DEPARTMENT OF THE INTERIOR (DOI)

Statement of Regulatory Priorities

The Department of the Interior (DOI) is the principal Federal steward of our Nation's public lands and resources, including many of our cultural treasures. DOI serves as trustee to Native Americans and Alaska natives and is responsible for relations with the island territories under United States jurisdiction. The Department manages more than 500 million acres of Federal lands, including 397 park units, 555 wildlife refuges, and approximately 1.7 billion of submer ged offshore acres. This includes some of the highest quality renewable energy resources available to help the United States achieve the President’s goal of energy independence, including geothermal, solar, and wind.

The Department protects and recovers endanger ed species; protects natural, historic, and cultural resources; manages water projects that are a life line and economic engine for many communities in the West; manages forests and fights wildfires; manages Federal energy resources; regulates surface coal mining operations; reclaims abandoned coal mines; ed ucates children in Indian schools; and provides recreational opportunities for over 400 million visitors annually in the Nation’s national parks, public lands, national wildlife refuges, and recreation areas.

The DOI will continue to review and update its regulations and policies to ensure that they are effective and efficient, and that they promote accountability and sustainability. The DOI will emphasize regulations and policies that:

 Promote environmentally responsible, sa fe, and balanced development of renewable and conventional energy on our public lands and the Outer Continental Shelf (OCS);

 Use the best available science to ensure that public resources are protected, conserved, and used wisely; Adopt performance approaches focused on achi eving cost-effective, timely results;

 Improve the nation-to-nation relationship with American Indian tribes;

 Promote partnerships with States, tribes, local governments, other groups, and individuals to achieve common goals;

 Promote transparency, fairness, accountability, and the highest ethical standards while maintaining performance goals.

Major Regulatory Areas

The DOI bureaus implement congressionally mandated programs through their regulations. Some of these regulatory programs include:

 Developing onshore and offshore energy, including renewable, minerals, oil and gas, and other
energy resources;

 Regulating surface coal mining and reclamat ion operations on public and private lands;

 Managing migratory birds and preserving marine mammals and endangered species;

 Managing dedicated lands, such as national parks, wildlife refuges, National Landscape Conservation System lands, and American Indian trust lands;

 Managing public lands open to multiple use; Managing revenues from American Indian and Federal minerals;

 Fulfilling trust and other responsibilities pertaining to American Indians;

 Managing natural resource damage assessments; and

 Managing assistance programs.

Regulatory Policy

How DOI regulatory priorities support the Pres ident’s energy, resource management, environmental sustainability, and economic recovery goals

The DOI's regulatory programs seek to operat e programs transparently, efficiently, and cooperatively while maximizing protection of our land, resources, and environment in a fiscally responsible way by:

(1) Protecting Natural, Cult ural, and Heritage Resources.

The Department's mission includes protecting and providing access to our Nation's natural and cultural heritage and honoring our trust responsibilities to tribes. We are committed to this mission and to applying laws and regulations fairly and effectively. Our priorities include protecting public health and safety, restoring and maintaining public lands, protecting threatened and endangered species, ameliorating land- and resource-management problem s on public lands, and ensuring accountability and compliance with Federal laws and regulations.

The Bureau of Land Management (BLM) Wildlife Program continues to focus on maintaining and managing wildlife habitat to ensure self-sustaining popul ations and a natural abundance and diversity of wildlife resources on public lands. The BLM-managed lands are vital to game species and hundreds ofspecies of non-game mammals, reptiles, and amphibians. In order to provide for long-term protection of wildlife resources, especially giv en other mandated land use requirement s, the Wildlife Program supports aggressive habitat conservation and restoration activi ties, many funded by partnerships with Federal, State, and non-governmental organizations. For instance, the Wildlife Program is restoring wildlife habitat across a multi-state region to support species that depend upon sagebrush vege tation. Projects are tailored to address regional issues such as fire (as in the western portion of the sagebrush biome) or habitat degradation and loss (as in the eastern port ion of the sagebrush biome). Additionally, BLM undertakes habitat improvement projects in partnership with a variety of stakeholders and consistent with State fish and game wildlife action plans and local working group plans.

The National Park Service (NPS) is working wi th BLM and the U.S. Fish and Wildlife Service (FWS) to finalize a rule implementing Public Law 106-206, which directs the Secretary to establish a system of location fees for commercial filming and still photogr aphy activities on public lands. While commercial filming and still photography are generally allowed on Federal lands, managing this activity through a permitting process will minimize dama ge to cultural or natural resour ces and interferen ce with other visitors to the area. This regulation would stan dardize location fee rates and collection for all DOI agencies.

