[Federal Register Volume 89, Number 51 (Thursday, March 14, 2024)]
[Rules and Regulations]
[Pages 18540-18543]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05451]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Part 250

[Docket ID: BSEE-2024-0001; EEEE500000 245E1700D2 ET1SF0000.EAQ000]
RIN 1014-AA61


Oil and Gas and Sulfur Operations on the Outer Continental 
Shelf--Civil Penalty Inflation Adjustment

AGENCY: Bureau of Safety and Environmental Enforcement, Interior.

[[Page 18541]]


ACTION: Final rule.

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SUMMARY: This final rule adjusts the level of the maximum daily civil 
monetary penalty contained in the Bureau of Safety and Environmental 
Enforcement (BSEE) regulations for violations of the Outer Continental 
Shelf Lands Act (OCSLA), in accordance with the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 and Office of 
Management and Budget (OMB) guidance. The civil penalty inflation 
adjustment, using a 1.03241 multiplier, accounts for one year of 
inflation based on the Consumer Price Index spanning from October 2022 
to October 2023.

DATES: This rule is effective on March 14, 2024.

FOR FURTHER INFORMATION CONTACT: Janine Marie Tobias, Safety and 
Enforcement Division, Bureau of Safety and Environmental Enforcement, 
(202) 208-4657 or by email: [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background and Legal Authority

    The OCSLA, at 43 U.S.C. 1350(b)(1), directs the Secretary of the 
Interior (Secretary) to adjust the OCSLA maximum daily civil penalty 
amount at least once every three years to reflect any increase in the 
Consumer Price Index to account for inflation. 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) 
(FCPIA). The FCPIA required Federal agencies to adjust the level of 
civil monetary penalties found in their regulations with an initial 
``catch-up'' adjustment through rulemaking, if warranted, and then to 
make subsequent annual adjustments for inflation. The purpose of these 
adjustments is to maintain the deterrent effect of civil penalties and 
to further the policy goals of the underlying statutes. Agencies were 
required to publish the first annual inflation adjustments in the 
Federal Register by no later than January 15, 2017, and must publish 
recurring annual inflation adjustments by no later than January 15 of 
each subsequent year.
    BSEE last updated the maximum daily civil penalty amounts in BSEE's 
regulations for OCSLA violations by a final rule published and 
effective on March 24, 2023 (See 88 FR 17725). Consistent with OMB 
guidance, BSEE's final rule implemented the inflation adjustments 
required by the FCPIA through October 2022.
    The OMB Memorandum M-24-07 (Implementation of Penalty Inflation 
Adjustments for 2024, Pursuant to the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015; available at https://www.whitehouse.gov/wp-content/uploads/2023/12/M-24-07-Implementation-of-Penalty-Inflation-Adjustments-for-2024.pdf) explains agency 
responsibilities for: identifying applicable penalties and performing 
the annual adjustment; publishing revisions to regulations to implement 
the adjustment in the Federal Register; applying adjusted penalty 
levels; and performing agency oversight of inflation adjustments.
    BSEE is promulgating this 2024 inflation adjustment for the OCSLA 
maximum daily civil penalties as a final rule pursuant to the 
provisions of the FCPIA and OMB's guidance. A proposed rule is not 
required because the FCPIA expressly exempted the annual inflation 
adjustments implemented pursuant to the FCPIA from the pre-promulgation 
notice and comment requirements of the Administrative Procedure Act 
(APA), 5 U.S.C. 553, allowing those adjustments to be published 
directly as final rules. Specifically, the FCPIA states that agencies 
shall adjust civil monetary penalties ``notwithstanding section 553 of 
the Administrative Procedure Act.'' (FCPIA of 2015 at sec. 4(b)(2)). 
This interpretation of the FCPIA is confirmed by OMB Memorandum M-24-07 
at 3-4 (``This means that the public procedure the APA generally 
requires--notice, an opportunity for comment, and a delay in effective 
date--is not required for agencies to issue regulations implementing 
the annual adjustment.'').

II. Calculation of Adjustments

    In accordance with the FCPIA and the guidance provided in OMB 
Memorandum M-24-07, BSEE has calculated the necessary inflation 
adjustment for the maximum daily civil monetary penalty amount in 30 
CFR 250.1403 for violations of OCSLA. The previous OCSLA civil penalty 
inflation adjustment accounted for inflation through October 2022. The 
required annual civil penalty inflation adjustment promulgated through 
this rule accounts for inflation through October 2023.
    Annual inflation adjustments are based on the percent 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 the guidance in OMB Memorandum M-24-07, 
BSEE divided the October 2023 CPI-U by the October 2022 CPI-U to 
calculate the multiplying factor. In this case, the October 2023 CPI-U 
(307.671) divided by the October 2022 CPI-U (298.012) is 1.03241. OMB 
Memorandum M-24-07 confirms that this is the proper multiplier (OMB 
Memorandum M-24-07 at 1 n.4).
    The FCPIA requires that BSEE adjust the OCSLA maximum daily civil 
penalty amount for inflation using the applicable 2024 multiplier 
(1.03241). Accordingly, BSEE multiplied the existing OCSLA maximum 
daily civil penalty amount ($52,646) by 1.03241 to arrive at the new 
maximum daily civil penalty amount ($54,352.26). The FCPIA requires 
that the resulting amount be rounded to the nearest $1.00 at the end of 
the calculation process. Accordingly, the adjusted OCSLA maximum daily 
civil penalty for 2024 is $54,352.
    The adjusted penalty levels take effect immediately upon 
publication of this rule. Pursuant to the FCPIA, the increase in the 
OCSLA maximum daily civil penalty amount applies to civil penalties 
assessed after the date the increase takes effect, even when the 
associated violation(s) predates such increase. Consistent with the 
provisions of OCSLA and the FCPIA, this rule adjusts the following 
maximum civil monetary penalty per day per violation as follows:

