Federal Register / Vol. 76, No. 127 / Friday, July 1, 2011 / Rules and Regulations 38555 

DEPARTMENT OF THE INTERIOR 

Bureau of Ocean Energy Management, 

Regulation and Enforcement 

30 CFR Part 250 

Office of Natural Resources Revenue 

30 CFR Parts 1204, 1206, 1218, 1241, 

and 1290 

[Docket No. ONRR–2011–0015] 

RIN 1012–AA06 

Reorganization of Title 30, Code of 

Federal Regulations 

AGENCY: Bureau of Ocean Energy 

Management, Regulation and 

Enforcement; Office of Natural 

Resources Revenue, Interior. 

ACTION: Correcting amendment to final 

rule. 

SUMMARY: The Office of Natural 

Resources Revenue (ONRR) published a 

rule in the Federal Register on October 

4, 2010, announcing that the Minerals 

Revenue Management Program (MRM) 

of the Bureau of Ocean Energy 

Management, Regulation, and 

Enforcement (BOEMRE) (formerly 

known as the Minerals Management 

Service (MMS)) was renamed the Office 

of Natural Resources Revenue by the 

Secretary of the Interior and was 

separated from BOEMRE and transferred 

to the supervision of the Assistant 

Secretary for Policy, Management and 

Budget. In the rule, ONRR also 

announced the reorganization of title 30 

of the Code of Federal Regulations (30 

CFR) resulting from the division of 

BOEMRE into two separate agencies. 

The rule removed certain regulations 

from chapter II in 30 CFR, which 

pertains to BOEMRE and recodified 

them in new chapter XII, which pertains 

to ONRR. This document corrects the 

rule published on October 4, 2010. 

DATES: This rule is effective on July 1, 

2011. 

FOR FURTHER INFORMATION CONTACT: For 

questions on technical issues, contact 

Amy White, Petroleum Engineer, 

BOEMRE, Regulations & Standards 

Branch, 381 Elden Street, MS 4024, 

Herndon, VA 20171; telephone (703) 

787–1665; or e-mail 

Amy.White@boemre.gov, or Armand 

Southall, Regulatory Specialist, ONRR, 

PMB, P.O. Box 25165, MS 61013B, 

Denver, Colorado 80225–0165; 

telephone (303) 231–3221; or e-mail 

Armand.Southall@onrr.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The rule published in the Federal 

Register on October 4, 2010 (75 FR 

61051), omitted a few technical 

corrections in 30 CFR parts 1204, 1206, 

and 1218. This document corrects those 

omissions. As explained below, this 

document also clarifies BOEMRE’s 

authority to utilize the civil penalty 

provisions of the Federal Oil and Gas 

Royalty Management Act of 1982, 30 

U.S.C. 1701 et seq. (FOGRMA). This 

rule makes only non-substantive, 

technical changes to existing regulations 

which have no effect on the rights, 

obligations, or interests of affected 

parties. Because (1) the provisions of 

this rule pertain solely to the 

organization and codification of existing 

rules and related technical corrections 

and (2) clarifying BOEMRE’s FOGRMA 

civil penalty authority will avoid 

unnecessary confusion and challenge, 

the Department for good cause finds that 

notice and comment on this rule are 

unnecessary and contrary to the public 

interest under 5 U.S.C. 553(b)(B). 

Furthermore, because this document 

qualifies as a ‘‘rule[ ] of agency 

organization, procedure, or practice,’’ 5 

U.S.C. 553(b)(A), this document, in any 

event, is exempt from the notice and 

comment requirements of 5 U.S.C. 

553(b). 

Because this rule makes no changes to 

the legal obligations or rights of nongovernmental entities, the Department 

further finds that good cause exists 

under 5 U.S.C. 553(d)(3) to make this 

rule effective immediately upon 

publication in the Federal Register 

rather than 30 days after publication. 

The October 4, 2010, Federal Register 

notice stated that the rule was a ‘‘direct 

final rule.’’ It noted that ‘‘[t]his direct 

final rule does not make any substantive 

changes to the regulations or 

requirements in 30 CFR. It merely 

moves ONRR’s current regulations to a 

new chapter XII in 30 CFR and makes 

technical corrections to position titles, 

agency names, and acronyms.’’ As a 

non-substantive rule which simply 

moved the then-current regulations to a 

new chapter in the Code of Federal 

Regulations and made corresponding 

technical changes to terminology (such 

as changing the references to agency 

names), the October 4, 2010, rule 

qualifies as a ‘‘rule[ ] of agency 

organization, procedure, or practice[.]’’ 

5 U.S.C. 553(b)(A). It was therefore 

exempt from the notice and comment 

provisions of 5 U.S.C. 553(b). 

Nevertheless, the agency requested 

comments on the reorganization of the 

rules. The comments received pointed 

out a few technical errors in the October 

4, 2010, rule which are corrected in this 

rule. 

II. Comments on the October 4, 2010, 

Rule 

The Department received comments 

on the rule from one member of the 

petroleum industry. These comments 

are analyzed and discussed below. 

A. Specific Comments on 30 CFR Part 

1206—Product Valuation, Subpart C— 

Federal Oil and Subpart D—Federal Gas 

1. § 1206.108 Does ONRR protect 

information I provide? 

2. §§ 1206.152(l) Valuation 

standards—unprocessed gas and 

1206.153(l) Valuation standards— 

processed gas. 

Public comments: The petroleum 

industry member commented that the 

regulations for the royalty valuation of 

oil, unprocessed gas, and processed gas 

production should be modified to 

ensure that the submitter’s information 

held by both agencies continues to have 

the same level of protection from 

disclosure to third parties. 

Department of the Interior (DOI) 

Response: The ONRR, not BOEMRE, 

collects documents and information for 

royalty valuation purposes under 

section 103 of FOGRMA, 30 U.S.C. 

1713, and its implementing regulations. 

Because ONRR, not BOEMRE, is 

responsible for keeping the documents 

it collects under that authority 

confidential to the extent permitted by 

law, there is no need to either add 

BOEMRE to ONRR regulations or amend 

BOEMRE regulations. 

B. Specific Comments on 30 CFR Part 

1218—Collection of Monies and 

Provision for Geothermal Credits and 

Incentives, Subpart D—Oil, Gas and 

Sulfur, Offshore 

1. § 1218.152 Fishermen’s 

Contingency Fund. 

