Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Rules and Regulations 8897 

presence, in addition to greater 

difficulty in apprehending perpetrators 

who have not been registered and 

tracked as provided by SORNA. This 

would thwart the legislative objective of 

‘‘protect[ing] the public from sex 

offenders and offenders against 

children’’ by establishing ‘‘a 

comprehensive national system for the 

registration of those offenders,’’ SORNA 

§ 102, because a substantial class of sex 

offenders could evade the Act’s 

registration requirements and 

enforcement mechanisms during the 

pendency of a proposed rule and delay 

in the effectiveness of a final rule. 

It would accordingly be contrary to 

the public interest to adopt this rule 

with the prior notice and comment 

period normally required under 5 U.S.C. 

553(b) or with the delayed effective date 

normally required under 5 U.S.C. 

553(d). 

Regulatory Flexibility Act 

The Attorney General, in accordance 

with the Regulatory Flexibility Act (5 

U.S.C. 605(b)), has reviewed this 

regulation and by approving it certifies 

that this regulation will not have a 

significant economic impact on a 

substantial number of small entities for 

the purposes of that Act because the 

regulation concerns the application of 

the requirements of the Sex Offender 

Registration and Notification Act to 

certain offenders. 

Executive Order 12866 

This regulation has been drafted and 

reviewed in accordance with Executive 

Order 12866, ‘‘Regulatory Planning and 

Review,’’ section 1(b), Principles of 

Regulation. The Department of Justice 

has determined that this rule is a 

‘‘significant regulatory action’’ under 

Executive Order 12866, section 3(f), and 

accordingly this rule has been reviewed 

by the Office of Management and 

Budget. 

Executive Order 13132 

This regulation will not have 

substantial direct effects on the States, 

on the relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. There has been 

substantial consultation with state 

officials regarding the interpretation and 

implementation of the Sex Offender 

Registration and Notification Act. 

Therefore, in accordance with Executive 

Order 13132, it is determined that this 

rule does not have sufficient federalism 

implications to warrant the preparation 

of a federalism assessment. 

Executive Order 12988—Civil Justice 

Reform 

This regulation meets the applicable 

standards set forth in sections 3(a) and 

3(b)(2) of Executive Order 12988. 

Unfunded Mandates Reform Act of 

1995 

This rule will not result in the 

expenditure by State, local and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

in any one year, and it will not 

significantly or uniquely affect small 

governments. Therefore, no actions were 

deemed necessary under the provisions 

of the Unfunded Mandates Reform Act 

of 1995. 

Small Business Regulatory Enforcement 

Fairness Act of 1996 

This rule is not a major rule as 

defined by section 251 of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996. 5 U.S.C. 804. This 

rule will not result in an annual effect 

on the economy of $100 million or 

more; a major increase in costs or prices; 

or significant adverse effects on 

competition, employment, investment, 

productivity, or innovation, or on the 

ability of United States-based 

companies to compete with foreignbased companies in domestic and 

export markets. 

List of Subjects in 28 CFR Part 72 

Crime, Information, Law enforcement, 

Prisons, Prisoners, Records, Probation 

and parole. 

■ For the reasons stated in the preamble, 

part 72 of chapter I of Title 28 of the 

Code of Federal Regulations is added to 

read as follows: 

PART 72—SEX OFFENDER 

REGISTRATION AND NOTIFICATION 

Sec. 

72.1 Purpose. 

72.2 Definitions. 

72.3 Applicability of the Sex Offender 

Registration and Notification Act. 

Authority: Pub. L. 109–248, 120 Stat. 587. 

§ 72.1 Purpose. 

This part specifies the applicability of 

the requirements of the Sex Offender 

Registration and Notification Act to sex 

offenders convicted prior to the 

enactment of that Act. These 

requirements include registering and 

keeping the registration current in each 

jurisdiction in which a sex offender 

resides, is an employee, or is a student. 

