Maximum Daily Civil Penalty Amounts for Violations of the Federal Oil and Gas Royalty Management Act, 38557-38560 [2021-15388]

Download as PDF lotter on DSK11XQN23PROD with RULES1 Federal Register / Vol. 86, No. 138 / Thursday, July 22, 2021 / Rules and Regulations into the United States of those travelers engaged in ‘‘essential travel,’’ as defined below. Given the definition of ‘‘essential travel’’ below, this temporary alteration in land ports of entry operations should not interrupt legitimate trade between the two nations or disrupt critical supply chains that ensure food, fuel, medicine, and other critical materials reach individuals on both sides of the border. For purposes of the temporary alteration in certain designated ports of entry operations authorized under 19 U.S.C. 1318(b)(1)(C) and (b)(2), travel through the land ports of entry and ferry terminals along the United StatesCanada border shall be limited to ‘‘essential travel,’’ which includes, but is not limited to— • U.S. citizens and lawful permanent residents returning to the United States; • Individuals traveling for medical purposes (e.g., to receive medical treatment in the United States); • Individuals traveling to attend educational institutions; • Individuals traveling to work in the United States (e.g., individuals working in the farming or agriculture industry who must travel between the United States and Canada in furtherance of such work); • Individuals traveling for emergency response and public health purposes (e.g., government officials or emergency responders entering the United States to support federal, state, local, tribal, or territorial government efforts to respond to COVID–19 or other emergencies); • Individuals engaged in lawful crossborder trade (e.g., truck drivers supporting the movement of cargo between the United States and Canada); • Individuals engaged in official government travel or diplomatic travel; • Members of the U.S. Armed Forces, and the spouses and children of members of the U.S. Armed Forces, returning to the United States; and • Individuals engaged in militaryrelated travel or operations. The following travel does not fall within the definition of ‘‘essential travel’’ for purposes of this Notification— • Individuals traveling for tourism purposes (e.g., sightseeing, recreation, gambling, or attending cultural events). At this time, this Notification does not apply to air, freight rail, or sea travel between the United States and Canada, but does apply to passenger rail, passenger ferry travel, and pleasure boat travel between the United States and Canada. These restrictions are temporary in nature and shall remain in effect until 11:59 p.m. EDT on August 21, 2021. This Notification may be VerDate Sep<11>2014 15:56 Jul 21, 2021 Jkt 253001 amended or rescinded prior to that time, based on circumstances associated with the specific threat. Meanwhile, as part of an integrated U.S. government effort and guided by the objective analysis and recommendations of public health and medical experts, DHS is working closely with counterparts in Mexico and Canada to identify conditions under which restrictions may be eased safely and sustainably. The Commissioner of U.S. Customs and Border Protection (CBP) is hereby directed to prepare and distribute appropriate guidance to CBP personnel on the continued implementation of the temporary measures set forth in this Notification. The CBP Commissioner may determine that other forms of travel, such as travel in furtherance of economic stability or social order, constitute ‘‘essential travel’’ under this Notification. Further, the CBP Commissioner may, on an individualized basis and for humanitarian reasons or for other purposes in the national interest, permit the processing of travelers to the United States not engaged in ‘‘essential travel.’’ Alejandro N. Mayorkas, Secretary, U.S. Department of Homeland Security. [FR Doc. 2021–15573 Filed 7–21–21; 8:45 am] BILLING CODE 9112–FP–P DEPARTMENT OF THE INTERIOR Bureau of Ocean Energy Management 30 CFR Part 550 [Docket No.: BOEM 2021–0028] RIN 1010–AE08 Maximum Daily Civil Penalty Amounts for Violations of the Federal Oil and Gas Royalty Management Act Bureau of Ocean Energy Management, Interior. ACTION: Final rule. AGENCY: This final rule amends the Bureau of Ocean Energy Management (BOEM) regulations that set maximum daily civil penalty (MDCP) amounts for violations of the Federal Oil and Gas Royalty Management Act (FOGRMA). The amended BOEM regulations will cross-reference regulations of the Office of Natural Resources Revenue (ONRR) that also set MDCP amounts for FOGRMA violations. This crossreference will ensure consistency between BOEM’s FOGRMA MDCP amounts and ONRR’s FOGRMA MDCP amounts. It will also ensure consistent SUMMARY: PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 38557 compliance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act) and related Office of Management and Budget (OMB) guidance, while reducing unnecessary duplication of effort and costs to BOEM. DATES: This rule is effective on July 22, 2021. FOR FURTHER INFORMATION CONTACT: Deanna Meyer-Pietruszka, Bureau of Ocean Energy