[The Regulatory Plan and Unified Agenda of Federal Regulatory and Deregulatory Actions]
[Department of Interior Regulatory Plan]
[From the U.S. Government Printing Office, www.gpo.gov]

Federal Register / Vol. 61, No. 231 / Friday, November 29, 1996 / The
                            Regulatory Plan

[[Page 62071]]

DEPARTMENT OF THE INTERIOR (DOI)
Statement of Regulatory Priorities
The Department of the Interior (DOI) is the Nation's principal 
conservation agency, responsible for the management of much of our 
public lands and resources. It also has major responsibility for 
actions involving American Indians, Alaska Natives, and residents of 
island territories under the administration of the United States. Its 
mission is to encourage the conservation and responsible management of 
the Nation's natural resources and to fulfill the trust 
responsibilities of the U.S. Government.
In carrying out these responsibilities, the Department pursues the 
following major objectives:
 Preserving the Nation's national park, wilderness, and fish 
            and wildlife resources and managing its public lands;
 Managing the supply of quality water resources;
 Improving the Federal Government's relationship with State, 
            local, tribal, and territorial governments;
 Promoting the economic and social well-being of American 
            Indians, Alaska Natives, and people of the U.S. 
            territories; and
 Enhancing America's ability to meet its needs for domestic 
            energy and mineral resources.
Major Regulatory Areas
Only one of DOI's ten bureaus--the Office of Surface Mining Reclamation 
and Enforcement--is primarily engaged in activities most often 
considered ``regulatory.'' Its regulations set environmental standards 
for coal mining and reclamation operations and ensure that these 
standards are met through State programs.
A number of other bureau activities, however, have regulatory 
components. Those regulations serve primarily to facilitate DOI 
programs, which focus upon the management of public or trust lands and 
natural resources under U.S. ownership or control. Some of the major 
areas of these regulations include:
 Management of migratory birds and preservation of certain 
            marine mammals and endangered species;
 Management of dedicated lands, such as national parks, 
            wildlife refuges, and American Indian trust lands;
 Management of public lands open to multiple use;
 Leasing and oversight of development of Federal energy, 
            mineral, and renewable resources;
 Management of revenues from American Indian and Federal 
            minerals;
 Fulfillment of trust and other responsibilities pertaining to 
            American Indian tribes;
 Natural resource damage assessments; and
 Management of financial and nonfinancial assistance programs.
Regulatory Policy
DOI Regulatory Procedures and Their Consistency With the 
Administration's Regulatory Policies
Within the general requirements and guidance set forth in Executive 
Orders 12866, 12612, and 12630, DOI's regulatory program seeks to 
accomplish the following: (1) Fulfill all legal requirements as 
specified by statutes or court orders; (2) perform essential functions 
that cannot be handled by non-Federal entities; (3) minimize regulatory 
costs to society while maximizing societal benefits; and (4) operate 
programs openly, efficiently, and in cooperation with Federal and non-
Federal entities. During the past year, the Department concentrated on 
eliminating and reinventing regulations, fostering partnerships with 
