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 Department of the Interior Office of Natural Resources Revenue 30 CFR Part 1241
[Docket No. ONRR-2021-0002; DS63644000 DRT000000.CH7000 223D1113RT]
RIN 1012-AA31
 AGENCY: Office of Natural Resources Revenue (“ONRR”), Interior.
 ACTION: Final rule.
 SUMMARY: ONRR is adjusting for inflation the civil monetary penalty (“CMP”) amounts it assesses under the Federal Oil and Gas Royalty Management Act of 1982 (“FOGRMA”).
 DATES: This rule is effective on January 12, 2022.
 FOR FURTHER INFORMATION CONTACT: For questions on procedural issues, contact Luis Aguilar, Regulatory Specialist, by telephone at (303) 231-3148 or email to 
                        *ONRR_RegulationsMailbox@onrr.gov.*
                         For questions on technical issues, contact Michael Marchetti, Enforcement Program Manager, by telephone at (303) 231-3125 or email to 
                        *Michael.Marchetti@onrr.gov.*


SUPPLEMENTARY INFORMATION: I. Background II. ONRR's Inflation-Adjusted Maximum Rates III. Procedural Matters A. Regulatory Planning and Review (Executive Orders 12866 and 13563) B. Regulatory Flexibility Act C. Small Business Regulatory Enforcement Fairness Act D. Unfunded Mandates Reform Act E. Takings (Executive Order 12630) F. Federalism (Executive Order 13132) G. Civil Justice Reform (Executive Order 12988) H. Consultation With Indian Tribes (Executive Order 13175) I. Paperwork Reduction Act J. National Environmental Policy Act K. Effects on the Energy Supply (Executive Order 13211) L. Clarity of This Regulation M. Administrative Procedure Act I. Background The Secretary of the Interior (“Secretary”) is authorized, under 30 U.S.C. 1719(a)-(d), to assess CMPs for royalty reporting and other violations. Pursuant to authority delegated to it by the Secretary, ONRR published regulations at 30 CFR part 1241 implementing the Secretary's CMP authority. The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114-74) (the “2015 Act”) (collectively referred to herein as the “Inflation Adjustment Acts”) require Federal agencies to publish annual CMP inflation adjustments in the 
                    **Federal Register**
                     by January 15th of each year. The Inflation Adjustment Acts and Office of Management and Budget (“OMB”) Memorandum No. M-22-07, Implementation of Penalty Inflation Adjustments for 2022, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, December 15, 2021 (“OMB Memorandum”) specify that, for purposes of this rule, the annual inflation adjustments are based on the percent change between the Consumer Price Index for all Urban Consumers (“CPI-U”) published by the Department of Labor for October 2021 (October of the year in which ONRR's last CMP adjustment was published), and October 2020. The OMB Memorandum further specifies that the cost-of-living adjustment multiplier for 2022, not seasonally adjusted, is 1.06222 for CY 2022 (the October 2021 CPI-U (276.589) divided by the October 2020 CPI-U (260.388) = 1.06222). ONRR used this guidance to calculate required inflation adjustments. Pursuant to the Inflation Adjustment Acts and OMB Memorandum, any increases in CMPs are rounded to the nearest whole dollar and the new maximum penalty rates apply to CMPs assessed after the date the increase takes effect. II. ONRR's Inflation-Adjusted Maximum Rates This final rule increases the maximum CMP dollar amounts for each of the four violation categories identified in 30 U.S.C. 1719(a)-(d) and implemented by 30 CFR part 1241. The following table identifies the applicable ONRR regulations, the dollar amounts set forth in the regulations, and the adjusted amounts. 30 CFR citation
Current
                             maximum 
                             penalty
2022
                             Inflation 
                             adjustment 
                             multiplier
2022
                             Adjusted 
                             maximum 
                             penalty1241.52(a)(2)
$1,288
1.06222
$1,3681241.52(b)
12,891
1.06222
13,6931241.60(b)(1)
25,780
1.06222
27,384( print page 1672)1241.60(b)(2)
64,452
1.06222
68,462
 III. Procedural Matters A. Regulatory Planning and Review (Executive Orders 12866 and 13563) Executive Order (“E.O.”) 12866 provides that the Office of Information and Regulatory Affairs (“OIRA”) in the OMB will review all significant rules. OIRA has determined that agency regulations intended only to implement the annual inflation adjustments are not significant, provided they are consistent with the OMB Memorandum. Because ONRR is only implementing the annual inflation adjustments in this final rule, this rule is not significant under E.O. 12866. E.O. 13563 reaffirms the principles of E.O. 12866, while calling for improvements in the United States' regulatory system to promote predictability, to reduce uncertainty, and to use the most innovative and least burdensome tools for achieving regulatory ends. E.O. 13563 directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. E.O. 13563 emphasizes that regulations must be based on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. ONRR developed this rule in a manner consistent with these requirements. B. Regulatory Flexibility Act This rule will not have a significant economic effect on a substantial number of small entities under the Regulatory Flexibility Act (“RFA”), 5 U.S.C. 601, 
                    *et seq.,*