Management, Chief, Office of Policy, Regulation and Analysis, at deanna.meyer-pietruszka@ boem.gov or by mail to 1849 C Street NW, Mail Stop 5238, Washington, DC 20240 or by calling (202) 208–6352. SUPPLEMENTARY INFORMATION: Background and Legal Authority The Inflation Adjustment Act, Public Law 114–74, sec. 701 (codified at 28 U.S.C. 2461 note), became law on November 2, 2015. It required Federal agencies to adjust the level of civil monetary penalties imposed under each agency’s regulations with an initial ‘‘catch-up’’ adjustment through rulemaking, if warranted, and then to make subsequent annual adjustments for inflation. Agencies were required to publish the initial annual inflation adjustments in the Federal Register no later than January 15, 2017, and are required to publish annual adjustments no later than January 15th of each subsequent year. The purpose of these inflation adjustments is to maintain the deterrent effect of civil penalties and to further the policy goals of the underlying statutes that authorize the penalties. BOEM has authority to impose civil penalties for violations of FOGRMA under 30 U.S.C. 1719 and delegations of authority by the Secretary of the Interior. BOEM’s regulations implementing its authority to impose penalties under FOGRMA are found at 30 CFR 550.1450–.1477. Specifically, BOEM may impose civil penalties under FOGRMA—after providing notice of noncompliance (NONC) and an opportunity to correct the violation—for noncompliance with any applicable statute, regulation, order, or lease term relating to any Federal oil or gas lease. See 30 CFR 550.1451. BOEM may also impose penalties under FOGRMA, without providing prior notice or an opportunity to correct the violation, for the knowing or willful preparation, maintenance, or submission of false, inaccurate, or misleading written information. See id. at 550.1460. Sections 550.1453 and 550.1460 of BOEM’s existing regulations specify the MDCP amounts, as prescribed by E:\FR\FM\22JYR1.SGM 22JYR1 38558 Federal Register / Vol. 86, No. 138 / Thursday, July 22, 2021 / Rules and Regulations section 109 of FOGRMA (30 U.S.C. 1719).1 As required by the Inflation Adjustment Act, however, BOEM’s FOGRMA civil penalty amounts must be adjusted annually for inflation. Within the Department of the Interior (the Department), ONRR is the agency responsible for collecting revenue from energy leases and auditing royalty payments under FOGRMA. Like BOEM, ONRR has authority to impose civil penalties for certain violations of FOGRMA. ONRR’s civil penalty regulations are found in 30 CFR part 1241. As required by the Inflation Adjustment Act, ONRR also must annually adjust its regulatory MDCP amounts for inflation. ONRR published such a final rule for calendar year 2017 on April 24, 2017. See 82 FR 18858. Each year since, ONRR has calculated and adjusted the MDCP amounts in 30 CFR part 1241 in accordance with the Inflation Adjustment Act. On February 2, 2021, ONRR published the final rule adjusting the MDCP amounts in 30 CFR part 1241 for calendar year 2021. See 86 FR 7808.2 Because FOGRMA sets the MDCP amounts for penalties assessed by BOEM and ONRR for violations of FOGRMA and because the Inflation Adjustment Act uniformly applies to require adjustments to the civil penalties that may be assessed by both agencies as calculated from the same base year, BOEM’s FOGRMA MDCP amounts must be the same as ONRR’s FOGRMA MDCP amounts. lotter on DSK11XQN23PROD with RULES1 Changes Made to Existing BOEM Regulations Through this rule, BOEM amends §§ 550.1453 and 550.1460 of its 1 Under existing §§ 550.1451 and .1453(a), BOEM may initially impose civil penalties of up to $500 per day for each violation of a statute, regulation, order, or lease term for any Federal oil and gas lease that is not corrected within 20 days of receipt of a NONC identifying the violation. Under existing § 550.1453(b), BOEM may increase the MDCP amount up to $5,000 per day for each violation not corrected within 40 days of the NONC. In addition, under existing § 550.1460(b), BOEM may impose civil penalties, without prior notice, of up to $25,000 per day per violation for the knowing or willful preparation, maintenance, or submission of false, inaccurate, or misleading written information. 2 Specifically, in relevant part, ONRR amended 30 CFR 1241.52(a)(2) to authorize civil penalties of up to $1,288 per day for each violation of a statute, regulation, order, or lease term that is not corrected within 20 days of receipt of a NONC identifying the violation. See 86 FR 7808, 7810. Under the amended 30 CFR 1241.52(b), ONRR may impose civil penalties of up to $12,891 per day for each violation that is not corrected within 40 days of receipt of the NONC. Finally, ONNR amended 30 CFR 1241.60(b)(2) to authorize imposition of penalties, without prior notice, of up to $64,452 per day per violation for knowing or willful preparation, maintenance, or submission of false, inaccurate, or misleading written information. Id. VerDate Sep<11>2014 15:56 Jul 21, 2021 Jkt 253001 FOGRMA civil penalty regulations in order to cross-reference to ONRR’s civil penalty regulations in 30 CFR part 1241. By cross-referencing to ONRR’s regulations, BOEM’s MDCP amounts for FOGRMA violations will be the same as ONRR’s MDCP amounts, ensuring ongoing consistency within the Department as ONRR adjusts the FOGRMA MDCP amounts annually for inflation. In addition, this rule will avoid the duplication of effort and unnecessary expenditures within the Department that would occur if both BOEM and ONRR were to develop and publish separate final rules every year adjusting their corresponding FOGRMA MDCP amounts. Administrative Procedure Act Requirements Section 701(b)(1)(D) of the Inflation Adjustment Act states that agencies must adjust civil monetary penalties ‘‘notwithstanding section 553 of title 5, United States Code [the Administrative Procedure Act (APA)].’’ OMB interprets that provision to mean the APA’s public procedures of notice and comment rulemaking are not required to implement annual civil monetary penalty inflation adjustments. OMB Memorandum M–21–10, December 23, 2020 (M–21–10), p. 3. In this manner, Congress exempted the annual inflation adjustments under the Inflation Adjustment Act from the APA notice and comment requirements (5 U.S.C. 553(b)), allowing agencies to publish annual inflation adjustments as final rules without prior proposed rules. In addition, the APA provides a good cause exemption from notice and comment rulemaking when an agency finds that prior notice and public procedure are impracticable, unnecessary, or contrary to the public interest. 5 U.S.C. 553(b)(B). BOEM finds that it is unnecessary to issue a proposed rule prior to this final rule because the Inflation Adjustment Act does not provide discretion to BOEM— the act specifies the adjustments to be made, the methodology to be employed, and the index for inflation to be utilized. BOEM cannot choose to take a different course in response to public comments. The APA also exempts ‘‘rules of agency, organization, procedure, or practice’’ from notice and comment rulemaking. 5 U.S.C. 553(b)(A). BOEM’s decision to address the civil penalty inflation adjustment required under the Inflation Adjustment Act by crossreferencing to ONRR’s regulations, which are subject to the same inflation adjustment standards under the Inflation Adjustment Act, rather than PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 annually amending the FOGRMA penalties in each affected BOEM regulation, is an exercise of procedural rulemaking, which primarily concerns BOEM’s internal operations. Here, BOEM is organizing its internal procedures to meet its own legal duties. Moreover, while prior notice and comment is required for rules that affect rights or duties of the public, BOEM’s reliance on cross-referencing does not affect the rights of any regulated parties because the civil penalty amounts will be the same regardless of whether those amounts are cross-referenced to ONRR’s regulations or calculated and published separately by BOEM. ONRR must calculate and adjust the MDCP amounts in 30 CFR part 1241 annually in accordance with the Inflation Adjustment Act and related OMB guidance, just as BOEM must do. Procedural Requirements Regulatory Planning and Review (Executive Orders 12866 and 13563) Executive Order (E.O.) 12866 provides that the OMB Office of Information and Regulatory Affairs (OIRA) will review all significant rules. Consistent with OIRA criteria, this rule is not significant. OMB M–21–10 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. BOEM has developed this rule in a manner consistent with these requirements, to the extent permitted by statute. 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)). For the reasons discussed in part III of this rule, BOEM is not E:\FR\FM\22JYR1.SGM 22JYR1 Federal Register / Vol. 86, No. 138 / Thursday, July 22, 2021 / Rules and Regulations in clear language and contain clear legal standards. required to publish a proposed rule prior to this final rule. Thus, the RFA does not apply to this rulemaking. Small Business Regulatory Enforcement Fairness Act This rule is not a major rule under the Small Business Regulatory Enforcement Fairness Act (as codified at 5 U.S.C. 804(2)) because this rule will not: (1) Have an annual effect on the economy of $100 million or more; (2) Cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or (3) Have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises. 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. 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. 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. This rule will not substantially and directly affect the relationship between the Federal and State governments. 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. lotter on DSK11XQN23PROD with RULES1 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 VerDate Sep<11>2014 15:56 Jul 21, 2021 Jkt 253001 Consultation With Indian Tribes (E.O. 13175 and Departmental Policy) The Department strives to strengthen its government-to-government relationship with American Indian and Alaska Native Tribes through a commitment to consultation with the tribes and recognition of their right to self-governance and tribal sovereignty. The Department also is respectful of its responsibilities for consultation with Alaska Native Claims Settlement Act (ANCSA) Corporations. BOEM evaluated this rule under the Department’s consultation policy, under Departmental Manual part 512 chapters 4 and 5, and under the criteria in E.O. 13175. BOEM determined that this rule has no substantial direct effects on Federally recognized Indian tribes or ANCSA Corporations and that consultation under the Department’s tribal and ANCSA consultation policies is not required. 