97-8689. Policy for Release of Third-Party Proprietary Information for the Administrative Appeals Process and for Alternative Dispute Resolution  

  • [Federal Register Volume 62, Number 65 (Friday, April 4, 1997)]
    [Proposed Rules]
    [Pages 16116-16121]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-8689]
    
    
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    DEPARTMENT OF THE INTERIOR
    
    Minerals Management Service
    
    30 CFR Part 243
    
    RIN 1010-AC08
    
    
    Policy for Release of Third-Party Proprietary Information for the 
    Administrative Appeals Process and for Alternative Dispute Resolution
    
    AGENCY: Minerals Management Service, Interior.
    
    ACTION: Proposed rulemaking.
    
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    SUMMARY: The Minerals Management Service (MMS) proposes to amend its 
    regulations to authorize MMS by law to provide third-party proprietary 
    information to appellants and entities involved in administrative 
    appeals and other Alternative Dispute Resolution (ADR) when that 
    information is the basis for an MMS assessment.
        Presently, MMS cannot release third-party commercial or financial 
    information (proprietary information) because release would violate the 
    Trade Secrets Act which prohibits releasing proprietary information 
    ``except as provided by law.'' This regulation will provide the 
    authority by law to release the information. MMS' proposed rule would 
    require that those receiving relevant proprietary information sign 
    confidentiality and liability agreements before the agency releases the 
    information.
    
    DATES: Comments must be received on or before June 3, 1997.
    
    ADDRESSES: Comments should be sent to: David S. Guzy, Chief, Rules and 
    Publications Staff, Royalty Management Program, Minerals Management 
    Service, P.O. Box 25165, MS 3101, Denver, Colorado, 80225-0165, courier 
    delivery to Building 85, Denver Federal Center, Denver, Colorado, 
    80225; or e-Mail David__Guzy@smtp.mms.gov.
    
    FOR FURTHER INFORMATION CONTACT: David S. Guzy, Chief, Rules and 
    Procedures Staff, Royalty Management Program, Minerals Management 
    Service, telephone (303) 231-3432, Fax (303) 231-3194, e-Mail 
    David__Guzy@smtp.mms.gov.
    
    SUPPLEMENTARY INFORMATION: The principal authors of this proposed 
    rulemaking are Colette Haines, Gregory Kann, Donna Luna, Cecelia 
    Williams, and Sammy Wilson, MMS, and Howard Chalker, Office of the 
    Solicitor.
    
    I. General
    
        Appellants sometimes request information MMS used to assess 
    additional royalties. MMS presently
    
    [[Page 16117]]
    