The Attorney General has the authority 

to specify the applicability of the Act’s 

requirements to sex offenders convicted 

prior to its enactment under sections 

112(b) and 113(d) of the Act. 

§ 72.2 Definitions. 

All terms used in this part that are 

defined in section 111 of the Sex 

Offender Registration and Notification 

Act (title 1 of Pub. L. 109–248) shall 

have the same definitions in this part. 

§ 72.3 Applicability of the Sex Offender 

Registration and Notification Act. 

The requirements of the Sex Offender 

Registration and Notification Act apply 

to all sex offenders, including sex 

offenders convicted of the offense for 

which registration is required prior to 

the enactment of that Act. 

Example 1. A sex offender is federally 

convicted of aggravated sexual abuse under 

18 U.S.C. 2241 in 1990 and is released 

following imprisonment in 2007. The sex 

offender is subject to the requirements of the 

Sex Offender Registration and Notification 

Act and could be held criminally liable 

under 18 U.S.C. 2250 for failing to register or 

keep the registration current in any 

jurisdiction in which the sex offender 

resides, is an employee, or is a student. 

Example 2. A sex offender is convicted by 

a state jurisdiction in 1997 for molesting a 

child and is released following imprisonment 

in 2000. The sex offender initially registers 

as required, but disappears after a couple of 

years and does not register in any other 

jurisdiction. Following the enactment of the 

Sex Offender Registration and Notification 

Act, the sex offender is found to be living in 

another state and is arrested there. The sex 

offender has violated the requirement under 

the Sex Offender Registration and 

Notification Act to register in each state in 

which he resides, and could be held 

criminally liable under 18 U.S.C. 2250 for the 

violation because he traveled in interstate 

commerce. 

Dated: February 16, 2007. 

Alberto R. Gonzales, 

Attorney General. 

[FR Doc. E7–3063 Filed 2–27–07; 8:45 am] 

BILLING CODE 4410–18–P 

DEPARTMENT OF THE INTERIOR 

Minerals Management Service 

30 CFR Parts 250 and 253 

RIN 1010–AD39 

Oil and Gas and Sulphur Operations in 

the Outer Continental Shelf and Oil 

Spill Financial Responsibility for 

Offshore Facilities—Civil Penalties 

AGENCY: Minerals Management Service 

(MMS), Interior. 

ACTION: Final rule. 

SUMMARY: The MMS is required to 

review the maximum daily civil penalty 


erjones on PRODPC74 with RULES
8898 Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Rules and Regulations 

assessment allowable under 43 U.S.C. 

1350 at least once every 3 years for the 

purpose of adjusting this amount in 

accordance with the Consumer Price 

Index (CPI) as prepared by the Bureau 

of Labor Statistics, Department of Labor. 

The same review and adjustment 

process is required every 4 years for the 

maximum daily civil penalty 

assessment allowable under 33 U.S.C. 

2716a. The intended effect is for 

punitive assessments to keep up with 

inflation. 

EFFECTIVE DATE: This final rule becomes 

effective on March 30, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Joanne McCammon, Safety and 

Enforcement Branch at (703) 787–1292 

or e-mail Joanne.McCammon@mms.gov. 

SUPPLEMENTARY INFORMATION: 

Background: The Oil Pollution Act of 

1990 (OPA 90) (Pub. L. 101–380) 

expanded and strengthened MMS’s 

authority to impose penalties for 

violating regulations promulgated under 

the Outer Continental Shelf (OCS) 

Lands Act. Section 8201 of OPA 90 (43 

U.S.C. 1350) authorizes the Secretary of 

the Interior (Secretary) to assess a civil 

penalty without providing notice and 

time for corrective action where a 

failure to comply with applicable 

regulations results in a threat of serious, 

irreparable, or immediate harm or 

damage to human life or the 

environment. The goal of the MMS OCS 

Civil Penalty Program is to ensure safe 

and clean operations on the OCS. By 

pursuing, assessing, and collecting civil 

penalties, the program is designed to 

encourage compliance with OCS 

statutes and regulations. 