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. National Environmental Policy Act This rule does not constitute a major Federal action significantly affecting the quality of the human environment. A detailed analysis under the National Environmental Policy Act of 1969 (NEPA) is not required if the rule is covered by a categorical exclusion (see 43 CFR 46.205). This rule meets the criteria set forth at 43 CFR 46.210(i) for a Departmental categorical exclusion in that this rule is ‘‘of an administrative, financial, legal, technical, or procedural nature . . . .’’ BOEM 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. 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 550 Administrative practice and procedure, Continental shelf, Environmental impact statements, Environmental protection, Federal lands, Government contracts, Investigations, Mineral resources, Oil and gas exploration, Outer continental PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 38559 shelf, Penalties, Pipelines, Rights-ofway, Reporting and recordkeeping requirements, Sulfur. Laura Daniel-Davis, Principal Deputy Assistant Secretary, Land and Minerals Management. For the reasons given in the preamble, the Bureau of Ocean Energy Management hereby amends 30 CFR part 550 as follows: PART 550—OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER CONTINENTAL SHELF 1. The authority citation for part 550 continues to read as follows: ■ Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 43 U.S.C. 1334. Subpart N—Outer Continental Shelf Civil Penalties 2. Revise § 550.1453 to read as follows: ■ § 550.1453 violation? What if I do not correct the (a) We may send you a Notice of Civil Penalty if you do not correct all of the violations identified in the Notice of Noncompliance within 20 days after you receive the Notice of Noncompliance (or within a longer time period specified in that Notice). The Notice of Civil Penalty will tell you how much penalty you must pay for each day, beginning with the date of the Notice of Noncompliance, for each violation identified in the Notice of Noncompliance for as long as you do not correct the violation. The maximum civil penalty amount for each day for each uncorrected violation is as specified in 30 CFR 1241.52(a)(2). (b) If you do not correct all of the violations identified in the Notice of Noncompliance within 40 days after you receive the Notice of Noncompliance (or 20 days following the expiration of a longer time period specified in that Notice), we may increase the penalty for each day, beginning with the date of the Notice of Noncompliance, for each violation for as long as you do not correct the violation. The maximum civil penalty amount for each day for each uncorrected violation is as specified in 30 CFR 1241.52(b). ■ 3. Amend § 550.1460 by revising paragraph (b) to read as follows: § 550.1460 May I be subject to penalties without prior notice and an opportunity to correct? * * * * * (b) Under 30 U.S.C. 1719(d), you may be subject to civil penalties up to the maximum amount specified in 30 CFR E:\FR\FM\22JYR1.SGM 22JYR1 38560 Federal Register / Vol. 86, No. 138 / Thursday, July 22, 2021 / Rules and Regulations 1241.60(b)(2) for each violation for each day that it continues if you: (1) Knowingly or willfully prepare, maintain, or submit false, inaccurate, or misleading reports, notices, affidavits, records, data, or other written information. (2) [Reserved] [FR Doc. 2021–15388 Filed 7–21–21; 8:45 am] BILLING CODE 4310–MR–P FOR FURTHER INFORMATION CONTACT: DEPARTMENT OF DEFENSE Ms. Lyn Kirby, OSD.DPCLTD@mail.mil, (703) 571–0070. Office of the Secretary SUPPLEMENTARY INFORMATION: 32 CFR Part 310 I. Background [Docket ID: DoD–2021–OS–0054] In accordance with the Privacy Act of 1974, DoD is establishing a new Department-wide system of records titled DoD 0007, ‘‘Defense Reasonable Accommodation and Assistive Technology Records.’’ This system of records covers both electronic and paper records and will be used by DoD components and offices to maintain records about accommodations based on disability requested by or provided to employees and applicants for employment and participants in DoD programs and activities. The Rehabilitation Act of 1973, as amended, generally requires Federal agencies to provide accommodations which enable individuals with disabilities to perform DoD employment and participate in DoD programs and activities, unless such accommodation would impose an undue burden. In addition, DoD’s Computer/Electronic Accommodations Program (CAP) provides assistive (computer/electronic) technology solutions to individuals—including injured, wounded, or ill Service members—with