Oil and Gas and Sulfur Operations on the Outer Continental Shelf-Civil Penalty Inflation Adjustment
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Issuing agencies
Abstract
This final rule adjusts the maximum daily civil monetary penalty amount contained in the Bureau of Safety and Environmental Enforcement (BSEE) regulations for violations of the Outer Continental Shelf Lands Act (OCSLA), in accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget (OMB) guidance. The civil penalty inflation adjustment, using a 1.02598 multiplier, accounts for 1 year of inflation based on the Consumer Price Index (CPI-U) from October 2023 to October 2024.
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<title>Federal Register, Volume 90 Issue 175 (Friday, September 12, 2025)</title>
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[Federal Register Volume 90, Number 175 (Friday, September 12, 2025)]
[Rules and Regulations]
[Pages 44147-44149]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-17607]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 90, No. 175 / Friday, September 12, 2025 /
Rules and Regulations
[[Page 44147]]
DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental Enforcement
30 CFR Part 250
[Docket ID: BSEE-2025-0001; EEEE500000-256E1700D2-ET1SF0000.EAQ000]
RIN 1014-AA62
Oil and Gas and Sulfur Operations on the Outer Continental
Shelf--Civil Penalty Inflation Adjustment
AGENCY: Bureau of Safety and Environmental Enforcement, Department of
the Interior.
ACTION: Final rule.
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SUMMARY: This final rule adjusts the maximum daily civil monetary
penalty amount contained in the Bureau of Safety and Environmental
Enforcement (BSEE) regulations for violations of the Outer Continental
Shelf Lands Act (OCSLA), in accordance with the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 and Office of
Management and Budget (OMB) guidance. The civil penalty inflation
adjustment, using a 1.02598 multiplier, accounts for 1 year of
inflation based on the Consumer Price Index (CPI-U) from October 2023
to October 2024.
DATES: This rule is effective on September 12, 2025.
FOR FURTHER INFORMATION CONTACT: Janine Marie Tobias, Safety and
Enforcement Division, Bureau of Safety and Environmental Enforcement,
(202) 208-4657 or by email: <a href="/cdn-cgi/l/email-protection#c7b5a2a0b487a5b4a2a2e9a0a8b1"><span class="__cf_email__" data-cfemail="cebcaba9bd8eacbdababe0a9a1b8">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background and Legal Authority
The OCSLA, at 43 U.S.C. 1350(b)(1), directs the Secretary of the
Interior (Secretary) to adjust the OCSLA maximum daily civil penalty
amount at least once every 3 years to reflect any increase in the
Consumer Price Index (CPI) to account for inflation.
On November 2, 2015, the President signed into law the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (sec.
701 of Pub. L. 114-74) (FCPIA of 2015). The FCPIA of 2015 requires
Federal agencies to adjust the amount of civil monetary penalties found
in their regulations with an initial ``catch-up'' adjustment through
rulemaking, if warranted, and then to make subsequent annual
adjustments for inflation. The purpose of these adjustments is to
maintain the deterrent effect of civil penalties and to further the
policy goals of the underlying statutes. Agencies were required to
publish the first annual inflation adjustments in the Federal Register
no later than January 15, 2017, and to publish annual inflation
adjustments no later than January 15 of each subsequent year.
BSEE last updated the maximum daily civil penalty amounts in BSEE's
regulations for OCSLA violations by a final rule published and
effective on March 14, 2024. (See 89 FR 18540). Consistent with OMB
guidance, BSEE's final rule implemented the inflation adjustments
required by the FCPIA of 2015 through October 2023.
The OMB Memorandum M-25-02``(Implementation of Penalty Inflation
Adjustments for 2025, Pursuant to the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015;'' (available at <a href="https://www.whitehouse.gov/wp-content/uploads/2024/12/M-25-02.pdf">https://www.whitehouse.gov/wp-content/uploads/2024/12/M-25-02.pdf</a>) explains
agency responsibilities for: 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.
BSEE is promulgating this final rule for the 2025 inflation
adjustment of OCSLA maximum daily civil penalties pursuant to the
provisions of the FCPIA of 2015 and OMB's guidance. A proposed rule is
not required because the FCPIA of 2015 expressly exempted the annual
inflation adjustments implemented pursuant to the FCPIA of 2015 from
notice and comment rulemaking under the Administrative Procedure Act, 5
U.S.C. 553. Specifically, the FCPIA of 2015 states that agencies
``shall adjust civil monetary penalties . . . notwithstanding Section
553 of the Administrative Procedure Act.'' (FCPIA of 2015 at sec.
4(b)(2)). OMB Memorandum M-25-02 reinforces this exemption from notice
and comment rulemaking: ``This means that the notice and comment
process the APA generally requires--i.e. notice, an opportunity for
comment, and a delay in effective date--is not required for agencies to
issue regulations implementing the annual adjustment.'' M-25-02 at p.
