Rule2025-01073
Onshore Oil and Gas Operations and Coal Trespass-Annual Civil Penalties 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, 2025
Effective
January 17, 2025
Issuing agencies
Interior DepartmentLand Management Bureau
Abstract
This final rule adjusts the amounts of civil monetary penalties contained in the Bureau of Land Management's (BLM) regulations governing onshore oil and gas operations and coal trespass. This final rule is required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and is consistent with applicable Office of Management and Budget (OMB) guidance. The adjustments made by this final rule constitute the 2025 annual inflation adjustments and account for one year of inflation spanning the period from October 2023 through October 2024.
Full Text
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<title>Federal Register, Volume 90 Issue 11 (Friday, January 17, 2025)</title>
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[Federal Register Volume 90, Number 11 (Friday, January 17, 2025)]
[Rules and Regulations]
[Pages 5718-5721]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-01073]
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DEPARTMENT OF THE INTERIOR
Bureau of Land Management
43 CFR Part 3160
43 CFR Part 9230
[PO4820000251]
RIN 1004-AF00
Onshore Oil and Gas Operations and Coal Trespass--Annual Civil
Penalties Inflation Adjustments
AGENCY: Bureau of Land Management, Interior.
ACTION: Final rule.
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SUMMARY: This final rule adjusts the amounts of civil monetary
penalties contained in the Bureau of Land Management's (BLM)
regulations governing onshore oil and gas operations and coal trespass.
This final rule is required by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 and is consistent with
applicable Office of Management and Budget (OMB) guidance. The
adjustments made by this final rule constitute the 2025 annual
inflation adjustments and account for one year of inflation spanning
the period from October 2023 through October 2024.
DATES: This rule is effective on January 17, 2025.
FOR FURTHER INFORMATION CONTACT: For information regarding the BLM's
Fluid Minerals Program, please contact John Ajak, Acting Division
Chief, Fluid Minerals Division, telephone: 505-549-9654; email:
<a href="/cdn-cgi/l/email-protection#d8b2b9b2b9b398bab4b5f6bfb7ae"><span class="__cf_email__" data-cfemail="f49e959e959fb4969899da939b82">[email protected]</span></a>. For information regarding the BLM's Solid Minerals
Program, please contact Matthew Marsh, Acting Division Chief, Solid
Minerals Division, telephone: 307-431-1113; email: <a href="/cdn-cgi/l/email-protection#d6bbbbb7a4a5be96b4babbf8b1b9a0"><span class="__cf_email__" data-cfemail="670a0a0615140f27050b0a49000811">[email protected]</span></a>.
For questions relating to the regulatory process, please contact
Stephen Pollard, Division of Regulatory Affairs, email:
<a href="/cdn-cgi/l/email-protection#d7a4a7b8bbbbb6a5b397b5bbbaf9b0b8a1"><span class="__cf_email__" data-cfemail="f487849b9898958690b4969899da939b82">[email protected]</span></a>. Individuals in the United States who are deaf,
deafblind, hard of hearing, or have a speech disability may dial 711
(TTY, TDD, or TeleBraille) to access telecommunications relay services.
Individuals outside the United States should use the relay services
offered within their country to make international calls to the point-
of-contact in the United States.
SUPPLEMENTARY INFORMATION:
I. Background
II. Calculation of 2024 Adjustments
III. Procedural Requirements
A. Administrative Procedure Act
B. Regulatory Planning and Review (Executive Orders 12866 and
13563)
C. Regulatory Flexibility Act
D. Congressional Review Act
E. Unfunded Mandates Reform Act
F. Takings (E.O. 12630)
[[Page 5719]]
G. Federalism (E.O. 13132)
H. Civil Justice Reform (E.O. 12988)
I. Consultation With Indian Tribes (E.O. 13175 and Departmental
Policy)
J. Paperwork Reduction Act
K. National Environmental Policy Act
L. Effects on the Energy Supply (E.O. 13211)
I. Background
On November 2, 2015, the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (Sec. 701, Pub. L. 114-74) (the
2015 Act) became law, amending the Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101-410).
On an annual basis, the 2015 Act requires agencies to:
1. Adjust the level of civil monetary penalties for inflation; and
2. Report inflation adjustments in the Agency Financial Reports as
directed by OMB Circular A-136, or any successor thereto.
The purpose of these adjustments is to maintain the deterrent
effect of civil monetary penalties and promote compliance with the law
(see Sec 1, Pub. L. 101-410).
