Review of Existing Significant Regulations

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Ch. I

Minerals Management Service

30 CFR Ch. II

Geological Survey

30 CFR Ch. IV

Bureau of Mines

30 CFR Ch. VI

Office of Surface Mining Reclamation and Enforcement

30 CFR Ch. VII

National Park Service

36 CFR Ch. I

Office of the Secretary

43 CFR Subtitle A

48 CFR Ch. XIV

Bureau of Reclamation

43 CFR Ch. I

Bureau of Land Management

43 CFR Ch. II

Fish and Wildlife Service

50 CFR Chs. I and IV

Review of Existing Significant Regulations

AGENCY: Office of the Secretary, Interior.

ACTION: Notice with request for comment.

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SUMMARY: Pursuant to Executive Order 12866 (the ``Order''), the

Department of the Interior (``DOI'') announced its intent on March 1,

1994, to establish periodic reviews of all ``significant'' regulations

published by the Department (59 FR 9718). The purpose of these reviews

is to ensure that all significant DOI regulations are efficient and

effective, impose the least possible burden upon the public, and are

tailored no broader than necessary to meet the objectives of the

program being implemented.

The Department has determined to review a number of its

regulations. Some are being reviewed based upon the Department's

examination of its regulatory program. Others are being reviewed in

response to the comments received on the March 1 notice (the

``Notice''), or will be reviewed in the course of upcoming rulemakings

or other proceedings. The purpose of this notice is to inform the

public of which regulations are being reviewed at this time, to briefly

discuss the comments received pursuant to the March 1 Notice, and to

invite specific, detailed comments on how the regulations under review

may be revised.

This notice discusses regulations issued by the Bureau of Land

Management, the Office of Surface Mining Reclamation and Enforcement,

the Minerals Management Service, the Bureau of Indian Affairs, and the

Bureau of Reclamation. Other bureaus and offices are not discussed

because no comments were received regarding their regulations, and it

was determined that either they have no significant regulation or

review is not appropriate at this time. If you disagree and feel that

these bureaus and offices have regulations that should be reviewed at

this time, please contact the Office of Regulatory Affairs at the

address below. Similarly, if there are any concerns regarding the plans

or analyses set forth below by the various Departmental bureaus and

offices, please also contact the Office of Regulatory Affairs.

DATES: Written comments must be received by October 13, 1994.

ADDRESSES: Please send written comments to Bill Vincent, Deputy

Director, Office of Regulatory Affairs, Department of the Interior,

Mail Stop 6214 MIB, 1849 C Street, NW., Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT:Bill Vincent, Deputy Director, Office

of Regulatory Affairs, phone (202) 208-5271.

SUPPLEMENTARY INFORMATION: The following is a discussion of the

regulations that currently are scheduled for review as well as the

comments received in response to the March 1 notice.

Bureau of Land Management (``BLM'')

After assessing its regulatory program and reviewing the comments

received in response to the Notice. BLM plans to review the following

regulations contained in 43 CFR: Part 1600 (Planning, Programming,

Budgeting); Group 3200 (Geothermal Resources Leasing); Group 3400 (Coal

Management); Group 3600 (Mineral Materials Disposal); and Group 8300

(Recreation Management). Specific comments are requested on these

provisions. The following is a discussion of comments received in

response to the Notice.

Comments From the Geothermal Energy Industry

Five comments came from companies producing or seeking to produce

geothermal energy. The thrust of all of the comments was that the BLM

should expedite publication of geothermal resources leasing and

operations regulations that have been in development for several years.

These regulations were removed from the Semiannual Agenda of Federal

Regulations (the ``Agenda'') last winter because we were unable to

forecast with precision when work on the rule would be completed. This

rule will be restored to the Agenda this summer, and internal review of

the rule should begin in October 1994.

Two of these comments suggested that a series of industry-

government forums should take place on these regulations, and an

industry-government task force should be formed to monitor them and

prepare the rule. We will consider the use of such forums during the

public comment period on the proposed rule, but any group formed to

reach consensus on a proposed rule must be in compliance with the

Federal Advisory Committee Act.

