[Federal Register Volume 66, Number 118 (Tuesday, June 19, 2001)]
[Rules and Regulations]
[Pages 32902-32904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15393]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 256

RIN: 1010-AC74


Leasing of Sulphur or Oil and Gas in the Outer Continental 
Shelf--Definition of Affected State

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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SUMMARY: This final rule eliminates the definition of ``Affected 
State'' in Subpart B, Oil and Gas Leasing Program. The definition of 
``Affected State'' in Subpart A will apply to the entire Part 256, 
eliminating the need for unaffected coastal States to participate in 
the preparation of a 5-year program, unless they so choose.

EFFECTIVE DATE: The rule is effective June 19, 2001.

FOR FURTHER INFORMATION CONTACT: Ralph Ainger or Jane Roberts at (703) 
787-1215.

SUPPLEMENTARY INFORMATION: On December 15, 2000, we published a Notice 
of Proposed Rulemaking (NPR) (65 FR 78432), titled ``Leasing of Sulphur 
or Oil and Gas in the Outer Continental Shelf--Definition of Affected 
State,'' which proposed to remove 30 CFR 256.14. The comment period 
closed February 13, 2001. We received one comment from a coastal State. 
This final rule removes the regulation at 30 CFR 256.14. This rule

[[Page 32903]]

does not impose any requirements on affected parties that would require 
a period of time to implement. Therefore, in order to have it codified 
in the next publication of the Code of Federal Regulations, this will 
become effective on the date of publication in the Federal Register.
    The definition of ``Affected State'' in current 30 CFR 256.5(g), 
will apply to the entire part. That definition reads as follows: `` 
``Affected State'' means, with respect to any program, plan, lease 
sale, or other activity, proposed, conducted, or approved pursuant to 
the provisions of the act, any State--
    (1) The laws of which are declared, pursuant to section 4(a)(2) of 
the Act, to be the law of the United States for the portion of the 
Outer Continental Shelf on which such activity is, or is proposed to be 
conducted;
    (2) Which is, or is proposed to be, directly connected by 
transportation facilities to any artificial island or structure 
referred to in section 4(a)(1) of the Act;
    (3) Which is receiving, or in accordance with the proposed activity 
will receive, oil for processing, refining, or transshipment which was 
extracted from the Outer Continental Shelf and transported directly to 
such State by means of vessels or by a combination of means including 
vessels;
    (4) Which is designated by the Secretary as a State in which there 
is a substantial probability of significant impact on or damage to the 
coastal, marine, or human environment, or a State in which there will 
be significant changes in the social, governmental, or economic 
infrastructure, resulting from the exploration, development, and 
production of oil and gas anywhere on the Outer Continental Shelf; or
    (5) In which the Secretary finds that because of such activity 
there is, or will be a significant risk of serious damage, due to 
factors such as prevailing winds and currents, to the marine or coastal 
environment in the event of any oilspill, blowout, or release of oil or 
gas from vessels, pipelines, or other transshipment facilities.''
    As we stated in the NPR, listing all the States adjacent to the OCS 
as ``affected'' is contrary to the intent as well as the letter of the 
statute and may cause unnecessary administrative burden for those 
States that are not affected under the legal definition. These States 
should not be automatically involved if they do not meet the statutory 
definition. However, there is nothing to preclude any State's 
participation if and to the extent they wish, as the 5-year process 
contains multiple periods for public comment. Elimination of the 
definition also reduces the burden on the Government to involve States 
that are not affected by the program.

Comments on the Rule

    We received one comment in response to the NPR. The State of North 
Carolina Department of Environment and Natural Resources, Division of 
Coastal Management, supported the elimination of the definition of 
``Affected State'' as it applied to Subpart B only. The commenter 
stated that as the areas off the coast of North Carolina are withdrawn 
from leasing until 2012, listing the State as affected might cause an 
unnecessary administrative burden for North Carolina. It further stated 
that North Carolina should not be automatically involved if they do not 
meet the statutory definition. They realize that nothing precludes 
their participation in the 5-year process.