The NPS is proposing a new winter use rule fo r Yellowstone National Park. This rule is proposed to replace an interim rule that expired at the end of the 2010 to 2011 winter seas on and that was recently reauthorized for the current (2011-2012) winter season. It would allow a variety of winter uses for visitors while protecting park resources by establishing maximum numbers of snowmobiles and snowcoaches permitted in the Park on a given day. It would also require most snowmobiles and snowcoaches operating in the Park to meet air and sound emissi on requirements and would require a commercial guide. The NPS intends to publish a final rule by mid-November 2012.

The NPS is prepared to publish final rules for Off Road Vehicle use at Cape Hatteras National Seashore and bicycle routes at Mammoth Cave National Park. Proposed rules for bicycle routes arepending for other park areas. These rules would manage use to protect and preserve natural and cultural resources, and natural processes, and prov ide a variety of safe visitor experiences while minimizing conflicts among various users.

(2) Sustainably Using Energy, Water, and Natural Resources.
The BLM has identified approximately 20.6 million acres of public land with wind energy potential in the 11 western States and approxim ately 29.5 million acres with solar energy potential in the six southwestern States. There are over 140 million acre s of public land in western States and Alaska with geothermal resource potential. There is also significant wind and wave potential in our offshore waters. The National Renewable Energy Lab, a Department of Energy national laboratory, has identified more than 1,000 gigawatts of wind potential off the Atlantic coast—roughly equivalent to the Nation’s existing installed electric generating capacity—and more than 900 gigawatts of wind potential off the Pacific Coast. Because public lands are extensive and widely distributed, the Department has an important role, in consultation with Federal, State, regional, and local authorities, in approving and building new transmission lines that are crucial to deliver re newable energy to America’s homes and businesses.

Since the beginning of the Obama Administra tion, the Department has focused on renewable energy issues and has established priorities for environment ally responsible development of renewable energy on public lands and the OCS. Industry has started to respond by investing in development of wind farms off the Atlantic seacoast and solar, wind, and geothermal energy facilities throughout the west. Power generation from these new energy sources produces vi rtually no greenhouse gases and, when done in an environmentally sensitive manner, harnesses with minimum impact abundant renewable energy that nature itself provides. The Department will continue its intra- and inter-departmental efforts to move forward with the environmentally responsible review and permitting of renewable energy projects on public lands.

The Secretary issued his first Secretarial Order on March 11, 2009, making renewable energy on public lands and the OCS top priorities at the Department. These remain top priorities. In implementingthese priorities through its regulations, the Department will continue to create jobs and contribute to a healthy economy while protecting our signature landsc apes, natural resources, wildlife, and cultural

resources.
(3) Empowering People and Communities.

The Department strongly encourages public part icipation in the regulatory process. For example, every year the FWS establishes migratory bird hunt ing seasons in partnership with flyway councils composed of State fish and wildlife agencies. The FWS also holds a series of public meetings to give other interested parties, including hunters and other groups , opportunities to participate in establishing the upcoming season’s regulations.

Similarly, the BLM uses Resource Advisory Councils made up of affected parties to help prepare land management plans and regulations.

The NPS has begun revising its rules on non-Federal development of gas and oil in units of the National Park System. Of the approximately 700 gas and oil wells in 13 NPS units, 55 percent, or 385 wells, are exempt from current regulations. The NPS is revising the regulations to improve protection of NPS resources. The NPS actively sought public in put into designing the rule and published an Advance Notice of Proposed Rulemaking with a comment pe riod from November 15, 2009, through January 25, 2010. Interested members of the public were able to ma ke suggestions for the content of the rule, which NPS will consider in writing the pr oposed rule. After developing a propo sed rule, NPS will solicit further public comment. The NPS expects to publish a proposed rule in 2012.

In October 2010, NPS published an interim final rule with request for comments revising the former regulations for management of demonstrations and the sale or distribution of printed matter in most areas of the National Park System to allow a small-group exception to permit requirements. In essence, under specific criteria, demonstrations, and the sale or distribution of printed matter involving 25 or fewer persons may be held in designated areas, without fi rst obtaining a permit; i.e. making it easier forindividuals and small groups to express their view s. The NPS has analyzed the comments and expects to publish a final rule in early 2012.

Retrospective Review of Regulations

President Obama’s Executive Order 13563 directs agencies to make the regulatory system work better for the American public. Regulations should “... protect public health, welfare, safety, and our environment while promoting economic growth, innovat ion, competitiveness, and job creation.” DOI’s plan for retrospective regulatory review identifies specif ic efforts to relieve regulatory burdens, add jobs to the economy, and make regulations work better for th e American public while protecting our environment and resources. The DOI plan seeks to strengthen and maintain a culture of retrospective review by consolidating all regulatory review requirements 1 into DOI’s annual regulatory plan. DOI has selected the following regulatory efforts to focus on over the next 2 years:

 Oil and Gas Royalty Valuation Rules (Office of Natural Resources Revenue)– DOI is exploring a simplified market-based approach to arrive at the value of oil and gas for royalty purposes that could dramatically reduce accounting and paperwork requi rements and costs on industry and better ensure proper royalty valuation by creating a more transparent royalty calculation method.