As required by the 2015 Act, on June 28, 2016, the BLM issued an
interim final rule that adjusted the level of civil monetary penalties
in BLM regulations with the initial ``catch-up'' adjustment (RIN 1004-
AE46, 81 FR 41860). In subsequent years, the BLM has issued final
rules, adjusting the level of civil monetary penalties for inflation,
as appropriate for 2017 to 2024.
On December 17, 2024, OMB issued Memorandum M-25-02, which explains
agency responsibilities for identifying applicable penalties and
calculating the annual adjustment for 2025 in accordance with the 2015
Act.
II. Calculation of 2024 Adjustments
In accordance with the 2015 Act and OMB Memorandum M-25-02, the BLM
has identified applicable civil monetary penalties in its regulations
and calculated the annual adjustments. A civil monetary penalty is any
assessment with a dollar amount that is levied for a violation of a
Federal civil statute or regulation and is assessed or enforceable
through a civil action in Federal court or an administrative
proceeding. A civil monetary penalty does not include a penalty levied
for violation of a criminal statute, nor does it include fees for
services, licenses, permits, or other regulatory review. The calculated
annual inflation adjustments are based on the percentage change between
the Consumer Price Index for all Urban Consumers (CPI-U) for the
October preceding the date of the adjustment and the prior year's
October CPI-U. Consistent with guidance in OMB Memorandum M-25-02, the
BLM divided the October 2024 CPI-U by the October 2023 CPI-U to
calculate the multiplier. In this case, October 2024 CPI-U (315.66)/
October 2023 CPI-U (306.671) = 1.02598. OMB Memorandum M-25-02 confirms
that this is the proper multiplier. (OMB Memorandum M-25-02 at 2.)
The 2015 Act requires the BLM to adjust the civil penalty amounts
in 43 CFR 3163.2 and 9239.5-3(f)(1). To accomplish this, the BLM
multiplied the current penalty amounts in those paragraphs by the
multiplier set forth in OMB Memorandum M-25-02 (1.02598) to obtain the
adjusted penalty amounts. The 2015 Act requires that the resulting
amounts be rounded to the nearest $1.00 at the end of the calculation
process.
The adjusted penalty amounts will take effect immediately upon
publication of this rule. Pursuant to the 2015 Act, the adjusted civil
penalty amounts apply to civil penalties assessed after the date the
increase takes effect, even if the associated violation predates such
increase.
This final rule adjusts the following civil penalties:
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Current Adjusted
CFR citation Description of the penalty penalty penalty
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43 CFR 3163.2(b)(1)........................ Failure to comply.................. $1,333 $1,368
43 CFR 3163.2(b)(2)........................ If corrective action is not taken.. 13,343 13,690
43 CFR 3163.2(d)........................... If transporter fails to permit 1,333 1,368
inspection for documentation.
43 CFR 3163.2(e)........................... Failure to permit inspection, 26,685 27,378
failure to notify.
43 CFR 3163.2(f)........................... False or inaccurate documents; 66,712 68,445
unlawful transfer or purchase.
43 CFR 9239.5-3(f)(1)...................... Coal exploration for commercial 4,995 5,125
purposes without an exploration
license.
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III. Procedural Requirements
A. Administrative Procedure Act
In accordance with the 2015 Act, agencies must adjust civil
monetary penalties ``notwithstanding Section 553 of the Administrative
Procedure Act'' (Sec. 4(b)(2), 2015 Act). The BLM is promulgating this
2024 inflation adjustment for civil penalties as a final rule pursuant
to the provisions of the 2015 Act and OMB guidance. A proposed rule is
not required because the 2015 Act expressly exempts the annual
inflation adjustments from the notice and comment requirements of the
Administrative Procedure Act. In addition, the 2015 Act does not give
the BLM any discretion to vary the amount of the annual inflation
adjustment for any given penalty to reflect any views or suggestions
provided by commenters. Accordingly, the BLM will not provide an
opportunity for public comment on this rule.
B. Regulatory Planning and Review (Executive Orders 12866, 14094 and
13563)
Executive Order (E.O.) 12866, as amended by E.O. 14094, provides
that the Office of Information and Regulatory Affairs (OIRA) in the OMB
will review all significant rules. OIRA has determined that this rule
is not significant. (See OMB Memorandum M-25-02 at 4).
E.O. 13563 reaffirms the principles of E.O. 12866 while calling for
improvements in the nation's regulatory system to promote
predictability and 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 emphasizes further 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 that is
consistent with these requirements to the extent permitted by the 2015
Act.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires an agency to prepare
a
[[Page 5720]]
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). The 2015 Act expressly exempts these annual
inflation adjustments from the requirement to publish a proposed rule
for notice and comment (see sec. 4(b)(2), 2015 Act). Because the final
rule in this case does not include publication of a proposed rule, the
RFA does not apply to this final rule.