Procedural Matters

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 (OMB) 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. Ultimately, this rule is advantageous to the Federal 
Government in that it would not have to involve certain unaffected 
States in the complex, multi-step process of preparing a 5-year 
program. It also is advantageous to those States that would not have to 
participate during program preparation when the Federal Government 
makes three requests for comments and recommendations from affected 
States. Because of Presidential withdrawals and congressional 
moratoria, an average of 14 of the 23 coastal States could be deemed 
unaffected by a proposed 5-year program. If those 14 States were deemed 
unaffected, there could be a savings of $170,100 ($2,100 + $168,000). 
At a minimum, a State must spend 1 hour deciding whether or not to 
respond. Therefore, there would be a minimum expenditure of $150 per 
State and a total of $2,100 for all 14 States (3 requests  x  1 hour 
x  $50 per hour = $150  x  14 States = $2,100). If a State decides, or 
in some cases is required, to participate by its own laws, that State 
could spend up to 80 hours preparing a response to each request. 
Therefore, there could be another expenditure of $12,000 per State and 
a total of $168,000 for all 14 States (3 requests  x  80 hours  x  $50 
per hour = $12,000  x  14 States).
    (2) This will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. There are 
no other Federal agencies involved in this process as it relates to 
participation by coastal States.
    (3) This rule does not alter the budgetary effects or entitlements, 
grants, user fees, or loan programs or rights or obligations of their 
recipients. This rule has no effect on these programs or such rights.
    (4) This rule does not raise novel legal or policy issues. As 
previously stated, the intent of this rule is to eliminate the 
redundant and unnecessary definition of ``Affected State'' at 30 CFR 
256.14. The term is defined at 30 CFR 256.5(g) and applies to the 
entire part.

Regulatory Flexibility (RF) Act

    The Department certifies that this document will not have a 
significant economic effect on a substantial number of small entities 
under the RF Act (5 U.S.C. 601 et seq.). This revised rule eliminates 
the redundant and unnecessary definition of ``Affected State'' at 30 
CFR 256.14. The only entities impacted by this rule change are certain 
coastal States that we would no longer automatically involve in a 
complex, multi-step process of preparing a 5-year program that would 
not affect them.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This rule is not a major rule under the SBREFA, 5 U.S.C. 804(2). 
This rule:
    (1) Does not have an annual effect on the economy of $100 million 
or more. This rule eliminates the need for the Federal Government to 
automatically involve some 1 coastal States in a complex, multi-step 
process to prepare a program that would not affect them.
    (2) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic areas. This rule eliminates the need for some 
coastal States that would not be affected by a 5-year oil and gas 
program from participating in its preparation unless they so choose.
    (3) 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. There are no United States- or foreign-based enterprises 
involved in this rule.

[[Page 32904]]

Paperwork Reduction Act (PRA) of 1995

    This regulation does not affect an existing OMB-approved 
information collection and an OMB Form 83-I is not required. The 
proposed rule simply removes a definition. OMB approved the information 
collection requirements in part 256 under OMB control number 1010-0006, 
with a current expiration date of March 31, 2004.

Federalism (Executive Order 13132)

    According to Executive Order 13132, this rule does not have 
Federalism implications. This rule does not substantially and directly 
affect the relationship between the Federal and State Governments. 
Elimination of the redundant and unnecessary definition of an 
``Affected State'' could reduce costs on States that are not affected 
by the 5-year program and the cost to the Federal Government of 
involving unaffected States.

Takings Implications Assessment (Executive Order 12630)

    According to Executive Order 12630, the rule does not have 
significant Takings implications. A Takings Implication Assessment is 
not required. This rule has no effect on Takings, as it only applies to 
States that would no longer be automatically involved in the 
preparation of a program that has no effect on them, thereby 
eliminating the possible burden of doing so.

Civil Justice Reform (Executive Order 12899)

    According to 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.

National Environment Policy Act (NEPA)

    We have analyzed this rule according to the criteria of the NEPA 
and 516 DM. This rule does not constitute a major Federal action 
significantly affecting the quality of the human environment. An 
environmental assessment is not required. This rule will have no impact 
regarding the criteria of the NEPA.

Unfunded Mandate Reform Act (UMRA) of 1995

    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 create any kind of a mandate for State, local, 
or tribal governments or the private sector. In fact, it eliminates the 
need for the Federal Government to involve certain States in the 
preparation of a program that will not affect them. A statement 
containing the information required by the UMRA, 2 U.S.C. 1501 et seq. 
is not required.

List of Subjects in 30 CFR Part 256

    Administrative practice and procedure, Continental shelf, 
Environmental protection, Government contracts, Intergovernmental 
relations, MMS, Oil and gas exploration, Public lands-mineral 
resources, Public lands-rights-of-way, Reporting and recordkeeping 
requirements, Surety bonds.

    Dated: May 30, 2001.
Piet deWitt,
Acting Assistant Secretary, Land and Minerals Management.

    For the reasons stated in the preamble, the Minerals Management 
Service amends 30 CFR part 256 as follows:

PART 256--LEASING OF SULPHUR OR OIL AND GAS IN THE OUTER 
CONTINENTAL SHELF

    1. The authority citation for Part 256 continues to read as 
follows:

    Authority: 42 U.S.C 6213, 43 U.S.C. 1331 et seq.


Sec. 256.14  [Removed]

    2. Section 256.14 is removed.

[FR Doc. 01-15393 Filed 6-18-01; 8:45 am]
BILLING CODE 4310-MR-P