hearing, vision, dexterity, cognitive, and/or communications impairments in the form of an accessible work environment. This also includes the request and delivery of personal assistance services for covered individuals. Such disability accommodations include: (1) Making existing facilities readily accessible to and usable by individuals with disabilities; (2) job restructuring, modification of work schedules or place of work, extended leave, telecommuting, or reassignment to a vacant position; and/or (3) acquisition or modification of equipment or devices, including computer software and hardware, appropriate adjustments or modifications of examinations, training materials or policies, the provision of qualified readers and/or interpreters, personal assistants, service animals, and other similar accommodations. RIN 0790–AL14 Privacy Act of 1974; Implementation Office of the Secretary of Defense, Department of Defense (DoD). ACTION: Direct final rule with request for comments. AGENCY: The Department of Defense (DoD or Department) is giving concurrent notice of a new Departmentwide system of records DoD 0007, ‘‘Defense Reasonable Accommodation and Assistive Technology Records,’’ and this rulemaking, which exempts portions of this system of records from certain provisions of the Privacy Act of 1974, as amended, because of national security requirements. This rule is being published as a direct final rule as the Department does not expect to receive any adverse comments. If such comments are received, this direct final rule will be withdrawn and a proposed rule for comments will be published. DATES: The rule is effective on September 30, 2021 unless comments are received that would result in a contrary determination. Comments will be accepted on or before September 20, 2021. If adverse comment is received, the Department will publish a timely withdrawal of the rule in the Federal Register. SUMMARY: You may submit comments, identified by docket number and title, by any of the following methods. * Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. * Mail: The DoD cannot receive written comments at this time due to the COVID–19 pandemic. Comments should be sent electronically to the docket listed above. Instructions: All submissions received must include the agency name and ADDRESSES: lotter on DSK11XQN23PROD with RULES1 docket number or Regulatory Information Number (RIN) for this Federal Register document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the internet at https://www.regulations.gov as they are received without change, including any personal identifiers or contact information. VerDate Sep<11>2014 15:56 Jul 21, 2021 Jkt 253001 PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 II. Privacy Act Exemption The Privacy Act permits Federal agencies to exempt eligible records in a system of records from certain provisions of the Act, including the provisions providing individuals with a right to request access to and amendment of their own records and accountings of disclosures of such records. If an agency intends to exempt a particular system of records, it must first go through the rulemaking process to provide public notice and an opportunity to comment on the proposed exemption. The Office of the Secretary is amending 32 CFR part 310 to add a new Privacy Act exemption rule for this system of records. The DoD is adding an exemption for this system of records because some of its records may contain classified national security information and providing notice, access, amendment, and disclosure of accounting of those records to an individual, as well as certain recordkeeping requirements, may cause damage to national security. The Privacy Act, pursuant to 5 U.S.C. 552a(k)(1), authorizes agencies to claim an exemption for systems of records that contain information properly classified pursuant to executive order. The DoD is claiming an exemption from several provisions of the Privacy Act, including various access, amendment, disclosure of accounting, and certain recordkeeping and notice requirements, to prevent disclosure of any information properly classified pursuant to executive order, as implemented by DoD Instruction 5200.01 and DoD Manual 5200.01, Volumes 1 and 3. III. Direct Final Rulemaking This rule is being published as a direct final rule as the Department does not expect to receive any significant adverse comments. If such comments are received, this direct final rule will be withdrawn and a proposed rule for comments will be published. If no such comments are received, this direct final rule will become effective ten days after the comment period expires. For purposes of this rule, a significant adverse comment is one that explains (1) why the rule is inappropriate, including challenges to the rule’s underlying premise or approach; or (2) why the direct final rule will be ineffective or unacceptable without a change. In determining whether a significant adverse comment necessitates withdrawal of this direct final rule, the Department will consider whether the comment raises an issue serious enough to warrant a substantive response had it been submitted in a E:\FR\FM\22JYR1.SGM 22JYR1

