2024-01110. 2024 Civil Monetary Penalty Inflation Adjustments

  • Start Preamble

    AGENCY:

    Office of Natural Resources Revenue (ONRR), Interior.

    ACTION:

    Final rule.

    SUMMARY:

    Pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (referred to herein as the “Inflation Adjustment Acts”), and Office of Management and Budget (OMB) guidance, 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 22, 2024.

    Start Further Info

    FOR FURTHER INFORMATION CONTACT:

    For questions on procedural issues, contact Ginger Hensley, Regulatory Specialist, by telephone at (303) 231–3171 or by email to Ginger.Hensley@onrr.gov. For questions on technical issues, contact Michael Marchetti, Enforcement Program Manager, by telephone at (303) 231–3125 or by email to Michael.Marchetti@onrr.gov.

    End Further Info End Preamble Start Supplemental Information

    SUPPLEMENTARY INFORMATION:

    I. Background

    II. ONRR's Inflation-Adjusted Maximum Rates

    III. Procedural Matters

    A. Regulatory Planning and Review (Executive Orders 12866, 13563, and 14094)

    B. Regulatory Flexibility Act

    C. Congressional Review 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

    FOGRMA, at 30 U.S.C. 1719(a) through (d), authorizes the Secretary of the Interior (“Secretary”) 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 Inflation Adjustment Acts require Federal agencies to publish annual CMP inflation adjustments in the Federal Register by January 15th of each year.

    The Inflation Adjustment Acts and OMB Memorandum No. M–24–07, December 19, 2023, (“OMB Memorandum”) specify that 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 the month of October in the year of the previous adjustment, and the October CPI–U for the preceding year. The OMB Memorandum further specifies that the cost-of-living adjustment multiplier for 2024, not seasonally adjusted, is 1.03241 for CY 2024 (the October 2023 CPI–U (307.671) divided by the October 2022 CPI–U (298.012) = 1.03241). ONRR used this guidance to calculate required inflation adjustments. Pursuant to the Inflation Adjustment Acts, 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. Start Printed Page 3885

    30 CFR citationCurrent maximum penalty2024 Inflation adjustment multiplier2024 Adjusted maximum penalty
    1241.52(a)(2)$1,4741.03241$1,522
    1241.52(b)14,7541.0324115,232
    1241.60(b)(1)29,5051.0324130,461
    1241.60(b)(2)73,7641.0324176,155

    III. Procedural Matters

    A. Regulatory Planning and Review (Executive Orders 12866, 13563, and 14094)

    Executive Order (“E.O.”) 12866, as reaffirmed by E.O. 13563 and 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 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 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. Congressional Review Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Congressional Review 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 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, 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; and

    (b) Does not require a submission to OMB under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et seq.). See5 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. 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 Effects.

    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: Start Printed Page 3886

    (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; and

    (e) Use lists and tables wherever possible;

    If you feel that ONRR has not met these requirements, send your comments to ONRR_RegulationsMailbox@onrr.gov. 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

    The Act requires agencies to publish annual inflation adjustments by January 15 of each year, notwithstanding section 553 of the Administrative Procedure Act. 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 2015 Act requires. See OMB Memorandum, M–24–07, at pages 3–4. Accordingly, ONRR is issuing the 2024 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 .

    Start List of Subjects

    List of Subjects in 30 CFR Part 1241

    • Administrative practice and procedure
    • Coal
    • Geothermal energy
    • Indian—lands
    • Mineral royalties
    • Natural gas
    • Oil and gas exploration
    • Penalties
    • Public lands—mineral resources
    End List of Subjects Start Signature

    Howard M. Cantor,

    Director, Office of Natural Resources Revenue.

    End Signature

    Authority and Issuance

    For the reasons discussed in the preamble, ONRR amends 30 CFR part 1241 as set forth below:

    Start Part

    PART 1241—PENALTIES

    End Part Start Amendment Part

    1. The authority citation for part 1241 continues to read as follows:

    End Amendment Part Start Authority

    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.

    End Authority
    [Amended]
    Start Amendment Part

    2. Amend § 1241.52 by:

    End Amendment Part Start Amendment Part

    a. In paragraph (a)(2), removing “$1,474” and adding in its place “$1,522”.

    End Amendment Part Start Amendment Part

    b. In paragraph (b) introductory text, removing “$14,754” and adding in its place “$15,232”.

    End Amendment Part
    [Amended]
    Start Amendment Part

    3. Amend § 1241.60 by:

    End Amendment Part Start Amendment Part

    a. In paragraph (b)(1), removing “$29,505” and adding in its place “$30,461”.

    End Amendment Part Start Amendment Part

    b. In paragraph (b)(2), removing “$73,764” and adding in its place “$76,155”.

    End Amendment Part End Supplemental Information

    [FR Doc. 2024–01110 Filed 1–19–24; 8:45 am]

    BILLING CODE 4335–30–P

Document Information

Effective Date:
1/22/2024
Published:
01/22/2024
Department:
Natural Resources Revenue Office
Entry Type:
Rule
Action:
Final rule.
Document Number:
2024-01110
Dates:
This rule is effective on January 22, 2024.
Pages:
3884-3886 (3 pages)
Docket Numbers:
Docket No. ONRR-2022-0003, DS63644000 DR2000000.CH7000 245D1113RT
RINs:
1012-AA36: Civil Monetary Penalty Rates Inflation Adjustments for Calendar Year 2024
RIN Links:
https://www.federalregister.gov/regulations/1012-AA36/civil-monetary-penalty-rates-inflation-adjustments-for-calendar-year-2024
Topics:
Administrative practice and procedure, Coal, Geothermal energy, Indians-lands, Mineral royalties, Natural gas, Oil and gas exploration, Penalties, Public lands-mineral resources
PDF File:
2024-01110.pdf
CFR: (2)
30 CFR 1241.52
30 CFR 1241.60