    processes requests for such information under the Freedom of 
    Information Act (FOIA), 5 U.S.C. Sec. 552, which authorizes MMS to 
    withhold proprietary information. Exemption 4 of FOIA protects ``trade 
    secrets and commercial or financial information obtained from a party 
    and privileged or confidential.'' It protects submitters of proprietary 
    information and other parties associated with such information from the 
    competitive disadvantages of public disclosure.
        MMS follows Exemption 4 of FOIA to determine if certain types of 
    information fall within the scope of the Trade Secrets Act, since 
    Exemption 4 and the Act are coextensive. CNA Fin. Corp. v. Donovan, 830 
    F.2d 1132, 1144-52 (D.C. Cir. 1987), cert. denied, 484 U.S. 977 (1988). 
    Such business-related information as sales prices or values that 
    producers or purchasers submit to MMS is commercial or financial 
    information.
        Information is privileged or confidential if it meets one of two 
    tests:
        (1) The submitter voluntarily submits the information to the 
    Department but would not customarily release the information to the 
    public;
        (2) MMS requires the submitter to provide the information and 
    release of that information could cause harm to the competitive 
    position of the submitter. Critical Mass Energy Project v. NRC, 975 
    F.2d 871, 879, 880 (D.C. Cir. 1992), cert. denied, 113 S. Ct. 1579 
    (1993).
        MMS believes that commercial or financial information less than 6 
    years old concerning the volume and value of the produced substance 
    falls into these categories. While MMS does not believe that the 
    release of either volume or value information alone would cause 
    competitive harm, it seeks input on this issue through this rulemaking.
        The requirement to submit such information rests on the lessee or 
    its agent, such as an operator. When a purchaser voluntarily submits 
    royalty information to MMS on behalf of a lessee, MMS evaluates the 
    harm to the lessee and/or its agent as well as the purchaser.
        Executive Order 12600 and the Department of the Interior's 
    regulations implementing Exemption 4 require an agency to notify the 
    submitter prior to releasing propriety information (43 CFR 2.15(d)). If 
    the submitter provides valid objection to release, MMS must redact 
    (delete) or otherwise withhold proprietary information before releasing 
    the requested material.
        There are numerous ways in which MMS uses third-party proprietary 
    information in assessing additional royalties. For example, gas plant 
    audits rely on proprietary information that third parties furnish. MMS 
    understands that many submitters believe that release of this 
    information could cause competitive harm to them.
        Another example is an assessment based on major portion analysis, 
    where MMS determines the highest price paid or offered for a major 
    portion of oil or gas produced from a single field or area. Third 
    parties, including lessees, operators, and purchasers, submit such 
    information to MMS. The release of combinations of information, such as 
    volume and value, could cause competitive harm to those third parties.
        The Trade Secrets Act (Act), 18 U.S.C. 1905, prohibits MMS from 
    releasing such information except as provided by law. The Act provides 
    penalties of up to 1 year in jail, a $1,000 fine, and mandatory removal 
    from the job for a Federal employee who discloses proprietary 
    information without authorization.
        However, the Act's prohibition on release is not absolute. 
    Substantive regulations provide authorization for release. Chrysler v. 
    Brown, 441 U.S. 281 (1979). This proposed rule would permit MMS to 
    release third-party proprietary information to those appealing or 
    attempting to settle assessments based on that information. This 
    section does not address MMS' release of any other type of information.
        Under the proposed regulation, MMS would inform the recipient of an 
    assessment based on third-party commercial or financial information 
    (proprietary information) that such information is available if the 
    party signs confidentiality and liability agreements. These agreements 
    would require that the recipient use the proprietary information only 
    for reviewing and appealing or settling an MMS order. Also, the 
    proprietary information would be available only to those individuals 
    actually working on the appeal or a related ADR.
        The agreements would require that the recipient accept all 
    liability for wrongful disclosure. Further, at its discretion, MMS 
    could require for good cause that the recipient of proprietary 
    information meet more stringent standards than normally required.
        The recipient of an MMS order has the right to appeal the order to 
    the MMS Director, or to the Deputy Commissioner of Indian Affairs if 
    the order relates to an Indian lease. MMS' proposed rule would require 
    the appellant to request access to proprietary information before the 
    expiration of the appellant's time to file a statement of reasons under 
    30 CFR Part 290.
        MMS has determined that requiring the appellant to make its request 
    early in the appeals process works best. For example, if an appellant 
    were to request documents while MMS was preparing the Director's 
    Decision, the agency would have to stop work on the decision to process 
    the request. This would be a particular problem because of the 33-month 
    limit for the Department to decide appeals imposed in the Federal Oil 
    and Gas Royalty Simplification and Fairness Act of 1996.
        Additionally, if MMS were to furnish information immediately before 
    the MMS Director issued a decision, the information would be useless 
    because the appellant would not have time to use the information. 
    Because the MMS order at issue would have notified the appellant that 
    such information was available, there would be no reason to delay the 
    appeals process simply because an appellant failed to promptly request 
    information.
        Under the proposed regulations, MMS would not release proprietary 
    information after the expiration of appellant's time to file a 
    statement of reasons under 30 CFR Part 290, except to facilitate ADR. 
    MMS could release such information at any time during ADR under the 
    terms of the proposed regulations.
        Because judicial review of final agency action is limited to the 
    administrative record, MMS could not provide a requestor with 
    proprietary information after final agency action.
        This rulemaking applies only to the disposition of relevant third-
    party proprietary information. It does not grant any rights to 
    appellants to obtain admissions, depositions, or responses to 
    interrogatories.
        MMS specifically requests your comments, including rationale, on 
    the following issues:
        1. What type of information is proprietary? For how long after such 
    information is generated does it remain proprietary? For example, when 
    is the proprietary information no longer of value to the competition? 
    Describe the competitive harm that release of this information would 
    cause. Please be mineral specific. Identify the data elements on 
    specific MMS forms that you would consider proprietary either on their 
    own or in combination with other data elements. Does the release of 
    either volume or value information without the other cause competitive 
    harm?
        MMS seeks mineral-specific comments because we believe that the 
    release of information regarding one mineral may cause more competitive 
    harm than for another. For example,
    
