[Federal Register Volume 84, Number 96 (Friday, May 17, 2019)]
[Rules and Regulations]
[Pages 22379-22381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10149]
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DEPARTMENT OF THE INTERIOR
Bureau of Land Management
43 CFR Part 3160
[LLWO310000 L13100000 PP0000 19X]
RIN 1004-AE56
Onshore Oil and Gas Operations--Annual Civil Penalties Inflation
Adjustments
AGENCY: Bureau of Land Management, Interior.
ACTION: Final rule.
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SUMMARY: This final rule adjusts the level of civil monetary penalties
contained in the Bureau of Land Management's (BLM) regulations
governing onshore oil and gas operations as required by the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and
consistent with applicable Office of Management and Budget (OMB)
guidance. The adjustments made by this final rule constitute the 2019
annual inflation adjustments, accounting for one year of inflation
spanning the period from October 2017 through October 2018.
DATES: This rule is effective on May 17, 2019.
FOR FURTHER INFORMATION CONTACT: Steven Wells, Division Chief, Fluid
Minerals Division, 202-912-7143, for information regarding the BLM's
Fluid Minerals Program. For questions relating to regulatory process
issues, please contact Jennifer Noe, Division of Regulatory Affairs, at
202-912-7442. Persons who use a telecommunications device for the deaf
(TDD) may call the Federal Relay Service (FRS) at 1-800-877-8339, 24
hours a day, 7 days a week to contact the above individuals.
SUPPLEMENTARY INFORMATION:
I. Background
II. Calculation of 2019 Adjustments
III. Procedural Requirements
A. Administrative Procedure Act.
B. Regulatory Planning and Review (E.O. 12866, E.O. 13563, and
E.O. 13771)
C. Regulatory Flexibility Act
D. Small Business Regulatory Enforcement Fairness Act
E. Unfunded Mandates Reform Act
F. Takings (E.O. 12630)
G. Federalism (E.O. 13132)
H. Civil Justice Reform (E.O. 12988)
I. Consultation With Indian Tribes (E.O. 13175 and Departmental
Policy)
J. Paperwork Reduction Act
K. National Environmental Policy Act
L. Effects on the Energy Supply (E.O. 13211)
I. Background
On November 2, 2015, the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L. 114-74)
(the 2015 Act) became law, amending the Federal Civil Penalties
Inflation Adjustment Act of 1990 (Pub. L. 101-410).
The 2015 Act requires agencies to:
1. Adjust the level of civil monetary penalties for inflation with
an initial ``catch-up'' adjustment through an interim final rulemaking
in 2016;
2. Make subsequent annual adjustments for inflation beginning in
2017; and
3. Report annually in Agency Financial Reports on these inflation
adjustments.
The purpose of these adjustments is to maintain the deterrent
effect of civil monetary penalties and promote compliance with the law
(see Pub. L. 101-410 at Sec. 1).
As required by the 2015 Act, the BLM issued an interim final rule
that adjusted the level of civil monetary penalties in BLM regulations
with the initial ``catch-up'' adjustment (RIN 1004-AE46, 81 FR 41860),
which was published on June 28, 2016, and became effective on July 28,
2016. On January 19, 2017, the BLM published a final rule (RIN 1004-
AE49, 82 FR 6305) updating the civil penalty amounts to the 2017 annual
adjustment levels. The final rule updating the civil penalty amounts to
the 2018 annual adjustment levels was published on January 29, 2018
(RIN 1004-AE51, 83 FR 3992).
OMB issued Memorandum M-19-04 on December 14, 2018 (Implementation
of Penalty Inflation Adjustments for 2019, Pursuant to the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015)