regulated entities, and maximizing the use of negotiated rulemakings. 
The Department acknowledges that regulatory reform is a continuing 
process.
In October of 1995, the Department transferred the administrative 
functions for regulatory review to the Office of the Solicitor. By 
moving these functions to the Office of the Solicitor, regulatory 
review and coordination have been improved. Bureaus now can obtain 
administrative review and legal review at the same time, and the 
Regulatory Affairs staff in the Office of the Solicitor can track the 
progress of rules and serve as a point of contact for the bureaus 
regarding the status of rules submitted for departmental review. In 
addition, the Regulatory Affairs staff and the Office of Policy 
Analysis are updating the departmental manual to provide clearer 
guidance on regulatory procedures and compliance with new statutes, 
such as the Small Business Regulatory Enforcement Fairness Act, the 
Unfunded Mandates Reform Act, and the Paperwork Reduction Act of 1995.
The Department recognizes that a key to improving the regulatory 
process is writing clear and simple regulations. In this context, we 
are especially proud of our broad-based effort to incorporate plain 
English into most of our new and revised regulations. This fresh 
approach to drafting regulations has complete support at the highest 
levels of the Department and is being implemented agencywide through a 
series of training courses and workshops for which the Department has 
retained an outside contractor.
The dramatic results of this new model for regulatory language can be 
seen in recent proposed and final regulatory revisions published by the 
Bureau of Indian Affairs, the Bureau of Land Management, and the 
Minerals Management Service.
Encouraging Responsible Management of the Nation's Resources
One of DOI's fundamental goals is to encourage the responsible 
management of the Nation's natural heritage. The regulatory program is 
designed to help achieve this by striking an appropriate balance 
between the use and preservation of natural resources. In this vein, 
the Department is seeking ways to provide incentives for users of 
public resources to adopt long-term strategies designed to meet current 
needs while preserving resources for future generations. DOI also is 
seeking to ensure that the Government receives fair prices for public 
resources.
Minimizing Regulatory Burdens
DOI has made a major effort to streamline its regulations and to reduce 
the burdens that they impose. Planning processes for land use and water 
development have been substantially modified to reduce unnecessary 
delays and paperwork associated with agency decisionmaking. Moreover, 
DOI is currently reviewing regulations to determine whether their 
benefits continue to outweigh their costs to society. Rules will 
continue to be reassessed periodically, and needed changes will be made 
as existing operations are evaluated.
The Department's review of potential rules focuses both on assuring 
consistency with broad regulatory policies and goals and on making 
certain that rules are technically feasible and understandable. DOI is 
encouraging the use of performance standards rather than traditional 
command-and-control regulations, providing regulated entities with 
greater flexibility to develop more efficient and less burdensome 
compliance procedures. The Department's plain English initiative 
improves the clarity of regulations and reduces confusion for the 
regulated party and the agencies responsible for implementing the 
regulations.

