[Federal Register Volume 83, Number 14 (Monday, January 22, 2018)]
[Rules and Regulations]
[Pages 2907-2909]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00969]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

30 CFR Part 1241

[Docket No. ONRR-2017-0003; DS63644000 DR2PS0000.CH7000 189D0102R2]
RIN 1012-AA23


Inflation Adjustments to Civil Monetary Penalty Rates for 
Calendar Year 2018

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

ACTION: Final rule.

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SUMMARY: The Office of Natural Resources Revenue (ONRR) publishes this 
final rule to increase our maximum civil monetary penalty (CMP) rates 
for inflation occurring between October 2016 and October 2017.

DATES: This rule is effective on January 22, 2018.

FOR FURTHER INFORMATION CONTACT: For questions on procedural issues, 
contact Armand Southall, Regulatory Specialist, by telephone at (303) 
231-3221 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]. You may 
obtain a paper copy of this rule by contacting Mr. Southall by phone or 
email.

SUPPLEMENTARY INFORMATION:
I. Background
II. Inflation-Adjusted Maximum Rates
III. Procedural Requirements
    A. Regulatory Planning and Review (E.O. 12866)
    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)
    I. Paperwork Reduction Act
    J. National Environmental Policy Act
    K. Effects on the Energy Supply (E.O. 13211)
    L. Clarity of This Regulation
    M. Administrative Procedure Act

I. Background

    The Federal Civil Penalties Inflation Adjustment Act of 1990, as 
amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (collectively, ``the Act''), codified at 28 
U.S.C.S. 2461 note (LEXIS through Pub. L. 115-90, approved 12/8/17), 
requires Federal agencies to adjust their civil monetary penalty (CMP) 
rates for inflation every year.
    In accordance with sections 4 and 5 of the Act, the annual CMP 
inflation adjustment for 2018 is based on the percent change in the 
Consumer Price Index for all Urban Consumers (CPI-U) between October 
2016 and October 2017. The CPI-U for October 2016 was 241.729, and for 
October 2017 was 246.663, for an increase of 2.041%. In accordance with 
section 5(a) of the Act, the new maximum CMP rates must be rounded to 
the nearest whole dollar. In accordance with section 6 of the Act, the 
new maximum penalty rates will apply only to CMPs, including those 
which are associated with violations predating the increase, that are 
assessed after the date the increase takes effect.
    ONRR assesses CMPs under the Federal Oil and Gas Royalty Management 
Act, 30 U.S.C. 1719, and our regulations at 30 CFR part 1241. We 
calculate and assess CMPs per violation, at the applicable rate, for 
each day such violation continues.

II. Inflation-Adjusted Maximum Rates

    This final rule increases the maximum CMP rates for each of the 
four categories of violations identified in 30 U.S.C. 1719(a)-(d) and 
30 CFR part 1241. The following list identifies the existing ONRR 
regulations containing CMP rates and shows those rates before and after 
this increase.

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                                                                                  2018 inflation
                         30 CFR citation                              Current       adjustment     2018 adjusted
                                                                   penalty rate     multiplier     penalty rate
----------------------------------------------------------------------------------------------------------------
1241.52(a)(2)...................................................           1,196         1.02041           1,220
1241.52(b)......................................................          11,967         1.02041          12,211
1241.60(b)(1)...................................................          23,933         1.02041          24,421
1241.60(b)(2)...................................................          59,834         1.02041          61,055
----------------------------------------------------------------------------------------------------------------


[[Page 2908]]

IV. Procedural Requirements

A. 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.
    E.O. 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. 
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. 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.

B. Regulatory Flexibility Act

    This rule will not have a significant economic effect on a 
substantial number of small entities under the Regulatory Flexibility 
Act (RFA, 5 U.S.C. 601 et seq.) because the rule only makes adjustments 
for inflation. The Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 requires agencies to adjust civil penalties 
with an annual inflation adjustment. Therefore, 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. 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.

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. 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.

E. Takings (E.O. 12630)

    This rule does not result in a taking of private property or 
otherwise have taking implications under E.O. 12630. Therefore, this 
rule does not require a takings implication assessment.

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

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), 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.

H. 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.

I. 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).

J. 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.

K. 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.

L. 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 your 
comments to [email protected]. 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.

M. Administrative Procedure Act (APA)

    The Act requires agencies to publish annual inflation adjustments 
by no later than January 15 of each year, notwithstanding section 553 
of the Administrative Procedure Act (APA) (5 U.S.C. 553). OMB has 
interpreted this direction to mean that the usual APA public procedure 
for rulemaking--which includes public notice of a proposed rule, an 
opportunity for public comment, and a delay in the effective date of a 
final rule--is not required when agencies issue regulations to 
implement the annual adjustments to civil penalties that the Act 
requires. Accordingly, we are issuing the 2018

[[Page 2909]]

annual adjustments as a direct final rule without prior notice or an 
opportunity for comment and with an effective date immediately upon 
publication in the Federal Register.
    Section 553(b) of the Administrative Procedure Act (APA) 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. Under section 553(b), ONRR 
finds that there is good cause to promulgate this rule without first 
providing for public comment. ONRR is promulgating this final rule to 
implement the statutory directive in the Act, which requires agencies 
to publish a final rule and to update the civil penalty amounts by 
applying a specified formula. We have 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 public comment on this rule prior to promulgation. 
Thus, providing for notice and public comment is unnecessary.
    Furthermore, ONRR finds under section 553(d)(3) of the APA that 
good cause exists to make this direct final rule effective immediately 
upon publication in the Federal Register. In the Act, Congress 
expressly required Federal agencies to publish annual inflation 
adjustments to civil penalties in the Federal Register no later than 
January 15 of every year, notwithstanding section 553 of the APA. Under 
the statutory framework and OMB guidance, the new penalty levels are to 
take effect immediately upon publication. Moreover, an effective date 
after January 15 would delay application of the new penalty levels, 
contrary to Congress's intent.

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.

Gregory J. Gould,
Director for Office of Natural Resources Revenue.

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 continues 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.


Sec.  1241.52   [Amended]

0
2. Amend Sec.  1241.52 by:
0
a. In paragraph (a)(2), removing ``$1,196'' and adding in its place 
``$1,220.''
0
b. In paragraph (b) introductory text, removing ``$11,967'' and adding 
in its place ``$12,211.''


Sec.  1241.60   [Amended]

0
3. Amend Sec.  1241.60 by:
0
a. In paragraph (b)(1) introductory text, removing ``$23,933'' and 
adding in its place ``$24,421.''
0
b. In paragraph (b)(2), removing ``$59,834'' and adding in its place 
``$61,055.''

[FR Doc. 2018-00969 Filed 1-19-18; 8:45 am]
 BILLING CODE 4335-30-P