Agencies

[Federal Register Volume 86, Number 138 (Thursday, July 22, 2021)]
[Rules and Regulations]
[Pages 38557-38560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15388]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

30 CFR Part 550

[Docket No.: BOEM 2021-0028]
RIN 1010-AE08


Maximum Daily Civil Penalty Amounts for Violations of the Federal 
Oil and Gas Royalty Management Act

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final rule.

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SUMMARY: This final rule amends the Bureau of Ocean Energy Management 
(BOEM) regulations that set maximum daily civil penalty (MDCP) amounts 
for violations of the Federal Oil and Gas Royalty Management Act 
(FOGRMA). The amended BOEM regulations will cross-reference regulations 
of the Office of Natural Resources Revenue (ONRR) that also set MDCP 
amounts for FOGRMA violations. This cross-reference will ensure 
consistency between BOEM's FOGRMA MDCP amounts and ONRR's FOGRMA MDCP 
amounts. It will also ensure consistent compliance with the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 
(Inflation Adjustment Act) and related Office of Management and Budget 
(OMB) guidance, while reducing unnecessary duplication of effort and 
costs to BOEM.

DATES: This rule is effective on July 22, 2021.

FOR FURTHER INFORMATION CONTACT: Deanna Meyer-Pietruszka, Bureau of 
Ocean Energy Management, Chief, Office of Policy, Regulation and 
Analysis, at [email protected] or by mail to 1849 C 
Street NW, Mail Stop 5238, Washington, DC 20240 or by calling (202) 
208-6352.

SUPPLEMENTARY INFORMATION:

Background and Legal Authority

    The Inflation Adjustment Act, Public Law 114-74, sec. 701 (codified 
at 28 U.S.C. 2461 note), became law on November 2, 2015. It required 
Federal agencies to adjust the level of civil monetary penalties 
imposed under each agency's regulations with an initial ``catch-up'' 
adjustment through rulemaking, if warranted, and then to make 
subsequent annual adjustments for inflation. Agencies were required to 
publish the initial annual inflation adjustments in the Federal 
Register no later than January 15, 2017, and are required to publish 
annual adjustments no later than January 15th of each subsequent year. 
The purpose of these inflation adjustments is to maintain the deterrent 
effect of civil penalties and to further the policy goals of the 
underlying statutes that authorize the penalties.
    BOEM has authority to impose civil penalties for violations of 
FOGRMA under 30 U.S.C. 1719 and delegations of authority by the 
Secretary of the Interior. BOEM's regulations implementing its 
authority to impose penalties under FOGRMA are found at 30 CFR 
550.1450-.1477. Specifically, BOEM may impose civil penalties under 
FOGRMA--after providing notice of noncompliance (NONC) and an 
opportunity to correct the violation--for noncompliance with any 
applicable statute, regulation, order, or lease term relating to any 
Federal oil or gas lease. See 30 CFR 550.1451. BOEM may also impose 
penalties under FOGRMA, without providing prior notice or an 
opportunity to correct the violation, for the knowing or willful 
preparation, maintenance, or submission of false, inaccurate, or 
misleading written information. See id. at 550.1460.
    Sections 550.1453 and 550.1460 of BOEM's existing regulations 
specify the MDCP amounts, as prescribed by

[[Page 38558]]

section 109 of FOGRMA (30 U.S.C. 1719).\1\ As required by the Inflation 
Adjustment Act, however, BOEM's FOGRMA civil penalty amounts must be 
adjusted annually for inflation.
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    \1\ Under existing Sec. Sec.  550.1451 and .1453(a), BOEM may 
initially impose civil penalties of up to $500 per day for each 
violation of a statute, regulation, order, or lease term for any 
Federal oil and gas lease that is not corrected within 20 days of 
receipt of a NONC identifying the violation. Under existing Sec.  
550.1453(b), BOEM may increase the MDCP amount up to $5,000 per day 
for each violation not corrected within 40 days of the NONC. In 
addition, under existing Sec.  550.1460(b), BOEM may impose civil 
penalties, without prior notice, of up to $25,000 per day per 
violation for the knowing or willful preparation, maintenance, or 
submission of false, inaccurate, or misleading written information.
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    Within the Department of the Interior (the Department), ONRR is the 
agency responsible for collecting revenue from energy leases and 
auditing royalty payments under FOGRMA. Like BOEM, ONRR has authority 
to impose civil penalties for certain violations of FOGRMA. ONRR's 
civil penalty regulations are found in 30 CFR part 1241. As required by 
the Inflation Adjustment Act, ONRR also must annually adjust its 
regulatory MDCP amounts for inflation. ONRR published such a final rule 
for calendar year 2017 on April 24, 2017. See 82 FR 18858. Each year 
since, ONRR has calculated and adjusted the MDCP amounts in 30 CFR part 
1241 in accordance with the Inflation Adjustment Act. On February 2, 
2021, ONRR published the final rule adjusting the MDCP amounts in 30 
CFR part 1241 for calendar year 2021. See 86 FR 7808.\2\
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    \2\ Specifically, in relevant part, ONRR amended 30 CFR 
1241.52(a)(2) to authorize civil penalties of up to $1,288 per day 
for each violation of a statute, regulation, order, or lease term 
that is not corrected within 20 days of receipt of a NONC 
identifying the violation. See 86 FR 7808, 7810. Under the amended 
30 CFR 1241.52(b), ONRR may impose civil penalties of up to $12,891 
per day for each violation that is not corrected within 40 days of 
receipt of the NONC. Finally, ONNR amended 30 CFR 1241.60(b)(2) to 
authorize imposition of penalties, without prior notice, of up to 
$64,452 per day per violation for knowing or willful preparation, 
maintenance, or submission of false, inaccurate, or misleading 
written information. Id.
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    Because FOGRMA sets the MDCP amounts for penalties assessed by BOEM 
and ONRR for violations of FOGRMA and because the Inflation Adjustment 
Act uniformly applies to require adjustments to the civil penalties 
that may be assessed by both agencies as calculated from the same base 
year, BOEM's FOGRMA MDCP amounts must be the same as ONRR's FOGRMA MDCP 
amounts.