Public comments: The petroleum 

industry member commented that the 

regulations must be modified to reflect 

the differing responsibilities for the two 

new agencies and the limits of ONRR’s 

functions, and a corresponding change 

would need to be included in BOEMRE 

regulations remaining in chapter II. 

DOI Response: Under 50 CFR 

296.3(b)(2), ONRR, representing the 

Secretary of the Interior, not BOEMRE, 

has the authority to issue assessments 

and collect payments for, and deposit 

payments into, the Fishermen’s 

Contingency Fund. Therefore, the 

Department will not revise § 1218.152. 

2. § 1218.154 Effect of suspensions 

on royalty and rental. 

Public comments: The petroleum 

industry member commented that the 

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38556 Federal Register / Vol. 76, No. 127 / Friday, July 1, 2011 / Rules and Regulations 

references in this section to the 

‘‘Regional Supervisor’’ are to a BOEMRE 

official, not an ONRR official, and 

therefore should be properly identified. 

DOI Response: The Department agrees 

that under the suspension rules at 30 

CFR 250.173(a), the ‘‘Regional 

Supervisor’’ is a BOEMRE official. 

Therefore, for clarification purposes, the 

Department will add ‘‘BOEMRE’’ to the 

title of ‘‘Regional Supervisor’’ in 

§ 1218.154. 

C. Specific Comments on 30 CFR Part 

219—Distribution and Disbursement of 

Royalties, Rentals, and Bonuses, 

Subpart D—Oil and Gas, Offshore 

1. § 219.416 How will the qualified 

OCS revenues be allocated to coastal 

political subdivisions within the Gulf 

producing States? 

2. § 219.418 When will funds be 

disbursed to Gulf producing States and 

eligible coastal political subdivisions? 

Public comments: The petroleum 

industry member commented that 

§§ 219.416 and 219.418 of the existing 

subpart D in 30 CFR part 219 refer to 

revenue disbursement functions that 

should be ONRR’s responsibility. Also, 

the petroleum industry member 

commented that, if the disbursement 

function will be the responsibility of 

ONRR, then this subpart must be 

amended to reflect the different 

responsibilities of BOEMRE and ONRR 

with regard to calculation and then 

disbursement of qualified OCS revenues 

to coastal states. 

DOI Response: The Department agrees 

that, for clarification purposes, the 

BOEMRE rules at 30 CFR 219.416 and 

219.418 should distinguish between 

BOEMRE’s and ONRR’s responsibilities. 

At this time, BOEMRE is preparing 

proposed revisions to its regulations in 

30 CFR part 219 and will address the 

commenter’s concern in that separate 

rulemaking effort. 

D. Specific Comments on 30 CFR Part 

1220—Accounting Procedures for 

Determining Net Profit Share Payment 

for Outer Continental Shelf Oil and Gas 

Leases 

Public comments: The petroleum 

industry member commented that 

determination of how a net profit share 

will be calculated should be the 

responsibility of the leasing agency, 

BOEMRE, as opposed to the revenue 

collection agency, ONRR. Also, the 

petroleum industry member commented 

that the auditing function could be 

transferred to ONRR, and the rules 

should be clear as to how responsibility 

for audit functions will be divided. 

DOI Response: Under the Outer 

Continental Shelf Lands Act of 1953 

(OCSLA), 43 U.S.C. 1331 et seq., 

FOGRMA section 101(a) and (b), 30 

U.S.C. 1711(a) and (b), and 

Departmental delegations, including 

applicable Secretarial Orders, ONRR, 

representing the Secretary of the 

Interior, not BOEMRE, has the authority 

to determine the calculation and audit 

of the lessee’s net profit share payments. 

Therefore, the Department will not 

revise 30 CFR part 1220. 

E. Specific Comments on 30 CFR Part 

1241—Penalties 

Public comments: The petroleum 

industry member commented that some 

of the activities for which ‘‘knowing or 

willful’’ penalties may be assessed 

under these regulations are BOEMRE 

functions that are not the responsibility 

of ONRR. 

DOI Response: FOGRMA section 109, 

30 U.S.C. 1719, contains some civil 

penalty provisions, which pertain 

exclusively to royalty (and therefore 

come within ONRR’s delegation of 

authority), others which pertain 

exclusively to leasing and operations 

(and therefore come within BOEMRE’s 

delegation of authority), and still others 

which pertain to both (and therefore 

come within the delegations of authority 

for both ONRR and BOEMRE). The 

October 4, 2010, rule inadvertently 

transferred all of the implementing civil 

penalty regulations from 30 CFR chapter 

II to chapter XII. This transfer could 

cause confusion regarding BOEMRE’s 

ability to exercise authority possessed 

by its predecessor component within 

the former MMS, which BOEMRE 

currently possesses by delegation from 

the Secretary of the Interior. 

This rule corrects this situation by 

restoring to 30 CFR chapter II the civil 

penalty regulations, currently found in 

30 CFR chapter XII part 1241, which 

pertain to offshore leasing and 

operations violations. The penalty 

provisions that pertain to both royalty 

and leasing and operations violations 

will be restored to BOEMRE rules, but 

also remain in ONRR rules. Thus, the 

provisions at 30 CFR 1241.50 through 

1241.56, 1241.60(a)(2) and (b)(1), 

1241.61 through 1241.70, 1241.71(b), 

and 1241.72 through 1241.80 will be 

essentially duplicated in the BOEMRE 

rules as 30 CFR 250.1450 through 

250.1480, with appropriate technical 

changes such as changing the reference 

to ONRR in several section headings to 

BOEMRE and removing the reference to 

Indian leases in new § 250.1451(a). The 

provisions that pertain exclusively to 

leasing and operations violations will be 

removed from ONRR rules and put into 

BOEMRE rules. Thus, the current 30 

CFR 1241.60(a)(3), (b)(2), and (b)(3) will 

be removed from ONRR rules and 

recodified as 30 CFR 250.1460(a)(2), 

(b)(2), and (b)(3), respectively. The 

current 30 CFR 1241.60(a)(1), which 

deals exclusively with royalties and is 

solely within ONRR’s delegated 

enforcement authority, will remain in 

the ONRR rules and will have no 

counterpart in the BOEMRE rules. Like 

30 CFR 1241.60(a)(1), 30 CFR 1241.71(a) 

is inapplicable to BOEMRE because 

violations of offshore leasing or 

operations orders or regulations do not 

result in underlying underpayments or 

unpaid debts (excepting civil penalties), 

which could incur interest. Therefore, 

30 CFR 1241.71(a) will not have a 

counterpart carried over into BOEMRE 

regulations. Finally, conforming 

changes have been made to 30 CFR 

250.1455(b)(2) and 250.1463(b)(2) to 

reflect the fact that the bonding and 

financial solvency requirements of 30 

CFR part 1243, subparts B and C, have 

been duplicated in the same subpart, 

subpart N of part 250, as the civil 

penalty regulations. 

