the person who was investigated. The complainant shall also be notified of any action taken including the achievement of voluntary compliance.

(6) Between the period of these effective dates of these regulations and the effective date of the enforcement procedures established by the Federal Inspector, pursuant to paragraph (d)(1) of this section, the Federal Inspector shall at a minimum adhere to paragraphs (d)(2)-(5) of this section.

(e) Acts of intimidation or retaliation prohibited. No person shall intimidate, threaten, coerce, harass, or retaliate against any individual for the purpose of interfering with any right or privilege secured by section 17, Condition 11 the President's Decision, and implementing

rules, regulations,

orders, because such individual has opposed a practice prohibited by section 17 or by this part, made a complaint, testified, assisted in, benefited from, or participated in any manner in an investigation, compliance review, proceeding or hearing, conducted pursuant to these regulations. The identity of complainants may be kept confidential except to the extent necessary to carry out the purpose of this part, including investigatory actions, hearings, or judicial proceedings.

§ 34.11 Enforcement sanctions.

The provisions of section 17, the President's Decision, and implementing rules, regulations, and orders, as appropriate, will be enforced through:

(a) The issuance of a compliance order by the Federal Inspector pursuant to section 11 of ANGTA; or

(b) The commencement of a civil action for appropriate relief, including a permanent or temporary injunction, or a civil penalty not to exceed $25,000 per day; or

(c) By any other means authorized by law.

The purpose of this part is to implement the provisions of section 604 of the Outer Continental Shelf Lands Act Amendments of 1978. Section 604 requires that each Agency or Department having responsibility for the promulgation or enforcement of regulations under the Outer Continental Shelf Lands Act, as amended, take such affirmative action as deemed necessary to assure that "no person shall on the grounds of race, creed, color, national origin, or sex, be excluded from receiving or participating in any activity, sale, or employment, conducted pursuant to the provisions of this act."

§ 35.2 Definitions.

When used in the regulations in this part, the following terms shall have the meaning given below:

(a) "Act" means the Outer Continental Shelf Lands Act, as amended, 43 U.S.C. 1331 et seq.

(b) "Affirmative action plan" or "AAP" means a formal written statement describing specific result-oriented procedures that will be taken to assure non-discrimination against MBE's and WBE's in procurement activities associated with the conduct of activities on the Outer Continental Shelf.

(c) "Authorized Officer" means the Director, Geological Survey, or a designee of the Director.

(d) "Contract" means any business agreement or arrangement (in which the parties do not stand in the relationship of employer and employee) between a lessee or holder of other Federal authorization and any person which creates an obligation to furnish supplies or services, or to provide real or personal property for use. The term "contract" also includes any business agreement or arrangement between two persons which is related in any way to the discharge of activities conducted under any lease or Federal authorization issued pursuant to the act.

(e) "Development" means those activities which take place following discovery of minerals in paying quantities, including but not limited to geophysical activity, drilling, platform construction, and operation of all directly related onshore support facilities, and which are for the purpose of ultimately producing the minerals discovered.

(f) "Exploration" means the process of searching for minerals. Exploration activities include, but are not limited to: (1) Geophysical surveys where magnetic, gravity, seismic, or other systems are used to detect or imply the presence of such minerals, and (2) any drilling, whether on or off a known geological structure. Exploration also includes the drilling of a well in which a discovery of oil or natural gas in paying quantities is made and the drilling of any additional delineation well, after a discovery, which is needed to delineate a reservoir and to enable the lessee to determine whether to proceed with development and production.

(g) "Lease" means (1) any form of authorization which is issued under section 8 or maintained under section 6 of the act and which authorizes exploration for, and development and production of, minerals, or (2) the area covered by that authorization, whichever is required by the context.

(h) "Lessee" or "Holder of other Federal authorizations" means the party authorized by a lease, grant of right-of-way, or an approved assignment thereof, to explore, develop, and

produce the leased deposits in accordance with the regulations in 30 CFR Part 250, and 43 CFR Part 3300. The terms include all parties holding such authority by or through the lessee or holder of other Federal authorization. (i) "Minority" includes:

(1) Black Americans (all persons having origins in any of the Black African racial groups not of Hispanic origin);

(2) Hispanic Americans (all persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish Culture or origin regardless of race);

(3) Asian Pacific Americans and Pacific Islanders (all persons having origins in any of the Far East, Southeast Asia, or the Pacific Islands); and

(4) American Indians or Alaskan Natives (all persons having origins in any of the original peoples of North America and maintaining identifiable tribal affiliations through membership and participation or community identification).