    [[Page 16118]]
    
    there is usually only one owner/operator/payor per coal mine or lease, 
    as opposed to multiple such entities for an oil and gas lease. 
    Therefore, MMS believes that release of coal production and royalty 
    data is more likely to cause competitive harm than release of similar 
    information on oil and gas. Further, because many coal contracts are 
    long-term contracts, such information on coal may remain proprietary 
    longer than for oil and gas.
        2. When there is an appeal of an MMS order or ADR, should MMS 
    release relevant proprietary information if the requester signs 
    confidentiality and liability agreements?
        3. Should MMS notify the submitters that the proprietary 
    information has been requested?
        4. Are the proposed safeguards of this rulemaking adequate to 
    protect the submitter's interest? Are there additional safeguards that 
    MMS should include in this rule?
        5. Should this rule include release of relevant proprietary 
    information needed to file appeals with the MMS Director or defend 
    against civil penalties under 30 CFR Parts 241 or 251?
        6. Should MMS restrict the proposed list of people allowed to 
    review the relevant proprietary information further than the proposed 
    rule requires?
        7. Should MMS charge fees for the relevant proprietary information 
    based on the fee schedule used for FOIA requests at 43 CFR Part 2?
        As an aid to public participation in this rulemaking, comments 
    received will be posted on the Internet at
    http://www.rmp.mms.gov.
    
    II. Section-by-Section Analysis
    
    Section 243.10 Definitions.
    
        All proposed definitions in this section are self-explanatory.
    
    Section 243.11 When must I request relevant third-party proprietary 
    information?
    
        The paragraphs in this part would provide time frames for filing a 
    timely request for relevant third-party proprietary information. You 
    would be required to file a request after you file a timely notice of 
    appeal under 30 CFR 290.3(a)(1). You would submit a request after you 
    file a timely notice but before the expiration of the time for filing a 
    statement of reasons or anytime during ADR with MMS.
        MMS would inform you when your order is based on third-party 
    proprietary information and advise you of the request procedures under 
    30 CFR 243.12.
    
    Section 243.12 How do I request relevant proprietary information?
    
        This section would provide the procedures for requesting relevant 
    proprietary information as well as the address of the MMS FOIA Officer.
    
    Section 243.13 May MMS deny my request for relevant proprietary 
    information?
    
        This section would provide that the Associate Director for Royalty 
    Management (AD/RM) can deny your request for relevant proprietary 
    information for good cause. The AD/RM would deny your request if the 
    information requested was not used in the order being challenged, or if 
    it receives a request after the time frames outlined in Sec. 243.11. 
    The AD/RM could also deny the request if you have breached a previous 
    confidentiality or liability agreement.
    
    Section 243.14 May I appeal MMS's denial of my request for relevant 
    proprietary information?
    
        Paragraph (a) would provide that you could appeal MMS's denial of a 
    request for relevant proprietary information as part of your appeal on 
    the merits under 30 CFR Part 290 to the MMS Director or the Deputy 
    Commissioner of Indian Affairs.
        Paragraph (b) would provide that you could not appeal a denial of a 
    request for relevant proprietary information while you are in ADR.
    
    Section 243.15 What must I do before MMS will give me the relevant 
    proprietary information?
    