D. Congressional Review Act
This rule is not a major rule under the Congressional Review Act.
This rule:
(a) Will 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; and
(c) Will 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.
E. 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.
F. Takings (E.O. 12630)
This rule does not effect a taking of private property or otherwise
have takings implications under E.O. 12630. Therefore, a takings
implication assessment is not required.
G. Federalism (E.O. 13132)
Under the criteria in section 1 of E.O. 13132, this rule does not
have federalism implications that warrant the preparation of a
federalism summary impact statement. Therefore, a federalism summary
impact statement is not required.
H. 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) requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation; and
(b) Meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.
I. Consultation With Indian Tribes (E.O. 13175 and Departmental Policy)
The Department of the Interior 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 have evaluated this
rule under the Department's consultation policy and under the criteria
in E.O. 13175 and have determined that it has no substantial direct
effects on federally recognized Indian Tribes and that consultation
under the Department's Tribal consultation policy is not required.
J. Paperwork Reduction Act
This rule does not contain information collection requirements, and
a submission to OMB under the Paperwork Reduction Act (44 U.S.C. 3501
et seq.) is not required. We may not conduct or sponsor, and you are
not required to respond to, a collection of information unless it
displays a currently valid OMB control number.
K. National Environmental Policy Act (NEPA)
This rule does not constitute a major federal action because of the
non-discretionary nature of the civil penalty adjustment as required by
law (see 40 CFR 1508.1(q)(1)(ii)). The Department of Labor's Consumer
Price Index sets the amount of the annual civil penalty adjustment to
account for inflation as required by the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015. Accordingly, BLM has
no discretion in the execution of the civil penalty adjustments. Even
if this were a discretionary action, which it is not, a detailed
statement under NEPA would also not be required because, as a
regulation of an administrative nature, this rule would otherwise be
covered by a categorical exclusion. See 43 CFR 46.210(i). BLM has
determined that the rule does not implicate any of the extraordinary
circumstances listed in 43 CFR 46.215 that would prevent reliance on
the categorical exclusion. Because this rule is not a major federal
action, it is therefore not subject to the requirements of NEPA.
L. 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
43 CFR Part 3160
Administrative practice and procedure; Government contracts;
Indians-lands; Mineral royalties; Oil and gas exploration; Penalties;
Public lands-mineral resources; Reporting and recordkeeping
requirements.
43 CFR Part 9230
Penalties, Public lands.
For the reasons given in the preamble, the BLM amends Chapter II of
Title 43 of the Code of Federal Regulations as follows:
PART 3160--ONSHORE OIL AND GAS OPERATIONS
0
1. The authority citation for part 3160 continues to read as follows:
Authority: 25 U.S.C. 396d and 2107; 30 U.S.C. 189, 306, 359,
and 1751; 43 U.S.C. 1732(b), 1733, 1740; and Sec. 701, Pub. L. 114-
74, 129 Stat. 599, unless otherwise noted.
Subpart 3163--Noncompliance, Assessments, and Penalties
Sec. 3163.2 [Amended]
0
2. In Sec. 3163.2:
0
a. In paragraph (b)(1), remove ``$1,333'' and add in its place
``$1,368''.
0
b. In paragraph (b)(2), remove ``$13,343'' and add in its place
``$13,690''.
0
c. In paragraph (d), remove ``$1,333'' and add in its place ``$1,368''.
0
d. In paragraph (e) introductory text, remove ``$26,685'' and add in
its place ``$27,378''.
0
e. In paragraph (f) introductory text, remove ``$66,712'' and add in
its place ``$68,445''.
Part 9230--TRESPASS
0
3.The authority citation for part 9230 continues to read as follows:
Authority: R.S. 2478; 43 U.S.C. 1201
Subpart 9239--Kinds of Trespass
Sec. 9239.5-3 [Amended]
0
4. In Sec. 9239.5-3(f)(1), remove ``$4,995'' and add in its place
``$5,125''.
[[Page 5721]]
This action by the Principal Deputy Assistant Secretary is taken
pursuant to an existing delegation of authority.
Steven H. Feldgus,
Principal Deputy Assistant Secretary, Land and Minerals Management.
[FR Doc. 2025-01073 Filed 1-16-25; 8:45 am]
BILLING CODE 4331-29-P
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