Changes Made to Existing BOEM Regulations

    Through this rule, BOEM amends Sec. Sec.  550.1453 and 550.1460 of 
its FOGRMA civil penalty regulations in order to cross-reference to 
ONRR's civil penalty regulations in 30 CFR part 1241. By cross-
referencing to ONRR's regulations, BOEM's MDCP amounts for FOGRMA 
violations will be the same as ONRR's MDCP amounts, ensuring ongoing 
consistency within the Department as ONRR adjusts the FOGRMA MDCP 
amounts annually for inflation. In addition, this rule will avoid the 
duplication of effort and unnecessary expenditures within the 
Department that would occur if both BOEM and ONRR were to develop and 
publish separate final rules every year adjusting their corresponding 
FOGRMA MDCP amounts.

Administrative Procedure Act Requirements

    Section 701(b)(1)(D) of the Inflation Adjustment Act states that 
agencies must adjust civil monetary penalties ``notwithstanding section 
553 of title 5, United States Code [the Administrative Procedure Act 
(APA)].'' OMB interprets that provision to mean the APA's public 
procedures of notice and comment rulemaking are not required to 
implement annual civil monetary penalty inflation adjustments. OMB 
Memorandum M-21-10, December 23, 2020 (M-21-10), p. 3. In this manner, 
Congress exempted the annual inflation adjustments under the Inflation 
Adjustment Act from the APA notice and comment requirements (5 U.S.C. 
553(b)), allowing agencies to publish annual inflation adjustments as 
final rules without prior proposed rules.
    In addition, the APA provides a good cause exemption from notice 
and comment rulemaking when an agency finds that prior notice and 
public procedure are impracticable, unnecessary, or contrary to the 
public interest. 5 U.S.C. 553(b)(B). BOEM finds that it is unnecessary 
to issue a proposed rule prior to this final rule because the Inflation 
Adjustment Act does not provide discretion to BOEM--the act specifies 
the adjustments to be made, the methodology to be employed, and the 
index for inflation to be utilized. BOEM cannot choose to take a 
different course in response to public comments.
    The APA also exempts ``rules of agency, organization, procedure, or 
practice'' from notice and comment rulemaking. 5 U.S.C. 553(b)(A). 
BOEM's decision to address the civil penalty inflation adjustment 
required under the Inflation Adjustment Act by cross-referencing to 
ONRR's regulations, which are subject to the same inflation adjustment 
standards under the Inflation Adjustment Act, rather than annually 
amending the FOGRMA penalties in each affected BOEM regulation, is an 
exercise of procedural rulemaking, which primarily concerns BOEM's 
internal operations. Here, BOEM is organizing its internal procedures 
to meet its own legal duties. Moreover, while prior notice and comment 
is required for rules that affect rights or duties of the public, 
BOEM's reliance on cross-referencing does not affect the rights of any 
regulated parties because the civil penalty amounts will be the same 
regardless of whether those amounts are cross-referenced to ONRR's 
regulations or calculated and published separately by BOEM. ONRR must 
calculate and adjust the MDCP amounts in 30 CFR part 1241 annually in 
accordance with the Inflation Adjustment Act and related OMB guidance, 
just as BOEM must do.

Procedural Requirements

Regulatory Planning and Review (Executive Orders 12866 and 13563)

    Executive Order (E.O.) 12866 provides that the OMB Office of 
Information and Regulatory Affairs (OIRA) will review all significant 
rules. Consistent with OIRA criteria, this rule is not significant. OMB 
M-21-10 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. BOEM has developed this rule in a manner consistent 
with these requirements, to the extent permitted by statute.

