34132 Federal Register / Vol. 86, No. 122 / Tuesday, June 29, 2021 / Rules and Regulations 

1Under existing § 250.1453(a), BSEE may initially 

impose civil penalties of up to $500 per day for 

each violation of FOGRMA that is not corrected 

within 20 days of receipt of a NONC identifying the 

violation. Under existing § 250.1453(b), BSEE may 

increase the MDCP amount up to $5,000 per day for 

each violation not corrected within 40 days of the 

NONC. In addition, under existing § 250.1460(a) 

and (b), BSEE may impose penalties, without prior 

notice, of up to $10,000 or $25,000 per day, 

respectively, for the FOGRMA violations specified 

in those provisions. 

2Specifically, ONRR amended 30 CFR 

1241.52(a)(2) to authorize civil penalties of up to 

$1,288 per day for each violation of FOGRMA that 

is not corrected within 20 days of receipt of a 

NONC identifying the violation. See 86 FR 7808, 

7810. Under the amended 30 CFR 1241.52(b), 

ONRR may impose civil penalties of up to $12,891 

per day for each violation that is not corrected 

within 40 days of receipt of the NONC. Finally, 

ONNR amended 30 CFR 1241.60(b)(1) and (b)(2) to 

authorize imposition of penalties, without prior 

notice, of up to $25,780 or $64,452 per day, 

respectively, for certain specified violations of 

FOGRMA. Id. 

DEPARTMENT OF THE INTERIOR 

Bureau of Safety and Environmental 

Enforcement 

30 CFR Part 250 

[Docket ID: BSEE–2021–0002; EEE500000 

21XE1700DX EX1SF0000.EAQ000] 

RIN 1014–AA43 

Oil and Gas and Sulfur Operations on 

the Outer Continental Shelf—Maximum 

Daily Civil Penalty Amounts for 

Violations of the Federal Oil and Gas 

Royalty Management Act 

AGENCY: Bureau of Safety and 

Environmental Enforcement, Interior. 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

Bureau of Safety and Environmental 

Enforcement (BSEE) regulations that set 

Maximum Daily Civil Penalty (MDCP) 

amounts for violations of the Federal Oil 

and Gas Royalty Management Act 

(FOGRMA). The amended BSEE 

regulations will cross-reference 

regulations of the Office of Natural 

Resources Revenue (ONRR) that also set 

MDCP amounts for FOGRMA violations. 

This cross-reference will ensure 

consistency between BSEE’s FOGRMA 

MDCP amounts and ONRR’s FOGRMA 

MDCP amounts. It will also ensure 

consistent compliance with the Federal 

Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015 (FCPIAAIA 

of 2015) and related Office of 

Management and Budget (OMB) 

guidance, while reducing unnecessary 

duplication of effort and costs to the 

agency. 

DATES: This rule is effective on June 29, 

2021. 

FOR FURTHER INFORMATION CONTACT: Kirk 

Malstrom, Bureau of Safety and 

Environmental Enforcement, Office of 

Offshore Regulatory Programs, 

Regulations and Standards Branch at 

(202) 258–1518 or by email: regs@

bsee.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background and Legal Authority 

On November 2, 2015, the FCPIAAIA 

of 2015, Public Law 114–74, section 701 

(codified at 28 U.S.C. 2461 note) became 

law. The FCPIAAIA of 2015 required 

Federal agencies to adjust the level of 

civil monetary penalties imposed under 

each agency’s regulations with an initial 

‘‘catch-up’’ adjustment through 

rulemaking, if warranted, and then to 

make subsequent annual adjustments 

for inflation. Under the FCPIAAIA of 

2015, agencies were required to publish 

the initial annual inflation adjustments 

in the Federal Register by no later than 

January 15, 2017 and are required to 

publish annual adjustments by no later 

than January 15th of each subsequent 

year. The purpose of these adjustments 

is to maintain the deterrent effect of 

civil penalties and to further the policy 

goals of the underlying statutes that 

authorized the penalties. 

BSEE has authority to impose civil 

penalties for violations of the Outer 

Continental Shelf Lands Act, 43 U.S.C. 

1331–1356a (OCSLA). BSEE regulations 

implementing its authority to impose 

civil penalties under OCSLA are found 

at 30 CFR 250.1400–250.1409. In 

addition, BSEE has authority to impose 

civil penalties for violations of 

FOGRMA, 30 U.S.C. 1701 et seq., under 

section 109 of that Act (30 U.S.C. 1719). 

BSEE’s regulations implementing its 

authority to impose penalties under 

FOGRMA are found at 30 CFR 

250.1450–250.1456, 250.1460–250.1464, 

and 250.1470–250.1477. Specifically, 

BSEE may impose civil penalties under 

FOGRMA—after providing a Notice of 

Noncompliance (NONC) and an 

opportunity to correct the violation(s)— 

for noncompliance with any applicable 

statute, regulation, order, or lease term 

relating to any Federal oil or gas lease. 