This rule also duplicates in BOEMRE 

regulations certain provisions regarding 

bonding and demonstration of financial 

solvency which are currently in ONRR 

regulations. These provisions are found 

at 30 CFR part 1243, subparts B and C, 

and are duplicated, with minor 

conforming changes, in this rule in 30 

CFR 250.1490 through 250.1497. They 

specify the process by which a party 

appealing a Notice of Non-Compliance 

or Notice of Civil Penalty may post a 

bond or demonstrate financial solvency 

to stay accrual of civil penalties under 

30 CFR 250.1455(b)(2) or 250.1463(b)(2). 

These provisions also specify the 

methodology by which BOEMRE will 

evaluate the sufficiency of a bond 

amount or demonstration of financial 

solvency. 

These provisions are identical to 

those found at 30 CFR part 1243, 

subparts B and C, with one minor 

exception and several conforming 

changes. The exception is that the new 

30 CFR 250.1496(c)(2)(i) is modified to 

require that payments be made by 

Electronic Funds Transfer (EFT). This 

change is made to conform to 30 CFR 

250.126, which requires that fees paid to 

BOEMRE be made by EFT. 

Duplicating these provisions in 

BOEMRE regulations will clarify that 

these processes apply to appeals of 

BOEMRE civil penalty orders issued 

under FOGRMA. Duplicating these 

regulations is not a substantive change, 

but rather carries over to BOEMRE 

regulations authorities which already 

exist and are an integral part of the 

FOGRMA civil penalty system. 

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Federal Register / Vol. 76, No. 127 / Friday, July 1, 2011 / Rules and Regulations 38557 

This rule does not change the civil 

penalty authorities assigned to ONRR or 

BOEMRE. It does not change the 

procedures by which those authorities 

are implemented. It merely revises the 

references in the regulations to conform 

to those in current Secretarial 

delegations. It has no effect on the 

rights, obligations, or interests of 

affected parties. It affects solely the 

organization, procedure, and practice of 

the agencies. 

III. Change of Reference to Director, 

Bureau of Indian Affairs 

The appeals regulations in 30 CFR 

part 1290 provide that appeals of 

decisions involving reporting and 

payment obligations for Indian leases 

are decided by the Deputy 

Commissioner of Indian Affairs. The 

position of Deputy Commissioner of 

Indian Affairs was abolished upon the 

creation of the position of Director, 

Bureau of Indian Affairs, on April 21, 

2003. The role of deciding appeals has 

since been performed by the Director, 

Bureau of Indian Affairs. This rule 

recognizes this by changing the current 

reference to the Deputy Commissioner 

of Indian Affairs to the Director, Bureau 

of Indian Affairs. Changing this 

reference simply reflects an internal 

organizational change effected 8 years 

ago within the Department. 

List of Subjects 

30 CFR Part 250 

Administrative practice and 

procedure, Continental shelf, 

Environmental impact statements, 

Environmental protection, Government 

contracts, Investigations, Mineral 

royalties, Oil and gas exploration, 

Penalties, Pipelines, Public lands— 

mineral resources, Public lands—rightof-way, Reporting and recordkeeping 

requirements, Sulfur. 

30 CFR Part 1204 

Accounting and auditing relief, 

Barrels of oil equivalent (BOE), 

Continental shelf, Federal lease, 

Marginal property, Mineral royalties, 

Royalty prepayment, Royalty relief. 

30 CFR Part 1206 

Coal, Continental shelf, Geothermal 

energy, Government contracts, 

Indians—lands, Mineral royalties, Oil 

and gas exploration, Public lands— 

mineral resources, Reporting and 

recordkeeping requirements. 

30 CFR Part 1218 

Continental shelf, Electronic funds 

transfers, Geothermal energy, Indians— 

lands, Mineral royalties, Oil and gas 

exploration, Public lands—mineral 

resources, Reporting and recordkeeping 

requirements. 

30 CFR Part 1241 

Administrative practice and 

procedure, Continental Shelf, 

Government contracts, Indians—lands, 

Mineral royalties, Oil and gas 

exploration, Penalties, Public lands— 

mineral resources, Sulfur. 

30 CFR Part 1290 

Administrative practice and 

procedure. 

Dated: June 28, 2011. 

David J. Hayes, 

Deputy Secretary for Department of the 

Interior. 

Accordingly, 30 CFR parts 250, 1204, 

1206, 1218, 1241, and 1290 are 

corrected by making the following 

amendments: 

CHAPTER II—BUREAU OF OCEAN ENERGY 

MANAGEMENT, REGULATION, AND 

ENFORCEMENT, DEPARTMENT OF THE 

INTERIOR 

PART 250—OIL AND GAS AND 

SULPHUR OPERATIONS IN THE 

OUTER CONTINENTAL SHELF 

■ 1. Revise the authority citation for part 

250 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 the heading of subpart N to 

read as set forth above. 

■ 3. Add the following undesignated 

center heading before § 250.1400 in the 

Table of Contents for part 250, to read 

as follows: 

Outer Continental Shelf Lands Act Civil 

Penalties 

■ 4. Add the following undesignated 

center headings and §§ 250.1450 

through 250.1456, 250.1460 through 

250.1464, 250.1470 through 250.1477, 

250.1480, 250.1490 through 250.1491, 

and 250.1495 through 250.1497 after 

§ 250.1409 in the Table of Contents for 

part 250 to read as follows: 

Federal Oil and Gas Royalty 

Management Act Civil Penalties 

Definitions 

250.1450 What definitions apply to this 

subpart? 

Penalties After a Period To Correct 

250.1451 What may the Bureau of Ocean 

Energy Management, Regulation, and 

Enforcement (BOEMRE) do if I violate a 

statute, regulation, order, or lease term 

relating to a Federal oil and gas lease? 

250.1452 What if I correct the violation? 

250.1453 What if I do not correct the 

violation? 

250.1454 How may I request a hearing on 

the record on a Notice of 

Noncompliance? 

250.1455 Does my request for a hearing on 

the record affect the penalties? 

250.1456 May I request a hearing on the 

record regarding the amount of a civil 

penalty if I did not request a hearing on 

the Notice of Noncompliance? 