 Endangered Species Act Rules (Fish and Wildlife Service) –The Fish and Wildlife Service (FWS), working in conjunction with the National Marine Fisheries Service, will revise and update the ESA implementing regulations and policies to improve conservation effectiveness, reduce administrative burden, enhance clarity and consistency for im pacted stakeholders and agency staff, and encourage partnerships, innovation, and cooperation. FWS has already proposed a rule on May 17, 2011, that would minimize the requirements for written description s of critical habitat boundaries in favor of map

1 DOI conducts regulatory review under numerous statutes , Executive orders, memoranda, and policies, including but not limited to the Regulatory Flexibility Act of 1980 (RFA ), the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), Executive Orders 12866 and 13 563, and the DOI Departmental Manual.and Internet-based descriptions. FWS anticipates issuing the final rule in the spring of 2012. Additionally, FWS will develop proposed rules and/or polic ies to amend existing regulations related to:

o Habitat conservation plans;

o Safe harbor agreements;

o Candidate conservation agreements;

o The process and procedures for de signation of critical habitat;

o Section 7 consultation to revise the definition of “destruction or adverse modification” of critical habitat; and

o Issuance of incidental take permits during section 7 consultation.

 Commercial Filming on Public Land Rules –This joint effort between the National Park Service (NPS), Fish and Wildlife Service (FWS), Bureau of Land Ma nagement (BLM), Bureau of Reclamation (BOR), and Bureau of Indian Affairs (BIA) will create cons istent regulations and a unified fee schedule for commercial filming and still photography on public land. It will provide the commercial filming industry with a predictable fee for using Federal lands, while earning the Government a fair return for the use of that land.

 Offshore Energy Safety an d Environmental Rules (BSEE) –In the wake of the Deepwater Horizon oil spill, DOI immediately instituted regulatory reforms t hat strengthened the protecti on of workers’ health and safety and enhanced environmental safeguards. The Bureau of Safety and Environmental Enforcement (BSEE), formerly part of the Bure au of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) is now considering ways to apply “safety case”-ty pe performance standards, such as those widely applied internationally, to the U.S. offshor e drilling regulatory regime. A hybrid combination of performance-based and prescrip tive standards will provide flexibility to adapt to changing technologies and increasingly complex operational conditions, while maintaining worker and environmental protections. Leasing (BIA)– BIA is amending its leasing regulations to eliminate the need to follow multiple crossreferences in the regulations. The amendments w ill also delete the requirement for BIA review of permits, which some view as unjustified and excessively burdensome.

 Land Classification Regulations (BLM)– BLM is amending its regulations to remove obsolete land classification regulations and consolidate these regulations into the existing planning system regulations. These changes will benefit the public by consolidating all land use decisions into one systematic process.

DOI bureaus work to make our regulations easier to comply with and understand. Our regulatory process ensures that bureaus share ideas on how to reduce regulatory burdens while meeting the requirements of the laws they enforce and improving their stewardship of the environment and resources. Results include:

 Effective stewardship of our Nati on’s resources in a way that is responsive to the needs of small businesses;

 Increased benefits per dollars spent by carefully evaluating the economic effects of planned rules; and

 Improved compliance and transparency by use of plain language in our regulations and guidance documents.

Bureaus and Offices Within DOI

The focus of DOI’s major regulatory bureaus and offices is summarized below.Bureau of Indian Affairs

The Bureau of Indian Affairs (BIA) administe rs and manages 56 million acres of land held in trust by the United States for Indians and Indian tribes, prov iding services to approximately 1.9 million Indians and Alaska Natives, and maintaining a government-to-government relationship with the 565 federally recognized Indian tribes. The BIA’s mission is to enhance the quality of life, to promote economic opportunity, and to carry out the responsibility to protect and improve the trust assets of American Indians, Indian tribes, and Alaska Natives, as well as to provide quality education opportunities to students in Indian schools.

In the coming year, BIA will continue its regulatory focus on improved management of trust responsibilities and promotion of economic developme nt in Indian communities. In addition, BIA will focus on updating Indian education regulations and on other regulatory changes to increase transparency in support of the President’s Open Government Initiative.

With the input of tribal leaders, individual Indian beneficiaries, and other subject matter experts, BIA has been examining better ways to serve its beneficia ries. The American Indian Probate Reform Act of 2004 (AIPRA) made clear that regulatory changes we re necessary. BIA has promulgated regulations implementing the probate-related provisions of AI PRA and will now focus on regulations to implement other AIPRA provisions related to managing Indian land.

The focus on promoting economic development in Indian communities is a core component of BIA’s mission. Economic development initiatives can attr act businesses to Indian communities that provide jobs and fund services that support the health and well-being of tribal members

. Economic development can enable tribes to attain self-sufficiency, strengthen their government s, and reduce crime.Indian education is a top priori ty of the Assistant Secretary for Indian Affairs. BIA will review Indian education regulations to ensure that they adequately support efforts to provide students of BIA-funded schools with the best education possible.