See 30 CFR 250.1451. BSEE may also 

impose penalties under FOGRMA, 

without providing prior notice or an 

opportunity to correct the violation, for 

certain knowing or willful violations of 

the substantive provisions of FOGRMA 

(e.g., failure or refusal to permit lawful 

entry, inspection, or audit; knowing or 

willful submission of false or 

misleading information). See id. at 

§ 250.1460. 

Sections 250.1453 and 250.1460 of 

BSEE’s existing regulations specify the 

MDCP amounts, as prescribed by 

section 109 of FOGRMA (30 U.S.C. 

1719), for the violations described in 

sections 250.1451, 250.1453, and 

250.1460.1 As required by the 

FCPIAAIA of 2015, however, BSEE’s 

FOGRMA civil penalty amounts must be 

adjusted annually for inflation. 

Within the Department of the Interior 

(the Department), ONRR is the agency 

responsible for collecting revenue from 

energy leases and auditing royalty 

payments under FOGRMA. Like BSEE, 

ONRR also has authority to impose civil 

penalties for certain violations of 

FOGRMA. ONRR’s civil penalty 

regulations are found in 30 CFR part 

1241. As required by the FCPIAAIA of 

2015, ONRR also must annually adjust, 

for inflation, the MDCP amounts in its 

regulations for FOGRMA violations. 

ONRR published such a final rule for 

calendar year 2017 on April 24, 2017, 

adjusting the MDCP amounts in 30 CFR 

part 1241 for FOGRMA violations. See 

82 FR 18858. Each year since, ONRR has 

calculated and adjusted the MDCP 

amounts in 30 CFR part 1241 in 

accordance with the FCPIAAIA of 2015. 

On February 2, 2021, ONRR published 

the final rule adjusting the MDCP 

amounts in 30 CFR part 1241 for 

calendar year 2021. See 86 FR 7808.2

Because FOGRMA sets the MDCP 

amounts for penalties assessed by BSEE 

and ONRR for violations of FOGRMA, 

and the FCPIAAIA of 2015 uniformly 

applies to require adjustments to the 

civil penalties that may be assessed by 

both agencies as calculated from the 

same base year, BSEE’s FOGRMA MDCP 

amounts must be the same as ONRR’s 

FOGRMA MDCP amounts. 

II. Changes Made to Existing BSEE 

Regulations 

BSEE is amending §§ 250.1453 and 

250.1460 of its FOGRMA civil penalty 

regulations in order to cross-reference 

the ONRR civil penalty regulations in 30 

CFR part 1241. By cross-referencing the 

ONRR regulations, BSEE’s MDCP 

amounts for FOGRMA violations will be 

the same as ONRR’s MDCP amounts, 

ensuring ongoing consistency within the 

Department as ONRR adjusts the 

FOGRMA MDCP amounts annually for 

inflation. In addition, this rule will 

avoid the duplication of effort and 

unnecessary expenditures within the 

Department that would occur if both 

BSEE and ONRR were to develop and 

publish separate final rules every year 

adjusting their corresponding FOGRMA 

MDCP amounts. 


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Federal Register / Vol. 86, No. 122 / Tuesday, June 29, 2021 / Rules and Regulations 34133 

III. Administrative Procedure Act 

Requirements 

In general, an agency must first 

publish a proposed rule, to provide 

prior notice and an opportunity for 

public comment, before adopting a final 

rule. However, no such proposal is 

necessary for this final rule. Section 

4(b)(2) of the FCPIAAIA of 2015 states 

that agencies shall adjust civil monetary 

penalties ‘‘notwithstanding Section 553 

of the Administrative Procedure Act.’’ 

In this manner, Congress exempted the 

annual inflation adjustments 

implemented pursuant to the FCPIAAIA 

of 2015 from the notice and comment 

requirements of the Administrative 

Procedure Act, 5 U.S.C. 551 et seq. (the 

APA), allowing agencies to publish 

FCPIAAIA adjustments as final rules 

without prior proposed rules. 

This interpretation of the APA’s 

application to FCPIAAIA of 2015 is 

confirmed by the most recent annual 

guidance issued by OMB Memorandum 

on December 23, 2020, in Memorandum 

M–21–10, Implementation of Penalty 

Inflation Adjustments for 2021, 

Pursuant to the FCPIAAIA of 2015, 

OMB Memorandum M–21–10 (M–21– 

10), available at https://

www.whitehouse.gov/wp-content/ 

uploads/2020/12/M-21-10.pdf). OMB 

Memorandum M–21–10 explains the 

agency responsibilities under the 

FCPIAAIA of 2015 as: Identifying 

applicable penalties and performing the 

annual adjustment; publishing revisions 

to regulations to implement the 

adjustment in the Federal Register; 

applying adjusted penalty levels; and 

performing agency oversight of inflation 

adjustments. As stated in that 

Memorandum, ‘‘the public procedure 

the APA generally requires—notice, an 

opportunity for comment, and a delay in 

effective date—is not required for 

agencies to issue regulations 

implementing the annual adjustment.’’ 