Penalties Without a Period To Correct 

250.1460 May I be subject to penalties 

without prior notice and an opportunity 

to correct? 

250.1461 How will BOEMRE inform me of 

violations without a period to correct? 

250.1462 How may I request a hearing on 

the record on a Notice of Noncompliance 

regarding violations without a period to 

correct? 

250.1463 Does my request for a hearing on 

the record affect the penalties? 

250.1464 May I request a hearing on the 

record regarding the amount of a civil 

penalty if I did not request a hearing on 

the Notice of Noncompliance? 

General Provisions 

250.1470 How does BOEMRE decide what 

the amount of the penalty should be? 

250.1471 Does the penalty affect whether I 

owe interest? 

250.1472 How will the Office of Hearings 

and Appeals conduct the hearing on the 

record? 

250.1473 How may I appeal the 

Administrative Law Judge’s decision? 

250.1474 May I seek judicial review of the 

decision of the Interior Board of Land 

Appeals? 

250.1475 When must I pay the penalty? 

250.1476 Can BOEMRE reduce my penalty 

once it is assessed? 

250.1477 How may BOEMRE collect the 

penalty? 

Criminal Penalties 

250.1480 May the United States criminally 

prosecute me for violations under 

Federal oil and gas leases? 

Bonding Requirements 

250.1490 What standards must my 

BOEMRE-specified surety instrument 

meet? 

250.1491 How will BOEMRE determine the 

amount of my bond or other surety 

instrument? 

Financial Solvency Requirements 

250.1495 How do I demonstrate financial 

solvency? 

250.1496 How will BOEMRE determine if I 

am financially solvent? 

250.1497 When will BOEMRE monitor my 

financial solvency? 

■ 5. Add the following undesignated 

center heading before § 250.1400 in 

subpart N for part 250, to read as 

follows: 

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38558 Federal Register / Vol. 76, No. 127 / Friday, July 1, 2011 / Rules and Regulations 

Outer Continental Shelf Lands Act Civil 

Penalties 

■ 6. Add the following undesignated 

center headings and §§ 250.1450 

through 250.1456, 250.1460 through 

250.1464, 250.1470 through 250.1477, 

250.1480, 250.1490 through 250.1491, 

and 250.1495 through 250.1497 after 

§ 250.1409 in subpart N, to read as 

follows: 

Federal Oil and Gas Royalty 

Management Act Civil Penalties 

Definitions 

§ 250.1450 What definitions apply to this 

subpart? 

The terms used in this subpart have 

the same meaning as in 30 U.S.C. 1702. 

Penalties After a Period To Correct 

§ 250.1451 What may the Bureau of Ocean 

Energy Management, Regulation, and 

Enforcement (BOEMRE) do if I violate a 

statute, regulation, order, or lease term 

relating to a Federal oil and gas lease? 

(a) If we believe that you have not 

followed any requirement of a statute, 

regulation, order, or lease term for any 

Federal oil or gas lease, we may send 

you a Notice of Noncompliance 

informing you what the violation is and 

what you need to do to correct it to 

avoid civil penalties under 30 U.S.C. 

1719(a) and (b). 

(b) We will serve the Notice of 

Noncompliance by registered mail or 

personal service using the most current 

address on file as maintained by the 

BOEMRE Leasing Office in your 

respective Region. 

§ 250.1452 What if I correct the violation? 

The matter will be closed if you 

correct all of the violations identified in 

the Notice of Noncompliance within 20 

days after you receive the Notice (or 

within a longer time period specified in 

the Notice). 

§ 250.1453 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. The 

penalty may be up to $500 per 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 violations. 

(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 to up to $5,000 per 

day, beginning with the date of the 

Notice of Noncompliance, for each 

violation for as long as you do not 

correct the violations. 

§ 250.1454 How may I request a hearing on 

the record on a Notice of Noncompliance? 

You may request a hearing on the 

record on a Notice of Noncompliance by 

filing a request within 30 days of the 

date you received the Notice of 

Noncompliance with the Hearings 

Division (Departmental), Office of 

Hearings and Appeals, U.S. Department 

of the Interior, 801 North Quincy Street, 

Arlington, Virginia 22203. You may do 

this regardless of whether you correct 

the violations identified in the Notice of 

Noncompliance. 

§ 250.1455 Does my request for a hearing 

on the record affect the penalties? 

(a) If you do not correct the violations 

identified in the Notice of 

Noncompliance, the penalties will 

continue to accrue even if you request 

a hearing on the record. 

(b) You may petition the Hearings 

Division (Departmental) of the Office of 

Hearings and Appeals, to stay the 

accrual of penalties pending the hearing 

on the record and a decision by the 

Administrative Law Judge under 

§ 250.1472. 

(1) You must file your petition within 

45 calendar days of receiving the Notice 

of Noncompliance. 

(2) To stay the accrual of penalties, 

you must post a bond or other surety 

instrument, or demonstrate financial 

solvency, using the standards and 

requirements as prescribed in 30 CFR 

250.1490 through 250.1497, for the 

principal amount of any unpaid 

amounts due that are the subject of the 

Notice of Noncompliance, including 

interest thereon, plus the amount of any 

penalties accrued before the date a stay 

becomes effective. 

(3) The Hearings Division will grant 

or deny the petition under 43 CFR 

4.21(b). 

§ 250.1456 May I request a hearing on the 

record regarding the amount of a civil 

penalty if I did not request a hearing on the 

Notice of Noncompliance? 

(a) You may request a hearing on the 

record to challenge only the amount of 

a civil penalty when you receive a 

Notice of Civil Penalty, if you did not 

previously request a hearing on the 

record under § 250.1454. If you did not 

request a hearing on the record on the 

Notice of Noncompliance under 

§ 250.1454, you may not contest your 

underlying liability for civil penalties. 

(b) You must file your request within 

10 days after you receive the Notice of 

Civil Penalty with the Hearings Division 

(Departmental), Office of Hearings and 

Appeals, U.S. Department of the 

Interior, 801 North Quincy Street, 

Arlington, Virginia 22203. 

Penalties Without a Period To Correct 

§ 250.1460 May I be subject to penalties 

without prior notice and an opportunity to 

correct? 

The Federal Oil and Gas Royalty 

Management Act sets out several 

specific violations for which penalties 

accrue without an opportunity to first 

correct the violation. 