One of the geothermal comments also mentioned other regulations as

possible candidates for review: 43 CFR Part 1600--Planning, Programming

and Budgeting, and 43 CFR Part 2800--Rights-of-way. As mentioned above,

BLM plans to review the planning regulations, and draft revised

regulations are in preparation. They will be restored to the Agenda

when it is updated this summer.

There are no current plans to review or amend the general right-of-

way regulations implementing Title V of the Federal Land Policy and

Management Act of 1976 (FLPMA) or Section 28 of the Mineral Leasing

Act. Two current rules on rights-of-way are in review: regulations on

rights-of-way under R.S. 2477, a major DOI priority, and fee schedule

regulations for nonlinear communication site rights-of-way, which are

of interest in the Congress. Reviews will not begin until those two

rules are finalized.

Comments From the Oil and Gas Industry

Two commenters suggested review of regulations on archaeological

and cultural resource clearances for mineral leasing activities on BLM

and split-estate lands. The regulations referred to in this comment are

issued by the Advisory Committee on Historic Preservation and

implemented by BLM in cooperation with State Historic Preservation

Officers. They are not subject to review or amendment by BLM, and

comments will be forwarded to the Committee.

The commenters also suggested that lease terms and rental payments

be suspended pending environmental reviews, and that BLM should not

consider exploration and production wastes as hazardous under the

Comprehensive Environmental Response, Compensation, and Liability Act

of 1980, or the Resource Conservation and Recovery Act of 1976. They

urged completion of rules revising Onshore Oil and Gas Order No. 1--

Approval of Operations, Order No. 8--Well Workovers, Completions,

Abandonments, and a rule relating to BLM responsibilities as to oil and

gas operations on Forest Service lands.

These suggestions are not related to the review of existing

significant regulations and therefore fall outside of the scope of the

Order. Nevertheless, the following is a brief statement regarding

current efforts for some of the suggestions. The rule regarding Order

No. 1 will be restored to the Agenda when the program office has

finished its review of the draft prepared by BLM's standing field

committee on operations. The rule regarding Order No. 8 is undergoing

review within BLM. The rule relating to Forest Service lands is

undergoing review within the Department's Solicitor's Office.

One commenter suggested that oil and gas lease terms and rental

payments be automatically suspended pending environmental reviews

affecting a particular lease or unit. The current regulations at 43 CFR

3103.4-2 allow such suspensions, at the discretion of the authorized

officer, for the purpose of conserving natural resources. Although this

suggestion might be considered in a future review, making such a

suspension automatic would make the process susceptible to abuse. It

might allow extensions of leases that are not being actively developed

without proof that the environmental review prevents ongoing or

imminent development or somehow threatens natural resources. Without

further persuasion from the public, this suggestion likely will not be

adopted.

The comment regarding whether oil and gas wastes are hazardous has

long been a matter of controversy. The matter has not yet been resolved

conclusively in the courts, and may not be until the laws involved are

reauthorized in the Congress. We are continuing to work with industry

to resolve this issue.

One commenter requested to be involved in the preparation and

distribution of BLM's Instruction Memoranda. This is a matter for

review in the process of reducing our internal directives pursuant to

Executive Order 12861, and will be considered then. Specific

suggestions for revising BLM instruction manuals may be sent to the

Office of Regulatory Affairs at the address set forth in the beginning

of this notice.

One commenter urged that environmental impact statements

(``EIS's'') on rights-of-way on public lands for projects that are

otherwise wholly on private lands be limited strictly to a

consideration of their environmental impacts on the public lands

crossed by the rights-of-way. This would be counter to our

interpretation of the National Environmental Policy Act of 1969

(``NEPA''), which requires that all effects of a project be considered

in reviewing the Federal aspects of the project.

The commenter also urged that categorical exclusions from

environmental review be applied more liberally to activities such as

geophysical exploration and drilling permit applications, which it

characterizes as having minimal impact. At 43 CFR 3162.5-1, BLM's

regulations require an environmental record of review or an

environmental assessment to determine whether an EIS is required and

what terms and conditions need to be included in approved plans. Again,

NEPA requires that all effects of a project be considered in reviewing

the Federal aspects of the project. Further, the Department's Solicitor

has advised BLM to limit its use of categorical exclusions.

