP catch-up adjustment multiplier for 1983 is 
2.35483.
    [ssquf] Therefore, $500 x 2.35483 = $1,177.415, which rounds to 
$1,177.
    [ssquf] The new maximum CMP amount is $1,177.
    Pursuant to the Act, in the event that a violation took place prior 
to the effective date of the new penalty amount--and we assess a 
penalty after the effective date--the new penalty amount is assessed in 
a manner consistent with the new maximum CMP calculation. As the Act 
applies to penalties assessed after the effective date of the 
applicable adjustment, the Act adjusts penalties prospectively. The Act 
does not retrospectively change previously assessed or enforced 
penalties that we are actively collecting or have collected. The Act 
does not alter our statutory authority to assess penalties below the 
maximum amount.

III. Summary of Final Rule

    This final rule adjusts the maximum CMP amount within each of the 
four established civil penalty tiers specified in 30 U.S.C. 1719(a)-
(d). The following list summarizes the existing ONRR regulations 
containing CMPs, as well as the penalties before and after adjustment. 
The increases in maximum CMP amounts contained in this final rule may 
not necessarily affect the amount of any CMP that we may seek for a 
particular violation; we will calculate each CMP on a case-by-case 
basis.

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                                                                      Current         Catchup        Adjusted
                 ONRR Regulation containing CMPs                    maximum CMP     adjustment      maximum CMP
                                                                      amount        multiplier        amount
----------------------------------------------------------------------------------------------------------------
30 CFR 1241.53(a)...............................................             500         2.35483           1,177
30 CFR 1241.53(b)...............................................           5,000         2.35483          11,774
30 CFR 1241.60(a)...............................................          10,000         2.35483          23,548
30 CFR 1241.60(b)...............................................          25,000         2.35483          58,871
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Note: The CMP amounts under 30 CFR 1241 are authorized by 30 U.S.C. 1719(a)-(d).

IV. Procedural Requirements

1. Regulatory Planning and Review (Executive Orders 12866 and 13563)

    Executive Order (E.O.) 12866 provides that the Office of 
Information and Regulatory Affairs (OIRA) in OMB will review all 
significant rules. OIRA has determined that this rule is not 
significant.
    Executive Order 13563 reaffirms the principles of E.O. 12866, while 
calling for improvements in the Nation's regulatory system to promote 
predictability, to reduce uncertainty, and to use the best, most 
innovative, and least burdensome tools for achieving regulatory ends. 
Executive Order 13563 directs agencies to consider regulatory 
approaches that reduce burdens and maintain flexibility and freedom of 
choice for the public, where these approaches are relevant, feasible, 
and consistent with regulatory objectives. E.O. 13563 emphasizes 
further that regulations must be based on the best available science 
and that the rulemaking process must allow for public participation and 
an open exchange of ideas. We developed this rule in a manner 
consistent with these requirements.

2. 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

[[Page 37155]]

604(a). The Federal Civil Penalties Adjustment Act of 2015 requires 
agencies to adjust civil penalties with an initial catch-up adjustment 
through an interim final rule. An interim final rule does not include 
first publishing a proposed rule. Thus, the RFA does not apply to this 
rulemaking.

3. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    a. Does not have an annual effect on the economy of $100 million or 
more.
    b. Will not cause a major increase in costs or prices for 
consumers; individual industries; Federal, State, local government 
agencies; or geographic regions.
    c. Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
United States-based enterprises to compete with foreign-based 
enterprises.

4. 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. Therefore, we are 
not required to provide a statement containing the information that the 
Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) requires because 
this rule is not an unfunded mandate.

5. Takings (E.O. 12630)

    Under the criteria in section 2 of E.O. 12630, this rule does not 
have any significant takings implications. This rule will not impose 
conditions or limitations on the use of any private property. 
Therefore, this rule does not require a takings implication assessment.

6. 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, this rule does not 
require a Federalism summary impact statement.

7. 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), which requires that we 
review all regulations to eliminate errors and ambiguity and to write 
them to minimize litigation.
    b. Meets the criteria of section 3(b)(2), which requires that we 
write all regulations in clear language using clear legal standards.

8. Consultation With Indian Tribal Governments (E.O. 13175)

    The Department strives to strengthen its government-to-government 
relationship with the Indian Tribes through a commitment to 
consultation with the Indian Tribes and recognition of their right to 
self-governance and Tribal sovereignty. Under the Department's 
consultation policy and the criteria in E.O. 13175, we evaluated this 
rule and determined that it will have no substantial direct effects on 
Federally-recognized Indian Tribes and does not require consultation.

9. Paperwork Reduction Act

    This rule:
    (a) Does not contain any new information collection requirements.
    (b) Does not require a submission to OMB under the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.). See 5 CFR 1320.4(a)(2).

