Federal Register / Vol. 66, No. 101 / Thursday, May 24, 2001 / Rules and Regulations 28655

Subchapter B

As noted above, Subchapter A of the

regulations requires institutions subject

to Subchapter A (i.e., government

securities brokers and dealers and

exempt institutions) to also comply with

the rules in Subchapter B. In addition,

under Title II of the GSA (31 U.S.C.

3121(h), 9110) depository institutions

that are not government securities

brokers or dealers and that hold

government securities for the account of

customers must comply with the rules

prescribed by Treasury in 17 CFR,

subchapter B, part 450. Thus, there are

three categories of institutions that must

follow the rules in subchapter B—(a)

financial institution government

securities brokers and dealers (as

required by the rules in Subchapter A),

and (b) exempt financial institutions

(also as required by the rules in

Subchapter A), and (c) depository

institutions that are not government

securities brokers or dealers and that

hold government securities for the

account of customers.

Because two of these categories of

institutions ((a) and (b)) are based on

one statutory authority (Title I of the

GSA), and the third category ((c)) is

based on another statutory authority

(Title II of the GSA), we are changing

the definition of ‘‘government

securities’’ in § 450.2(e) to take this into

account. Section 450.2(e)(1), the

definition applicable to institutions that

are required under the rules in

subchapter A to follow the subchapter B

rules, will now include qualified

Canadian government obligations.

Section 450.2(e)(2) of the definition is

narrower and does not include qualified

Canadian government obligations. It is

applicable to institutions that are

required to follow the Subchapter B

rules solely because of the requirements

of Title II of the GSA.

Therefore, for institutions required to

follow the rules in Subchapter B as a

result of the requirements of subchapter

A, § 450.2(e)(1)(i) and (e)(1)(ii) will

extend the requirements of subchapter B

to institutions holding qualified

Canadian government obligations for

customer accounts.

The G–L–B Act was enacted on

November 12, 1999. The effective date

of Subtitle A of Title II of the G–L–B Act

is 18 months after enactment, or May

12, 2001. To minimize the period during

which the amended regulation is not in

effect and to encourage timely

compliance by entities that may now be

subject to our regulations, Treasury

finds good cause exists as required

under the Administrative Procedures

Act (5 U.S.C. 553(d)) to make this final

amendment to the GSA regulations

effective on May 24, 2001.

Special Analysis

The final rule only makes a technical

amendment to the GSA regulations to

conform to a change in definition of the

term ‘‘government securities’’ made by

the G–L–B Act. Therefore, the final rule

is not a ‘‘significant regulatory action’’

for the purposes of Executive Order

12866.

For the same reason it is hereby

certified pursuant to the Regulatory

Flexibility Act (5 U.S.C. 601, et. seq)

that this final rule will not have a

significant economic impact on a

substantial number of small entities.

Accordingly, a regulatory flexibility

analysis is not required.

List of Subjects in 17 CFR Part 450

Banks, banking, Government

securities, Reporting and recordkeeping

requirements.

For the reasons stated in the

preamble, we amend 17 CFR part 450 as

follows:

PART 450—CUSTODIAL HOLDINGS

OF GOVERNMENT SECURITIES BY

DEPOSITORY INSTITUTIONS

1. The authority citation for Part 450

is revised to read as follows:

Authority: Sec. 201, Pub. L. 99–571, 100

Stat. 3222–23 (31 U.S.C. 3121, 9110); Sec.

101, Pub. L. 99–571, 100 Stat. 3208 (15 U.S.C.

78o-5(b)(1)(A), (b)(4), (b)(5)(B)).

2. Section 450.2 is amended by

revising paragraph (e) to read as follows:

§ 450.2 Definitions

* * * * *

(e) Government securities means:

If . . . Then . . .

(1)(i) A depository institution is a government securities broker and

dealer as defined in sections 3(a)(43) and 3(a)(44) of the Securities

Exchange Act of 1934 (15 U.S.C. 78c(a)(43)–(44)).

‘‘Government securities’’ means those obligations described in subparagraphs (A), (B), (C), or (E) of section 3(a)(42) of the Securities

Exchange Act of 1934 (15 U.S.C. 78c(a)(42)(A)–(C), (E))

(ii) A depository institution is exempt under Part 401 of this chapter

from the requirements of Subchapter A.