Nevertheless, categorical exclusions are listed in the appendix to the

Departmental Manual, and may be subject to our review of internal

directives under E.O. 12861.

The commenter also suggested that BLM apply Administrative

Procedure Act procedures (i.e., public notice and comment) to BLM State

and District Office issuance of Notices to Lessees, and that oil and

gas lease parcel stipulations identify, by specific legal description,

the lands covered. The latter is a matter that can be covered in the

review of internal directives. The former have not been routinely

published in the Federal Register for public comment because of their

geographically limited effect. In any event, these are not topics for

periodic review of significant regulations.

Finally, a review of 43 CFR Group 3100 was requested. These rules,

however, currently are being reviewed through the National Performance

Review. The National Performance Review has identified broad aspects of

the onshore oil and gas program as candidates for process re-

engineering. Implementation teams have been established to evaluate

comments received from outside groups and Federal employees on ways to

streamline procedures and make them more effective. It is likely that

these teams will recommends changes to one or more sections of the

onshore oil and gas regulations as a result of their evaluations.

Consequently, no further review is necessary at this time.

Comments From the Coal Industry

A coal industry commenter made two specific recommendations

regarding BLM's coal management regulations: (1) that BLM reinstitute a

rulemaking that was withdrawn from review in 1993 that would have

rendered all coal lease decisions and approvals in full force and

effect pending appeal: and (2) that BLM discontinue its current

rulemaking that would amend coal logical mining unit (``LMU'')

procedures. Neither recommendation relates to periodic review of

existing regulations. Further, following the recommendations would

reverse two policy decisions of the administration. Nevertheless, the

program office is reviewing the entire group of coal management

regulations at this time. A proposed rule that will include the LMU

proposal and other coal management provisions will be scheduled in the

upcoming Agenda, revising the current entry for the LMU rule.

Miscellaneous

One commenter provided a list of regulations that, in the

commenter's view, adversely affect ``in a material way the economy, a

sector of the economy, productivity, competition, jobs, the

environment, public health safety (sic), or State, local, or tribal

governments, or communities.'' Each of the following paragraphs is

devoted to the successive parts of Title 43 suggested by this commenter

for review.

1700--Program Management. This Group is divided into two parts,

1720--Programs and Objectives, and 1780--Cooperative Relations. The

former part was removed from the Code of Federal Regulations in a final

rule published on June 6, 1994 (59 FR 29205). The latter, which

contains the regulations on advisory committees, was proposed to be

substantially revised as part of the proposed rule on rangeland reform,

published on March 25, 1994 (59 FR 14314). No further review of these

regulations is necessary.

2400--Land Classification. Proposed legislation that would make

these regulations unnecessary is being drafted in BLM. Further, a

proposed rule amending this part currently is being reviewed by the

Department's Solicitor's Office. It was removed from the most recent

edition of the Agenda because of uncertainty regarding when review

would be complete.

3000-3800. This grouping includes all of the mineral development

regulations of BLM. Of these, Group 3400--Coal Management is now being

reviewed, as stated above, and review should be completed and lead to

new regulations before 1996. Group 3200--Geothermal Resources Leasing,

as stated above, is being reviewed, and a proposed rule will be

scheduled in the upcoming Agenda.

In addition, all of the minerals regulations except for those

governing mining under the mining law are being reviewed for purposes

of revising or adding provisions for recovery of administrative costs.

A proposed rule was drafted in 1993, but was withdrawn because of

questions regarding supporting data that arose during internal review.

New rules amending some of the cost recovery provisions relating to oil

and gas exploration (part of Group 3100) and non-energy leasable

minerals (Group 3500) may be added to the upcoming Agenda, depending on

policy decisions to be made at the DOI level and involving the Office

of the Inspector General.

Several rulemaking efforts amending portions of Groups 3700 and

3800, relating to the mining law, have been suspended pending the

development of mining law reform legislation in the Congress. Moreover,

the regulations in Group 3600--Mineral Materials Disposal, were the

subject of a final rule prepared in 1992. This rule was suspended upon

the change of Administrations in 1993, and the regulations in this

group are now being reviewed, partly in response to audits by the

Office of the Inspector General, and for purposes of updating the

regulations and improving efficiency. This review should be concluded

by 1996.