                     because the rule only makes an adjustment for inflation. The 2015 Act requires agencies to adjust CMPs with an annual inflation adjustment. Therefore, the RFA does not apply to this rulemaking. C. Small Business Regulatory Enforcement Fairness Act This rule is not a major rule under 5 U.S.C. 804(2), the Small Business Regulatory Enforcement Fairness Act. This rule: (a) Does not have an annual effect on the economy of $100 million or more; (b) Will not cause a major increase in costs or prices for consumers; individual industries; Federal, State, local government agencies; or geographic regions; and (c) Does not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of United States-based enterprises to compete with foreign-based enterprises. D. Unfunded Mandates Reform Act This rule does not impose an unfunded mandate on State, local, or Tribal governments or the private sector of more than $100 million per year. This rule does not have a significant or unique effect on State, local, or Tribal governments or the private sector. Therefore, ONRR is not required to provide a statement containing the information that the Unfunded Mandates Reform Act (2 U.S.C. 1531, 
                    *et seq.*) requires because this rule is not an unfunded mandate. E. Takings (E.O. 12630) This rule does not result in a taking of private property or otherwise have takings implications under E.O. 12630. Therefore, this rule does not require a takings implication assessment. F. Federalism (E.O. 13132) Under the criteria in section 1 of E.O. 13132, this rule does not have sufficient Federalism implications to warrant the preparation of a Federalism summary impact statement. G. Civil Justice Reform (E.O. 12988) This rule complies with the requirements of E.O. 12988. Specifically, this rule: (a) Meets the criteria of section 3(a), which requires that ONRR review all regulations to eliminate errors and ambiguity and to write them to minimize litigation; and (b) Meets the criteria of section 3(b)(2), which requires that ONRR write all regulations in clear language, using clear legal standards. H. Consultation With Indian Tribal Governments (E.O. 13175) The Department of the Interior (“DOI”) strives to strengthen its government-to-government relationship with Indian Tribes through a commitment to consultation with Indian Tribes and recognition of their right to self-governance and Tribal sovereignty. Under the DOI's consultation policy and the criteria in E.O. 13175, ONRR evaluated this rule and determined that it will have no substantial, direct effects on Federally recognized Indian Tribes and does not require consultation. I. Paperwork Reduction Act This rule: (a) Does not contain any new information collection requirements; and (b) Does not require a submission to OMB under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, 
                    *et seq.*). 
                    *See*5 CFR 1320.4(a)(2). J. National Environmental Policy Act of 1969 (“NEPA”) This rule does not constitute a major Federal action significantly affecting the quality of the human environment. ONRR is not required to provide a detailed statement under NEPA because this rule qualifies for categorical exclusion under 43 CFR 46.210(i) in that this rule is “. . . of an administrative, financial, legal, technical, or procedural nature . . . .” ONRR also has determined that this rule is not involved in any of the extraordinary circumstances listed in 43 CFR 46.215 that would require further analysis under NEPA. K. Effects on the Energy Supply (E.O. 13211) This rule is not a significant energy action under the definition in E.O. 13211 and, therefore, does not require a Statement of Energy Effects. L. Clarity of This Regulation ONRR is required by E.O. 12866 (section 1(b)(12)), E.O. 12988 (section 3(b)(1)(B)), and E.O. 13563 (section 1(a)), and by the Presidential Memorandum of June 1, 1998, to write all rules in plain language. This means that each rule ONRR publishes must: (a) Be logically organized; (b) Use the active voice to address readers directly; (c) Use common, everyday words and clear language rather than jargon; (d) Be divided into short sections and sentences; and (e) Use lists and tables wherever possible; If you feel that ONRR has not met these requirements, send your 
                    ( print page 1673)
                    comments to Luis Aguilar, Regulatory Specialist at 
                    *ONRR_RegulationsMailbox@onrr.gov.*
                     Your comments should be as specific as possible. For example, you should identify the number of the sections or paragraphs that you find unclear, which sections or sentences are too long, the sections where you feel lists or tables would be useful, etc. M. Administrative Procedure Act (APA) The Inflation Adjustment Acts require agencies to publish annual inflation adjustments by January 15 of each year, notwithstanding section 553 of the APA. OMB has interpreted this direction to mean that the usual APA public procedure for rulemaking—which includes public notice of a proposed rule, an opportunity for public comment, and a delay in the effective date of a final rule—is not required when agencies issue regulations to implement the annual adjustments to CMPs required by the 2015 Act. 
                    *See*
                     OMB Memorandum, M-22-07, at page 3-4. Accordingly, ONRR is issuing the 2022 annual adjustments as a final rule without prior notice or an opportunity for comment and with an effective date immediately upon publication in the 
                    **Federal Register**
                    . Kimbra G. Davis, Director for the Office of Natural Resources Revenue.
 List of Subjects in 30 CFR Part 1241 Administrative practice and procedure
Penalties
 Administrative practice and procedure, Coal, Geothermal energy, Indian—lands, Mineral royalties, Natural gas, Oil and gas exploration, Penalties, Public lands—mineral resources. Authority and Issuance For the reasons discussed in the preamble, ONRR amends 30 CFR part 1241 as set forth below: PART 1241—PENALTIES
 1.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.* § 1241.52
 2.Amend § 1241.52: a.In paragraph (a)(2), by removing “$1,288” and adding in its place “$1,368”. b.In paragraph (b) introductory text, by removing “$12,891” and adding in its place “$13,693”. § 1241.60
 3.Amend § 1241.60: a.In paragraph (b)(1) introductory text, by removing “$25,780” and adding in its place “$27,384”. b.In paragraph (b)(2), by removing “$64,452” and adding in its place “$68,462”.


[FR Doc. 2022-00165 Filed 1-11-22; 8:45 am] BILLING CODE 4335-30-P