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                                                                           Current                    Adjusted
             CFR citation                 Description of the penalty       maximum     Multiplier      maximum
                                                                           penalty                     penalty
----------------------------------------------------------------------------------------------------------------
30 CFR 250.1403.......................  Failure to comply per-day, per-     $52,646       1.03241       $54,352
                                         violation.
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    This rulemaking does not address any updates to the civil penalties 
related to Federal Oil and Gas Royalty Management Act (FOGRMA) 
violations. Per 86 FR 34132, BSEE regulations at 30 CFR part 250, 
subpart N, addressing maximum FOGRMA civil penalties (30 CFR 250.1453) 
cross-reference regulations of the Office of Natural

[[Page 18542]]

Resources Revenue (ONRR) at 30 CFR 1251.52 that set maximum daily civil 
penalty amounts for FOGRMA violations that are not timely corrected. 
Please refer to the cross-referenced ONRR regulations for the most up 
to date FOGRMA civil penalty amounts.

III. Procedural Requirements

A. Regulatory Planning and Review (E.O. 12866, 14094 and 13563)

    Executive Order (E.O.) 12866, as amended by E.O. 14094, provides 
that the OMB Office of Information and Regulatory Affairs (OIRA) will 
review all significant rules. OIRA has determined that this rule is not 
significant. (See OMB Memorandum M-24-07 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, 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 further 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. We have developed this rule in a manner consistent 
with these requirements, to the extent permitted by statute.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires an agency to prepare 
a regulatory flexibility analysis for 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 FCPIA expressly exempts these annual 
inflation adjustments from the requirement to publish a proposed rule 
for notice and comment. (See FCPIA of 2015 at Sec.  4(b)(2); OMB 
Memorandum M-24-07 at 4). Thus, 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:
    (1) Does not have an annual effect on the economy of $100 million 
or more;
    (2) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions; and
    (3) Does 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.

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. 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.

E. Takings (E.O. 12630)

    This rule does not affect a taking of private property or otherwise 
have takings implications under E.O. 12630. Therefore, a takings 
implication assessment is not required.

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. To the extent that State and local 
governments have a role in Outer Continental Shelf activities, this 
rule will not affect that role. Therefore, a federalism summary impact 
statement is not required.

G. Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of E.O. 12988. 
Specifically, this rule:
    (1) 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
    (2) Meets the criteria of section 3(b)(2) requiring that all 
regulations be written in clear language and contain clear legal 
standards.

H. 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 of the Interior's consultation policy, under 
Departmental Manual Part 512 Chapters 4 and 5, and under the criteria 
in E.O. 13175. We have determined that it has no substantial direct 
effects on Federally-recognized Indian Tribes or Alaska Native Claims 
Settlement Act (ANCSA) Corporations, and that consultation under the 
Department of the Interior's Tribal and ANCSA consultation policies is 
not required.

I. Paperwork Reduction Act

    This rule does not contain information collection requirements, and 
a submission to the OMB under the Paperwork Reduction Act (44 U.S.C. 
3501 et seq.) is not required.

J. National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the National Environmental Policy Act (NEPA) is not required 
because, as a regulation of an administrative nature, this rule is 
covered by a categorical exclusion (see 43 CFR 46.210(i)). BSEE also 
determined that the rule does not implicate any of the extraordinary 
circumstances listed in 43 CFR 46.215 that would require further 
analysis under NEPA. Therefore, a detailed statement under NEPA is not 
required.

K. 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 in 30 CFR Part 250

    Administrative practice and procedure, Continental Shelf--mineral 
resources, Continental Shelf--rights-of-way, Environmental impact 
statements, Environmental protection, Government contracts, 
Investigations, Oil and gas exploration, Penalties, Pipelines, 
Reporting and recordkeeping requirements, Sulfur.

    This action by the Deputy Assistant Secretary is taken herein 
pursuant to an existing delegation of authority.

Steven H. Feldgus,
Principal Deputy Assistant Secretary, Land and Minerals Management.

    For the reasons given in the preamble, the BSEE amends title 30, 
chapter II, subchapter B, part 250 of the Code of Federal Regulations 
as follows.

PART 250--OIL AND GAS AND SULFUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

0
1. The authority citation for 30 CFR part 250 continues to read as 
follows:


[[Page 18543]]


    Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 33 U.S.C. 
1321(j)(1)(C), 43 U.S.C. 1334.


0
2. Revise Sec.  250.1403 to read as follows:


Sec.  250.1403  What is the maximum civil penalty?

    The maximum civil penalty is $54,352 per day per violation.

[FR Doc. 2024-05451 Filed 3-13-24; 8:45 am]
BILLING CODE 4310-VH-P