OMB M–21–10 at p. 3. 

In addition, section 553(b) of the APA 

provides that an opportunity for notice 

and comment on a proposed rule is not 

required when an agency finds, for good 

cause, that prior notice and public 

procedure are impracticable, 

unnecessary, or contrary to the public 

interest. BSEE finds that it is 

unnecessary to issue a proposed rule 

prior to this final rule because the 

FCPIAAIA of 2015 does not leave any 

discretion to BSEE—specifying the 

adjustments to be made, the 

methodology to be employed, and the 

index for inflation to be utilized—and 

that BSEE thus cannot choose to take a 

different course in response to 

comments. 

Section 553(b) also provides that the 

requirement for notice and comment 

does not apply to ‘‘rules of agency, 

organization, procedure, or practice.’’ 

BSEE’s decision to address the civil 

penalty adjustment required by the 

FCPIAAIA by cross-referencing ONRR 

regulations, subject to the same 

standards for adjustment, rather than 

annually amending the FOGRMA 

penalties in each affected BSEE 

regulation, is an exercise of procedural 

rulemaking, which primarily concerns 

BSEE’s internal operations. Here, BSEE 

is organizing its internal procedures to 

meet its own legal duties. Moreover, 

while notice and comment is required 

for rules that affect rights or duties of 

the public, BSEE’s reliance on crossreferencing does not affect the rights of 

any regulated parties because the civil 

penalty amount will be the same 

regardless of whether those amounts are 

cross-referenced to ONRR’s regulations. 

ONRR must calculate and adjust the 

MDCP amounts in 30 CFR part 1241 

annually in accordance with the 

FCPIAAIA of 2015 and related OMB 

guidance, just as BSEE must do. 

IV. Procedural Requirements 

A. Regulatory Planning and Review 

(E.O. 12866 and 13563) 

Executive Order (E.O.) 12866 provides 

that the OMB Office of Information and 

Regulatory Affairs (OIRA) will review 

all significant rules. OIRA has 

determined that this rule is not 

significant. OMB M–18–03 at 3. 

E.O. 13563 reaffirms the principles of 

E.O. 12866 while calling for 

improvements in the nation’s regulatory 

system to promote predictability, to 

reduce uncertainty, and to use the best, 

most innovative, and least burdensome 

tools for achieving regulatory ends. E.O. 

13563 directs agencies to consider 

regulatory approaches that reduce 

burdens and maintain flexibility and 

freedom of choice for the public where 

these approaches are relevant, feasible, 

and consistent with regulatory 

objectives. E.O. 13563 further 

emphasizes that regulations must be 

based on the best available science and 

that the rulemaking process must allow 

for public participation and an open 

exchange of ideas. We have developed 

this rule in a manner consistent with 

these requirements, to the extent 

permitted by statute. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

requires an agency to prepare a 

regulatory flexibility analysis for all 

rules unless the agency certifies that the 

rule will not have a significant 

economic impact on a substantial 

number of small entities. The RFA 

applies only to rules for which an 

agency is required to first publish a 

proposed rule. (See 5 U.S.C. 603(a) and 

604(a)). For the reasons discussed in 

part III of this notice, BSEE is not 

required to publish a proposed rule 

prior to this final rule. Thus, 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: 

(1) Does not have an annual effect on 

the economy of $100 million or more. 

(2) Will not cause a major increase in 

costs or prices for consumers, 

individual industries, Federal, State, or 

local government agencies, or 

geographic regions. 

(3) Does 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. 

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. The 

rule does not have a significant or 

unique effect on State, local, or tribal 

governments or the private sector. 

Therefore, a statement containing the 

information required by the Unfunded 

Mandates Reform Act (2 U.S.C. 1531 et 

seq.) is not required. 

E. Takings (E.O. 12630) 

This rule does not affect a taking of 

private property or otherwise have 

takings implications under E.O. 12630. 

Therefore, a takings implication 

assessment is not required. 

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. This rule will not 

substantially and directly affect the 

relationship between the Federal and 

State governments. To the extent that 

State and local governments have a role 

in OCS activities, this rule will not 

affect that role. Therefore, a federalism 

summary impact statement is not 

required. 

G. Civil Justice Reform (E.O. 12988) 

This rule complies with the 

requirements of E.O. 12988. 