(a) Under 30 U.S.C. 1719(c), you may 

be subject to penalties of up to $10,000 

per day per violation for each day the 

violation continues if you: 

(1) Fail or refuse to permit lawful 

entry, inspection, or audit; or 

(2) Knowingly or willfully fail or 

refuse to notify the Secretary, within 5 

business days after any well begins 

production on a lease site or allocated 

to a lease site, or resumes production in 

the case of a well which has been off 

production for more than 90 days, of the 

date on which production has begun or 

resumed. 

(b) Under 30 U.S.C. 1719(d), you may 

be subject to civil penalties of up to 

$25,000 per day for each day each 

violation 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) Knowingly or willfully take or 

remove, transport, use or divert any oil 

or gas from any lease site without 

having valid legal authority to do so; or 

(3) Purchase, accept, sell, transport, or 

convey to another person, any oil or gas 

knowing or having reason to know that 

such oil or gas was stolen or unlawfully 

removed or diverted. 

§ 250.1461 How will BOEMRE inform me of 

violations without a period to correct? 

We will inform you of any violation, 

without a period to correct, by issuing 

a Notice of Noncompliance and Civil 

Penalty explaining the violation, how to 

correct it, and the penalty assessment. 

We will serve the Notice of 

Noncompliance and Civil Penalty by 

registered mail or personal service using 

your address of record as specified 

under subpart H of part 1218. 

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Federal Register / Vol. 76, No. 127 / Friday, July 1, 2011 / Rules and Regulations 38559 

§ 250.1462 How may I request a hearing on 

the record on a Notice of Noncompliance 

regarding violations without a period to 

correct? 

You may request a hearing on the 

record of a Notice of Noncompliance 

regarding violations without a period to 

correct by filing a request within 30 

days after you receive the Notice of 

Noncompliance with the Hearings 

Division (Departmental), Office of 

Hearings and Appeals, U.S. Department 

of the Interior, 801 North Quincy Street, 

Arlington, Virginia 22203. You may do 

this regardless of whether you correct 

the violations identified in the Notice of 

Noncompliance. 

§ 250.1463 Does my request for a hearing 

on the record affect the penalties? 

(a) If you do not correct the violations 

identified in the Notice of 

Noncompliance regarding violations 

without a period to correct, the 

penalties will continue to accrue even if 

you request a hearing on the record. 

(b) You may ask the Hearings Division 

(Departmental) to stay the accrual of 

penalties pending the hearing on the 

record and a decision by the 

Administrative Law Judge under 

§ 250.1472. 

(1) You must file your petition within 

45 calendar days after you receive the 

Notice of Noncompliance. 

(2) To stay the accrual of penalties, 

you must post a bond or other surety 

instrument, or demonstrate financial 

solvency, using the standards and 

requirements as prescribed in 30 CFR 

250.1490 through 250.1497, for the 

principal amount of any unpaid 

amounts due that are the subject of the 

Notice of Noncompliance, including 

interest thereon, plus the amount of any 

penalties accrued before the date a stay 

becomes effective. 

(3) The Hearings Division will grant 

or deny the petition under 43 CFR 

4.21(b). 

§ 250.1464 May I request a hearing on the 

record regarding the amount of a civil 

penalty if I did not request a hearing on the 

Notice of Noncompliance? 

(a) You may request a hearing on the 

record to challenge only the amount of 

a civil penalty when you receive a 

Notice of Civil Penalty regarding 

violations without a period to correct, if 

you did not previously request a hearing 

on the record under § 250.1462. If you 

did not request a hearing on the record 

on the Notice of Noncompliance under 

§ 250.1462, you may not contest your 

underlying liability for civil penalties. 

(b) You must file your request within 

10 days after you receive Notice of Civil 

Penalty with the Hearings Division 

(Departmental), Office of Hearings and 

Appeals, U.S. Department of the 

Interior, 801 North Quincy, Arlington, 

Virginia 22203. 

General Provisions 

§ 250.1470 How does BOEMRE decide 

what the amount of the penalty should be? 

We determine the amount of the 

penalty by considering the severity of 

the violations, your history of 

compliance, and if you are a small 

business. 

§ 250.1471 Does the penalty affect whether 

I owe interest? 

If you do not pay the penalty by the 

date required under § 250.1475(d), 

BOEMRE will assess you late payment 

interest on the penalty amount at the 

same rate interest is assessed under 30 

CFR 1218.54. 

§ 250.1472 How will the Office of Hearings 

and Appeals conduct the hearing on the 

record? 

If you request a hearing on the record 

under §§ 250.1454, 250.1456, 250.1462, 

or 250.1464, the hearing will be 

conducted by a Departmental 

Administrative Law Judge from the 

Office of Hearings and Appeals. After 

the hearing, the Administrative Law 

Judge will issue a decision in 

accordance with the evidence presented 

and applicable law. 

§ 250.1473 How may I appeal the 

Administrative Law Judge’s decision? 

If you are adversely affected by the 

Administrative Law Judge’s decision, 

you may appeal that decision to the 

Interior Board of Land Appeals under 43 

CFR part 4, subpart E. 

§ 250.1474 May I seek judicial review of the 

decision of the Interior Board of Land 

Appeals? 

Under 30 U.S.C. 1719(j), you may seek 

judicial review of the decision of the 

Interior Board of Land Appeals. A suit 

for judicial review in the District Court 

will be barred unless filed within 90 

days after the final order. 

§ 250.1475 When must I pay the penalty? 

(a) You must pay the amount of the 

Notice of Civil Penalty issued under 

§§ 250.1453 or 250.1461, if you do not 

request a hearing on the record under 

§§ 250.1454, 250.1456, 250.1462, or 

250.1464 

(b) If you request a hearing on the 

record under §§ 250.1454, 250.1456, 

250.1462, or 250.1464, but you do not 

appeal the determination of the 

Administrative Law Judge to the Interior 

Board of Land Appeals under 

§ 250.1473, you must pay the amount 

assessed by the Administrative Law 

Judge. 

(c) If you appeal the determination of 

the Administrative Law Judge to the 

Interior Board of Land Appeals, you 

must pay the amount assessed in the 

IBLA decision. 

