Rule2023-00737
2023 Civil Monetary Penalty Inflation Adjustments
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 17, 2023
Effective
January 13, 2023
Issuing agencies
Interior DepartmentNatural Resources Revenue Office
Abstract
Pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (codified at 28 U.S.C. 2461 note), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (referred to herein as the "Inflation Adjustment Acts"), and Office of Management and Budget ("OMB") guidance, 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").
Full Text
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<title>Federal Register, Volume 88 Issue 10 (Tuesday, January 17, 2023)</title>
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[Federal Register Volume 88, Number 10 (Tuesday, January 17, 2023)]
[Rules and Regulations]
[Pages 2520-2522]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-00737]
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DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
30 CFR Part 1241
[Docket No. ONRR-2022-0003; DS63644000 DR2000000.CH7000 234D1113RT]
RIN 1012-AA35
2023 Civil Monetary Penalty Inflation Adjustments
AGENCY: Office of Natural Resources Revenue (``ONRR''), Interior.
ACTION: Final rule.
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SUMMARY: Pursuant to the Federal Civil Penalties Inflation Adjustment
Act of 1990 (codified at 28 U.S.C. 2461 note), as amended by the
Federal Civil Penalties Inflation Adjustment Act Improvements Act of
2015 (referred to herein as the ``Inflation Adjustment Acts''), and
Office of Management and Budget (``OMB'') guidance, 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 13, 2023.
FOR FURTHER INFORMATION CONTACT: For questions on procedural issues,
contact Luis Aguilar, Regulatory Specialist, by telephone at (303) 231-
3418 or by email to <a href="/cdn-cgi/l/email-protection#2468514d570a6543514d484556644b4a56560a434b52"><span class="__cf_email__" data-cfemail="7539001c065b3412001c191407351a1b07075b121a03">[email protected]</span></a>. For questions on technical
issues, contact Michael Marchetti, Enforcement Program Manager, by
telephone at (303) 231-3125 or by email to <a href="/cdn-cgi/l/email-protection#6f22060c070e0a0341220e1d0c070a1b1b062f00011d1d41080019"><span class="__cf_email__" data-cfemail="713c18121910141d5f3c1003121914050518311e1f03035f161e07">[email protected]</span></a>.
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
FOGRMA, at 30 U.S.C. 1719(a)-(d), authorizes the Secretary of the
Interior (``Secretary'') 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 Inflation Adjustment Acts (Pub. L. 114-
74) require Federal agencies to publish annual CMP inflation
adjustments in the Federal Register by January 15th of each year.
The Inflation Adjustment Acts and OMB Memorandum No. M-23-05,
December 15, 2022 (``OMB Memorandum'') specify that 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 the month of October in the year of the
previous adjustment, and the October CPI-U for the preceding year. The
OMB Memorandum further specifies that the cost-of-living adjustment
multiplier for 2023, not seasonally adjusted, is 1.07745 for CY 2023
(the October 2022 CPI-U (298.012) divided by the October 2021 CPI-U
(276.589) = 1.07745). ONRR used this guidance to calculate required
inflation adjustments. Pursuant to the Inflation Adjustment Acts, 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.
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Current 2023 inflation 2023 adjusted
30 CFR citation maximum adjustment maximum
penalty multiplier penalty
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1241.52(a)(2)................................................... $1,368 1.07745 $1,474
1241.52(b)...................................................... 13,693 1.07745 14,754
1241.60(b)(1)................................................... 27,384 1.07745 29,505
[[Page 2521]]
1241.60(b)(2)................................................... 68,462 1.07745 73,764
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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 Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 requires agencies to adjust
civil penalties 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
[[Page 2522]]
comments to <a href="/cdn-cgi/l/email-protection#d7989985858885b2b0a2bbb6a3beb8b9a49ab6bebbb5b8af97b8b9a5a5f9b0b8a1"><span class="__cf_email__" data-cfemail="fcb3b2aeaea3ae999b89909d889593928fb19d95909e9384bc93928e8ed29b938a">[email protected]</span></a>. 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
The Act requires agencies to publish annual inflation adjustments
by January 15 of each year, notwithstanding section 553 of the
Administrative Procedure Act. 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 civil
penalties that the 2015 Act requires. See OMB Memorandum, M-23-05, at
pages 3-4. Accordingly, ONRR is issuing the 2023 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.
List of Subjects in 30 CFR Part 1241
Administrative practice and procedure, Coal, Geothermal energy,
Indian-lands, Mineral royalties, Natural gas, Oil and gas exploration,
Penalties, Public lands--mineral resources.
Howard M. Cantor,
Acting Director for the Office of Natural Resources Revenue.
Authority and Issuance
For the reasons discussed in the preamble, ONRR amends 30 CFR part
1241 as set forth below:
PART 1241--PENALTIES
0
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.
Sec. 1241.52 [Amended]
0
2. Amend Sec. 1241.52 by:
0
a. In paragraph (a)(2), removing ``$1,368'' and adding in its place
``$1,474''.
0
b. In paragraph (b) introductory text, removing ``$13,693'' and adding
in its place ``$14,754''.
Sec. 1241.60 [Amended]
0
3. Amend Sec. 1241.60 by:
0
a. In paragraph (b)(1) introductory text, removing ``$27,384'' and
adding in its place ``$29,505''.
0
b. In paragraph (b)(2), removing ``$68,462'' and adding in its place
``$73,764''.
[FR Doc. 2023-00737 Filed 1-13-23; 8:45 am]
BILLING CODE 4335-30-P
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</html>Indexed from Federal Register on January 17, 2023.
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