[[Page 62072]]

Encouraging Public Participation and Involvement in the Regulatory 
Process
One of the goals of Executive Order 12866 is to ensure that the public 
has full and adequate opportunities to participate in the development 
of regulations. Encouraging increased public participation in the 
regulatory process so as to make regulatory policies more responsive to 
our customers' needs is a priority under this Administration.
The Department is reaching out to communities and seeking their input 
on a variety of regulatory issues. For example, every year the Fish and 
Wildlife Service (FWS) establishes migratory bird hunting seasons. The 
FWS develops the annual migratory bird hunting seasons in partnership 
with ``flyway councils,'' which are made up of State fish and wildlife 
agencies. As the process evolves each year, FWS holds a series of 
public meetings to afford other interested parties, including hunters 
and other special interest groups, adequate opportunity to participate 
in the establishment of the upcoming seasons' regulations.
DOI is also encouraging the use of negotiated rulemaking to develop 
rules with the full participation of affected communities. Several 
bureaus are currently either employing negotiated rulemaking techniques 
or are exploring whether negotiated rulemaking is appropriate and 
feasible for particular rules.
Finally, departmental policies are designed to delegate decisionmaking, 
including development and operation of DOI's regulatory programs, to 
the lowest appropriate level. With decentralization, management 
procedures can be developed that are sensitive to the various local 
needs and interests affected by DOI programs.
Bureaus and Offices Within DOI
The following are brief descriptions of the regulatory functions of 
DOI's major regulatory bureaus and offices.
Office of the Secretary, Office of Environmental Policy and Compliance
The regulatory functions of the Office of Environmental Policy and 
Compliance (OEPC) stem from requirements under section 301(c) of the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980, as amended (CERCLA). Section 301(c) requires the development 
of natural resource damage assessment rules and the biennial review and 
revision, as appropriate, of these rules. Rules have been promulgated 
for the optional use of natural resource trustees to assess 
compensation for damages to natural resources caused by oil or 
hazardous substances. OEPC is overseeing the study and possible 
promulgation of additional rules pursuant to section 301(c)(2) and the 
review and possible revision of the existing rules in compliance with 
section 301(c)(3).
In undertaking DOI's responsibilities under section 301(c), OEPC is 
striving to meet three regulatory objectives: (a) That the minimal 
amount of regulation necessary be developed; (b) that the assessment 
process provide for tailoring to specific discharges or releases; and 
(c) that the process not be considered punitive, but rather a system to 
achieve fair and just compensation for injuries sustained.
Bureau of Indian Affairs
The philosophy of the Bureau of Indian Affairs (BIA) is to encourage 
the development and management of human and other resources among 
American Indians and Alaska Natives, to encourage tribal assumption of 
BIA programs, and to fulfill trust and other responsibilities of the 
U.S. Government. BIA regulatory actions serve to balance its dual role 
as: (a) Advocate in assisting tribes and encouraging their 
participation in BIA programs and (b) trustee protecting and/or 
enhancing American Indian trust resources.
Important BIA programs are promulgated through regulations, rather than 
informal guidelines, so that American Indians are aware of and have an 
opportunity to participate in the development of standards and 
procedures affecting them. BIA regulatory policies seek to accomplish 
the following: (a) Ensure consistent policies throughout American 
Indian Country; (b) promote American Indian involvement in the 
operation, management, planning, and evaluation of BIA programs and 
services; (c) provide guidance to applicants for BIA services; and (d) 
govern the development of American Indian lands and provide for the 
protection of American Indian treaty and statutory rights.
BIA's regulatory program is designed (a) to promote American Indian 
self-determination, (b) to provide American Indians and Alaska Natives 
with high-quality education and tribal development opportunities, (c) 
to meet BIA's trust responsibilities, and (d) to meet the needs of 
tribes and their members.
In furtherance of the goals mentioned above, the Bureau will publish, 
this year, a significant rule to implement the Tribal Self-Governance 
Act of 1994. The Act allows tribes to receive their share of the funds 
used to administer certain programs within the Bureau. Tribal 
governments then assume total responsibility for providing services 
under these programs to their citizens and exercise discretion over the 
use of the funds according to tribal priorities. Tribes also are 
eligible to negotiate to operate certain non-BIA programs or services 
at the discretion of the Secretary. In these instances, funding amounts 
are negotiated and incorporated in annual funding agreements between 
the tribe and the non-BIA bureau.
Bureau of Land Management
The Bureau of Land Management (BLM) is responsible for the development, 
management, and protection of public land resources that traditionally 
have been subject to multiple use. The principal authorities for the 
BLM's activities are the Federal Land Policy and Management Act of 
1976, the Mineral Leasing Act of 1920, the Taylor Grazing Act of 1934, 
the Mining Law of 1872, the Wild and Free-Roaming Horse and Burro Act, 
and the Recreation and Public Purposes Act. BLM's programs cover three 
main program areas: Energy and minerals, renewable resources, and 
lands, including conducting Federal land surveys and maintaining the 
official records for all Federal and former Federal lands and minerals.
BLM's fundamental regulatory philosophy is that public resources should 
be managed responsibly, providing maximum benefits to the public, while 
conserving scarce resources for future generations. BLM's regulatory 
program is designed to ensure that:
 The resources in the Nation's lands are effectively and 
            efficiently managed in accordance with law;
 The public's concern for the resources will be reflected in 
            significant opportunity for participation in the 
            development of rules;
 The regulatory compliance burden on individuals, firms, and 
            other affected entities is kept to a minimum; and
 Individuals and firms operating under BLM regulations are 
            given the opportunity to respond to and make decisions 
            based upon assessments of market situations.

[[Page 62073]]