4100--Grazing Administration. These regulations have been subject

to internal and DOI review, and intense public scrutiny, during the

last 12 months. A rule amending them is now among the highest

priorities of the Secretary of the Interior, and a proposed rule was

published on March 25, 1994 (59 FR 14314). There is no need for further

review of these regulations under Section 5 of the Executive Order.

5000-5510. This grouping comprises the entire Forestry Program

regulations of BLM, including those on free use of vegetative

resources. The regulations governing these programs have been

undergoing continual informal review over the past decade and close

public scrutiny and intense interest during the past 18 months

surrounding the formulation of the Secretary's Forest Plan. As problems

are disclosed, either through informal public input or internal review,

and as legislation is enacted, rules have been proposed and promulgated

dealing with them. There currently are two rules undergoing review, one

proposing regulations on export and substitution of timber, and the

other promulgating regulations on trespass. We would be happy to

consider specific public comments on needed changes in the forestry

regulations, but there are no plans for systematic review of these

regulations in the next 2 years, especially in light of possible

funding and personnel cuts in this program.

6220--Wildlife Management. There are no regulations in this part

except for a single paragraph stating a purpose for regulations on

primitive areas, scenic corridors and buffer zones, and wild and scenic

rivers. It is not clear why the commenter listed this provision as

significant, but it is certainly a good candidate for removal as

serving no purpose.

8300--Recreation Management. The portions of the recreation

management regulations on prohibited acts are currently undergoing

review as part of the projected overhaul of the law enforcement

regulations in part 9260. In addition, the entire recreation management

part will be reviewed for purposes of efficiency and streamlining in

the next 2 years. Comments from the public regarding this review are

welcome.

8400--Visual Resource Management [Reserved] and 8600--Environmental

Education and Protection [Reserved]. There are no regulations at all in

these groups, and it is not clear why the commenter listed these parts.

The headings and part numbers are merely reserved for possible future

use.

8500--Wilderness Management. The wilderness management regulations

were thoroughly reviewed by BLM in 1992-93, and a proposed rule

updating certain provisions is awaiting review in the Office of the

Solicitor. Publication of the proposed rule will afford the public an

opportunity to make further suggestions.

9210--Fire Management. There are no current plans to review the

fire management regulations. The program office currently is reviewing

its internal Manual and other guidance. Moreover, most fire management

initiatives arise from State and local governments, and are carried out

through cooperative agreements and memoranda of understanding. We do

not view these regulations as significant under the terms of the

Executive Order, but would be happy to accept specific comments from

the public as to how they may be improved. We do not anticipate a

formal review, however, unless comments arrive informing us of problems

with the current regulations.

The commenter also suggested a procedure for conducting periodic

review of existing regulations. He suggested that ``DOI held numerous

public hearings in each of the States which are affected by these

regulations'' and that ``DOI meet separately with each individual

county together with the businesses and industries within that county

which are affected by these regulations.'' In the BLM we meet

constantly with the public, formally and informally, at all levels of

the organization. To institutionalize such meetings in every county for

this periodic review, however, would be enormously expensive and time

consuming. BLM therefore is strongly opposed to such a procedure.

Summary

The following BLM regulations in Title 43 of the Code of Federal

Regulations are scheduled for review and specific, detailed

recommendations on how these regulations should be amended are invited.

Part 1600--Planning, Programming, Budgeting

Group 3200--Geothermal Resources Leasing

Group 3400--Coal Management

Group 3600--Mineral Materials Disposal

Group 8300--Recreation Management

The following regulations will not be reviewed in the immediate

future because reviews have been completed, proposed rules amending

them either have been published or are expected to be published, or

because legislation is pending.

