2022 Civil Monetary Penalty Inflation Adjustments

CourtNatural Resources Revenue Office
Citation87 FR 1671
Publication Date12 January 2022
Record Number2022-00165
Federal Register, Volume 87 Issue 8 (Wednesday, January 12, 2022)
[Federal Register Volume 87, Number 8 (Wednesday, January 12, 2022)]
                [Rules and Regulations]
                [Pages 1671-1673]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2022-00165]
                Office of Natural Resources Revenue
                30 CFR Part 1241
                [Docket No. ONRR-2021-0002; DS63644000 DRT000000.CH7000 223D1113RT]
                RIN 1012-AA31
                2022 Civil Monetary Penalty Inflation Adjustments
                AGENCY: Office of Natural Resources Revenue (``ONRR''), Interior.
                ACTION: Final rule.
                SUMMARY: 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 12, 2022.
                FOR FURTHER INFORMATION CONTACT: For questions on procedural issues,
                contact Luis Aguilar, Regulatory Specialist, by telephone at (303) 231-
                3148 or email to [email protected]. For questions on
                technical issues, contact Michael Marchetti, Enforcement Program
                Manager, by telephone at (303) 231-3125 or email to
                [email protected].
                I. Background
                II. ONRR's Inflation-Adjusted Maximum Rates
                III. Procedural Matters
                 A. Regulatory Planning and Review (Executive Orders 12866 and
                 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
                 The Secretary of the Interior (``Secretary'') is authorized, under
                30 U.S.C. 1719(a)-(d), 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 Federal Civil Penalties Inflation
                Adjustment Act of 1990, as amended by the Federal Civil Penalties
                Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114-74) (the
                ``2015 Act'') (collectively referred to herein as the ``Inflation
                Adjustment Acts'') require Federal agencies to publish annual CMP
                inflation adjustments in the Federal Register by January 15th of each
                 The Inflation Adjustment Acts and Office of Management and Budget
                (``OMB'') Memorandum No. M-22-07, Implementation of Penalty Inflation
                Adjustments for 2022, Pursuant to the Federal Civil Penalties Inflation
                Adjustment Act Improvements Act of 2015, December 15, 2021 (``OMB
                Memorandum'') specify that, for purposes of this rule, 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 October 2021 (October of the year in which
                ONRR's last CMP adjustment was published), and October 2020. The OMB
                Memorandum further specifies that the cost-of-living adjustment
                multiplier for 2022, not seasonally adjusted, is 1.06222 for CY 2022
                (the October 2021 CPI-U (276.589) divided by the October 2020 CPI-U
                (260.388) = 1.06222). ONRR used this guidance to calculate required
                inflation adjustments. Pursuant to the Inflation Adjustment Acts and
                OMB Memorandum, 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.
                 Current 2022 Inflation 2022 Adjusted
                 30 CFR citation maximum adjustment maximum
                 penalty multiplier penalty
                1241.52(a)(2)................................................... $1,288 1.06222 $1,368
                1241.52(b)...................................................... 12,891 1.06222 13,693
                1241.60(b)(1)................................................... 25,780 1.06222 27,384
                [[Page 1672]]
                1241.60(b)(2)................................................... 64,452 1.06222 68,462
                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 2015 Act requires agencies to adjust CMPs
                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
                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;
                 (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
                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
                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
                 (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 1673]]
                comments to Luis Aguilar, Regulatory Specialist at
                [email protected]. 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 (APA)
                 The Inflation Adjustment Acts require agencies to publish annual
                inflation adjustments by January 15 of each year, notwithstanding
                section 553 of the APA. 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 CMPs
                required by the 2015 Act. See OMB Memorandum, M-22-07, at page 3-4.
                Accordingly, ONRR is issuing the 2022 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.
                Kimbra G. Davis,
                Director for the Office of Natural Resources Revenue.
                List of Subjects in 30 CFR Part 1241
                 Administrative practice and procedure, Penalties.
                 Administrative practice and procedure, Coal, Geothermal energy,
                Indian--lands, Mineral royalties, Natural gas, Oil and gas exploration,
                Penalties, Public lands--mineral resources.
                Authority and Issuance
                 For the reasons discussed in the preamble, ONRR amends 30 CFR part
                1241 as set forth below:
                PART 1241--PENALTIES
                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]
                2. Amend Sec. 1241.52:
                a. In paragraph (a)(2), by removing ``$1,288'' and adding in its place
                b. In paragraph (b) introductory text, by removing ``$12,891'' and
                adding in its place ``$13,693''.
                Sec. 1241.60 [Amended]
                3. Amend Sec. 1241.60:
                a. In paragraph (b)(1) introductory text, by removing ``$25,780'' and
                adding in its place ``$27,384''.
                b. In paragraph (b)(2), by removing ``$64,452'' and adding in its place
                [FR Doc. 2022-00165 Filed 1-11-22; 8:45 am]
                BILLING CODE 4335-30-P

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