Minerals Management Service
The Minerals Management Service (MMS) has two major responsibilities: 
(a) Timely and accurate collection, distribution, accounting for, and 
auditing of revenues owed by holders of Federal onshore, offshore, and 
tribal land mineral leases in a manner that meets or exceeds Federal 
financial integrity requirements and recipient expectations and (b) 
management of the resources of the Outer Continental Shelf (OCS) in a 
manner that provides for safety, protection of the environment, and 
conservation of natural resources. These responsibilities are carried 
out under the provisions of the Federal Oil and Gas Royalty Management 
Act, the Minerals Leasing Act, the Outer Continental Shelf Lands Act, 
the Indian Mineral Leasing Act, and other related statutes.
The regulatory philosophy of MMS is to develop clear, enforceable rules 
that support the missions of each program. During the past year, 
passage of the Deep Water Royalty Relief Act required MMS to issue 
implementing regulations. MMS will continue work on these rules in the 
coming year. MMS will continue to review rules and issue amendments in 
response to new technology and new industry practices. Other rules will 
address spill response and financial responsibility under the Oil 
Pollution Act of 1990 and end of lease responsibility.
MMS also plans to continue its review of existing regulations and to 
issue rules to refine the royalty management regulations in chapter II 
of 30 CFR. Our revisions underway to the royalty management regulations 
cover oil and gas valuation of Federal and Indian leases. The Federal 
Oil and Gas Royalty Simplification and Fairness Act of 1996 will 
require numerous additional changes to the royalty management 
regulations including the delegation of royalty collection and related 
activities to States.
Office of Surface Mining Reclamation and Enforcement
The Office of Surface Mining Reclamation and Enforcement (OSM) was 
created by the Surface Mining Control and Reclamation Act of 1977 
(SMCRA) to ``strike a balance between protection of the environment and 
agricultural productivity and the Nation's need for coal as an 
essential source of energy.''
The principal regulatory provisions contained in title V of SMCRA set 
minimum requirements for obtaining a permit for surface coal mining 
operations, set standards for surface coal mining operations, require 
land reclamation once mining ends, and require rules and enforcement 
procedures to ensure that the standards are met. Under SMCRA, OSM 
serves as the primary enforcer of SMCRA until the States achieve 
``primacy,'' that is, until they demonstrate that their regulatory 
program meets all the specifications in SMCRA and has regulations 
consistent with those issued by OSM.
A primacy State takes over the permitting, inspection, and enforcement 
activities of the Federal Government. OSM then changes its role from 
regulating mining activities directly to overseeing and evaluating 
State programs. Today, 24 of the 27 key coal-producing States have 
primacy. In return for assuming primacy, States are entitled to 
regulatory grants and to grants for reclaiming abandoned mine lands. In 
addition, under cooperative agreements, some primacy States have agreed 
to regulate mining on Federal lands within their borders. Thus, OSM 
regulates mining directly only in nonprimacy States, on Federal lands 
in States where no cooperative agreements are in effect, and on 
American Indian lands.
SMCRA charges OSM with the responsibility of publishing rules as 
necessary to carry out the purposes of the Act. The most fundamental 
mechanism for ensuring that the purposes of SMCRA are achieved is the 
basic policy and guidance established through OSM's permanent 
regulatory program and related rulemakings. Its regulatory framework is 
developed, reviewed, and applied according to policy directives and 
legal requirements.
Litigation by the coal industry and environmental groups is responsible 
for some of the rules now being considered by OSM. Others are the 
result of efforts by OSM to address areas of concern that have arisen 
during the course of implementing OSM's regulatory program, and one is 
the result of legislation.
OSM has sought to develop an economical, safe, and environmentally 
sound program for the surface mining of coal by providing a stable 
regulatory framework. To achieve stability, OSM has endeavored to 
create a regulatory program that provides a high degree of continuity 
in its requirements and creates minimal uncertainty concerning the 
nature and pace of changes to existing provisions.
OSM also has worked to create a consistent regulatory framework. At the 
same time, however, OSM has recognized the need (a) to respond to local 
conditions, (b) to provide flexibility to react to technological 
change, (c) to be sensitive to geographic diversity, and (d) to 
eliminate burdensome recordkeeping and reporting requirements that over 
time have proved unnecessary to ensure an effective regulatory program.
Major regulatory objectives regarding the mining of surface coal 
include:
 Continuing outreach activities with interested groups during 
            the rulemaking process to increase the quality of the 
            rulemaking process, improve the substance of the rules, 
            and, to the greatest extent possible, reflect consensus on 
            regulatory issues;
 Minimizing the recordkeeping and regulatory compliance burden 
            imposed on the public by means of a review and, where 
            advisable, revision of unnecessary and burdensome 
            regulatory requirements; and
 Publishing final rules to implement the Energy Policy Act of 
            1992, Public Law 102-486.
U.S. Fish and Wildlife Service
The U.S. Fish and Wildlife Service has three basic mission objectives:
 To assist in the development and application of an 
            environmental stewardship ethic based on ecological 
            principles and scientific knowledge of fish and wildlife;
 To guide the conservation, development, and management of the 
            Nation's fish and wildlife resources; and
 To administer a national program to provide the public with 
            opportunities to understand, appreciate, and wisely use 
            fish and wildlife resources.
These objectives are met through the following regulatory programs:
 Management of Service lands, primarily national wildlife 
            refuges;
 Management of migratory bird resources;
 Conservation of certain marine mammals and endangered species;
 Allowance of certain activities that would otherwise be 
            prohibited by law; and
 Administration of grant and assistance programs.
The Service maintains a comprehensive set of regulations in the first 
category--those that govern public access, use, and recreation on 
national wildlife refuges and in national fish hatcheries. As required 
by law, the Service is authorized to allow such uses