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)). For the reasons discussed in part III of 
this rule, BOEM is not

[[Page 38559]]

required to publish a proposed rule prior to this final rule. Thus, the 
RFA does not apply to this rulemaking.

Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under the Small Business Regulatory 
Enforcement Fairness Act (as codified at 5 U.S.C. 804(2)) because this 
rule will not:
    (1) Have an annual effect on the economy of $100 million or more;
    (2) Cause a major increase in costs or prices for consumers, 
individual industries, Federal, State, or local government agencies, or 
geographic regions; or
    (3) Have significant adverse effects on competition, employment, 
investment, productivity, innovation, or the ability of U.S.-based 
enterprises to compete with foreign-based enterprises.

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.

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.

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. This rule will not substantially 
and directly affect the relationship between the Federal and State 
governments. 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.

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.

Consultation With Indian Tribes (E.O. 13175 and Departmental Policy)

    The Department strives to strengthen its government-to-government 
relationship with American Indian and Alaska Native Tribes through a 
commitment to consultation with the tribes and recognition of their 
right to self-governance and tribal sovereignty. The Department also is 
respectful of its responsibilities for consultation with Alaska Native 
Claims Settlement Act (ANCSA) Corporations. BOEM evaluated this rule 
under the Department's consultation policy, under Departmental Manual 
part 512 chapters 4 and 5, and under the criteria in E.O. 13175. BOEM 
determined that this rule has no substantial direct effects on 
Federally recognized Indian tribes or ANCSA Corporations and that 
consultation under the Department's tribal and ANCSA consultation 
policies is not required.

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.

National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed analysis 
under the National Environmental Policy Act of 1969 (NEPA) is not 
required if the rule is covered by a categorical exclusion (see 43 CFR 
46.205). This rule meets the criteria set forth at 43 CFR 46.210(i) for 
a Departmental categorical exclusion in that this rule is ``of an 
administrative, financial, legal, technical, or procedural nature . . . 
.'' BOEM 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.

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 550

    Administrative practice and procedure, Continental shelf, 
Environmental impact statements, Environmental protection, Federal 
lands, Government contracts, Investigations, Mineral resources, Oil and 
gas exploration, Outer continental shelf, Penalties, Pipelines, Rights-
of-way, Reporting and recordkeeping requirements, Sulfur.

Laura Daniel-Davis,
Principal Deputy Assistant Secretary, Land and Minerals Management.

    For the reasons given in the preamble, the Bureau of Ocean Energy 
Management hereby amends 30 CFR part 550 as follows:

PART 550--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

0
1. The authority citation for part 550 continues to read as follows:

    Authority:  30 U.S.C. 1751, 31 U.S.C. 9701, 43 U.S.C. 1334.

Subpart N--Outer Continental Shelf Civil Penalties

0
2. Revise Sec.  550.1453 to read as follows:


Sec.  550.1453   What if I do not correct the violation?

    (a) We may send you a Notice of Civil Penalty if you do not correct 
all of the violations identified in the Notice of Noncompliance within 
20 days after you receive the Notice of Noncompliance (or within a 
longer time period specified in that Notice). The Notice of Civil 
Penalty will tell you how much penalty you must pay for each day, 
beginning with the date of the Notice of Noncompliance, for each 
violation identified in the Notice of Noncompliance for as long as you 
do not correct the violation. The maximum civil penalty amount for each 
day for each uncorrected violation is as specified in 30 CFR 
1241.52(a)(2).
    (b) If you do not correct all of the violations identified in the 
Notice of Noncompliance within 40 days after you receive the Notice of 
Noncompliance (or 20 days following the expiration of a longer time 
period specified in that Notice), we may increase the penalty for each 
day, beginning with the date of the Notice of Noncompliance, for each 
violation for as long as you do not correct the violation. The maximum 
civil penalty amount for each day for each uncorrected violation is as 
specified in 30 CFR 1241.52(b).

0
3. Amend Sec.  550.1460 by revising paragraph (b) to read as follows:


Sec.  550.1460   May I be subject to penalties without prior notice and 
an opportunity to correct?

* * * * *
    (b) Under 30 U.S.C. 1719(d), you may be subject to civil penalties 
up to the maximum amount specified in 30 CFR

[[Page 38560]]

1241.60(b)(2) for each violation for each day that it continues if you:
    (1) Knowingly or willfully prepare, maintain, or submit false, 
inaccurate, or misleading reports, notices, affidavits, records, data, 
or other written information.
    (2) [Reserved]

[FR Doc. 2021-15388 Filed 7-21-21; 8:45 am]
BILLING CODE 4310-MR-P

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