Finally, BIA’s regulatory focus on increas ing transparency implements the President’s Open Government Initiative. BIA will ensure that all regulati ons that it drafts or revises meet high standards of readability and accurately and clear ly describe BIA processes.

BIA’s regulatory priorities are to:

 Develop regulations to meet the Indian trust reform goals for land consolidation and land use management.

BIA is amending regulations affecting land title and records, conveyances of trust or restricted land, leasing, grazing, trespass, ri ghts-of-way, and energy and minerals. These regulatory changes will help the Department better serve beneficiaries and will standardize procedures for consistent execution of fiduciary responsibilities across the BIA.

 Identify and develop regulatory changes nec essary for improved Indian education.

BIA is reviewing regulations addressing grants to tribally controlled community colleges and other Indian education regulations. The review will iden tify provisions that need to be updated to comply with applicable statutes and ensure that the proper regulatory framework is in place to support students of Bureau-funded schools.

 Develop regulatory changes to reform the process for Federal acknowledgment of Indian tribes.Over the years, BIA has received significant co mments from American Indian groups and members of Congress on the Federal acknowledgment process. Most of these comments claim that the current process is cumbersome and overly restrictive. The BIA is reviewing the Federal acknowledgment regulations to determine if any regulatory changes are appropriate.

 Revise regulations governing administrative appeal s and other processes to increase transparency.

The BIA is making a concentrated effort to improv e the readability and precision of its regulations. Because trust beneficiaries often turn to the r egulations for guidance on how a given BIA process works, BIA is ensuring that each re vised regulation is written as clearly as possible and accurately reflects the current organization of the Bureau. A fe w of the regulations BIA will be focusing this effort on include the regulation governing administrative appeals (25 CFR part 2), the land use management regulations mentioned above, and regul ations addressing various Indian services.

The Bureau of Land Management

The BLM manages the 245-million-acre National System of Public Lands, located primarily in the western States, including Alaska, and the 700-million-acre subsurface mineral estate located throughout the Nation. BLM’s complex multiple-use mission affe cts the lives of a great number of Americans, including those who live near and visit the public lands, as well as millions of Americans who benefit from commodities, such as minerals, energy, or tim ber, produced from the lands’ rich resources.

The BLM's multiple-use mission conserves the l ands’ natural and cultural resources and sustains the health and productivity of the public lands for the us e and enjoyment of present and future generations. The BLM manages such varied uses as energy and mi neral development, outdoor recreation, livestock grazing, and forestry and woodlands products.

The BLM has identified the following three areas of regulatory priorities. Energy Independence

 Treasured Landscapes

 Native American Nations

The summaries that follow explain how these three areas promote the BLM mission and the priorities of the Department.

Energy Independence
BLM manages more Federal land than any ot her agency–more than 245 million surface acres and 700 million subsurface acres of mineral estate. Thus, it plays a key role in ensuring that the Nation’s energy needs are met by managing both Federal renewable and non-renewable sources of energy. The BLM is analyzing proposals for increasing renewable energy development on public lands. The BLM will manage these proposals to assure they proceed in an environmentally and fiscally sound way that protects our natural resources and critical wildlife habitat for such species as the sage grouse and lynx. These projects will create environmentally friendly jobs and help sustain the quality of life that Americans enjoy today.

Another BLM priority is siting and authorizing tr ansmission corridors to assist the national effort to move renewable energy from production sites to market. The BLM has already designated more than 5,000 miles of energy transport corridors. The BL M will authorize rights-of-way across public lands through these energy transport corridors to allow development of transmission lines.Treasured Landscapes

Protecting the landscapes of the National Syst em of Public Lands involves numerous BLM programs as the agency moves toward a holistic, landscape-level approach to managing multiple public land uses. The BLM also engages partners interested in working on a broader scale across jurisdictional lines to achieve a common landscape vision. For the past several years, BLM, which manages the largest amount and the greatest diversity of fish and wild life habitat of any Federal agency, has focused on restoring healthy landscapes in a number of ways, including:

 Reducing the number of wild horses and burros on pub lic lands, particularly in areas most affected by drought and wildfire. Maintaining the wild horse and burro population at appropriate management levels is critical in the effort to conserve forage resources t hat also sustain native wildlife and livestock.

 Restoring habitat for sensitive, rare, threat ened, and endangered species, such as sage grouse, desert tortoise, and salmon.

 Supporting greater biodiversity through noxious weed and invasive species treatments to bring back native plants.

 Improving water quality by restoring riparian ar eas and protecting watersheds. Enhanced water quality aids in the restoration of habitat for fish and other aquatic and riparian species.

 Conducting post-fire recovery efforts to promote healthy landscapes and discourage the spread of invasive species.

