Onshore Oil and Gas Operations and Coal Trespass-Annual Civil Penalties Inflation Adjustments

• Published date: 09 June 2021
• Citation: 86 FR 30548
• Record Number: 2021-12053
• Section: Rules and Regulations
• Court: Land Management Bureau

30548

Federal Register / Vol. 86, No. 109 / Wednesday, June 9, 2021 / Rules and Regulations

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Source name Permit/order

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No.

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effective

date EPA approval date 40 CFR part

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20131 3/25/20 6/9/21, [Insert Federal Register citation] ..... 52.2420(d)(7)

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[FR Doc. 2021–11923 Filed 6–8–21; 8:45 am]

BILLING CODE 6560–50–P

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Parts 3160 and 9230

[212.LLHQ310000.L13100000.PP0000]

RIN 1004–AE77

Onshore Oil and Gas Operations and

Coal Trespass—Annual Civil Penalties

Inflation Adjustments

AGENCY

: Bureau of Land Management,

Interior.

ACTION

: Final rule.

SUMMARY

: This final rule adjusts the

level of civil monetary penalties

contained in the Bureau of Land

Management’s (BLM) regulations

governing onshore oil and gas

operations and coal trespass as required

by the Federal Civil Penalties Inflation

Adjustment Act Improvements Act of

2015 and consistent with applicable

Office of Management and Budget

(OMB) guidance. The oil and gas

operations penalty adjustments made by

this final rule constitute the 2021

annual inflation adjustments,

accounting for 1 year of inflation

spanning the period from October 2019

through October 2020. The coal trespass

inflation adjustments in this rule

include the initial ‘‘catch-up’’

adjustment for 2016, and the annual

adjustments for years 2017 to 2021.

DATES

: This rule is effective on June 9,

2021.

FOR FURTHER INFORMATION CONTACT

: For

information regarding the BLM’s Fluid

Minerals Program, please contact Donna

Dixon, Division Chief, Fluid Minerals

Division, telephone: 505–954–2032;

email: dbdixon@blm.gov. For

information regarding the BLM’s Solid

Minerals Program, please contact

Lindsey Curnutt, Division Chief, Solid

Minerals Division, telephone: 775–824–

2910; email: lcurnutt@blm.gov. For

questions relating to regulatory process

issues, please contact Jennifer Noe,

Division of Regulatory Affairs, email:

jnoe@blm.gov. Persons who use a

telecommunications device for the deaf

(TDD) may call the Federal Relay

Service (FRS) at 1–800–877–8339, 24

hours a day, 7 days a week to contact

the above individuals.

SUPPLEMENTARY INFORMATION

:

I. Background

II. Calculation of 2021 Adjustments

III. Procedural Requirements

A. Administrative Procedure Act

B. Regulatory Planning and Review (E.O.

12866 and E.O. 13563)

C. Regulatory Flexibility Act

D. Small Business Regulatory Enforcement

Fairness Act

E. Unfunded Mandates Reform Act

F. Takings (E.O. 12630)

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 of

Pub. L. 114–74) (the 2015 Act) became

law, amending the Federal Civil

Penalties Inflation Adjustment Act of

1990 (Pub. L. 101–410).

The 2015 Act requires agencies to:

1. Adjust the level of civil monetary

penalties for inflation with an initial

‘‘catch-up’’ adjustment through an

interim final rulemaking in 2016;

2. Make subsequent annual

adjustments for inflation beginning in

2017; and

3. Report annually in Agency

Financial Reports on these inflation

adjustments.

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, 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), which was

published on June 28, 2016, and became

effective on July 28, 2016. On January

19, 2017, the BLM published a final rule

(RIN 1004–AE49, 82 FR 6305) updating

the civil penalty amounts to the 2017

annual adjustment levels. Final rules

updating the civil penalty amounts to

2018, 2019, and 2020 annual adjustment

levels were published in subsequent

years (RIN 1004–AE51, 83 FR 3992; RIN

1004–AE56, 84 FR 22379; and RIN

1004–AE77, 85 FR 10617, respectively).

OMB issued Memorandum M–21–10

on December 23, 2020, (Implementation

of Penalty Inflation Adjustments for

2021, Pursuant to the Federal Civil

Penalties Inflation Adjustment Act

Improvements Act of 2015) explaining

agency responsibilities for identifying

applicable penalties and calculating the

annual adjustment for 2021 in

accordance with the 2015 Act.

II. Calculation of 2021 Adjustment

In accordance with the 2015 Act and

OMB Memorandum M–21–10, 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–21–10, the BLM

divided the October 2020 CPI–U by the

October 2019 CPI–U to calculate the

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Federal Register / Vol. 86, No. 109 / Wednesday, June 9, 2021 / Rules and Regulations

multiplier. In this case, October 2020

CPI–U (260.388)/October 2019 CPI–U

(257.346) = 1.01182. OMB

Memorandum M–21–10 confirms that

this is the proper multiplier. (OMB

Memorandum M–21–10 at 1 and n.4.)

The 2015 Act requires the BLM to

adjust the civil penalty amounts in 43

CFR 3163.2 and 43 CFR 9239.5–3(f)(1).

To accomplish this, the BLM multiplied

the current penalty amounts in 43 CFR

3163.2(b)(1) and (2), (d), (e), and (f) by

the multiplier set forth in OMB

Memorandum M–21–10 (1.01182) 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.

