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Federal Register/Vol. 81, No. 55/Tuesday, March 22, 2016/Proposed Rules 15193
<br />to the agreement. Finally, this section
<br />would describe the process BOEM
<br />would use when an application is not
<br />approved.
<br />Section 583.304 What kinds of
<br />information must be included in an
<br />agreement?
<br />This section would describe the
<br />minimum information that an
<br />agreement would be required to include,
<br />such as an agreement number assigned
<br />by BOEM; the purpose of, and
<br />authorities for, the agreement;
<br />designated and delineated borrow
<br />area(s); the project description,
<br />including the timeframe within which
<br />the project is to be started and
<br />completed; the terms and conditions of
<br />the agreement, including any reporting
<br />requirements; all obligations of the
<br />parties; and the signatures of
<br />appropriate individuals authorized to
<br />bind the applicant and BOEM.
<br />Section 583.305 What is the effective
<br />date of an agreement?
<br />This section would describe what
<br />determines the effective date of the
<br />agreement.
<br />Section 583.306 How will BOEM
<br />enforce the agreement?
<br />This section would describe how
<br />BOEM would enforce the terms of an
<br />agreement and the consequences,
<br />including termination, for failure to
<br />comply with any applicable law or with
<br />the agreement terms. This section would
<br />also provide that the failure to comply
<br />in a timely and satisfactory manner with
<br />any provision, term or condition of the
<br />agreement may delay or prevent
<br />BOEM's approval of future requests for
<br />use of OCS sand, gravel and shell
<br />resources on the part of the parties to
<br />the agreement.
<br />Section 583.307 What is the term of
<br />the,agreement?
<br />This section would explain when an
<br />agreement would terminate, either by a
<br />specified date, when parties to the
<br />agreement notify BOEM that sufficient
<br />resources have been removed to
<br />complete the project, or for other
<br />reasons "specified in this section. This
<br />section would also explain that, absent
<br />extraordinary' circumstances, no
<br />agreement would have an initial term
<br />that is longer than five -years from its
<br />effective date. Examples of
<br />extraordinary circumstances where an
<br />initial term longer than five years may
<br />be appropriate would include a program
<br />of multiple individual projects to be
<br />carried out over multiple seasons or
<br />where the Congressional authorization
<br />for a project called for multiple phases.
<br />It would be within BOEM's sole
<br />discretion to determine when
<br />extraordinary circumstances warrant an
<br />initial term longer than five years. The
<br />parties would have the option to request
<br />an extension, modification or change to
<br />the terms of the agreement, as set forth
<br />in § 583.309.
<br />Section 583. 308 What debarment or
<br />suspension obligations apply to
<br />transactions and contracts related to a
<br />project?
<br />This section would explain that the
<br />applicant has the obligation to ensure
<br />that all contracts and transactions
<br />related to an agreement issued under
<br />this part comply with the suspension
<br />and debarment regulations at 2 CFR part
<br />180 and 2 CFR part 1400.
<br />Section 583.309 What is the process
<br />for modifying the agreement?
<br />This section would explain how an
<br />applicant may seek to extend, modify or
<br />change an agreement and would spell
<br />out the time frames when this might be
<br />accomplished. It would provide that
<br />BOEM is under no obligation to extend,
<br />modify or change an agreement and
<br />cannot be held liable for the
<br />consequences of the expiration of an
<br />agreement. If BOEM approves a
<br />modification, BOEM would prepare an
<br />amendment to the agreement and
<br />provide it for review by the parties to
<br />the agreement prior to execution of the
<br />amendment. Should BOEM deny the
<br />request, BOEM would notify the parties
<br />to the agreement and reconsideration
<br />could be requested of the Director.
<br />Section 583.310 When can the
<br />agreement be terminated?
<br />This section would explain under
<br />what circumstances the Director could
<br />terminate an agreement. The
<br />termination factors include fraud;
<br />noncompliance with the agreement;
<br />national security or defense reasons;
<br />situations in which continuing with the
<br />agreement would cause serious harm or
<br />damage to natural resources, property,
<br />the environment or historical structures;
<br />and other reasons described in this
<br />section. This section would also explain
<br />the process for terminations and
<br />suspensions.
<br />III. Legal and Regulatory Analysis
<br />Procedural Matters
<br />Regulatory Planning and Review
<br />(Executive Order (E.O.) 12866)
<br />E.O. 12866 provides that the Office of
<br />Information and Regulatory Affairs
<br />(OIRA), a part of the OMB, will review
<br />all significant rules. OIRA has
<br />determined that this rule is not
<br />significant.
<br />(1) This proposed rule contains
<br />virtually the same reporting and
<br />recordkeeping requirements as those in
<br />the current uncodified guidelines and
<br />procedures. A regulatory impact
<br />analysis is not required. This proposed
<br />rule formalizes existing policies and
<br />procedures that govern the use of OCS
<br />sand, gravel and shell resources. The
<br />existing policies, procedures,
<br />consultations and monitoring
<br />requirements for the noncompetitive use
<br />of OCS sand, gravel and shell resources
<br />are longstanding and have remained
<br />relatively consistent for two decades.
<br />This proposed rule does not materially
<br />change the existing requirements for the
<br />use of OCS sand, gravel and shell
<br />resources through leases or MOAs for
<br />shore protection, beach or wetlands
<br />restoration by a Federal, State or local
<br />government agency, or for construction
<br />projects authorized or funded, in whole
<br />or in part, by the Federal Government.
<br />The regulatory baseline is essentially
<br />the same as the proposed rule. BOEM
<br />believes that any changes between the
<br />current BOEM process and this
<br />proposed rule are immaterial and would
<br />not impose additional compliance
<br />obligations or costs upon the regulated
<br />entities.
<br />Formalizing the existing conveyance
<br />process will provide certainty to the
<br />public entities requesting
<br />noncompetitive leases or MOAs for OCS
<br />sand, gravel and shell resources. BOEM
<br />believes there is.a benefit to the
<br />regulated entities in the form of
<br />regulatory certainty when Federal, State
<br />and local government agencies desire to
<br />use OCS sand, gravel and shell
<br />resources for qualifying projects.
<br />Entities affected -by this rulemaking
<br />have the opportunity to comment
<br />through the rulemaking process on the
<br />proposed provisions, which are
<br />consistent with current practices for the
<br />conveyance of sand, gravel and shell
<br />resources.
<br />(2) This proposed rule does not create
<br />a serious inconsistency or otherwise
<br />interfere with an action taken or
<br />planned by another agency. It reflects
<br />the existing process developed over the
<br />life of the program in cooperation with
<br />other Federal agencies; including the
<br />U.S. Fish and Wildlife Service (FWS),
<br />National Marine Fisheries Service
<br />(NMFS) and U.S. Army Corps of
<br />Engineers, and State and local
<br />governments.
<br />(3) This proposed rule does not have
<br />an annual effect on the economy of $100
<br />million or more. It will not adversely
<br />affect in a material way the economy,
<br />productivity, competition, jobs, the
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