Not all regulatory violations warrant a 

review to initiate civil penalty 

proceedings; however, violations that 

cause injury, death, or environmental 

damage, or pose a threat to human life 

or the environment, will trigger such 

review. 

Every 3 years, in accordance with 

OPA 90 (43 U.S.C. 1350(b)(1)), MMS 

analyzes the civil penalty maximum 

amount in conjunction with the CPI 

prepared by the U.S. Department of 

Labor. If an adjustment is necessary, 

MMS informs the public through the 

Federal Register of the new maximum 

amount. MMS uses Office of 

Management and Budget (OMB) 

guidelines for determining how penalty 

amounts should be rounded. In 

computing this new civil penalty 

maximum amount, MMS divided the 

August 2006 CPI of 203.9 by the 

previously used August 2002 CPI of 

180.7. This resulted in a multiplying 

factor of 1.13. The previous maximum 

amount of $30,000 per violation per day 

was multiplied by the 1.13 factor and 

resulted in a new maximum penalty 

amount of $33,900. This amount was 

rounded to $35,000 as per OMB 

guidelines. The new civil penalty 

maximum amount is now $35,000 per 

violation per day. It must be 

remembered that this is a maximum 

amount and is only used when a noncompliance issue warrants it. 

OPA 90 also established civil 

penalties for failure to comply with 

financial responsibility regulations. 

Section 4303 of OPA 90 (33 U.S.C. 

2716a) authorized the President (and, by 

delegation, the Secretary) to assess a 

civil penalty of up to $25,000 per day 

for each violation. The Federal Civil 

Penalties Inflation Adjustment Act of 

1990 (Pub. L. 101–410) established a 4- 

year cycle for review and adjustment of 

all federally imposed civil monetary 

penalties in order to maintain the 

deterrent effect of such penalties, and 

promote compliance with the law. The 

cost-of-living adjustment process (set 

out in a note to 28 U.S.C. 2461) is the 

same as that described above. Applying 

the multiplying factor of 1.13 to the 

previous maximum amount of $25,000, 

results in a new maximum civil penalty 

of $28,250 per violation per day. 

However, Section 3720E of the Omnibus 

Appropriations Act of 1996 (Pub. L. 

104–134) included a provision limiting 

the first adjustment of any civil penalty 

pursuant to the 1990 Act to 10 percent. 

This is the first adjustment of 33 U.S.C. 

2716a. The new civil penalty maximum 

amount under 33 U.S.C. 2716a is 

therefore $27,500 per violation per day. 

Procedural Matters 

Regulatory Planning and Review 

(Executive Order (E.O.) 12866) 

This final rule is not a significant rule 

as determined by the OMB and is not 

subject to review under E.O. 12866. 

(1) This final rule will not have an 

annual effect of $100 million or more on 

the economy. It will not adversely affect 

in a material way the economy, 

productivity, competition, jobs, the 

environment, public health or safety, or 

State, local, or tribal governments or 

communities. This final rule simply 

adjusts the maximum civil penalty 

amount using the CPI. 

(2) This final rule will not create a 

serious inconsistency or otherwise 

interfere with action taken or planned 

by another agency because the rule only 

adjusts the civil penalty maximum. 

(3) This final rule will not alter the 

budgetary effects of entitlements, grants, 

user fees or loan programs, or the rights 

or obligations of their recipients. The 

changes in this final rule simply adjust 

the civil penalty maximum. 

(4) This final rule will not raise novel 

legal or policy issues. 

Regulatory Flexibility Act (RFA) 

The Department of the Interior (DOI) 

certifies that this final rule will not have 

a significant economic effect on a 

substantial number of small entities 

under the RFA (5 U.S.C. 601 et seq.). 