[[Page 62074]]

only if they are compatible with the purpose for which each area was 
established. These regulations will be as consistent with State and 
local laws as practicable and will afford the public as much economic 
and recreational opportunity as possible. Consistent with the purposes 
for which those areas are established, with very few exceptions, the 
Service provides these types of opportunities on each of the more than 
500 refuges and hatcheries. These regulations are developed and 
continually reviewed for improvements, with a substantial amount of 
public input, and are typically of limited geographical interest.
Management of migratory bird resources, covered by the second category 
of regulations, entails fulfilling U.S. obligations contained in 
various international treaties. This regulatory program entails an 
annual issuance on migratory bird hunting seasons and bag limits, 
developed in partnership with the States, American Indian tribal 
governments, and the Canadian Wildlife Service. Although these rules 
are issued annually, this regulatory program has been in existence for 
more than 50 years and has not significantly changed over that period 
of time. The regulations are necessary to permit migratory bird hunting 
that would otherwise be prohibited. Although recent declines in 
waterfowl populations have reduced the numbers of such birds that may 
be harvested, the regulations generally do not change significantly 
from one year to another.
The third category includes regulations to fulfill the statutory 
obligation to identify and conserve species faced with extinction. The 
basis for determining endangered species is limited by law to 
biological considerations, although priorities for allocating Service 
resources are established consistent with the President's policies (by 
directing the Service's efforts to species most threatened and those 
whose protection is of the most benefit to the natural resource). Also 
included in this program are regulations to enhance the conservation of 
listed species and of marine mammals for which DOI has management 
responsibility. This program also contains regulations that provide 
guidance to other Federal agencies to assist them in complying with 
section 7 of the Endangered Species Act, which requires them not to 
conduct activities that would jeopardize the existence of endangered 
species or adversely modify critical habitat of listed species.
In designating critical habitat, the Service considers biological 
information and economic and other impacts of the designation. Areas 
may be excluded from the designation where the benefits of exclusion 
outweigh the benefits of inclusion, provided that the exclusion will 
not result in the extinction of the species.
The fourth category--the Service's regulatory program that permits 
activities otherwise prohibited by law--entails regulating possession, 
sale or trade, scientific research, and educational activities 
involving fish and wildlife and their parts or products. Generally, 
these regulations are supplemental to State protective regulations and 
cover activities that involve interstate or foreign commerce, which 
must comply with various laws and international obligations. The 
Service is continually working with foreign and State governments, the 
industry and individuals affected, and other interested parties to 
minimize the burdens associated with Service-related activities. The 
easing of such burdens through regulatory actions continues to balance 
the benefits that may be made available with the necessity to ensure 
adequate protection to the natural resource. Most of the regulatory 
activities are permissive in nature, and the concerns of the public 
generally center on technical issues.
The last category--the Service's assistance programs--includes a 
limited number of regulations necessary to ensure that assistance 
recipients comply with applicable laws and Office of Management and 
Budget (OMB) Circulars. Regulations in this program help the affected 
parties to obtain assistance and to comply with requirements imposed by 
Congress and OMB.
Bureau of Reclamation
In recent years, the Bureau of Reclamation's mission and goals have 
substantially changed. Its new mission is to manage, develop, and 
protect water and related resources in an environmentally and 
economically sound manner in the interest of the American public. To 
accomplish this mission, Reclamation applies management, engineering, 
and scientific skills that result in effective and environmentally 
sensitive solutions.
Reclamation projects provide for some or all of the following 
concurrent purposes: Irrigation water service, municipal and industrial 
water supply, hydroelectric power generation, water quality 
improvement, groundwater management, fish and wildlife enhancement, 
outdoor recreation, flood control, navigation, river regulation and 
control, system optimization, and related uses.
The Bureau's regulatory program is designed to ensure that its mission 
is carried out expeditiously and efficiently.
_______________________________________________________________________
DOI--Bureau of Indian Affairs (BIA)