explaining agency responsibilities for identifying applicable penalties
and calculating the annual adjustment for 2019 in accordance with the
2015 Act.
II. Calculation of 2019 Adjustment
In accordance with the 2015 Act and OMB Memorandum M-19-04, the BLM
has identified applicable civil monetary penalties in its regulations
and calculated the annual adjustment. A civil monetary penalty 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
[[Page 22380]]
Federal court or an administrative proceeding. A civil monetary penalty
does not include a penalty levied for violation of a criminal statute,
nor does it include fees for services, licenses, permits, or other
regulatory review. The calculated annual inflation adjustments are
based on the percentage change between the Consumer Price Index for all
Urban Consumers (CPI-U) for the October preceding the date of the
adjustment, and the prior year's October CPI-U. Consistent with
guidance in OMB Memorandum M-19-04, the BLM divided the October 2018
CPI-U by the October 2017 CPI-U to calculate the multiplier. In this
case, October 2018 CPI-U (252.885)/October 2017 CPI-U (246.663) =
1.02522. OMB Memorandum M-19-04 confirms that this is the proper
multiplier. (OMB Memorandum M-19-04 at 1 and n.4.)
The 2015 Act requires the BLM to adjust the civil penalty amounts
in 43 CFR 3163.2. To accomplish this, BLM multiplied the current
penalty amounts in 43 CFR 3163.2 paragraph (b)(2) and paragraphs (d),
(e), and (f) by the multiplier set forth in OMB Memorandum M-19-04
(1.02522) to obtain the adjusted penalty amounts. The 2015 Act requires
that the resulting amounts be rounded to the nearest $1.00 at the end
of the calculation process.
The adjusted penalty amounts will take effect immediately upon
publication of this rule. Pursuant to the 2015 Act, the adjusted civil
penalty amounts apply to civil penalties assessed after the date the
increase takes effect, even if the associated violation predates such
increase. This final rule adjusts the following civil penalties:
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Current Adjusted
CFR citation Description of the penalty penalty penalty
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43 CFR 3163.2(b)(1)........................... Failure to comply............... $1,069 $1,096
43 CFR 3163.2(b)(2)........................... If corrective action is not 10,697 10,967
taken.
43 CFR 3163.2(d).............................. If transporter fails to permit 1,069 1,096
inspection for documentation.
43 CFR 3163.2(e).............................. Failure to permit inspection, 21,393 21,933
failure to notify.
43 CFR 3163.2(f).............................. False or inaccurate documents; 53,484 54,833
unlawful transfer or purchase.
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III. Procedural Requirements
A. Administrative Procedure Act
In accordance with the 2015 Act, agencies must adjust civil
monetary penalties ``notwithstanding Section 553 of the Administrative
Procedure Act'' (2015 Act at Sec. 4(b)(2)). The BLM is promulgating
this 2019 inflation adjustment for civil penalties as a final rule
pursuant to the provisions of the 2015 Act and OMB guidance. A proposed
rule is not required because the 2015 Act expressly exempts the annual
inflation adjustments from the notice and comment requirements of the
Administrative Procedure Act. In addition, since the 2015 Act does not
give the BLM any discretion to vary the amount of the annual inflation
adjustment for any given penalty to reflect any views or suggestions
provided by commenters, it would serve no purpose to provide an
opportunity for public comment on this rule.
B. Regulatory Planning and Review (Executive Orders 12866, 13563, and
13771)
Executive Order (E.O.) 12866 provides that the Office of
Information and Regulatory Affairs (OIRA) in the OMB will review all
significant rules. OIRA has determined that this rule is not
significant. (See OMB Memorandum M-19-04 at 3).
E.O. 13563 reaffirms the principles of E.O. 12866 while calling for
improvements in the Nation's regulatory system to promote
predictability and to reduce uncertainty and the use of 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 have developed this rule in a manner consistent
with these requirements to the extent permitted by the 2015 Act.
E.O. 13771 of January 30, 2017, directs federal agencies to reduce
the regulatory burden on regulated entities and control regulatory
costs. E.O. 13771, however, applies only to significant regulatory
actions, as defined in Section 3(f) of E.O. 12866. OIRA has determined
that agency regulations exclusively implementing the annual adjustment
are not significant regulatory actions under E.O. 12866, provided they
are consistent with OMB Memorandum M-19-04 (See OMB Memorandum M-19-04
at 3). Therefore, E.O. 13771 does not apply to this final rule.
C. 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 604(a). The 2015 Act expressly exempts these annual
inflation adjustments from the requirement to publish a proposed rule
for notice and comment (see 2015 Act at section 4 (b)(2)). Because the
final rule in this case does not include publication of a proposed
rule, the RFA does not apply to this final rule.