Native American Nations

BLM consults with Indian tribes on a governm ent-to-government basis under multiple authorities and is continually working to assess and improve its tribal consultation practices. The BLM held listening sessions throughout the West on this important issue in 2009 and 2010 and received many valuablecomments. BLM has continued its efforts to improve its tribal consultation practices by participating with the Department in multiple listening sess ions with tribes throughout the country.

The Native American Graves Protection and Repatriation Act (NAGPRA), enacted in 1990, addresses the rights of lineal descendants, Indian tribes, and Native Hawaiian organizations to certain Native American human remains, funerary objects, associated funerary objects, sacred objects, and objects of cultural patrimony with which they are affiliated. The statute and im plementing regulations represent a careful balance between the legitimate interests of li neal descendants, Indian tribes, and Native Hawaiian organizations to control the remains of their ance stors and cultural property and the legitimate public interests in scientific and educational information asso ciated with the human remains and cultural items. BLM is complying with the new NAGPRA r egulations, including inventorying and repatriating human remains and other cultural items that are in BLM mu seum collections. BLM also consults with Indian tribes on implementing appropriate actions when hu man remains and other cultural items subject to NAGPRA are inadvertently discovered or in tentionally excavated on the public lands.

Additionally, BLM, in cooperation with the Bureau of Indian Affairs, helps tribes and individual Indian allottees develop their solid and fluid mineral resour ces. BLM is responsible for development, product measurement, and inspection and enforcement of extracting operations of the mineral estate on trust properties.

BLM’s Regulatory Priorities

The BLM’s regulatory focus is directed primarily by the priorities of the President and Congress, which include:

 Generating jobs and promoting a healthy economy by facilitating domestic production of various sources of energy, including biomass, wind, solar, and other alternative sources.

 Providing for a wide variety of public uses while maintaining the long-term health and diversity of the land. Preserving significant natural, cultural, and historic resource values.

 Understanding the arid, semi-arid, arctic , and other ecosystems that BLM manages.

 Using the best scientific and technical inform ation to make resource management decisions.

 Understanding the needs of the people who use and enjoy BLM-managed public lands and providing them with quality service.

 Securing the recovery of a fair return for using publicly owned resources, and avoiding the creation of long-term liabilities for American taxpayers.

 Resolving problems and implementing decisions in cooperation with other agencies, states, tribal governments, and the public.

In developing regulations, BLM recognizes the need to ensure communication, coordination, and consultation with the public, including affected interest s, tribes, and other stakeholders. BLM also works to draft regulations that are easy for the public to understand and that provide clarity to those most affected by them.

The BLM’s specific regulatory priorities include:

 Revising onshore oil and gas operating standards.

The BLM expects to publish rules to revise several existing onshore oil and gas operating orders and propose one new onshore order. Onshore orders establish requ irements and minimum standards and provide standard operating procedures. The orde rs are binding on operating rights owners and operators of Federal and Indian (except the Osage Nation) oil and gas leases and on all wells and facilities on state or private lands committed to Federal agreements. The BLM is responsible for ensuring that oil or gas produced and sold from F ederal or Indian leases is accurately measured for quantity and quality. The volume and quality of oil or gas sold from leases is key to determining the proper royalty to be paid by the lessee to the O ffice of Natural Resources Revenue. Existing Onshore Orders Number 3, 4, and 5 would be revise d to use new industry standards so that theyreflect current operating procedures and to require that proper verification and accounting practices are used consistently. New Onshore Order Number 9 would cover waste prevention and beneficial use. The revisions would ensure that proper roya lties are paid on oil and gas removed from Federal and Trust lands.

 Revising coal-management regulations.

The BLM plans to publish a proposed rule to amend the coal-management regulations that pertain to the administration of Federal coal leases and logical mining units. The rule would primarily implement provisions of the Energy Policy Act of 2005 that pertain to administering coal leases. The rule also would clarify the royalty rate applicable to continuous highwall mining, a new coal-mining method in use on some Federal coal leases.

 Publishing rules on paleontological resources preservation.

The 2009 omnibus public lands law included provisions on permitting for the collection of paleontological resources. The BLM and the National Park Service are co-leads of a team with the U.S. Forest Service that will be drafting a paleontol ogical resources rule. The rule would address the protection of paleontological resources and how BLM w ould permit the collection of these resources. The rule would also address other issues such as administering permits, casual collection of rocks and minerals, hobby collection of common invertebrate plants and fossils, and civil and criminal penalties for violation of these rules.

 Amending rules on royalty rate increases for new Federal Onshore Competitive Oil and Gas Leases.

The BLM will consider amending its oil and gas regulations to set higher royalty rates for new Federal onshore competitive oil and gas leases issued on or a fter the effective date of the rule. This rulewould revise existing regulations by increasing ro yalty rates based on the options set out in the proposed rule.