Group 1700--Program Management

Group 2400--Classification

Group 3700--Multiple Use; Mining

Group 3800--Mining Claims under the General Mining Law

Group 4100--Grazing Administration

Group 8500--Wilderness Management

The following regulations are not scheduled for review, although

comments addressing them are welcome:

Part 9210--Fire Management

The following regulations are not scheduled for review and comments

are not being solicited through this notice because rules or reviews

currently are underway in those areas:

Group 2800--Use; Rights-of-Way

Group 3100--Oil and Gas Leasing

Group 3500--Management of Solid Minerals Other Than Coal

Group 5400--Sales of Forest Products

Group 5500--Nonsale Disposals

Bureau of Reclamation

The Bureau of Reclamation (Reclamation) received no comments in

response to the Department's March 1 Notice. Nevertheless, it has

identified six significant regulations that meet the Order's criteria

for a significant regulation, and each of these regulations will be

reviewed. These regulations are:

(1) 43 CFR part 413 (assessment by irrigation districts of lands

owned by the United States, Columbia Basin Project, Washington);

(2) 43 CFR part 417 (procedural methods for implementing Colorado

River water conservation measures with lower basin contractors and

others);

(3) 43 CFR part 418 (Newlands Reclamation Project, Nevada; Truckee

River Storage Project, Nevada; and Washoe Reclamation Project, Nevada-

California (Truckee and Carson River Basins, California-Nevada);

Pyramid Lake Indian Reservation, Nevada; Stillwater Area, Nevada);

(4) 43 CFR part 424 (regulations pertaining to standards for the

prevention, control, and abatement of environmental pollution of

Conconully Lake and Conconully Reservoir, Okanogan County, Washington);

(5) 43 CFR part 426 (rules and regulations for projects governed by

Federal Reclamation Law, which currently are being reviewed and

revised; and

(6) 43 CFR part 431 (general regulations for power generation,

operation, maintenance, and replacement at the Boulder Canyon Project,

Arizona/Nevada).

Reclamation will conduct a review of each of these regulations. Any

revisions will be published in the Federal Register with a 60-day

period for public comment.

Regulation 43 CFR 426 is in the process of being rewritten. The

proposed rule is scheduled for completion in December 1994, and the

final rule is scheduled for completion in August 1995. The remaining

rules will be reviewed as expeditiously as possible, and completion of

the review and any appropriate revisions will be no later than June 30,

1996.

Office of Surface Mining Reclamation and Enforcement (``OSM'')

OSM received several comments in response to the Notice. Based upon

these comments and an independent assessment of its regulatory program,

OSM is conducting, or will conduct, reviews of several existing

significant regulations. The following is a brief discussion of the

comments received and the reviews that will be conducted.

Definition of Valid Existing Rights

OSM received a number of comments regarding the definition of valid

existing rights. A rulemaking currently is being conducted regarding

this definition, and no further review is necessary at this time. A

notice of intent to prepare an environmental impact statement was

published in the Federal Register on April 28, 1994, and the comment

period on this notice expired on June 30. OSM is examining the comments

and is proceeding with preparation of the statement and the rule.

Federal Oversight/Enforcement of Approved State Programs (Sections 842,

843)

One commenter recommends that OSM repeal 30 CFR 843.12(a)(2) to

eliminate Federal NOV authority in primacy States. These regulations,

however, currently are being litigated. OSM does not intend to take any

further action until a court decision is issued.

The commenter also recommends that OSM require citizens to exhaust

the State program citizen complaint process before any Federal

involvement or use of ten-day notices. The commenter further recommends

that OSM limit citizen review of State permitting decisions to those

procedures established under State programs for that purpose, and

eliminate use of ten-day notices to address State permitting issues.

OSM has established two task forces which currently are studying

the entire citizen complaint and ten-day notice processes. This study

includes a review of the specific concerns raised by the commenter. The

efforts of these task forces may culminate in recommended changes, and

OSM does not intend to undertake any further action until the studies

are completed.

Revegetation Success Standards (Sections 816.116/817.116)

A commenter identified three areas of the revegetation success

standards for change: 1) The requirement to obtain approval from other

agencies for planting and stocking plans; 2) the requirement that

husbandry or conservation practices be approved through the State

program amendments process; and 3) the requirement that OSM-approved

statistically valid measurement techniques be used in evaluating

revegetation success.