Specifically, this rule: 


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34134 Federal Register / Vol. 86, No. 122 / Tuesday, June 29, 2021 / Rules and Regulations 

(1) Meets the criteria of section 3(a) 

requiring that all regulations be 

reviewed to eliminate errors and 

ambiguity and be written to minimize 

litigation; and 

(2) Meets the criteria of section 3(b)(2) 

requiring that all regulations be written 

in clear language and contain clear legal 

standards. 

H. Consultation With Indian Tribes 

(E.O. 13175 and Departmental Policy) 

The Department 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. We evaluated this rule 

under the Department’s consultation 

policy, under Departmental Manual Part 

512 Chapters 4 and 5, and under the 

criteria in E.O. 13175. We determined 

that this rule has no substantial direct 

effects on Federally-recognized Indian 

tribes or Alaska Native Claims 

Settlement Act (ANCSA) Corporations, 

and that consultation under the 

Department’s tribal and ANCSA 

consultation policies is not required. 

I. Paperwork Reduction Act 

This rule does not contain 

information collection requirements, 

and a submission to the OMB under the 

Paperwork Reduction Act (44 U.S.C. 

3501 et seq.) is not required. 

J. National Environmental Policy Act 

This rule does not constitute a major 

Federal action significantly affecting the 

quality of the human environment. A 

detailed statement under the National 

Environmental Policy Act of 1969 

(NEPA) is not required because the rule 

is covered by a categorical exclusion 

(see 43 CFR 46.210(i)). This rule is 

excluded from the requirement to 

prepare a detailed statement because it 

is a regulation of an administrative 

nature. BSEE also determined that the 

rule does not implicate any of the 

extraordinary circumstances listed in 43 

CFR 46.215 that would require further 

NEPA analysis. 

K. Effects on the Energy Supply (E.O. 

13211) 

This rule is not a significant energy 

action under the definition in E.O. 

13211. Therefore, a Statement of Energy 

Effects is not required. 

List of Subjects in 30 CFR Part 250 

Administrative practice and 

procedure, Continental shelf, 

Continental Shelf—mineral resources, 

Continental Shelf—rights-of-way, 

Environmental impact statements, 

Environmental protection, Government 

contracts, Investigations, Oil and gas 

exploration, Penalties, Pipelines, 

Reporting and recordkeeping 

requirements, Sulfur. 

Laura Daniel-Davis, 

Principal Deputy Assistant Secretary, Land 

and Minerals Management. 

For the reasons given in the preamble, 

the Bureau of Safety and Environmental 

Enforcement amends title 30, chapter II, 

subchapter B, part 250 Code of Federal 

Regulations as follows. 

PART 250—OIL AND GAS AND 

SULFUR OPERATIONS IN THE OUTER 

CONTINENTAL SHELF 

■ 1. The authority citation for part 250 

continues to read as follows: 

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

33 U.S.C. 1321(j)(1)(C), 43 U.S.C. 1334. 

■ 2. Revise § 250.1453 to read as 

follows: 

§ 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 for each 

day, beginning with the date of the 

Notice of Noncompliance, for each 

violation identified in the Notice of 

Noncompliance for as long as you do 

not correct the violation. The maximum 

civil penalty amount for each day of 

such an uncorrected violation is as 

specified in 30 CFR 1241.52(a)(2). 

(b) If you do not correct all of the 

violations identified in the Notice of 

Noncompliance within 40 days after 

you receive the Notice of 

Noncompliance (or 20 days following 

the expiration of a longer time period 

specified in that Notice), we may 

increase the penalty for each day, 

beginning with the date of the Notice of 

Noncompliance, for each violation for as 

long as you do not correct the 

violations. The maximum civil penalty 

amount for each day of such an 

uncorrected violation is as specified in 

30 CFR 1241.52(b). 

■ 3. Revise § 250.1460 to read as 

follows: 

§ 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 civil penalties up to the 

maximum amount specified in 30 CFR 

1241.60(b)(1) for each violation for each 

day that it 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 up to the 

maximum amount specified in 30 CFR 

1241.60(b)(2) for each violation for each 

day that it continues if you: 

(1) Knowingly or willfully prepare, 

maintain, or submit false, inaccurate, or 

misleading reports, notices, affidavits, 

records, data, or other written 

information; 

(2) 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. 

[FR Doc. 2021–13805 Filed 6–28–21; 8:45 am] 

BILLING CODE 4310–VH–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2021–0379] 

RIN 1625–AA00 

Safety Zone; Lake Charles, Lake 

Charles, LA 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone for 

all navigable waters of Lake Charles 

west of 93°13′51.2′′ W, east of 93°14′8.3′′ 

W, and extending 500 yards south from 

the northern shore of Lake Charles. This 

safety zone is necessary to protect 

persons and vessels from hazards 

associated with a Pro Watercross event 

on August 28 and 29, 2021 in Lake 

Charles, LA. This regulation prohibits 

persons and vessels from being in the 


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