                              -----------

                          PROPOSED RULE STAGE

                              -----------

48. TRIBAL SELF-GOVERNANCE
Priority:


Other Significant


Legal Authority:


 PL 103-413


CFR Citation:


 25 CFR 1000


Legal Deadline:


None


Abstract:


This rule will clarify how the Department and tribes will carry out 
their respective responsibilities under the Tribal Self-Governance Act 
of 1994. At the request of a majority of Indian tribes with self-
governance agreements, the Secretary has established a negotiated 
rulemaking committee to negotiate and promulgate such regulations as 
are necessary to carry out the Act.


Statement of Need:


The Department of the Interior (DOI) needs to clarify how it and the 
tribes will carry out their respective responsibilities under the 
Tribal Self-Governance Act of 1994. Provisions are needed to clarify or 
establish:
- Procedures for conducting negotiations, defining stable base budgets, 
time lines for the transfer of funds for tribes, and the amount of 
residual funds to be retained;
- The processes for accepting new tribes into the self-governance 
program planning and negotiation process, for awarding planning and 
negotiation grants, for approving waiver requests, and for determining 
and negotiating tribal shares of BIA and eligible non-BIA programs;
- Mechanisms for reviewing tribal trust functions;
- Retrocession procedures;

[[Page 62075]]


- Procedures for ensuring that proper health and safety standards exist 
in construction projects and are included in annual funding agreements;
- Reporting requirements of tribes and DOI; and
- A mechanism for negotiating the inclusion of specific provisions of 
Federal procurement regulations into annual funding agreements.
DOI expects that the rulemaking process will identify other components 
of the program that require clarification.


Summary of the Legal Basis:


The Tribal Self-Governance Act of 1994 requires DOI, upon request of a 
majority of self-governance tribes, to negotiate and promulgate 
regulations to carry out the tribal self-governance program. The Act 
calls for a negotiated rulemaking committee under 5 USC 565, composed 
of Federal and tribal representatives, with a majority of the tribal 
representatives from self-governance tribes. The Act also authorizes 
DOI to adapt negotiated rulemaking procedures to the unique context of 
self-governance and the government-to-government relationship between 
the United States and the Indian tribes. On November 1, 1994, a 
majority of self-governance tribes wrote the Secretary requesting the 
immediate initiation of negotiated rulemaking.


Alternatives:


There is a range of alternatives for each of the program components, 
from maintaining discretion and flexibility at the local level to 
standardizing requirements and procedures on the national level.


Anticipated Costs and Benefits:


The rule is expected to promote greater efficiency of Federal and 
tribal government operations. It is also expected to reduce opportunity 
costs resulting from untimely Federal actions. The rule will improve 
the ability of Federal and tribal governments to plan their self-
governance activities. This should lead to greater stability of 
operations. Clarifying procedures for conducting operations will 
improve the ability of governments to plan for the time and cost of 
conducting negotiations. Clarifying time lines for transfer of base 
funding and other funds to tribes will improve planning and reduce the 
opportunity costs resulting from the untimely transfer of funds under 
the self-governance program. Budget and operation planning will be 
improved by specifying the process for accepting additional tribes into 
the self-governance program planning and negotiating process as well as 
the process for awarding planning and negotiation grants. Since 
retrocession procedures will be specified, governments will be better 
able to plan for retrocessions. Standardization of tribal shares will 
allow the self-governance program to comply with statutory requirements 
not to limit or, reduce the services, contracts, or funds that any 
other Indian tribe or tribal organization is eligible to receive.


Risks:


By removing uncertainty and promoting a more stable framework for the 
program, the rule will greatly lower the risk of not achieving the 
stated goals of tribal self-governance. It will change the role of 
Federal agencies that serve tribes by shifting their responsibilities 
from day-to-day management of tribal affairs to those concerned with 
protecting and advocating tribal interests.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
Notice of Intent60 FR 8806ish a Negotiated Rulemaking Committee02/15/95
NPRM                                                           12/00/96
Small Entities Affected:


Governmental Jurisdictions


Government Levels Affected:


Tribal, Federal


Agency Contact:
Kenneth D. Reinfeld
Senior Program/Policy Analyst
Department of the Interior
Bureau of Indian Affairs
1849 C Street NW.
Room 2548
Washington, DC 20240
Phone: 202 219-0240
Fax: 202 219-1404
RIN: 1076-AD20
_______________________________________________________________________
DOI--Bureau of Land Management (BLM)

                              -----------

                          PROPOSED RULE STAGE

                              -----------

49.  OIL AND GAS LEASING AND OPERATIONS
Priority:


Other Significant. Major status under 5 USC 801 is undetermined.