‘‘Government securities’’ means those obligations described in subparagraphs (A), (B), (C), or (E) of section 3(a)(42) of the Securities

Exchange Act of 1934 (15 U.S.C. 78c(a)(42)(A)–(C), (E))

(2) A depository institution is not a government securities broker or

dealer as defined in sections 3(a)(43) and 3(a)(44) of the Securities

Exchange Act of 1934 (15 U.S.C. 78c(a)(43)–(44)).

‘‘Government securities’’ means those obligations described in subparagraphs (A), (B), or (C) of section 3(a)(42) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(42)(A)–(C))

* * * * *

Dated: May 18, 2001.

Donald V. Hammond,

Acting Under Secretary, Domestic Finance.

[FR Doc. 01–13138 Filed 5–23–01; 8:45 am]

BILLING CODE 4810–39–P

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 208

RIN 1010–AC70

Small Refiner Administrative Fee

AGENCY: Minerals Management Service,

Interior.

ACTION: Final rule.

SUMMARY: The Minerals Management

Service (MMS) is eliminating the cost

recovery fees it charges small refiners to

participate in the Small Refiner Royaltyin-Kind (RIK) Program. MMS believes

these fees are no longer justified under

the requirements of the Office of

Management and Budget (OMB)

Circular No. A–25.

EFFECTIVE DATE: This rule is effective

June 25, 2001.

FOR FURTHER INFORMATION CONTACT: Paul

A. Knueven, Chief, Regulations and

FOIA Team, Minerals Management

Service, Minerals Revenue Management,

P.O. Box 25165, MS 320B2, Denver,

Colorado 80225–0165; telephone (303)

28656 Federal Register / Vol. 66, No. 101 / Thursday, May 24, 2001 / Rules and Regulations

231–3151; FAX (303) 231–3385; e-mail

Carol.Shelby@mms.gov.

SUPPLEMENTARY INFORMATION: The

principal authors of this final rule are

Larry Cobb, Royalty in Kind, Minerals

Revenue Management, MMS, and Sarah

L. Inderbitzin of the Office of the

Solicitor, Department of the Interior.

I. Background

On September 26, 2000, MMS

published a proposed rulemaking in the

Federal Register (65 FR 57771) in which

we proposed to remove the regulatory

requirement to charge small refiners a

fee to recover the costs of administering

the small refiner RIK program (30 CFR

208.4(b)(4)). We reasoned that because

of new competitive procedures for

selling RIK oil, MMS receives market

value for the oil. When the Government

sells personal property under businesstype conditions, user charges are based

on market price and yield net revenues

above the bureau’s costs. Consequently,

MMS is in compliance with the

requirements in OMB Circular A–25 and

does not need to assess a separate cost

recovery fee for the small refiner RIK

program.

MMS received one comment in

response to our proposed rulemaking. A

major oil company asked us to address

an apparent inconsistency between

language in the proposed rulemaking

and the general provisions of the

recently-promulgated Federal crude oil

royalty valuation rule (65 FR 14022,

March 15, 2000). The comment quoted

a sentence from the proposed

rulemaking: ‘‘The market-based prices

are applicable spot market prices, with

appropriate location, quality, and

market-value adjustments for a

particular area.’’ (65 FR at 57771) The

commenter argued that this allegedly

was in contrast to the Federal crude oil

rule which, the commenter asserted,

allows no additional adjustments above

transportation and quality.

MMS believes there is no

inconsistency between the pricing

mechanism used by the small refiner

program and the valuation requirements

under the Federal crude oil rule. In both

cases, if spot market index prices are

used, adjustments for both location and

quality are permitted, which account for

the difference in value between the

lease and the market center where the

spot price is published. Accordingly, we

believe the small refiner program and

the Federal crude oil rule methodologies

are consistent.

II. Procedural Matters

1. Summary Cost and Benefit Data

This final rule eliminates the fee

charged small refiners to recover the

costs of administering the small refiner

RIK program. This rule imposes the

following costs and benefits to the four

groups affected by MMS regulations:

industry, state and local governments,

Indian tribes and allottees, and the

Federal Government. The cost and

benefit information in this Item 1 of

Procedural Matters is used as the basis

for the Departmental certifications in

Items 2–11.