This final rule applies to all lessees that 

operate on the OCS. Generally, lessees 

that operate under this rule would fall 

under the Small Business 

Administration’s (SBA) North American 

Industry Classification System Codes 

211111, Crude Petroleum and Natural 

Gas Extraction and 213111, Drilling Oil 

and Gas Wells. Under these codes, the 

SBA considers all companies with fewer 

than 500 employees to be a small 

business. We estimate that of the 130 

lessees that explore for and produce oil 

and gas on the OCS, approximately 90 

are small businesses (70 percent). The 

primary effect of the final rule is the 

increase in civil penalties assessed only 

for those operators that do not comply 

with Federal OCS regulations. 

This rule will have no impact on the 

oil and gas industry operators that 

comply with Federal OCS regulations. 

For those operators whose noncompliance results in a civil penalty, 

the increase resulting from the inflation 

factor of 1.13 amounts to an increase of 

less than $170,000 spread over an 

average of 39 cases per year or slightly 

under $4,400 additional per case. This 

is using data over the past 10 years and 

averaging civil penalties paid and 

number of cases paid per year. This 

dollar amount is minor considering the 

substantial costs of operations on the 

OCS. This is true for even the smallest 

of OCS operators. 

Your comments are important. The 

Small Business and Agriculture 

Regulatory Enforcement Ombudsman 

and 10 Regional Fairness Boards were 

established to receive comments from 

small business about Federal agency 

enforcement actions. The Ombudsman 

will annually evaluate the enforcement 

activities and rate each agency’s 

responsiveness to small business. If you 

wish to comment on the actions of 

MMS, call 1–888–734–3247. You may 

comment to the SBA without fear of 

retaliation. Disciplinary action for 

retaliation by an MMS employee may 

include suspension or termination from 

employment with the DOI. 


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Federal Register / Vol. 72, No. 39 / Wednesday, February 28, 2007 / Rules and Regulations 8899 

Small Business Regulatory Enforcement 

Fairness Act (SBREFA) 

This final rule is not a major rule 

under the SBREFA (5 U.S.C. 804(2)). 

This final rule: 

a. Will not have an annual effect on 

the economy of $100 million or more. 

As described above, we estimate an 

annual increase of $4,400 per civil 

penalty case. 

b. Will not cause a major increase in 

costs or prices for consumers, 

individual industries, Federal, State, or 

local government agencies, or 

geographic regions. The minor increase 

in cost will not change the way the oil 

and gas industry conducts business, nor 

will it affect regional oil and gas prices. 

Therefore, it will not cause major cost 

increases for consumers, the oil and gas 

industry, or any Government agencies. 

c. Will not have significant adverse 

effects on competition, employment, 

investment, productivity, innovation, or 

the ability of U.S.-based enterprises to 

compete with foreign-based enterprises. 

Leasing on the U.S. OCS is limited to 

residents of the U.S. or companies 

incorporated in the U.S. This final rule 

will not change that requirement. 

Unfunded Mandates Reform Act 

(UMRA) 

This final rule will not impose an 

unfunded mandate on State, local, or 

tribal governments or the private sector 

of more than $100 million per year. The 

final rule will not have a significant or 

unique effect on State, local, or tribal 

governments or the private sector. A 

statement containing the information 

required by UMRA (2 U.S.C. 1531 et 

seq.) is not required. This is because the 

final rule will not affect State, local, or 

tribal governments, and the effect on the 

private sector is small. 

Takings Implication Assessment 

(Executive Order 12630) 

The final rule is not a governmental 

action capable of interference with 

constitutionally protected property 

rights. Thus, MMS did not need to 

prepare a Takings Implication 

Assessment according to E.O. 12630, 

Governmental Actions and Interference 

with Constitutionally Protected Property 

Rights. 

Federalism (Executive Order 13132) 

With respect to E.O. 13132, this final 

rule will not have federalism 

implications. This final 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 OCS activities, this final rule will not 

affect that role. 

Civil Justice Reform (Executive Order 

12988) 

With respect to E.O. 12988, The Office 

of the Solicitor has determined that the 

final rule does not unduly burden the 

judicial system and does meet the 

requirements of sections 3(a) and 3(b)(2) 

of the Order. 