(d) You must pay the penalty assessed 

within 40 days after: 

(1) You received the Notice of Civil 

Penalty, if you did not request a hearing 

on the record under either §§ 250.1454, 

250.1456, 250.1462, or 250.1464; 

(2) You received an Administrative 

Law Judge’s decision under § 250.1472, 

if you obtained a stay of the accrual of 

penalties pending the hearing on the 

record under § 250.1455(b) or 

§ 250.1463(b) and did not appeal the 

Administrative Law Judge’s 

determination to the IBLA under 

§ 250.1473; 

(3) You received an IBLA decision 

under § 250.1473 if the IBLA continued 

the stay of accrual of penalties pending 

its decision and you did not seek 

judicial review of the IBLA’s decision; 

or 

(4) A final non-appealable judgment 

of a court of competent jurisdiction is 

entered, if you sought judicial review of 

the IBLA’s decision and the Department 

or the appropriate court suspended 

compliance with the IBLA’s decision 

pending the adjudication of the case. 

(e) If you do not pay, that amount is 

subject to collection under the 

provisions of § 250.1477. 

§ 250.1476 Can BOEMRE reduce my 

penalty once it is assessed? 

Under 30 U.S.C. 1719(g), the Director 

or his or her delegate may compromise 

or reduce civil penalties assessed under 

this part. 

§ 250.1477 How may BOEMRE collect the 

penalty? 

(a) BOEMRE may use all available 

means to collect the penalty including, 

but not limited to: 

(1) Requiring the lease surety, for 

amounts owed by lessees, to pay the 

penalty; 

(2) Deducting the amount of the 

penalty from any sums the United States 

owes to you; and 

(3) Using judicial process to compel 

your payment under 30 U.S.C. 1719(k). 

(b) If the Department uses judicial 

process, or if you seek judicial review 

under § 250.1474 and the court upholds 

assessment of a penalty, the court shall 

have jurisdiction to award the amount 

assessed plus interest assessed from the 

date of the expiration of the 90-day 

period referred to in § 250.1474. The 

amount of any penalty, as finally 

determined, may be deducted from any 

sum owing to you by the United States. 

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38560 Federal Register / Vol. 76, No. 127 / Friday, July 1, 2011 / Rules and Regulations 

Criminal Penalties 

§ 250.1480 May the United States 

criminally prosecute me for violations 

under Federal oil and gas leases? 

If you commit an act for which a civil 

penalty is provided at 30 U.S.C. 1719(d) 

and § 250.1460(b), the United States 

may pursue criminal penalties as 

provided at 30 U.S.C. 1720, in addition 

to any authority for prosecution under 

other statutes. 

Bonding Requirements 

§ 250.1490 What standards must my 

BOEMRE-specified surety instrument meet? 

(a) A BOEMRE-specified surety 

instrument must be in a form specified 

in BOEMRE instructions. BOEMRE will 

give you written information and 

standard forms for BOEMRE-specified 

surety instrument requirements. 

(b) BOEMRE will use a bank-rating 

service to determine whether a financial 

institution has an acceptable rating to 

provide a surety instrument adequate to 

indemnify the lessor from loss or 

damage. 

(1) Administrative appeal bonds must 

be issued by a qualified surety company 

which the Department of the Treasury 

has approved. 

(2) Irrevocable letters of credit or 

certificates of deposit must be from a 

financial institution acceptable to 

BOEMRE with a minimum 1-year period 

of coverage subject to automatic renewal 

up to 5 years. 

§ 250.1491 How will BOEMRE determine 

the amount of my bond or other surety 

instrument? 

(a) The BOEMRE bond-approving 

officer may approve your surety if he or 

she determines that the amount is 

adequate to guarantee payment. The 

amount of your surety may vary 

depending on the form of the surety and 

how long the surety is effective. 

(1) The amount of the BOEMREspecified surety instrument must 

include the principal amount owed 

under the Notice of Noncompliance or 

Notice of Civil Penalty plus any accrued 

interest we determine is owed plus 

projected interest for a 1-year period. 

(2) Treasury book-entry bond or note 

amounts must be equal to at least 120 

percent of the required surety amount. 

(b) If your appeal is not decided 

within 1 year from the filing date, you 

must increase the surety amount to 

cover additional estimated interest for 

another 1-year period. You must 

continue to do this annually on the date 

your appeal was filed. We will 

determine the additional estimated 

interest and notify you of the amount so 

you can amend your surety instrument. 

(c) You may submit a single surety 

instrument that covers multiple appeals. 

You may change the instrument to add 

new amounts under appeal or remove 

amounts that have been adjudicated in 

your favor or that you have paid, if you: 

(1) Amend the single surety 

instrument annually on the date you 

filed your first appeal; and 

(2) Submit a separate surety 

instrument for new amounts under 

appeal until you amend the instrument 

to cover the new appeals. 

Financial Solvency Requirements 

§ 250.1495 How do I demonstrate financial 

solvency? 

(a) To demonstrate financial solvency 

under this part, you must submit an 

audited consolidated balance sheet, and, 

if requested by the BOEMRE bondapproving officer, up to 3 years of tax 

returns to BOEMRE using the U.S. 

Postal Service, private delivery, courier, 

or overnight delivery at: 

(1) For Alaska OCS: Jeffrey Walker, 

RS/FO, BOEMRE Alaska OCS Region, 

3801 Centerpoint Drive, Suite 500, 

Anchorage, AK 99503–5823, 

jeffrey,walker@boemre.gov, (907) 334– 

5300. 

(2) For Gulf of Mexico and Atlantic 

OCS: Joshua Joyce, Regional FARM 

Program Coordinator, BOEMRE Gulf of 

Mexico OCS Region, 1201 Elmwood 

Park Boulevard New Orleans, LA 

70123–2394, joshua.joyce@boemre.gov, 

(504) 736–2779 

(3) For Pacific OCS: Jaron Ming, Lead 

Leasing Specialist, BOEMRE Pacific 

OCS Region, 770 Paseo Camarillo, 2nd 

Floor, Camarillo, CA 93010, 

jaron.ming@boemre.gov, (805) 389–7514 

(b) You must submit an audited 

consolidated balance sheet annually, 

and, if requested, additional annual tax 

returns on the date BOEMRE first 

determined that you demonstrated 

financial solvency as long as you have 

active appeals, or whenever BOEMRE 

requests. 

(c) If you demonstrate financial 

solvency in the current calendar year, 

you are not required to redemonstrate 

financial solvency for new appeals of 

orders during that calendar year unless 

you file for protection under any 

provision of the U.S. Bankruptcy Code 

(Title 11 of the United States Code), or 

BOEMRE notifies you that you must 

redemonstrate financial solvency. 

§ 250.1496 How will BOEMRE determine if 

I am financially solvent? 

(a) The BOEMRE bond-approving 

officer will determine your financial 

solvency by examining your total net 

worth, including, as appropriate, the net 

worth of your affiliated entities. 