This year’s adjustments include 43

CFR 9239.5–3(f)(1), which provides for

a penalty of not more than $1,000 for

each day of violation for willfully

conducting coal exploration for

commercial purposes without an

exploration license. This provision

meets the criteria for annual

adjustments under the 2015 Act but was

inadvertently omitted in previous

adjustments. Consistent with OMB

Memorandum M–16–06 (February 24,

2016), the adjusted penalty amount was

calculated by applying the initial

‘‘catch-up’’ adjustment based on the

percent change between the CPI–U for

1977, the year the current penalty

amount was established by regulation,

and the October 2015 CPI–U, giving a

catch-up adjustment multiplier of

3.86101 for 2016. After applying the

initial catch-up adjustment multiplier,

that amount was multiplied by 1.09481

to reflect the combined annual inflation

adjustments for 2017 to 2021, giving an

adjusted penalty of $4,227.00.

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:

CFR citation Description of the penalty Current

penalty Adjusted

penalty

43 CFR 3163.2(b)(1) ....................... Failure to comply ....................................................................................... $1,115 $1,128

43 CFR 3163.2(b)(2) ....................... If corrective action is not taken ................................................................. 11,160 11,292

43 CFR 3163.2(d) ............................ If transporter fails to permit inspection for documentation ....................... 1,115 1,128

43 CFR 3163.2(e) ............................ Failure to permit inspection, failure to notify ............................................. 22,320 22,584

43 CFR 3163.2(f) ............................. False or inaccurate documents; unlawful transfer or purchase ................ 55,800 56,460

43 CFR 9239.5–3(f)(1) .................... Coal exploration for commercial purposes without an exploration license 1,000 4,227

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 2021 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, since 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, it would serve

no purpose to provide an opportunity

for public comment on this rule.

B. 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 this rule is not

significant. (See OMB Memorandum

M–21–10 at 3).

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 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

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. 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) 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.

This rule will potentially affect

individuals and companies who

conduct operations on oil and gas leases

or who explore for coal for commercial

purposes without an exploration license

on Federal or Indian lands. The BLM

believes that the vast majority of

potentially affected entities will be

small businesses as defined by the

Small Business Administration.

However, the BLM does not believe the

rule will pose a significant economic

impact on the oil and gas or coal

industries, including any small entities,

as any lessee or trespasser can avoid

being assessed civil penalties by

operating in compliance with BLM rules

and regulations.

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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 sufficient

federalism implications to 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

A detailed statement under the

National Environmental Policy Act of

1969 (NEPA) is not required because, as

a regulation of an administrative nature,

the rule is covered by a categorical

exclusion (see 43 CFR 46.210(i)). We

have also determined that the rule does

not involve any of the extraordinary

circumstances listed in 43 CFR 46.215

that would require further analysis

under 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

■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. 107, Pub. L.

114–74, 129 Stat. 599, unless otherwise

noted.

Subpart 3163—Noncompliance,

Assessments, and Penalties

§ 3163.2 [Amended]

■2. In § 3163.2:

■a. In paragraph (b)(1), remove

‘‘$1,115’’ and add in its place ‘‘$1,128’’.

■b. In paragraph (b)(2), remove

‘‘$11,160’’ and add in its place

‘‘$11,292’’.

■c. In paragraph (d), remove ‘‘$1,115’’

and add in its place ‘‘$1,128’’.

■d. In paragraph (e) introductory text,

remove ‘‘$22,320’’ and add in its place

‘‘$22,584’’.

■e. In paragraph (f) introductory text,

remove ‘‘$55,800’’ and add in its place

‘‘$56,460’’.

PART 9230—TRESPASS

■3. The authority citation for part 9230

is revised to read as follows:

Authority: R.S. 2478 and 43 U.S.C. 1201.

Subpart 9239—Kinds of Trespass

§ 9239.5–3 [Amended]

■4. In § 9239.5–3(f)(1), remove

‘‘$1,000’’ and add in its place ‘‘$4,227’’.

Laura Daniel-Davis,

Principal Deputy Assistant Secretary, Land

and Minerals Management.

[FR Doc. 2021–12053 Filed 6–8–21; 8:45 am]

BILLING CODE 4310–84–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 73

[MB Docket No. 21–56; RM–11811; DA 21–

595; FR ID 28830]

Television Broadcasting Services

Jonesboro, Arkansas

AGENCY

: Federal Communications

Commission.

ACTION

: Final rule.

SUMMARY

: On February 12, 2021, the

Media Bureau, Video Division (Bureau)

issued a Notice of Proposed Rulemaking

in response to a petition for rulemaking

filed by Gray Television Licensee, LLC

(Gray), the licensee of KAIT, channel 8

(ABC), Jonesboro, Arkansas, requesting

the substitution of channel 27 for

channel 8 at Jonesboro in the DTV Table

of Allotments. For the reasons set forth

in the Report and Order referenced

below, the Bureau amends FCC

regulations to substitute channel 27 for

channel 8 at Jonesboro.

DATES

: Effective June 9, 2021.

FOR FURTHER INFORMATION CONTACT

:

Joyce Bernstein, Media Bureau, at (202)

418–1647 or JoyceBernstein@fcc.gov.

SUPPLEMENTARY INFORMATION

: The

proposed rule was published at 86 FR

17110 on April 1, 2021. Gray filed

comments in support of the petition

reaffirming its commitment to apply for

channel 20. No other comments were

filed. Gray states that VHF channels

have certain propagation characteristics

which may cause reception issues for

some viewers, and that the reception of

VHF signals requires larger antennas

relative to UHF channels. Moreover,

many viewers are unable to receive

KAIT’s signal. Gray further states that

while there is small terrain limited

predicted loss area, the viewers will

continue to be well served by at least

five other stations and receive ABC

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