Paperwork Reduction Act (PRA) of 1995 

This final rule does not contain any 

information collection subject to the 

PRA, and does not require a submittal 

to OMB for review and approval under 

section 3507(d) of the PRA. 

National Environmental Policy Act 

(NEPA) of 1969 

The final rulemaking does not 

introduce requirements that would 

cause lessees or operators to perform or 

change any activities on the OCS which 

would result in environmental impacts 

beyond those addressed in the NEPA 

documents associated with the OCS 

plans. 

MMS has analyzed this final rule 

according to the criteria of the NEPA 

and 516 Department Manual 6, 

Appendix 10.4C(1), ‘‘Issuance and/or 

modification of regulations.’’ This final 

rule does not constitute a major Federal 

action significantly affecting the quality 

of the human environment and falls 

within the categorical exclusion of 

Appendix 10.4C(1) because the impact 

of the final rule will be limited to 

administrative and economic effects. A 

detailed statement under the NEPA is 

not required. 

Energy Supply, Distribution, or Use 

(Executive Order 13211) 

Executive Order 13211 requires the 

agency to prepare a Statement of Energy 

Effects when it takes a regulatory action 

that is identified as a significant energy 

action. This final rule is not a significant 

energy action, and therefore would not 

require a Statement of Energy Effects 

because it: 

a. Is not a significant regulatory action 

under E.O. 12866, 

b. Is not likely to have a significant 

adverse effect on the supply, 

distribution, or use of energy, and 

c. Has not been designated by the 

Administrator of the Office of 

Information and Regulatory Affairs, 

OMB, as a significant energy action. 

Consultation With Indian Tribes 

(Executive Order 13175) 

Under the criteria in E.O. 13175, we 

have evaluated this final rule and 

determined that it has no potential 

effects on federally recognized Indian 

tribes. There are no Indian or tribal 

lands on the OCS. 

List of Subjects in 

30 CFR Part 250 

Administrative practice and 

procedure, Continental shelf, 

Environmental protection, 

Investigations, Oil and gas exploration, 

Penalties, Reporting and recordkeeping 

requirements. 

30 CFR Part 253 

Continental shelf, Environmental 

protection, Oil and gas exploration, 

Penalties, Reporting and recordkeeping 

requirements. 

Dated: February 5, 2007. 

C. Stephen Allred, 

Assistant Secretary—Land and Minerals 

Management. 

■ For the reasons stated in the preamble, 

Minerals Management Service (MMS) 

amends 30 CFR parts 250 and 253 as 

follows: 

PART 250—OIL AND GAS AND 

SULPHUR OPERATIONS IN THE 

OUTER CONTINENTAL SHELF 

■ 1. Authority citation for part 250 

continues to read as follows: 

Authority: 43 U.S.C. 1331 et seq., 31 U.S.C. 

9701. 

■ 2. Revise § 250.1403 to read as 

follows: 

§ 250.1403 What is the maximum civil 

penalty? 

The maximum civil penalty is 

$35,000 per day per violation. 

PART 253—OIL SPILL FINANCIAL 

RESPONSIBILITY FOR OFFSHORE 

FACILITIES 

■ 3. Authority citation for part 253 is 

amended to read as follows: 

Authority: 33 U.S.C. 2701 et seq., 28 U.S.C. 

2461 (note) 

■ 4. In § 253.51, revise paragraph (a) to 

read as follows: 

§ 253.51 What are the penalties for not 

complying with this part? 

(a) If you fail to comply with the 

financial responsibility requirements of 

OPA at 33 U.S.C. 2716 or with the 

requirements of this part, then you may 

be liable for a civil penalty of up to 

$27,500 per COF per day of violation 

(that is, each day a COF is operated 

without acceptable evidence of OSFR). 

* * * * * 

[FR Doc. E7–3427 Filed 2–27–07; 8:45 am] 

BILLING CODE 4310–MR–P 


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