10. National Environmental Policy Act of 1969 (NEPA)

    This rule does not constitute a major Federal action, significantly 
affecting the quality of the human environment. We are not required to 
provide a detailed statement under NEPA because this rule qualifies for 
categorical exclusion under 43 CFR 46.210(i) in that this rule is ``. . 
. of an administrative, financial, legal, technical, or procedural 
nature. . . .'' We also have determined that this rule is not involved 
in any of the extraordinary circumstances listed in 43 CFR 46.215 that 
would require further analysis under NEPA.

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

    This rule is not a significant energy action under the definition 
in E.O. 13211 and, therefore, does not require a Statement of Energy 
Effects.

12. Clarity of This Regulation

    We are required by E.O. 12866 (section 1(b)(12)), E.O. 12988 
(section 3(b)(1)(B)), and E.O. 13563 (section 1(a)), and by the 
Presidential Memorandum of June 1, 1998, to write all rules in plain 
language. This means that each rule we publish must:
    (a) Be logically organized.
    (b) Use the active voice to address readers directly.
    (c) Use common, everyday words and clear language rather than 
jargon.
    (d) Be divided into short sections and sentences.
    (e) Use lists and tables wherever possible.
    If you feel that we have not met these requirements, send us 
comments by one of the methods listed in the ADDRESSES section. To 
better help us revise the rule, your comments should be as specific as 
possible. For example, you should tell us the numbers of the sections 
or paragraphs that you find unclear, which sections or sentences are 
too long, the sections where you feel lists or tables would be useful, 
etc.

13. Public Availability of Comments

    ONRR will post all comments, including the name and address of a 
respondent, at www.regulations.gov. Before including Personally 
Identifiable Information (PII), such as your address, phone number, 
email address, or other personal information in your comments, you 
should be aware that your entire comment (including PII) may be made 
available to the public at any time. While you may ask us, in your 
comment, to withhold PII from public view, we cannot guarantee that we 
will be able to do so.

14. Administrative Procedure Act (APA)

    In accordance with Sec.  553(b), ONRR generally publishes a rule in 
a proposed form and solicits public comment on it before issuing the 
final rule. However, Sec.  553(b)(3)(B) provides an exception to the 
public comment requirement if the agency finds good cause to omit 
advance notice and public participation. Good cause is shown when 
public comment is ``impracticable, unnecessary, or contrary to the 
public interest.''
    ONRR finds that there is good cause to promulgate this rule without 
first providing for public comment. We are promulgating this final rule 
to implement the statutory directive in the Act, which requires 
agencies to publish an interim final rule and to update the CMP amounts 
by applying a specified formula. ONRR has no discretion to vary the 
amount of the adjustment to reflect any views or suggestions provided 
by commenters. Accordingly, it would serve no purpose to provide an 
opportunity for pre-promulgation public comment on this rule. Also, it 
would not be possible to meet the deadlines imposed by the Act if we 
were to first publish a proposed rule, allow the public sufficient time 
to submit comments, analyze the comments, and publish a final rule. 
Thus, pre-promulgation notice and public comment is unnecessary and 
impracticable. These technical changes,

[[Page 37156]]

required by law, do not substantively alter the existing regulatory 
framework nor in any way effect the terms under which ONRR assesses 
civil penalties.

List of Subjects in 30 CFR Part 1241

    Administrative practice and procedure, Civil penalties, Coal, 
Geothermal, Inflation, Mineral resources, Natural gas, Notices of non-
compliance, oil.

    Dated: June 1, 2016.
Kristen J. Sarri,
Principal Deputy Assistant Secretary for Policy, Management and Budget.

Authority and Issuance

    For the reasons discussed in the preamble, ONRR amends 30 CFR part 
1241 as set forth below:

PART 1241--PENALTIES

0
1. The authority citation for part 1241 is revised to read as follows:

    Authority:  25 U.S.C. 396 et seq., 396a et seq., 2101 et seq.; 
30 U.S.C. 181 et seq., 351 et seq., 1001 et seq., 1701 et seq.; 43 
U.S.C. 1301 et seq., 1331 et seq., 1801 et seq. and Sec. 107, Pub. 
L. 114-74, 129 Stat. 599, unless otherwise noted.


Sec.  1241.53  [Amended]

0
2. Amend Sec.  1241.53 by:
0
A. In paragraph (a), remove ``$500'' and add in its place ``$1,177.''
0
B. In paragraph (b), remove ``$5,000'' and add in its place 
``$11,774.''


Sec.  1241.60  [Amended]

0
3. Amend Sec.  1241.60 by:
0
A. In paragraph (a), remove ``$10,000'' and add in its place 
``$23,548.''
0
B. In paragraph (b), remove ``$25,000'' and add in its place 
``$58,871.''

[FR Doc. 2016-13462 Filed 6-8-16; 8:45 am]
 BILLING CODE 4335-30-P