2024 Civil Monetary Penalty Inflation Adjustments

<RULE> DEPARTMENT OF THE INTERIOR <SUBAGY>Office of Natural Resources Revenue</SUBAGY> <CFR>30 CFR Part 1241</CFR> <DEPDOC>[Docket No. ONRR-2022-0003; DS63644000 DR2000000.CH7000 245D1113RT]</DEPDOC> <RIN>RIN 1012-AA36</RIN> <SUBJECT>2024 Civil Monetary Penalty Inflation Adjustments</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Office of Natural Resources Revenue (ONRR), Interior. <HD SOURCE="HED">ACTION:</HD> Final rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> 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). </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> This rule is effective on January 22, 2024. </EFFDATE> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> For questions on procedural issues, contact Ginger Hensley, Regulatory Specialist, by telephone at (303) 231-3171 or by email to <E T="03">Ginger.Hensley@onrr.gov.</E> For questions on technical issues, contact Michael Marchetti, Enforcement Program Manager, by telephone at (303) 231-3125 or by email to <E T="03">Michael.Marchetti@onrr.gov.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <EXTRACT> <FP SOURCE="FP-2">I. Background</FP> <FP SOURCE="FP-2">II. ONRR's Inflation-Adjusted Maximum Rates</FP> <FP SOURCE="FP-2">III. Procedural Matters</FP> <FP SOURCE="FP1-2">A. Regulatory Planning and Review (Executive Orders 12866, 13563, and 14094)</FP> <FP SOURCE="FP1-2">B. Regulatory Flexibility Act</FP> <FP SOURCE="FP1-2">C. Congressional Review Act</FP> <FP SOURCE="FP1-2">D. Unfunded Mandates Reform Act</FP> <FP SOURCE="FP1-2">E. Takings (Executive Order 12630)</FP> <FP SOURCE="FP1-2">F. Federalism (Executive Order 13132)</FP> <FP SOURCE="FP1-2">G. Civil Justice Reform (Executive Order 12988)</FP> <FP SOURCE="FP1-2">H. Consultation With Indian Tribes (Executive Order 13175)</FP> <FP SOURCE="FP1-2">I. Paperwork Reduction Act</FP> <FP SOURCE="FP1-2">J. National Environmental Policy Act</FP> <FP SOURCE="FP1-2">K. Effects on the Energy Supply (Executive Order 13211)</FP> <FP SOURCE="FP1-2">L. Clarity of This Regulation</FP> <FP SOURCE="FP1-2">M. Administrative Procedure Act</FP> </EXTRACT> <HD SOURCE="HD1">I. Background</HD> 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 <E T="04">Federal Register</E> 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. <HD SOURCE="HD1">II. ONRR's Inflation-Adjusted Maximum Rates</HD> 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. <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,12,14,13"> <TTITLE> </TTITLE> <CHED H="1">30 CFR citation</CHED> <ENT I="01">1241.52(a)(2)</ENT> <ENT>$1,474</ENT> <ENT>1.03241</ENT> <ENT>$1,522</ENT> </ROW> <ROW> <ENT I="01">1241.52(b)</ENT> <ENT>14,754</ENT> <ENT>1.03241</ENT> <ENT>15,232</ENT> </ROW> <ROW> <ENT I="01">1241.60(b)(1)</ENT> <ENT>29,505</ENT> <ENT>1.03241</ENT> <ENT>30,461</ENT> </ROW> <ROW> <ENT I="01">1241.60(b)(2)</ENT> <ENT>73,764</ENT> <ENT>1.03241</ENT> <ENT>76,155</ENT> </ROW> </GPOTABLE> <HD SOURCE="HD1">III. Procedural Matters</HD> <HD SOURCE="HD2">A. Regulatory Planning and Review (Executive Orders 12866, 13563, and 14094)</HD> 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. <HD SOURCE="HD2">B. Regulatory Flexibility Act</HD> 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, <E T="03">et seq.,</E> 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. <HD SOURCE="HD2">C. Congressional Review Act</HD> 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. <HD SOURCE="HD2">D. Unfunded Mandates Reform Act</HD> 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, <E T="03">et seq.</E> ) requires because this rule is not an unfunded mandate. <HD SOURCE="HD2">E. Takings (E.O. 12630)</HD> 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. <HD SOURCE="HD2">F. Federalism (E.O. 13132)</HD> 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. <HD SOURCE="HD2">G. Civil Justice Reform (E.O. 12988)</HD> 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. <HD SOURCE="HD2">H. Consultation With Indian Tribal Governments (E.O. 13175)</HD> 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. <HD SOURCE="HD2">I. Paperwork Reduction Act</HD> 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, <E T="03">et seq.</E> ). <E T="03">See</E> 5 CFR 1320.4(a)(2). <HD SOURCE="HD2">J. National Environmental Policy Act of 1969 (“NEPA”)</HD> 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 t ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 14k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━