OSM will review the regulations to determine the need to propose

rulemaking. Public comments are requested regarding modification to the

Revegetation Success Standards for sections 816.116 and 817.116. Review

of the regulations will commence by October 1, 1994.

Hydrology: Water Quality (Sections 816.42/817.42, 782.21(j)/784.14(i))

A commenter asked OSM to delete cross references to 816.42 (which

cites effluent guidelines at 40 CFR part 434) in favor of the statement

``* * * capable of meeting EPA's effluent guidelines.'' Any rule

change, however, requires the concurrence of the Environmental

Protection Agency (EPA). OSM therefore intends to enter into

discussions with EPA and review the current Hydrologic standards at

sections 816.42, 816.46/817.42, 817.46. Public comments are requested

regarding these hydrologic standards. Review of the regulations will

commence by October 1, 1994.

Air Monitoring Program (Sections 780.15/784.26)

A commenter noted that fugitive and other emissions at mines fall

within EPA's authority under the Clean Air Act and should not be

regulated by OSM. The commenter also noted that SMCRA only provides

authority to deal with erosional aspects of air pollution.

The existing OSM permitting requirements were promulgated in 1979.

Subsequently, the corresponding performance standards governing air

quality were revised. OSM considers it appropriate, therefore, to

review these permitting regulations. Public comments are requested

regarding these requirements at sections 780.15 and 784.26. Review of

the regulations will commence by October 1, 1994.

Roads (Sections 816.150, 816.151, 817.150, 817.151)

One commenter suggested that existing road design standards need to

be deleted because the primary road category is so broadly defined that

it subjects temporary roads and insignificant travel routes to

expensive highway design standards. The commenter further suggested

that the foundation and embankment testing requirements and drainage

design requirements are costly and unnecessary, and that they should be

replaced with general criteria for roads based upon prudent engineering

practices and best management practices. The commenter also noted that

OSM should refrain from exerting jurisdiction over public roads.

OSM does not believe there is sufficient justification to review

the existing regulations regarding road design standards. OSM believes

its existing standards, which are implemented through a two-tiered

classification system, adequately address the commenters concerns. OSM

plans, however, to undertake rulemaking to address the jurisdictional

question.

Regulations Concerning Ownership and Control, Permit Information, and

Permit Rescission

Commenters suggested that OSM review regulations concerning

ownership and control, permit information, and permit rescission. These

regulations currently are being litigated and/or are in the process of

being revised. OSM does not intend to take any further action until

pending issues are decided.

Water Impoundments/Sedimentation Ponds (Sections 816.49/817.49, 780.25/

846.16)

A rulemaking currently is being undertaken and no further review is

expected at this time. A final rule entered internal review within OSM

on February 7, 1994.

Backfilling and Grading--Nationwide Time and Distance Standards

A commenter raises the same issues on the relevance of a time

standard and the practicality of establishing national standards for

area and contour mining due to the variability in geology, equipment,

mining methods, and market conditions as it previously did in its May

25, 1993, report. OSM already has commenced a rulemaking in this area

and no further review is required.

Backfilling and Grading--Underground Mines (Sections 817.102/106)

A commenter recommends revising existing regulations requiring the

elimination of the ``highwall'' at underground mine openings. The

commenter notes that OSM's rules on highwall elimination and

approximate original contour restoration should reflect the statutory

and operational differences between surface and underground mining. The

commenter recommends that OSM revise the regulations to clarify that

the underground performance standards in section 516(b)(2) are the

relevant standards governing the reclamation of mine openings and avoid

the wholesale incorporation of surface mining requirements.

OSM is currently reviewing its Backfilling and Grading rule and

will shortly implement an outreach plan to discuss certain topics.

Public comment regarding OSM rules for backfilling and grading

highwalls for underground mines will be welcome at that time.

Historic Properties (Sections 779.12(b)/7832.12(b)

A commenter recommends that the rules should provide, with greater

clarity and certainty, a threshold of information necessary before the

State Historic Preservation Officer (``SHPO'') and regulatory authority

can order field investigations and surveys to identify the possible

existence of important cultural and historic resources. The SHPO should

be subject to a higher burden for its recommendations so that available

information discloses a substantial likelihood that cultural and

historic resources eligible for listing in the National Register are

present on the mine site.