A. Industry

Small refiners will benefit from no

longer paying an administrative fee

(about $430,000 assessed across all

active RIK contracts in calendar year

1999). However, small refiners will pay

market value for RIK oil upfront rather

than a typically lower price quoted by

lessees upon removal from the lease and

subsequently adjusted upward through

audit. We believe that the combined

financial impact of eliminating the fee

while paying full market value for RIK

oil will be a nominal revenue change to

small refiners.

Eliminating the administrative fee

will provide small refiners certainty in

the prices they will pay for royalty oil.

Pricing certainty allows small refiners to

anticipate revenues and expenses more

accurately and better plan future

business activities. This benefit is not

quantifiable at this time.

B. State and Local Governments

States are unaffected by the small

refiner RIK program because they do not

share in revenues accruing from Federal

leases on the Outer Continental Shelf—

the only leases participating in the

program.

C. Indian Tribes and Allottees

Indian tribes and allottees are

unaffected by the small refiner RIK

program because they do not share in

revenues accruing from Federal leases

on the Outer Continental Shelf—the

only leases participating in the program.

D. Federal Government

The U.S. Treasury General Fund will

forego annual revenues of about

$430,000—the administrative fee

assessed across all active RIK contracts

in calendar year 1999. However, with

the changes to the RIK program that

created the need for this rule, MMS will

no longer have to rely on prices reported

by third parties and impose separate

cost recovery fees because we will

receive full market value for our royalty

oil. We believe that the combined

financial impact of eliminating the fee

while receiving full market value for

RIK oil will be a nominal revenue

change to the Federal Government.

MMS will achieve administrative

savings because we will no longer have

to take action to collect additional

monies owed by small refiners when

subsequent audits show that prices

quoted by lessees understated the oil’s

market value. This benefit is not

quantifiable at this time.

2. Regulatory Planning and Review

(Executive Order 12866)

This document is not a significant

rule and is not subject to review by the

Office of Management and Budget under

Executive Order 12866.

(1) This rule will not have an 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.

(2) This rule will not create a serious

inconsistency or otherwise interfere

with an action taken or planned by

another agency.

(3) This rule does not alter the

budgetary effects of entitlements, grants,

user fees, or loan programs or the rights

or obligations of their recipients.

(4) This rule does not raise novel legal

or policy issues.

3. Regulatory Flexibility Act

The Department of the Interior

certifies that this rule will not have a

significant economic effect on a

substantial number of small entities

under the Regulatory Flexibility Act (5

U.S.C. 601 et seq.). See item 1. Summary

Cost and Benefit Data, A. Industry,

above for further information on the

impact of this rule on small businesses.

The small refiner RIK program had

approximately five participants in

calendar year 1999, all of which were

small businesses as defined by the U.S.

Small Business Administration. By

participating in the small refiner RIK

program, these refiners obtain

noteworthy benefits that will not be

reduced or changed by this rulemaking:

• Access to a crude oil marketplace

where the major integrated oil

companies and large refiners account for

the majority of the crude oil traded;

• A stable source of supply at

equitable market-based prices which

helps the small refiner sustain

operations at or near normal operating

capacity; and

• A vital source of trade stock,

thereby creating the opportunity to

‘‘exchange’’ royalty oil for the quality or

Federal Register / Vol. 66, No. 101 / Thursday, May 24, 2001 / Rules and Regulations 28657

type of crude oil feed stock needed to

sustain their mix of refined products.

4. Small Business Regulatory

Enforcement Act (SBREFA)

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, or

local government agencies, or

geographic regions.

c. 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.

5. 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. A

statement containing the information

required by the Unfunded Mandates

Reform Act (2 U.S.C. 1531 et seq.) is not

required.

6. Takings (Executive Order 12630)

In accordance with Executive Order

12630, this rule does not have

significant takings implications. This

rule does not impose conditions or

limitations on the use of any private

property; consequently, a takings

implication assessment is not required.

7. Federalism (Executive Order 13132)

In accordance with Executive Order

13132, this rule does not have

Federalism implications. This rule does

not substantially or directly affect the

relationship between the Federal and

state governments or impose costs on

States or localities.