Reinventing Government:


This rulemaking is part of the Reinventing Government effort. It will 
revise text in the CFR to reduce burden or duplication, or streamline 
requirements.


Legal Authority:


 30 USC 181 et seq


CFR Citation:


 43 CFR 3100


Legal Deadline:


None


Abstract:


This rule will revise the BLM's current Federal oil and gas leasing and 
operations regulations. The regulation will be written in plain English 
to make it more clear and understandable to the reader. It will also 
use performance standards in lieu of prescriptive requirements that 
will be flexible for operators and BLM and at the same time ensure 
protection of the environment and Federal royalty interests. American 
Petroleum Institute (API) and American Gas Association (AGA) standards 
will be cited rather than parrot those requirements in the rule itself. 
Finally, BLM Onshore Orders will be incorporated into the operating 
regulations, thereby locating all BLM oil and gas regulations in one 
place.


Statement of Need:


This rulemaking is necessary to comply with National Performance Review 
recommendations and other reinventing government initiatives. The rule 
is also needed to clarify and streamline existing regulations.


Summary of the Legal Basis:


The Mineral Leasing Act gives BLM authority to lease oil and gas on 
Federal lands and conduct operational inspections and enforcement of 
the regulations in leased areas. With respect to Federal oil and gas 
leasing, no other agency or entity has authority

[[Page 62076]]

to undertake these actions on behalf of the United States.


Alternatives:


The alternative would be not to reinvent BLM's current regulatory 
scheme and to continue to operate under prescriptive regulations which 
are at times ambiguous and hard to understand. This alternative of 
reinventing BLM's oil and gas leasing and operational regulations was 
chosen to make the regulations more clear and understandable. The 
proposed rule will allow operators flexibility to deal with unique 
geologic or engineering circumstances while at the same time protect 
the environment by requiring compliance with meaningful standards.


Anticipated Costs and Benefits:


We anticipate that this rule will promote greater efficiency from both 
the public and BLM. We believe that by making the regulations clearer, 
the ``rules of the game'' will be better understood by our external 
customers and by the people in BLM charged with enforcing the 
requirements of the rule. We also believe that performance standards 
will allow operators to develop more efficient ways of complying with 
the regulations because they will have the flexibility to deal with 
unique geologic or engineering circumstances in novel ways as long as 
they meet the standard set by the rule. BLM will cite API and AGA 
standards in the rule and this may add additional costs for some 
operators to acquire those written standards. However, many operators 
already own copies of those standards and if they do not, copies are 
available in public and university libraries and will be available at 
BLM offices. The API and AGA standards are reasonably available to the 
public. We believe that the benefits of performance-based regulations 
versus prescriptive regulations, along with the availability of the 
written standards outweigh any potential costs an operator may 
undertake.


Risks:


It is possible that the public will not understand or will misinterpret 
the performance standards we set out in the rule. We have taken this 
into account and plan to draft user guides before the rule takes 
effect. The user guides will offer the public detailed explanations of 
the standards in the regulations and will provide examples of how an 
operator might meet a given standard. If we find that a given standard 
is flawed, we will adjust the standard in future rulemakings. As 
always, we welcome public comment on the proposed rulemaking and invite 
the public to comment in particular on the performance standards we set 
out in the rule.


Timetable:
_______________________________________________________________________
Action                                 DFR Cite

_______________________________________________________________________
NPRM                                                           11/00/96
Small Entities Affected:


None


Government Levels Affected:


None


Agency Contact:
Ian Senio
Regulatory Analyst
Regulatory Management Team (420)
Department of the Interior
Bureau of Land Management
1849 C Street NW.
Washington, DC 20240
Phone: 202 452-5049
Fax: 202 452-5002
Email: [email protected]
RIN: 1004-AC94
BILLING CODE 4310-17-F