The Bureau of Ocean Energy Management, Regulation, and Enforcement

The Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) replaced the former Minerals Management Service (MMS). On October 1, 2011, BOEMRE was reorganized and divided into two new Bureaus, under the Assistant Secretary for Land and Minerals Management:

1) The Bureau of Ocean Energy Management (BOEM) now functions as the resource manager for the conventional and renewable energy and mineral reso urces on the OCS. It fosters environmentally responsible and appropriate development of the OCS for both conventional and renewable energy and mineral resources in an efficient and effective manne r that ensures fair market value for the rights conveyed.

2) The Bureau of Safety and Environmental Enforcement (BSEE) applies independent regulation, oversight, and enforcement powers to promote and enforce safety in offshore energy exploration and production operations and ensure that potent ially negative environmental impacts on marine ecosystems and coastal communities are appropriately considered and mitigated.

Our regulatory focus for fiscal year 2012 is di rected by Presidential and legislative priorities that emphasize contributing to America’s energy supply, protecting the environment, and ensuring a fair return for taxpayers for energy producti on from Federal and Indian lands.BOEM’s regulatory priorities are to:

 Finalize Regulations for Leasing of Sulphur or Oil and Gas and Bonding Requirements in the Outer Continental Shelf

This final rule updates and streamlines the existing OCS leasing regulations and clarifies implementation of the Federal Oil and Gas Royalty Si mplification and Fairness Act of 1996. This final rule reorganizes leasing requirements to communicate more effectively the leasing process, as it has evolved over the years. This final rule makes c hanges to 30 CFR parts 250, 256, and 260 that relate to the oil and gas leasing and bonding requirements.

BSEE’s regulatory priorities are to:

 Establish Additional Requirements for Safety Meas ures for Drilling and Other Well Operations for Oil and Gas

This will be an Advance Notice of Proposed Rulemaking to ad dress recommendations from the “Increased Safety Measures for Energy Development on the Outer Continental Shelf” report that were not covered by an Interim Final Rule BOEMRE, BSEE ’s predecessor, publishe d on October 14, 2010. The safety measures recommendations include additional requirements for blowout preventers, remotely operated vehicles, second ary control systems, and cement evaluation techniques. Detailed responses to the questions and ideas posed in this Advance Notice of Proposed Rulemaking would allow BSEE to develop more comp rehensive regulations, if nee ded, and have a better understanding of the impacts.

 Revise Regulations on Safety and Environment al Management Programs for Offshore Operations and FacilitiesThis rulemaking proposes to revise 30 CFR part 250 (subpart S) regulations to require operators to develop and implement additional provisions in t heir Safety and Environmental Management Systems (SEMS) programs for oil, gas, and sulphur operation s in the Outer Continental Shelf (OCS). These revisions pertain to developing and implementing: (1) Stop work authority, (2) ultimate work authority, (3) requiring employee participation in the dev elopment and implementation of SEMS programs, and (4) establishing requirements for reporting unsafe working conditions. In addition, this proposed rule (5) requires independent third parties to conduct audits of operators’ SEMS programs and (6) establishes further requirements relating to c onducting job safety analyses (JSA) for activities identified in an operator’s SEMS program. BSEE be lieves that these new re quirements will further reduce the likelihood of accidents, injuries, and spill s in connection with OCS activities, by requiring OCS operators to specifically address issues associated with human behavior as it applies to their SEMS program.

 Develop additional rules and regulations as a resu lt of ongoing reviews of BSEE’s offshore regulatory regime

Several investigations and reviews of BOEM RE, now BSEE, have been and are being conducted by various agencies and entities–including the Safety Ov ersight Board, the Office of Inspector General, the President’s Deepwater Horizon Commission, t he National Academy of Engineering, and the joint BOEMRE/United States Coast Guard (USCG) investi gation of Deepwater Horizon. Some of these investigations and reviews focus narrowly on the De epwater Horizon explosion; others are broader in focus and include many aspects of the current regulatory system. BSEE expects that recommendations for regulatory changes–both substantive and procedur al–will be generated by these investigations and reviews, and will need to be reviewed, analyzed, and potentially incorporated in new or modified regulations. The Secretary established the Ocean Energy Safety Advisory Committee to provide advice on matters related to drilling and workplace safety, and spill containment and response. This Committee is expected to make recommendations for new or modified regulations.Office of Natural Resources Revenue

The revenue responsibilities of the former MMS now are located in the Office of Natural Resources Revenue (ONRR), which will continue to collect, ac count for, and disburse revenues from Federal offshore energy and mineral leases and from onshore mineral leases on Federal and Indian lands. The program operates nationwide and is primarily responsible for timely and accurate collection, distribution, and accounting for revenues associated with mineral and energy production. The regulatory program of ONRR seeks to:

 Simplify valuation regulations

ONRR plans to simplify the regulations at 30 CFR part 1206 for establishing the value for royalty purposes of (1) oil and natural gas produced from Federal leases; and (2) coal and geothermal resources produced from Federal and Indian leases. Additionally, the proposed rules would consolidate sections of the regulations common to a ll minerals, such as definitions and instructions regarding how a payor should request a valuation determination. ONRR published Advance Notices of Proposed Rulemaking (ANPRMs) to initiate the rulemaking process and to obtain input from interested parties.