        Under the proposed regulation, you must sign confidentiality and 
    liability agreements before MMS will provide relevant documents.
        Paragraph (a) would require that your organization's Chief 
    Operating Officer or equivalent sign the confidentiality and liability 
    agreements. It would also require that the signing official have the 
    authority to execute the agreement. These agreements must be notarized.
        Paragraph (b) would require that under the confidentiality and 
    liability agreements you must agree to accept all liability of any kind 
    for wrongful disclosure or misuse of the proprietary information. Such 
    liability includes, but is not limited to, liability to the Department; 
    to the third party providing the information to MMS; and to the 
    applicable lessee(s), lessor(s), and operator(s).
        For example, assume that, on a lessee's behalf, a purchaser of oil 
    and gas from a Federal or Indian lease submitted proprietary 
    information to MMS, who in turn provided that information to an 
    appellant under this section. The appellant would be responsible for 
    any and all damages to the lessee, lessor, and purchaser for any 
    violation of the confidentiality or liability agreements which caused 
    harm to the competitive position of these parties. This would be true 
    whether the lessee, lessor, or purchaser sought such damages from MMS 
    or the appellant.
        Paragraph (c) would require you to submit new confidentiality and 
    liability agreements for each appeal unless MMS determines that the 
    appeal can be covered by an existing agreement. MMS could determine 
    that previous confidentiality and liability agreements for an appeal 
    may cover a subsequent ADR.
    
    Section 243.16  Do I pay a fee for the relevant proprietary 
    information?
    
        This section would require you to pay the billed amount that MMS 
    charges you for producing the relevant proprietary information. For 
    example, the MMS general administrative costs would include 
    researching, copying, and producing data on magnetic tapes and computer 
    disks, among other items. MMS would base these costs on the FOIA fees 
    charged under 43 CFR Part 2. The bill would accompany the relevant 
    proprietary information.
    
    Section 243.17  What are my obligations and restrictions in using the 
    relevant third-party proprietary information MMS provides?
    
        This section would prohibit you from using third-party proprietary 
    information to gain a competitive advantage over the submitter or other 
    parties associated with the data, and to cause any other harm to the 
    competitive position of the submitter.
        Paragraph (a) would provide that you may use the proprietary 
    information only to evaluate and challenge the relevant order.
        Paragraph (b) would restrict access to the proprietary information 
    to the specific individuals listed in this paragraph.
        Paragraph (c) would require that those parties reviewing the 
    proprietary information sign a certification statement attesting that 
    they have read the confidentiality and liability agreements and that 
    they agree to be bound by them.
        Paragraph (d) would require you to maintain all certification 
    statements and make them available to MMS upon request.
        Paragraph (e) would require that you provide all certification 
    statements to the MMS FOIA Officer within 30 days after:
    
    [[Page 16119]]
    
        (1) the Department issues a final nonappealable decision, or
        (2) you and MMS conclude ADR with a final agreement, or
        (3) you withdraw the appeal or request for ADR.
        Paragraph (f) would require you to identify any third-party 
    proprietary information if you use the relevant proprietary information 
    in an appeal or during ADR.
        Paragraph (g) would require that you return the documents as 
    outlined in Sec. 243.20.
        Paragraph (h) would require you to be bound by the minimum 
    confidentiality requirements under this regulation whether or not they 
    are set forth in the confidentiality agreement.
    
    Section 243.18  May MMS require me to meet more stringent 
    confidentiality standards than those minimum requirements under this 
    regulation?
    
        This section would advise you that for good cause MMS could hold 
    you to more stringent standards and explain in writing why they are 
    necessary. One example of good cause would be an appellant's failure to 
    comply with previous confidentiality and/or liability agreements.
        MMS might also determine that in some cases the company officials 
    directly involved in the appeal would also be involved in that 
    company's day-to-day decision making. Their access to third-party 
    proprietary information could cause competitive harm to the submitter 
    of, or other parties associated with, that information. In these cases, 
    MMS could limit review of proprietary information to outside counsel or 
    consultants.
    
    Section 243.19  Am I relieved of the confidentiality and/or liability 
    agreements and all liability after the appeal process or the ADR 
    process is over?
    
        This section would advise that you must always comply with the 
    terms of the confidentiality and liability agreements even after:
        (1) the Department issues a final nonappealable decision, or
        (2) you and MMS conclude ADR with a final agreement, or
        (3) you withdraw the appeal or request for ADR.
        You will continue to be liable for any damage resulting from your 
    wrongful disclosure of the proprietary information.
    
    Section 243.20  What do I do with the relevant proprietary information 
    after the appeal process or the ADR process is over?
    