(b) If your net worth, minus the 

amount we would require as surety 

under 30 CFR 250.1490 and 250.1491 

for all orders you have appealed is 

greater than $300 million, you are 

presumptively deemed financially 

solvent, and we will not require you to 

post a bond or other surety instrument. 

(c) If your net worth, minus the 

amount we would require as surety 

under 30 CFR 250.1490 and 250.1491 

for all orders you have appealed is less 

than $300 million, you must submit the 

following to BOEMRE by one of the 

methods in § 250.1495(a): 

(1) A written request asking us to 

consult a business-information, or 

credit-reporting service or program to 

determine your financial solvency; and 

(2) A nonrefundable $50 processing 

fee: 

(i) You must pay the processing fee to 

us following the requirements for 

making payments found in 30 CFR 

250.126. You are required to use 

Electronic Funds Transfer (EFT) for 

these payments; 

(ii) You must submit the fee with your 

request under paragraph (c)(1) of this 

section, and then annually on the date 

we first determined that you 

demonstrated financial solvency, as 

long as you are not able to demonstrate 

financial solvency under paragraph (a) 

of this section and you have active 

appeals. 

(d) If you request that we consult a 

business-information or credit-reporting 

service or program under paragraph (c) 

of this section: 

(1) We will use criteria similar to that 

which a potential creditor would use to 

lend an amount equal to the bond or 

other surety instrument we would 

require under 30 CFR 250.1490 and 

250.1491; 

(2) For us to consider you financially 

solvent, the business-information or 

credit-reporting service or program must 

demonstrate your degree of risk as low 

to moderate: 

(i) If our bond-approving officer 

determines that the businessinformation or credit-reporting service 

or program information demonstrates 

your financial solvency to our 

satisfaction, our bond-approving officer 

will not require you to post a bond or 

other surety instrument under 30 CFR 

250.1490 and 250.1491; 

(ii) If our bond-approving officer 

determines that the businessinformation or credit-reporting service 

or program information does not 

demonstrate your financial solvency to 

our satisfaction, our bond-approving 

officer will require you to post a bond 

or other surety instrument under 30 CFR 

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Federal Register / Vol. 76, No. 127 / Friday, July 1, 2011 / Rules and Regulations 38561 

250.1490 and 250.1491 or pay the 

obligation. 

§ 250.1497 When will BOEMRE monitor my 

financial solvency? 

(a) If you are presumptively 

financially solvent under § 250.1496(b), 

BOEMRE will determine your net worth 

as described under §§ 250.1496(b) and 

(c) to evaluate your financial solvency at 

least annually on the date we first 

determined that you demonstrated 

financial solvency as long as you have 

active appeals and each time you appeal 

a new order. 

(b) If you ask us to consult a businessinformation or credit-reporting service 

or program under § 250.1496(c), we will 

consult a service or program annually as 

long as you have active appeals and 

each time you appeal a new order. 

(c) If our bond-approving officer 

determines that you are no longer 

financially solvent, you must post a 

bond or other BOEMRE-specified surety 

instrument under §§ 250.1490 and 

250.1491. 

CHAPTER XII—OFFICE OF NATURAL 

RESOURCES REVENUE, DEPARTMENT OF 

THE INTERIOR 

PART 1204—ALTERNATIVES FOR 

MARGINAL PROPERTIES 

■ 7. The authority citation for part 1204 

continues to read as follows: 

Authority: 30 U.S.C. 1726. 

■ 8. Amend part 1204 as follows: 

AMENDMENT TABLE FOR PART 1204 

Amend By removing the reference to: And adding in its place: 

§ 1204.207(b) ..................................................... § 204.208 .......................................................... § 1204.208. 

§ 1204.207(b) ..................................................... MMS ................................................................. ONRR. 

PART 1206—PRODUCT VALUATION 

■ 9. The authority citation for part 1206 

continues to read as follows: 

Authority: 5 U.S.C. 301 et seq.; 25 U.S.C. 

396 et seq., 396a et seq., 2101 et seq.; 30 

U.S.C. 181 et seq., 351 et seq., 1001 et seq., 

1701 et seq.; 31 U.S.C. 9701; 43 U.S.C. 1301 

et seq., 1331 et seq.; 1801 et seq. 

■ 10. Amend part 1206 as follows: 

AMENDMENT TABLE FOR PART 1206 

Amend By removing the reference to: And adding in its place: 

§ 1206.259(e)(1) (twice) ..................................... MMS ................................................................. ONRR. 

§ 1206.259(e)(2) ................................................ MMS ................................................................. ONRR. 

PART 1218—COLLECTION OF MONIES 

AND PROVISION FOR GEOTHERMAL 

CREDITS AND INCENTIVES 

[CORRECTION] 

■ 11. The authority citation for part 

1218 continues to read as follows: 

Authority: 25 U.S.C. 396 et seq., 396a et 

seq., 2101 et seq.; 30 U.S.C. 181 et seq., 351 

et seq., 1001 et seq., 1701 et seq.; 31 U.S.C. 

3335; 43 U.S.C. 1301 et seq., 1331 et seq.; 

1801 et seq. 

■ 12. Amend part 1218 as follows: 

AMENDMENT TABLE FOR PART 1218 

Amend By removing the reference to: And adding in its place: 

§ 1218.154(a) ..................................................... Regional Supervisor ......................................... BOEMRE Regional Supervisor. 

§ 1218.154(b) ..................................................... Regional Supervisor ......................................... BOEMRE Regional Supervisor. 

PART 1241—PENALTIES 

■ 13. The authority citation for part 

1241 continues to read as follows: 

Authority: 25 U.S.C. 396 et seq., 396a et 

seq., 2101 et seq.; 30 U.S.C. 181 et seq., 351 

et seq., 1001 et seq., 1701 et seq.; 43 U.S.C. 

1301 et seq., 1331 et seq.; 1801 et seq. 

■ 14. Amend § 1241.60 as follows: 

■ a. Remove paragraph (a)(3). 

■ b. Remove ’’; or’’ after the word 

‘‘audit’’ and add, in its place, a period 

in paragraph (a)(2). 

■ c. Add ‘‘or’’ after ‘‘lease;’’ in 

paragraph (a)(1). 

■ d. Revise paragraph (b) to read as 

follows: 

§ 1241.60 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 of up to 

$25,000 per day for each day each 

violation continues if you knowingly or 

willfully prepare, maintain, or submit 

false, inaccurate, or misleading reports, 

notices, affidavits, records, data, or 

other written information. 