 Finalize debt collection regulations

ONRR is preparing regulations governing collection of delinquent royalties, rentals, bonuses, and other amounts due under Federal and Indian oil, gas, and other mineral leases. The regulations would include provisions for administrative offset and would clarify and codify the provisions of the Debt Collection Act of 1982 and the Debt Collection Improvement Act of 1996.

 Continue to meet Indi an trust responsibilitiesONRR has a trust responsibility to accurately collect and disburse oil and gas royalties on Indian lands. ONRR will increase royalty certainty by addressing oil valuation for Indian lands through a negotiated rulemaking process involving key stakeholders.

Office of Surface Mining Reclamation and Enforcement

The Office of Surface Mining Reclamation and Enforcement (OSM) was created by the Surface Mining Control and Reclamation Act of 1977 (SMCRA). Under SMCRA, OSM has two principal functions. They

are:

 The regulation of surface coal mi ning and reclamation operations; and

 The reclamation and restoration of abandoned coal mine lands.

In enacting SMCRA, Congress directed OSM to "strike a balance between protection of the environment and agricultural productivity and the Nation's need for coal as an essential source of energy." In response to its statutory mandate, OSM has sought to develop and maintain a stable regulatory program that is safe, cost-effective, and environmenta lly sound. A stable regulatory program ensures that the coal mining industry has clear guidelines for ope ration and reclamation, and that citizens know how the program is being implemented.

OSM’s Federal regulatory program sets mini mum requirements for obtaining a permit for surface and underground coal mining operations, sets perform ance standards for those operations, requires reclamation of lands and waters disturbed by mi ning, and requires enforcem ent to ensure that the standards are met.

OSM is the primary regulatory authority for SMCRA enforcement until a State or Indian tribe develops its own regulatory program, which is no less effect ive than the Federal program. When a State or Indiantribe achieves “primacy,” it assumes direct resp onsibility for permitting, inspection, and enforcement activities under its federally approved regulatory prog ram. Today, 24 of the 26 coal-producing States have primacy. In the 2006 amendments to SMCRA, Indian tribes with coal resources were provided the opportunity to assume primacy. No tribes have done so to date, although three tribes have expressed an interest in submitting a tribal program.

OSM's regulatory priorities for the coming year will focus on:

 Stream Protection

Protect streams from the adverse effects of surface coal mining operations; and

 Coal Combustion Residues

Establish Federal standards for the beneficial use of coal combustion residues on active and abandoned coal mines.

U.S. Fish and Wildlife Service

The mission of the U.S. Fish and Wildlife Service (FWS) is to work with others to conserve, protect, and enhance fish, wildlife, and plants and their habitats for the continuing benefit of the American people. FWS also helps ensure a healthy environment for pe ople by providing opportunities for Americans to enjoy the outdoors and our shared natural heritage.

FWS fulfills its responsibilities th rough a diverse array of programs that:

 Protect and recover endangered and threatened species;

 Monitor and manage migratory birds; Restore native aquatic populations and nationally significant fisheries;

 Enforce Federal wildlife laws and regulate international trade;

 Conserve and restore wildlife habitat such as wetlands;

 Help foreign governments conserve wildlife through international conservation efforts;

 Distribute Federal funds to States, territories, and tr ibes for fish and wildlife conservation projects;

 and

 Manage the almost 150-million-acre National Wildlife Refuge System, which includes 555

 National Wildlife Refuges and which protects and conserves fish and wildlife and their habitats

 and allows the public to engage in outdoor recreational activities.
Critical challenges to the work of FWS include global climate change; shortages of clean water suitable for wildlife; invasive species that are harmful to our fish, wildlife, and plant resources and their habitats; and the alienation of children and adults from the natural world. To address these challenges, FWS has identified six priorities:

 The National Wildlife Refuge System—c onserving our lands and resources;

 Landscape conservation—working with others;

 Migratory birds—conservation and management;

 Threatened and endangered species—achievi ng recovery and preventing extinction;

 Connecting people with nature—ensuring the future of conservation; and

 Aquatic species—the National Fish Habitat Ac tion Plan (a plan that brings public and private partners together to restore U.S. waterways to sustainable health).
To carry out these priorities, FWS has a large regulatory agenda that will, among other things:

 List, delist, and reclassify species on the Li sts of Endangered and Threatened Wildlife and Plants and designate critical habitat for certain listed species;

 Update our regulations to carry out the Conv ention on International Trade in Wild Fauna and Flora; Manage migratory bird populations;

 Administer the subsistence program for harvest of fish and wildlife in Alaska;

 Update our regulations governing the Wildlife and Sport Fish Restoration Program; and

 Set forth hunting and sport fishing regulations for the National Wildlife Refuge System.