D. 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) Will 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, or local government
agencies, or geographic regions; and
(c) Will not have significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
U.S.-based enterprises to compete with foreign-based enterprises.
This rule will potentially affect individuals and companies who
conduct operations on oil and gas leases on Federal or Indian lands.
The BLM believes that the vast majority of potentially affected
entities will be small businesses as defined by the Small Business
Administration (SBA). However, the BLM does not believe the rule will
pose a significant economic impact on the industry, including any small
entities, as any lessee can avoid being assessed civil penalties by
operating in compliance with BLM rules and regulations.
[[Page 22381]]
E. 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. The rule does not have a significant or unique effect on State,
local, or tribal governments or the private sector. Therefore, a
statement containing the information required by the Unfunded Mandates
Reform Act (2 U.S.C. 1531 et seq.) is not required.
F. Takings (E.O. 12630)
This rule does not effect a taking of private property or otherwise
have takings implications under E.O. 12630. Therefore, a takings
implication assessment is not required.
G. 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, a federalism summary
impact statement is not required.
H. 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) requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation; and
(b) Meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.
I. Consultation With Indian Tribes (E.O. 13175 and Departmental Policy)
The Department of the Interior strives to strengthen its
government-to-government relationship with Indian tribes through a
commitment to consultation with Indian tribes and recognition of their
right to self-governance and tribal sovereignty. We have evaluated this
rule under the Department's consultation policy and under the criteria
in E.O. 13175 and have determined that it has no substantial direct
effects on federally recognized Indian tribes and that consultation
under the Department's tribal consultation policy is not required.
J. Paperwork Reduction Act
This rule does not contain information collection requirements, and
a submission to OMB under the Paperwork Reduction Act (44 U.S.C. 3501
et seq.) is not required. We may not conduct or sponsor, and you are
not required to respond to, a collection of information unless it
displays a currently valid OMB control number.
K. National Environmental Policy Act
A detailed statement under the National Environmental Policy Act of
1969 (NEPA) is not required because, as a regulation of an
administrative nature, the rule is covered by a categorical exclusion
(see 43 CFR 46.210(i)). We have also determined that the rule does not
involve any of the extraordinary circumstances listed in 43 CFR 46.215
that would require further analysis under NEPA.
L. Effects on the Energy Supply (E.O. 13211)
This rule is not a significant energy action under the definition
in E.O. 13211. Therefore, a Statement of Energy Effects is not
required.
List of Subjects 43 CFR Part 3160
Administrative practice and procedure; Government contracts;
Indians-lands; Mineral royalties; Oil and gas exploration; Penalties;
Public lands-mineral resources; Reporting and recordkeeping
requirements.
For the reasons given in the preamble, the BLM amends Chapter II of
Title 43 of the Code of Federal Regulations as follows:
PART 3160--ONSHORE OIL AND GAS OPERATIONS
0
1. The authority citation for part 3160 continues to read as follows:
Authority: 25 U.S.C. 396d and 2107; 30 U.S.C. 189, 306, 359, and
1751; 43 U.S.C. 1732(b), 1733, 1740; and Sec. 701, Pub. L. 114-74,
129 Stat. 599, unless otherwise noted.
Subpart 3163--Noncompliance, Assessments, and Penalties
Sec. 3163.2 [Amended]
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2. In Sec. 3163.2:
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a. In paragraph (b)(1), remove ``$1,069'' and add in its place
``$1,096''.
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b. In paragraph (b)(2), remove ``$10,697'' and add in its place
``$10,967''.
0
c. In paragraph (d), remove ``$1,069'' and add in its place ``$1,096''.
0
d. In paragraph (e) introductory text, remove ``$21,393'' and add in
its place ``$21,933''.
0
e. In paragraph (f) introductory text, remove ``$53,484'' and add in
its place ``$54,833''.
Joseph R. Balash,
Assistant Secretary--Land and Minerals Management, U.S. Department of
the Interior.
[FR Doc. 2019-10149 Filed 5-16-19; 8:45 am]
BILLING CODE 4310-84-P