Inflation Adjustments to Civil Monetary Penalty Rates for Calendar Year 2019
| Published date | 08 March 2019 |
| Citation | 84 FR 8416 |
| Record Number | 2019-04239 |
| Section | Rules and Regulations |
| Court | Natural Resources Revenue Office |
Federal Register, Volume 84 Issue 46 (Friday, March 8, 2019)
[Federal Register Volume 84, Number 46 (Friday, March 8, 2019)]
[Rules and Regulations]
[Pages 8416-8418]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04239]
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DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
30 CFR Part 1241
[Docket No. ONRR-2017-0003; DS63644200 DRT000000.CH7000 190D1113RT]
RIN 1012-AA24
Inflation Adjustments to Civil Monetary Penalty Rates for
Calendar Year 2019
AGENCY: Office of the Secretary, Office of Natural Resources Revenue,
Interior.
ACTION: Final rule.
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SUMMARY: The Office of Natural Resources Revenue (ONRR) publishes this
final rule to increase our maximum civil monetary penalty (CMP) rates
for inflation occurring between October 2017 and October 2018.
DATES: This rule is effective on March 8, 2019.
FOR FURTHER INFORMATION CONTACT: For questions on procedural issues,
contact Luis Aguilar, Regulatory Specialist, by telephone at (303) 231-
3418 or email to [email protected]. For questions on technical
issues, contact Geary Keeton, Chief of Enforcement, by telephone at
(303) 231-3096 or email to [email protected]. You may obtain a
paper copy of this rule by contacting Mr. Aguilar by phone or email.
SUPPLEMENTARY INFORMATION:
I. Background
II. Inflation-Adjusted Maximum Rates
III. Procedural Requirements
A. Regulatory Planning and Review (E.O. 112866)
B. Regulatory Flexibility Act
C. Small Business Regulatory Enforcement Fairness Act
D. Unfunded Mandates Reform Act
E. Takings (E.O. 112630)
F. Federalism (E.O. 113132)
G. Civil Justice Reform (E.O. 112988)
H. Consultation With Indian Tribes (E.O. 113175)
I. Paperwork Reduction Act
J. National Environmental Policy Act
K. Effects on the Energy Supply (E.O. 113211)
L. Clarity of This Regulation
M. Administrative Procedure Act
I. Background
The Federal Civil Penalties Inflation Adjustment Act of 1990, as
amended by the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (collectively, ``the Act''), codified at 28
U.S.C. 2461 note (LEXIS through Pub. L. 115-90, approved 12/8/17),
requires Federal agencies to adjust their civil monetary penalty (CMP)
rates for inflation every year.
In accordance with sections 4 and 5 of the Act, the annual CMP
inflation adjustment for 2019 is based on the percent change in the
Consumer Price Index for all Urban Consumers (CPI-U) between October
2017 and October 2018. The CPI-U for October 2017 was 246.663, and for
October 2018 was 252.885, for an increase of 2.522%. In accordance with
section 5(a) of the Act, the new maximum CMP rates must be rounded to
the nearest whole dollar. In accordance with section 6 of the Act, the
new maximum penalty rates will apply only to CMPs, including those
which are associated with violations predating the increase, that are
assessed after the date the increase takes effect.
ONRR assesses CMPs under the Federal Oil and Gas Royalty Management
Act, 30 U.S.C. 1719, and our regulations at 30 CFR part 1241. We
calculate and assess CMPs per violation, at the applicable rate, for
each day such violation continues.
II. Inflation-Adjusted Maximum Rates
This final rule increases the maximum CMP rates for each of the
four categories of violations identified in 30 U.S.C. 1719(a)-(d) and
30 CFR part 1241. The following list identifies the existing ONRR
regulations containing CMP rates and shows those rates before and after
this increase.