Additionally, FWS is working with the National Oceanic and Atmospheric Administration and the Environmental Protection Agency, via a contract wi th the National Research Council (NRC), to review scientific issues associated with the Federal Insecticide, Fungicide, and Rodenticide Act. Once the NRC’s report is completed, the agencies will wo rk together to develop an approach that produces efficient, scientifically defensible biological evaluations protective of listed species.

Further, the FWS’ Regional Directors and/or Ecol ogical Services State Superv isors or Project leaders will be meeting with their State counterparts to disc uss the role of State agencies in ESA initiatives to enhance their involvement in implementing the ESA’s provisions.

National Park Service

The NPS preserves unimpaired the natural and cultural resources and values within almost 400 units of the National Park System encompassing nearly 84 milli on acres of land s and waters for the enjoyment, education, and inspiration of this and future generati ons. The NPS also cooperates with partners to extend the benefits of natural and resource conservation and outdoor recreation throughout the United States and the world.

To achieve this mission the NPS adh eres to the following guiding principles:

 Excellent Service : Providing the best possible service to park visitors and partners.

 Productive Partnerships : Collaborating with Federal, State, tribal, and local governments, private organizations, and businesses to work toward common goals. Citizen Involvement : Providing opportunities for citizens to participate in the decisions and actions of the National Park Service.

 Heritage Education : Educating park visitors and the general public about their history and common heritage.

 Outstanding Employees : Empowering a diverse workforce commi tted to excellence, integrity, and quality work.

 Employee Development : Providing developmental opportunities and training so employees have the "tools to do the job" safely and efficiently.

 Wise Decisions : Integrating social, economic, environmental, and ethical considerations into the decisionmaking process.

 Effective Management : Instilling a performance management phi losophy that fosters creativity, focuses on result s, and requires accountability at all levels.

 Research and Technology : Incorporating research findings and new technologies to improve work practices, products, and services.

The NPS Division of Regulations and Special Pa rk Uses provides agency coordination for a variety of activities that directly affect the management of vi sitor use and resource protection within the National Park System to carry out this mission. Our regulatory priorities include among other issues: Revising existing regulations pertaining to:

 Commercial Film and Related Activities

 Solid Waste Disposal

 Non-Federal Oil and Natural Gas Rights

 Rights-of-Way Establishing rules related to:

 Collection of Natural Products by Members of Federally Recognized Tribes for Traditional and Cultural Purposes

 Managing Winter Use at Yellowstone NP

 Managing Off Road Vehicle Use and Bicycling Implementation of the Native American Graves Protection and Repatriation Act

 Establishing Standards and Procedures for Disposition of Archeological Materials

Bureau of Reclamation

The Bureau of Reclamation’s mission is to manage, develop, and protect water and related resources in an environmentally and economically sound manner in the interest of the American public. To accomplish this mission, Reclamation employ s management, engineering, and science to achieve effective and environmentally sensitive solutions.

Reclamation projects provide: Irrigation wa ter service, municipal and industrial water supply, hydroelectric power generation, water quality impr ovement, groundwater management, fish and wildlife enhancement, outdoor recreation, flood control, navig ation, river regulation and control, system optimization, and related uses. Reclamation has conti nued to focus on increased security at its facilities.

The Reclamation regulatory program focus in fiscal year 2012 is to ensure that its mission and laws that require regulatory actions are carried out expeditiously, efficiently, and with an emphasis on cooperative problem solving by implementing two newly authorized programs:

 Rural Water Supply Program

Title I of Public Law 109-451 authorizes the esta blishment of a rural water supply program to enable the Bureau of Reclamation to coordinate with rural communities throughout the Western United States to identify their potable water supply needs and evaluate options for meeting those needs. Under the Act, Reclamation is finalizing a rule that will define how it will identify and work with eligible rural communities. Reclamation published an interim final rule on November 17, 2008, and expects to publish a Second Notice of Proposed Rulema king in 2012 that will address comments received from the public. Loan Guarantees

Title II of Public Law 109-451 authorizes the Secretary of the Interior, through the Bureau of Reclamation, to issue loan guarantees to assist in financing: (a) Rural water supply projects, (b) extraordinary maintenance and rehab ilitation of Reclamation project facilities, and (c) improvements to infrastructure directly related to Reclamation pr ojects. This new program will provide an additional funding option to help western communities and water managers to cost effectively meet their water supply and maintenance needs. Under the Act, Reclamation is working with the Office of Management and Budget to publish a rule that will establish criteria for administering the loan guarantee program. Reclamation published a prop osed rule on October 6, 2008, and expects to publish a Second Notice of Proposed Rulemaking in 2012 that will address comments received from the public.