8. Civil Justice Reform (Executive Order

12988)

In accordance with Executive Order

12988, the Office of the Solicitor has

determined that this rule does not

unduly burden the judicial system and

meets the requirements of sections 3(a)

and 3(b)(2) of the Order.

9. Paperwork Reduction Act of 1995

This rule does not contain an

information collection, as defined by the

Paperwork Reduction Act, and the

submission of Office of Management

and Budget Form 83–I is not required.

10. 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 is not

required.

11. Consultation and Coordination with

Indian Tribal Governments

In accordance with Executive Order

13175, this rule does not have tribal

implications that impose substantial

direct compliance costs on Indian tribal

governments.

List of Subjects in 30 CFR Part 208

Continental shelf, Government

contracts, Mineral royalties, Natural gas,

Petroleum, Public lands-mineral

resources.

Dated: May 17, 2001.

Piet deWitt,

Acting Assistant Secretary, Land and

Minerals Management.

For the reasons set forth in the

preamble, 30 CFR part 208 is amended

as follows:

PART 208—SALE OF FEDERAL

ROYALTY OIL

1. The authority citation for part 208

continues to read as follows:

Authority: 5 U.S.C. 301 et seq.; 30 U.S.C.

181 et seq., 351 et seq., 1701 et seq.; 31 U.S.C.

9701; 41 U.S.C. 601 et seq.; 43 U.S.C. 1301

et seq., 1331 et seq., and 1801 et seq.

§ 208.4 [Amended]

2. In § 208.4, remove paragraph (b)(4).

[FR Doc. 01–13118 Filed 5–23–01; 8:45 am]

BILLING CODE 4310–MR–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 165

[CGD01–01–064]

RIN 2115–AA97

Safety and Security Zones: USS Hawes

Port Visit, Newport, RI.

AGENCY: Coast Guard, DOT.

ACTION: Temporary final rule.

SUMMARY: The Coast Guard is

establishing temporary safety and

security zones off the coast of Newport

Naval Station, Newport, Rhode Island,

during the port visit of the USS HAWES

to the Newport Naval Station, Newport,

Rhode Island. The safety and security

zone are needed to safeguard the public,

the area encompassing Coddington Cove

and the USS HAWES and her crew from

sabotage or other subversive acts,

accidents, or other causes of a similar

nature. Entry into these zones is

prohibited unless authorized by the

Captain of the Port, Providence, Rhode

Island or his authorized patrol

representative.

DATES: This rule is effective from 6 a.m.,

Thursday, May 31, 2001, to 12 midnight

on Sunday, June 3, 2001.

ADDRESSES: Documents as indicated in

this preamble are available for

inspection and copying at Marine Safety

Office Providence, 20 Risho Avenue,

East Providence, Rhode Island between

the hours of 8 a.m. and 3 p.m., Monday

through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: LT

Casey L. Chmielewski at Marine Safety

Office Providence, (401) 435–2335.

SUPPLEMENTARY INFORMATION:

Regulatory Information

Pursuant to 5 U.S.C. 553, a notice of

proposed rulemaking (NPRM) was not

published for this regulation. Good

cause exists for making it effective less

then 30 days after Federal Register

publication. Good cause exists for not

publishing a NPRM for this regulation.

Due to the sensitive and unpredictable

nature of the USS HAWES’s schedule,

the Coast Guard received insufficient

notice to publish proposed rules in

advance of the event. Any delay

encountered in this regulation’s

effective date would be contrary to

public interest since immediate action is

needed to protect the USS HAWES, her

crew, the public and the area adjoining

Coddington Cove.

Background and Purpose

From May 31, 2001, to June 3, 2001,

the USS HAWES will be berthed at Pier

2 on the Newport Naval Station,

Newport, RI. Pier 2 is located within

Coddington Cove, along the East Passage

of Narragansett Bay. The safety and

security zones are needed to protect the

USS HAWES, her crew and the public

from harmful or subversive acts,

accidents or other causes of a similar

nature in the vicinity of Coddington

Cove. The safety and security zones

have identical boundaries. All persons,

other than those approved by the

Captain of the Port or his authorized

patrol representative will be prohibited

from the zones. The zones encompass

the area within a line drawn from the

western most edge of the chartered

breakwater to the western most edge of

Pier 1. The public will be made aware

of the safety and security zones through

a Broadcast Notice to Mariners made