        This section would advise you of the proper disposition of the 
    relevant proprietary information.
    
    Section 243.21  What happens if I don't return the relevant proprietary 
    information?
    
        This section would require appropriate sanctions if you fail to 
    return the relevant proprietary information.
    
    III. Procedural Matters
    
    The Regulatory Flexibility Act
    
        The Department certifies that this rule will not have a significant 
    economic effect on a substantial number of small entities under the 
    Regulatory Flexibility Act (5 U.S.C. Sec. 601 et seq.). The proposed 
    rule will provide the authorization by law for MMS to provide 
    appellants with documents furnished by third parties and which contain 
    proprietary information that MMS used to calculate an order.
    
    Executive Order 12630
    
        The Department certifies that the rule does not represent a 
    governmental action capable of interference with constitutionally 
    protected property rights. Thus, a Takings Implication Assessment need 
    not be prepared under Executive Order 12630, ``Governmental Actions and 
    Interference with Constitutionally Protected Property Rights.''
    
    Executive Order 12866
    
        This proposed rule does not meet the criteria for a significant 
    rule requiring review by the Office of Management and Budget (OMB) 
    under Executive Order 12866.
    
    Executive Order 12988
    
        The Department has certified to OMB that this rule meets the 
    applicable reform standards provided in Sections 3(a) and 3(b)(2) of 
    Executive Order 12988.
    
    Paperwork Reduction Act
    
        This rule has been examined under the Paperwork Reduction Act of 
    1995 and contains no reporting and information collection requirements.
    
    Unfunded Mandate Reform Act of 1995
    
        The Department has determined and certifies according to the 
    Unfunded Mandates Reform Act, 2 U.S.C. 1502 et seq., that this rule 
    will not impose a cost of $100 million or more in any given year on 
    local, Tribal, State governments or the private sector.
    
    National Environmental Policy Act of 1969
    
        We have determined that this rulemaking is not a major Federal 
    action significantly affecting the quality of the human environment, 
    and a detailed statement under section 102(2)(C) of the National 
    Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is not 
    required.
    
    List of Subjects in 30 CFR Part 243
    
        Coal, Continental shelf, Geothermal energy, Government contracts, 
    Indian lands, Mineral royalties, Natural gas, Petroleum, Public lands--
    mineral resources.
    
        Dated: March 27, 1997.
    Bob Armstrong,
    Assistant Secretary--Land and Minerals Management.
    
        For the reasons set out in the preamble, we propose to amend 30 CFR 
    Part 243 by adding the following:
    
    PART 243--APPEALS--ROYALTY MANAGEMENT PROGRAM
    
    Subpart B--Release of Relevant Third-Party Proprietary Information
    
        1. The authority citation for part 243 is revised to read as 
    follows:
    
        Authority: 5 U.S.C. 301 et seq.; 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.; 31 U.S.C. 9701; 43 U.S.C. 1301 et seq., 1331 et 
    seq., 1801 et seq.
    
        2. Subpart B is added to read as follows:
    
    Subpart B--Release of Relevant Proprietary Third-Party Information
    
    Sec.
    243.10  Definitions.
    243.11  When must I request relevant third-party proprietary 
    information?
    243.12  How do I request relevant proprietary information?
    243.13  May MMS deny my request for relevant proprietary 
    information?
    243.14  May I appeal MMS's denial of my request for relevant 
    proprietary information?
    243.15  What must I do before MMS will give me the relevant 
    proprietary information?
    243.16  Do I pay a fee for the relevant proprietary information?
    243.17  What are my obligations and restrictions in using the 
    relevant proprietary information MMS provides?
    243.18  May MMS require me to meet more stringent confidentiality 
    standards in some cases?
    
    [[Page 16120]]
    
    243.19  Am I relieved of the confidentiality and liability 
    agreements and all liability after the appeals process or the ADR 
    process is over?
    243.20  What do I do with the relevant proprietary information after 
    the appeals process or the ADR process is over?
    243.21  What happens if I don't return the relevant proprietary 
    information?
    
    
    Sec. 243.10  Definitions.
    