OSM currently is pursuing a programmatic agreement with the

Advisory Council on Historic Preservation that will address the issues

raised by the commenter. A notice announcing the availability of the

programmatic agreement and requesting comments was published in the

Federal Register on June 16, 1994.

Transfer, Assignment, and Sale of Permits (Section 774)

Comments suggested that rules relating to the transfer, assignment,

and sale of permits be reviewed. A rulemaking currently is being

undertaken and no further review is necessary.

Abandoned Mined Land Fee Reauthorization Implementation

A commenter recommends not finalizing that aspect of the proposed

rule on the new reporting requirements until it has conducted a burden

analysis and discussed with the coal industry a more realistic and less

costly approach for gathering information. For example, OSM should

clarify that the lessees of the coal are the owners for purposes of

identifying the owners of the coal on the AML form.

A final rule was published in the Federal Register on May 31, 1994.

Extensive outreach efforts were conducted with States and Tribes and

constituent groups prior to the drafting of the proposed rule. Further,

the proposed rule was subject to an extended public comment period via

the Federal Register process. All comments received were evaluated

carefully and responded to as appropriate in the final rule, including

responding to a lengthy comment that included references to the

reporting burdens of industry as related to threshold reporting

requirements. Specifically, the final rule at 30 CFR 870.5 addressed

the coal ownership concern by specifying that, ``(i)f there are several

persons who have successfully transferred the mineral rights,

information shall be provided on the last owner(s) in the chain prior

to the permittee, i.e., the person or persons who have granted the

permittee the right to extract the coal.''

Minerals Management Service

The Minerals Management Service (``MMS'') received approximately 40

public comments on the Notice. The commenters cited specific sections

of the regulations and stated what was, in their opinion, wrong with

the regulation and recommended how to fix it. Since the comments were

very specific they will be very useful to MMS. The comments were also

very constructive and we encourage the continued use of this open

dialogue.

The comments were almost equally divided between MMS' Offshore

Minerals Management operation and its Royalty Management Program.

Discussed below are those comments that MMS either already has started

some action, or intends to initiate some type of action in the near

future. In keeping with the need to avoid paperwork and regulations,

MMS will seek non-regulatory solutions wherever possible.

If issues raised by commenters are not covered by one of the listed

areas, MMS will conduct a separate review and obtain input from other

offices in headquarters and the Regions. For example, MMS will address

concerns expressed in a letter from the Wilderness Society about the

public input process.

Offshore Minerals Management (``OMM'') Program

In response to the public comments received on the Notice, the OMM

Program plans to review the following four sections of OMM regulations.

The first three areas involve ongoing reviews that will be expanded to

cover additional provisions as a result of the comments received in

response to the Notice.

1. Regulations applicable to production in deep water. (30 CFR Part

250, Subpart H, Production)

Comments Received--(a) ``Revise current regulations to provide for

approval of extended flaring periods under certain situations (e.g.,

deepwater prospects, well tests, etc.) and clarify criteria for flaring

or venting small amounts of gas.''

(b) ``Revise requirements associated with subsea installations such

as valve arrangement and closure time requirements for USV's and

associated SCSSV's.''

Action Planned--Formation of a Task Force to evaluate deepwater

issues.

Timetable--Task Force expected to complete a draft report in July

or August 1994.

2. Regulations applicable to blowout preventer (``BOP'') test

procedures and frequency. (30 CFR 250.56 and 57)

Comments Received--``Revise BOP testing regulations to allow for

less frequent and shorter tests. Allow 14 day BOP test interval vs.

current 7 day * * *''

Action Planned--The MMS has established a workgroup to study BOP

system maintenance and reliability. The workgroup is also looking at

testing times.

Timetable--The workgroup expects to complete data analysis by

November 1994.

3. Regulations governing safety and pollution prevention equipment.

(30 CFR 250.126)

Comments Received--``Reduce associated administrative burden on

lessees and operators by eliminating unnecessary record keeping

requirements (i.e., inventory lists, paperwork notifications, etc.).''