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2019 inflation
30 CFR citation Current adjustment 2019 adjusted
penalty rate multiplier penalty rate
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1241.52(a)(2)................................................... 1,220 1.02522 1,251
1241.52(b)...................................................... 12,211 1.02522 12,519
1241.60(b)(1)................................................... 24,421 1.02522 25,037
[[Page 8417]]
1241.60(b)(2)................................................... 61,055 1.02522 62,595
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IV. Procedural Requirements
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 OMB will review all
significant rules. OIRA has determined that this rule is not
significant.
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 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 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 adjustments
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.
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, we are
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 taking 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. Therefore, this rule does not
require 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 we
review all regulations to eliminate errors and ambiguity and to write
them to minimize litigation.
b. Meets the criteria of section 3(b)(2), which requires that we
write all regulations in clear language using clear legal standards.
H. Consultation With Indian Tribal Governments (E.O. 13175)
The Department strives to strengthen its government-to-
dash;government relationship with the Indian Tribes through a
commitment to consultation with the Indian Tribes and recognition of
their right to self-governance and Tribal sovereignty. Under the
Department's consultation policy and the criteria in E.O. 13175, we
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 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. We are 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. * * *'' We also have 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
We are 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 we publish 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.
(e) Use lists and tables wherever possible.
If you feel that we have not met these requirements, send your
comments to [email protected]. Your comments should be as specific
as possible. For example, you should tell us the numbers of the
sections or paragraphs that you find unclear, which sections or
[[Page 8418]]
sentences are too long, the sections where you feel lists or tables
would be useful, etc.
M. Administrative Procedure Act (APA)
The Act requires agencies to publish annual inflation adjustments
by no later than January 15 of each year, notwithstanding section 553
of the Administrative Procedure Act (APA) (5 U.S.C. 553). 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 Act
requires. Accordingly, we are issuing the 2019 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.
Section 553(b) of the Administrative Procedure Act (APA) provides
that, when an agency for good cause finds that ``notice and public
procedure . . . are impracticable, unnecessary, or contrary to the
public interest,'' the agency may issue a rule without providing notice
and an opportunity for prior public comment. Under section 553(b), ONRR
finds that there is good cause to promulgate this rule without first
providing for public comment. ONRR is promulgating this final rule to
implement the statutory directive in the Act, which requires agencies
to publish a final rule and to update the civil penalty amounts by
applying a specified formula. We have no discretion to vary the amount
of the adjustment to reflect any views or suggestions provided by
commenters. Accordingly, it would serve no purpose to provide an
opportunity for public comment on this rule prior to promulgation.
Thus, providing for notice and public comment is unnecessary.
Furthermore, ONRR finds under section 553(d)(3) of the APA that
good cause exists to make this direct final rule effective immediately
upon publication in the Federal Register. In the Act, Congress
expressly required Federal agencies to publish annual inflation
adjustments to civil penalties in the Federal Register no later than
January 15 of every year, notwithstanding section 553 of the APA. Under
the statutory framework and OMB guidance, the new penalty levels are to
take effect immediately upon publication. Moreover, an effective date
after January 15 would delay application of the new penalty levels,
contrary to Congress's intent.
List of Subjects in 30 CFR Part 1241
Administrative practice and procedure, Civil penalties, Coal,
Geothermal, Inflation, Mineral resources, Natural gas, Notices of non-
compliance, Oil.
Gregory J. Gould,
Director for 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 in paragraph (a)(2), by removing ``$1,220'' and
adding in its place ``$1,251'' and in paragraph (b) introductory text,
by removing ``$12,211'' and adding in its place ``$12,519''.
Sec. 1241.60 [Amended]
0
3. Amend Sec. 1241.60 in paragraph (b)(1) introductory text, by
removing ``$24,421'' and adding in its place ``$25,037'' and in
paragraph (b)(2), by removing ``$61,055'' and adding in its place
``$62,595''
[FR Doc. 2019-04239 Filed 3-7-19; 8:45 am]
BILLING CODE 4335-30-P