        Alternative dispute resolution means using methods other than 
    litigation to settle disputes. These methods may include mediation, 
    arbitration, settlement negotiation, minitrials, conciliation, fact 
    finding, and facilitation.
        Appellant means a person with an administrative appeal of an order 
    from the Minerals Management Service, pending under 30 CFR 290 or 30 
    CFR 241.51(a)(4). For purposes of this subpart only, an appellant also 
    includes a person involved in alternative dispute resolution (ADR) with 
    MMS.
        Proprietary information means commercial or financial information 
    obtained from a third party and privileged or confidential.
        Relevant proprietary information means any proprietary information 
    a third party furnished and that MMS used to issue and support an 
    order. If MMS did not rely on the information for the challenged order, 
    then it is not relevant proprietary information. Public information is 
    not relevant proprietary information.
        Third-party means any party other than the appellant or the 
    Department.
        You means the person requesting the information and the employer.
    
    
    Sec. 243.11  When must I request relevant proprietary information?
    
        (a) You may obtain relevant proprietary information when MMS 
    informs you that an order you received is based on such information, 
    advises you of the request procedures under 30 CFR 243.12, and receives 
    your timely request for such information. You may obtain relevant 
    proprietary information only at the time provided in this section.
        (b) If you timely appeal an MMS order under 30 CFR 241.51(a)(4) or 
    30 CFR 290, you may timely request relevant proprietary information 
    from MMS until the expiration of the time to file your statement of 
    reasons.
        (c) If you are in ADR, you may request relevant proprietary 
    information until a final settlement is reached or ADR is terminated.
    
    
    Sec. 243.12  How do I request relevant proprietary information?
    
        (a) You must send a written request for relevant proprietary 
    information to: Minerals Management Service, Royalty Management 
    Program, Freedom of Information Act Officer, Re: Request for Relevant 
    Proprietary Information, P.O. Box 25165 MS 3062, Denver, Colorado 
    80225-0165.
        Overnight courier address: Minerals Management Service, Royalty 
    Management Program, Denver Federal Center, Building 85, Denver, 
    Colorado 80225.
        (b) In your request:
        (1) Identify the relevant proprietary information you are 
    requesting; and
        (2) Include the MMS Appeal Docket Number (if available); and
        (3) Identify any existing confidentiality and liability agreements 
    you have under this part and advise if they are related to this 
    request.
    
    
    Sec. 243.13  May MMS deny my request for relevant proprietary 
    information?
    
        The Associate Director for Royalty Management (AD/RM) will deny 
    your request if the requested information is not relevant proprietary 
    information or if the request is received after the timeframes outlined 
    in Sec. 243.11. The AD/RM also may deny the request if you have 
    breached a previous confidentiality or liability agreement or for other 
    good cause.
    
    
    Sec. 243.14  May I appeal MMS's denial of my request for relevant 
    proprietary information?
    
        (a) Except as provided in paragraph (b) of this section, if MMS 
    denies your request for relevant proprietary information, you may 
    appeal that denial as part of your appeal on the merits under 30 CFR 
    part 290. If MMS denies your request in whole or in part after the date 
    your statement of reasons is due in your appeal, you may file a 
    supplemental statement of reasons. You must file this supplement within 
    60 days after you receive notice that MMS denies your request.
        (b) You cannot appeal a denial for a request for relevant 
    proprietary information during ADR.
    
    
    Sec. 243.15  What must I do before MMS will give me the relevant 
    proprietary information?
    
        (a) Your organization's Chief Operating Officer or equivalent 
    official must sign the MMS confidentiality and liability agreements. In 
    the agreements, the signing official also must attest to having the 
    authority to sign them. These agreements must be notarized.
        (b) You must agree under the confidentiality and liability 
    agreements to accept all liability of any kind for wrongful disclosure 
    or misuse of the proprietary information. Such liability includes, but 
    is not limited to, liability to the Department, or the Indian lessor, 
    the third party providing the proprietary information, and the 
    applicable lessee(s) and operator(s).
        (c) You must submit new confidentiality and liability agreements 
    for each appeal or ADR unless MMS determines that existing agreements 
    cover the appeal or ADR. For example, if you obtained relevant 
    proprietary information through the appeals process, some or all 
    provisions of your original confidentiality and liability agreements 
    may cover a subsequent ADR.
    
