[Federal Register Volume 88, Number 10 (Tuesday, January 17, 2023)]
[Rules and Regulations]
[Pages 2520-2522]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00737]


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DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

30 CFR Part 1241

[Docket No. ONRR-2022-0003; DS63644000 DR2000000.CH7000 234D1113RT]
RIN 1012-AA35


2023 Civil Monetary Penalty Inflation Adjustments

AGENCY: Office of Natural Resources Revenue (``ONRR''), Interior.

ACTION: Final rule.

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SUMMARY: Pursuant to the Federal Civil Penalties Inflation Adjustment 
Act of 1990 (codified at 28 U.S.C. 2461 note), as amended by the 
Federal Civil Penalties Inflation Adjustment Act Improvements Act of 
2015 (referred to herein as the ``Inflation Adjustment Acts''), and 
Office of Management and Budget (``OMB'') guidance, ONRR is adjusting 
for inflation the civil monetary penalty (``CMP'') amounts it assesses 
under the Federal Oil and Gas Royalty Management Act of 1982 
(``FOGRMA'').

DATES: This rule is effective on January 13, 2023.

FOR FURTHER INFORMATION CONTACT: For questions on procedural issues, 
contact Luis Aguilar, Regulatory Specialist, by telephone at (303) 231-
3418 or by email to [email protected]. For questions on technical 
issues, contact Michael Marchetti, Enforcement Program Manager, by 
telephone at (303) 231-3125 or by email to [email protected].

SUPPLEMENTARY INFORMATION: 
I. Background
II. ONRR's Inflation-Adjusted Maximum Rates
III. Procedural Matters
    A. Regulatory Planning and Review (Executive Orders 12866 and 
13563)
    B. Regulatory Flexibility Act
    C. Small Business Regulatory Enforcement Fairness Act
    D. Unfunded Mandates Reform Act
    E. Takings (Executive Order 12630)
    F. Federalism (Executive Order 13132)
    G. Civil Justice Reform (Executive Order 12988)
    H. Consultation With Indian Tribes (Executive Order 13175)
    I. Paperwork Reduction Act
    J. National Environmental Policy Act
    K. Effects on the Energy Supply (Executive Order 13211)
    L. Clarity of This Regulation
    M. Administrative Procedure Act

I. Background

    FOGRMA, at 30 U.S.C. 1719(a)-(d), authorizes the Secretary of the 
Interior (``Secretary'') to assess CMPs for royalty reporting and other 
violations. Pursuant to authority delegated to it by the Secretary, 
ONRR published regulations at 30 CFR part 1241 implementing the 
Secretary's CMP authority. The Inflation Adjustment Acts (Pub. L. 114-
74) require Federal agencies to publish annual CMP inflation 
adjustments in the Federal Register by January 15th of each year.
    The Inflation Adjustment Acts and OMB Memorandum No. M-23-05, 
December 15, 2022 (``OMB Memorandum'') specify that the annual 
inflation adjustments are based on the percent change between the 
Consumer Price Index for all Urban Consumers (``CPI-U'') published by 
the Department of Labor for the month of October in the year of the 
previous adjustment, and the October CPI-U for the preceding year. The 
OMB Memorandum further specifies that the cost-of-living adjustment 
multiplier for 2023, not seasonally adjusted, is 1.07745 for CY 2023 
(the October 2022 CPI-U (298.012) divided by the October 2021 CPI-U 
(276.589) = 1.07745). ONRR used this guidance to calculate required 
inflation adjustments. Pursuant to the Inflation Adjustment Acts, any 
increases in CMPs are rounded to the nearest whole dollar and the new 
maximum penalty rates apply to CMPs assessed after the date the 
increase takes effect.

II. ONRR's Inflation-Adjusted Maximum Rates

    This final rule increases the maximum CMP dollar amounts for each 
of the four violation categories identified in 30 U.S.C. 1719(a)-(d) 
and implemented by 30 CFR part 1241. The following table identifies the 
applicable ONRR regulations, the dollar amounts set forth in the 
regulations, and the adjusted amounts.

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                                                                      Current     2023 inflation   2023 adjusted
                         30 CFR citation                              maximum       adjustment        maximum
                                                                      penalty       multiplier        penalty
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1241.52(a)(2)...................................................          $1,368         1.07745          $1,474
1241.52(b)......................................................          13,693         1.07745          14,754
1241.60(b)(1)...................................................          27,384         1.07745          29,505

[[Page 2521]]

 
1241.60(b)(2)...................................................          68,462         1.07745          73,764
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III. Procedural Matters

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 the OMB will review 
all significant rules. OIRA has determined that agency regulations 
intended only to implement the annual inflation adjustments are not 
significant, provided they are consistent with the OMB Memorandum. 
Because ONRR is only implementing the annual inflation adjustments in 
this final rule, this rule is not significant under E.O. 12866.
    E.O. 13563 reaffirms the principles of E.O. 12866, while calling 
for improvements in the United States' regulatory system to promote 
predictability, to reduce uncertainty, and to use the 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 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. ONRR 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 an 
adjustment 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; and
    (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, ONRR is 
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 takings 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.

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

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

    The Department of the Interior (``DOI'') 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. Under the DOI's 
consultation policy and the criteria in E.O. 13175, ONRR 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; 
and
    (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. ONRR is 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 . . . .'' ONRR also has 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

    ONRR is 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 ONRR publishes 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; and
    (e) Use lists and tables wherever possible.
    If you feel that ONRR has not met these requirements, send your

[[Page 2522]]

comments to [email protected]. Your comments should be 
as specific as possible. For example, you should identify the number 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

    The Act requires agencies to publish annual inflation adjustments 
by January 15 of each year, notwithstanding section 553 of the 
Administrative Procedure Act. 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 2015 Act requires. See OMB Memorandum, M-23-05, at 
pages 3-4. Accordingly, ONRR is issuing the 2023 annual adjustments as 
a final rule without prior notice or an opportunity for comment and 
with an effective date immediately upon publication in the Federal 
Register.

List of Subjects in 30 CFR Part 1241

    Administrative practice and procedure, Coal, Geothermal energy, 
Indian-lands, Mineral royalties, Natural gas, Oil and gas exploration, 
Penalties, Public lands--mineral resources.

Howard M. Cantor,
Acting Director for the 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 ``$1,368'' and adding in its place 
``$1,474''.
0
b. In paragraph (b) introductory text, removing ``$13,693'' and adding 
in its place ``$14,754''.


Sec.  1241.60  [Amended]

0
3. Amend Sec.  1241.60 by:
0
a. In paragraph (b)(1) introductory text, removing ``$27,384'' and 
adding in its place ``$29,505''.
0
b. In paragraph (b)(2), removing ``$68,462'' and adding in its place 
``$73,764''.

[FR Doc. 2023-00737 Filed 1-13-23; 8:45 am]
BILLING CODE 4335-30-P