Action Planned--MMS intends to use a negotiated rulemaking as part

of this review.

Timetable--A ``Convener'' has been appointed and has initiated

discussions with interested parties. The first meeting of the

participants is planned for September 1994.

4. Regulations governing conservation of resources and diligence.

(30 CFR Part 250. Subpart K, Oil and Gas Production Rates and Subpart

M, Unitization).

Comments Received--(a) ``Revise Suspension of Production approval/

lease holding criteria * * *'', (b) ``Relax restrictions on commingling

reservoirs in a common wellbore * * *'', (c) ``revise current

regulations to provide for approval of extended flaring periods * *

*'', etc.

Action Planned--Initiate a review of the issues raised. Review may

consist of forming a workgroup.

Timetable--Begin review in Fall of 1994.

Royalty Management Program (``RMP'')

The RMP plans to review the following regulations:

1. Regulations applicable to valuation of oil and gas produced from

unitized/ communitized properties (Take vs Entitlements). Also,

regulations applicable to non-arm's length sales. (30 CFR 202)

Comments Received--``Regulations concerning Takes vs. Entitlements

are confusing and make compliance difficult * * * valuing gas under a

non-arm's length transaction is burdensome * * *''

Action Planned--Form a workgroup with representation from various

sources to arrive at a consensus and develop a Negotiated Regulation.

Timetable--First meeting of participants in the negotiated

rulemaking process was held in Denver, Co. on June 15, 1994.

2. Regulations clarifying the responsibilities of payors and

lessees. (30 CFR 218 and 211)

Comments Received--``Existing regulations are unclear as to the

obligations and liabilities of payors and lessees.''

Action Planned--A workgroup has been assembled to review the

options associated this issue.

Timetable--A Proposed Rule on Payor Responsibilities is being

drafted. Projected publishing date is late 1994.

3. Regulations establishing procedures for obtaining refunds and

credits of excess payments made under Federal mineral leases on the

Outer Continental Shelf (OCS) which are subject to section 10 of the

OCS Lands Act. (30 CFR 230)

Comments Received--``Industry has difficulty complying with 2 year

limitation on refunds * * *.''

Action Planned--Regulations have been drafted to address certain

aspects of section 10 refunds.

Timetable--A Final Rule on Offsets, Recoupments and Refunds of

Excess Payments of Royalties, Rentals, Bonuses, or Other Amounts under

Federal offshore Mineral Leases. Projected publishing date is Fall

1994.

4. Streamlining the MMS Administrative Appeals process. (30 CFR

290)

Comments Received--The process has been criticized for taking too

long.

Action Planned--A couple of studies have been performed to review

the different core processes in the Appeal function. Some streamlining

revisions have been implemented and further studies are continuing.

Timetable--Review and streamlining of appeals process is ongoing.

Meetings are being held and internal processes being reviewed. Most

recent effort is determining whether Alternative Dispute Resolution

could be an effective tool in the Appeal process.

Bureau of Indian Affairs (``BIA'')

BIA received no comments in response to the Notice. Nevertheless,

BIA will review the following regulations: 25 CFR Part 169 (rights-of-

way over Indian lands); 25 CFR Part 152 (issuance of patents in fee,

certificates of competency, removal of restrictions, and sale of

certain Indian lands); 25 CFR Part 168 (grazing regulations for the

Hopi Partitioned Lands area); and 25 CFR Part 83 (procedures for

establishing that an American Indian group exists as an Indian tribe).

Each regulation will be reviewed before December 31, 1994 to

determine whether it should be revised. The reviews will be held during

a joint meeting between the Division of Management Support, the

Solicitor's Office and the related program office. Results of the

reviews shall be submitted in writing from the Division of Management

Support to the Department's Office of Regulatory Affairs as soon as

possible after the conclusion of the last review meeting.

Dated: July 1, 1994.

Bill Vincent,

Deputy Director, Office of Regulatory Affairs.

[FR Doc. 94-17228 Filed 7-14-94; 8:45 am]

BILLING CODE 4310-10-M