* * * * * 

PART 1290—APPEAL PROCEDURES 

FOR OFFICE OF NATURAL 

RESOURCES REVENUE 

■ 16. The authority citation for part 

1290 is revised to read as follows: 

Authority: 5 U.S.C. 301 et seq.; 43 U.S.C. 

1331. 

■ 17. Amend part 1290 as follows: 

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38562 Federal Register / Vol. 76, No. 127 / Friday, July 1, 2011 / Rules and Regulations 

AMENDMENT TABLE FOR PART 1290 

Amend By removing the reference to: And adding in its place: 

§ 1290.105(g) ..................................................... Deputy Commissioner of Indian Affairs ........... Director, Bureau of Indian Affairs. 

§ 1290.108 ......................................................... Deputy Commissioner of Indian Affairs ........... Director, Bureau of Indian Affairs. 

§ 1290.110(a)(1) ................................................ Deputy Commissioner of Indian Affairs ........... Director, Bureau of Indian Affairs. 

[FR Doc. 2011–16681 Filed 6–30–11; 8:45 am] 

BILLING CODE 4310–MR–P 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 570 

Libyan Sanctions Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury’s Office of Foreign Assets 

Control (‘‘OFAC’’) is issuing regulations 

with respect to Libya to implement 

Executive Order 13566 of February 25, 

2011. OFAC intends to supplement this 

part 570 with a more comprehensive set 

of regulations, which may include 

additional interpretive and definitional 

guidance and additional general 

licenses and statements of licensing 

policy. 

DATES: Effective Date: July 1, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Assistant Director for Sanctions 

Compliance & Evaluation, tel.: 202–622– 

2490, Assistant Director for Licensing, 

tel.: 202–622–2480, Assistant Director 

for Policy, tel.: 202–622–4855, Office of 

Foreign Assets Control, or Chief Counsel 

(Foreign Assets Control), tel.: 202–622– 

2410, Office of the General Counsel, 

Department of the Treasury (not toll free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability 

This document and additional 

information concerning OFAC are 

available from OFAC’s Web site 

(http://www.treasury.gov/ofac). Certain 

general information pertaining to 

OFAC’s sanctions programs also is 

available via facsimile through a 24- 

hour fax-on-demand service, tel.: 202– 

622–0077. 

Background 

On February 25, 2011, the President, 

invoking the authority of, inter alia, the 

International Emergency Economic 

Powers Act (50 U.S.C. 1701–1706) and 

the National Emergencies Act (50 U.S.C. 

1601 et seq.), issued Executive Order 

13566 (76 FR 11315, March 2, 2011) 

(‘‘E.O. 13566’’), effective at 8 p.m. 

eastern standard time on February 25, 

2011. 

The Department of the Treasury’s 

Office of Foreign Assets Control 

(‘‘OFAC’’) is issuing the Libyan 

Sanctions Regulations, 31 CFR part 570 

(the ‘‘Regulations’’), to implement E.O. 

13566 pursuant to authorities delegated 

to the Secretary of the Treasury in E.O. 

13566. A copy of E.O. 13566 appears in 

appendix A to this part. 

The Regulations are being published 

in abbreviated form at this time for the 

purpose of providing immediate 

guidance to the public. Effective July 1, 

2011, sections 570.506 and 570.508 

replace and supersede General License 

Nos. 3 and 2, respectively, which have 

been available on, and are now being 

removed from, OFAC’s Web site. 

General License Nos. 1B, 4, and 5, as 

well as certain statements of licensing 

policy, are not being incorporated into 

the Regulations at this time and remain 

available on OFAC’s Web site at 

http://www.treasury.gov/resourcecenter/sanctions/programs/pages/ 

libya.aspx. Other general licenses and 

statements of licensing policy also may 

be added to OFAC’s Web site. OFAC 

intends to supplement this part 570 

with a more comprehensive set of 

regulations, which may include 

additional interpretive and definitional 

guidance and additional general 

licenses and statements of licensing 

policy. The appendix to the Regulations 

will be removed when OFAC 

supplements this part with a more 

comprehensive set of regulations. 

Public Participation 

Because the Regulations involve a 

foreign affairs function, the provisions 

of Executive Order 12866 of September 

30, 1993, and the Administrative 

Procedure Act (5 U.S.C. 553) requiring 

notice of proposed rulemaking, 

opportunity for public participation, 

and delay in effective date are 

inapplicable. Because no notice of 

proposed rulemaking is required for this 

rule, the Regulatory Flexibility Act (5 

U.S.C. 601–612) does not apply. 

Paperwork Reduction Act 

The collections of information related 

to the Regulations are contained in 31 

CFR part 501 (the ‘‘Reporting, 

Procedures and Penalties Regulations’’). 

Pursuant to the Paperwork Reduction 

Act of 1995 (44 U.S.C. 3507), those 

collections of information have been 

approved by the Office of Management 

and Budget under control number 1505– 

0164. An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

displays a valid control number. 

List of Subjects in 31 CFR Part 570 

Administrative practice and 

procedure, Banking, Banks, Blocking of 

assets, Brokers, Credit, Foreign trade, 

Investments, Libya, Loans, Securities, 

Services. 

For the reasons set forth in the 

preamble, the Department of the 

Treasury’s Office of Foreign Assets 

Control adds part 570 to 31 CFR Chapter 

V to read as follows: 

PART 570—LIBYAN SANCTIONS 

REGULATIONS 

Subpart A—Relation of This Part to Other 

Laws and Regulations 

Sec. 

570.101 Relation of this part to other laws 

and regulations. 

Subpart B—Prohibitions 

570.201 Prohibited transactions. 

570.202 Effect of transfers violating the 

provisions of this part. 

570.203 Holding of funds in interestbearing accounts; investment and 

reinvestment. 

Subpart C—General Definitions 

570.301 Blocked account; blocked property. 

570.302 Effective date. 

570.303 Entity. 

570.304 Government of Libya. 

570.305 [Reserved] 

570.306 Interest. 

570.307 Licenses; general and specific. 

570.308 Person. 

570.309 Property; property interest. 

570.310 Transfer. 

570.311 United States. 

570.312 U.S. financial institution. 

570.313 United States person; U.S. person. 

Subpart D—Interpretations 

570.401 [Reserved] 

570.402 Effect of amendment. 

570.403 Termination and acquisition of an 

interest in blocked property. 

570.404 Transactions ordinarily incident to 

a licensed transaction authorized. 

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