4.
II. Calculation of Adjustments
In accordance with the FCPIA of 2015 and the guidance provided in
OMB Memorandum M-25-02, BSEE has calculated the necessary inflation
adjustment for the maximum daily civil monetary penalty amount in 30
CFR 250.1403 for violations of OCSLA. The previous OCSLA civil penalty
inflation adjustment accounted for inflation through October 2023. The
required annual civil penalty inflation adjustment promulgated through
this rule accounts for inflation through October 2024.
Annual inflation adjustments are based on the percent 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 the guidance in OMB Memorandum M-25-02,
BSEE divided the October 2024 CPI-U by the October 2023 CPI-U to
calculate the multiplying factor. In this case, the October 2024 CPI-U
(315.664) divided by the October 2023 CPI-U (307.671) is 1.02598. OMB
Memorandum M-25-02 confirms that this is the proper multiplier. (OMB
Memorandum M-25-02 at 2, n.4).
The FCPIA of 2015 requires that BSEE adjust the OCSLA maximum daily
civil penalty amount for inflation using the applicable 2025 multiplier
(1.02598). Accordingly, BSEE multiplied the existing OCSLA maximum
daily civil penalty amount ($54,352) by 1.02598 to arrive at the new
maximum daily civil penalty amount ($55,764.07). The FCPIA of 2015
requires that the resulting amount be rounded to the nearest $1.00.
Accordingly, the adjusted OCSLA maximum daily civil penalty for 2025 is
$55,764.
The adjusted penalty amount takes effect immediately upon
publication of this rule. Pursuant to the FCPIA of 2015, the increase
in the OCSLA maximum daily civil penalty amount applies to
[[Page 44148]]
civil penalties assessed after the date the increase takes effect, even
when the associated violation(s) predates such increase. Consistent
with the provisions of OCSLA and the FCPIA of 2015, this rule adjusts
the following maximum civil monetary penalty per day per violation as
follows:
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Current Adjusted
CFR citation Description of the penalty maximum Multiplier maximum
penalty penalty
----------------------------------------------------------------------------------------------------------------
30 CFR 250.1403........................... Failure to comply per-day, $54,352 1.02598 $55,764
per-violation.
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This rulemaking does not address any updates to the maximum civil
penalty amount for Federal Oil and Gas Royalty Management Act (FOGRMA)
violations. As stated in 30 CFR 250.1453, the maximum civil penalty
amount for each day of uncorrected FOGRMA violations is specified in 30
CFR 1241.52. Please refer to 30 CFR 1241.52 for the current FOGRMA
maximum civil penalty amounts.
II. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866, 14094, 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. (See OMB
Memorandum M-25-02 at 3-4).
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 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 FCPIA of 2015 expressly exempts these
annual inflation adjustments from the requirement to publish a proposed
rule for notice and comment. (See FCPIA of 2015 at Sec. 4(b)(2); OMB
Memorandum M-25-02 at 4). 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; and
(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. To the extent that State and local
governments have a role in Outer Continental Shelf 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:
(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 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 of the Interior's consultation policy, under
Departmental Manual part 512 chapters 4 and 5, and under the criteria
in E.O. 13175. We have determined that it has no substantial direct
effects on federally recognized Indian Tribes or Alaska Native Claims
Settlement Act (ANCSA) Corporations. Consequently, consultation under
the Department of the Interior'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
BSEE is not required to prepare an environmental document under the
National Environmental Policy Act (NEPA) because of the non-
discretionary nature of the civil penalty adjustment required by law.
42 U.S.C. 4336(a)(4). The Department of Labor's CPI sets the annual
civil penalty adjustment as required by the FCPIA of 2015. BSEE has no
discretion in the execution of the civil penalty adjustments;
therefore, this rule is not subject to the requirements
[[Page 44149]]
of NEPA. A detailed statement under NEPA is not required.
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,
Environmental impact statements, Environmental protection, Government
contracts, Investigations, Oil and gas exploration, Penalties,
Pipelines, Continental Shelf--mineral resources, Continental Shelf--
rights-of-way, Reporting and recordkeeping requirements, Sulfur.
For the reasons stated in the preamble, BSEE amends 30 CFR part 250
as follows.
PART 250--OIL AND GAS AND SULFUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
0
1. The authority citation for 30 CFR 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.
0
2. Revise Sec. 250.1403 to read as follows:
Sec. 250.1403 What is the maximum civil penalty?
The maximum civil penalty is $55,764 per day per violation.
Adam G. Suess,
Acting Assistant Secretary, Land and Minerals Management.
[FR Doc. 2025-17607 Filed 9-11-25; 8:45 am]
BILLING CODE 4310-VH-P
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</html>This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.