    
    Sec. 243.16  Do I pay a fee for the relevant proprietary information?
    
        You must pay the amount MMS charges you for the administrative cost 
    of providing the relevant proprietary information. The charges are 
    based on the fees used for Freedom of Information Act (FOIA) requests 
    at 43 CFR Part 2. MMS will send you the bill with the relevant 
    proprietary information.
    
    
    Sec. 243.17  What are my obligations and restrictions in using the 
    relevant proprietary information MMS provides?
    
        (a) You may use relevant proprietary information only for 
    evaluating and challenging the relevant order.
        (b) Only the following persons may review the relevant proprietary 
    information:
        (1) Your counsel and persons directly assisting your counsel in 
    preparing the relevant appeal or associated ADR; and
        (2) Those persons in your employ directly preparing the appeal or 
    ADR.
        (c) You must ensure that before any person reviews the relevant 
    proprietary information they:
        (1) Sign and date the certification statement attesting that they 
    have read and understand the confidentiality and liability agreements; 
    and
        (2) Agree to be bound by them.
        (d) You must maintain all certification statements and provide them 
    to the MMS FOIA Officer upon request.
        (e) You must provide all certification statements to the MMS FOIA 
    Officer within 30 days after:
        (1) The Department issues a final decision;
        (2) You and MMS conclude ADR with a final agreement; or
        (3) You withdraw the appeal or request for ADR.
        (f) You must state on the front of any appeal or ADR document that 
    it contains relevant proprietary information. You also must identify 
    the relevant proprietary information on each page or record.
        (g) You must return the documents as provided in Sec. 243.20.
    
    [[Page 16121]]
    
        (h) You are bound by these minimum requirements whether or not they 
    are set forth in the confidentiality agreement.
    
    
    Sec. 243.18  May MMS require me to meet more stringent confidentiality 
    standards in some cases?
    
        MMS, at its discretion, may advise you in writing that it will hold 
    you to more stringent standards. For example, MMS may require that only 
    outside counsel review relevant proprietary information if you have 
    breached a previous confidentiality and/or liability agreement, or if 
    you are a direct competitor of the submitter of the third-party 
    proprietary information.
    
    
    Sec. 243.19  Am I relieved of the confidentiality and liability 
    agreements and all liability after the appeals process or the ADR 
    process is over?
    
        You must comply with the terms of the confidentiality and liability 
    agreements even after the appeals process or the ADR process is 
    completed. For example, if a final decision is reached through the 
    administrative process or ADR, or you withdraw your appeal or ADR 
    request, you will continue to be liable for any damage resulting from 
    your wrongful disclosure of the proprietary information.
    
    
    Sec. 243.20  What do I do with the relevant proprietary information 
    after the appeals process or the ADR process is over?
    
        (a) You must return all relevant proprietary information to the MMS 
    FOIA Officer at the address in Sec. 243.12 (a), along with all copies, 
    excerpts, or summaries of such information, within 60 days after:
        (1) The Department issues a final decision;
        (2) You and MMS conclude ADR with a final agreement; or
        (3) You withdraw the appeal or request for ADR.
    
    
    Sec. 243.21  What happens if I don't return the relevant proprietary 
    information?
    
        You will be subject to appropriate sanctions including civil 
    penalties under 30 CFR Part 241 if you fail to return the relevant 
    proprietary information.
    
    [FR Doc. 97-8689 Filed 4-3-97; 8:45 am]
    BILLING CODE 4310-MR-P
    
    
    

Document Information

Published:
04/04/1997
Department:
Minerals Management Service
Entry Type:
Proposed Rule
Action:
Proposed rulemaking.
Document Number:
97-8689
Dates:
Comments must be received on or before June 3, 1997.
Pages:
16116-16121 (6 pages)
RINs:
1010-AC08: Release of Third Party Proprietary Information
RIN Links:
https://www.federalregister.gov/regulations/1010-AC08/release-of-third-party-proprietary-information
PDF File:
97-8689.pdf
CFR: (19)
30 CFR 243.10
30 CFR 243.11
30 CFR 243.12
30 CFR 243.13
30 CFR 243.14
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