(5) Individuals other than members of the specifically enumerated minority groups who qualify for inclusion in the definition of minority pursuant to procedures established by the Small Business Administration in 13 CFR 124.1-1(e)(3)(iii).

(j) "Minority-owned business enterprise" or "MBE” means a sole proprietorship, partnership, unincorporated association, joint venture, or corporation that is at least 51 percent owned, controlled, and operated by minority individuals. "Control" as used in this context means exercising the power to make policy decisions. "Operate" as used in this context means to be actively involved in the day-to-day management.

(k) "OCS" means the Outer Continental Shelf, as that term is defined in 43 U.S.C. 1331(a).

(1) "OIG" means the Office of Inspector General within the Department of the Interior.

(m) "Person" means a person or legal entity, including but not limited to, a corporation, partnership, association, joint-stock venture, a trust or a mutual fund, and any receiver, trustee in bankruptcy, or official acting in a similar capacity for a legal entity.

(n) "Production" means those activities which take place after the successful completion of any means for the removal of minerals. Production includes removal of minerals, field operations, transfer of minerals to shore, operations monitoring, maintenance, and/or workover drilling, and depends upon the context in which the term is used.

(o) "Subcontract" means any business agreement or arrangement between a contractor, and a party other than a lessee or holder of other Federal authorization (in which the parties do not stand in the relationship of employer and employee) which in any way relates to the performance of any one or more contracts as defined in this section.

(p) "Women-owned business enterprise" or "WBE" means a sole proprietorship, partnership, unincorporated association, joint venture, or corporation that is at least 51 percent owned, controlled, and operated by women. "Control" as used in this context means exercising the power to make policy decisions. "Operate" as used in this context means to be actively involved in the day-to-day management. State community property laws will not be taken into consideration for purposes of determining whether businesses are at least 51 percent owned, controlled and operated by women.

§ 35.3 Applicability.

The provisions of this part apply to oil and gas lease activities connected with the OCS including the procurement of goods and services by lessees and other holders of Federal authorizations related to the OCS. The provisions of this part apply only to those leases, assignments, and other authorizations issued or approved by the Department of the Interior after January 2, 1981, the effective date of these regulations. Persons holding ownership interests only may be exempted in accordance with the provisions under § 35.6.

§ 35.4 Policy.

It is the policy of the Department of the Interior to assure that no person shall on the grounds of race, creed, color, national origin, or sex, be ex

cluded from receiving or participating in any activity, sale, or employment conducted pursuant to the provisions of the OCS Lands Act, as amended. The Department views the AAP's required by this rule as a necessary device for assuring non-discrimination against WBE's and MBE's by lessees and other holders of other Federal authorizations. While it shall be the Department's policy to require completeness in the filing of AAP's and to conduct a credible and appropriate review of AAP's, the Department does not intend to substitute its judgment of business relations for that of lessees or holders of other Federal authorizations or their contractors.

§ 35.5 Affirmative action plans.

(a) A written affirmative action plan (AAP) for the procurement of goods and services must be submitted by the lessee, or holder of other Federal authorization for each offshore area in which activities will be conducted. The AAP shall provide for outreach to business enterprises owned and controlled by minorities and women as contractors, subcontractors, and/or suppliers of goods and services in activities of the lessee or holder of other Federal authorization related to the OCS. For the purpose of this section there are four offshore areas: (1) the Gulf of Mexico, (2) the area offshore the Pacific coast (California, Oregon, and Washington), (3) the area offshore the coast of Alaska, and (4) the area offshore the Atlantic coast.

(b) The AAP shall be broad enough in scope to cover all applicable activities of the lessee or holder of another Federal authorization that are expected to be undertaken during the full term of the lease or Federal authorization. An AAP may encompass one, several, or all leases and authorizations in an offshore area.

(c) The AAP shall be submitted to the Director, Geological Survey, or an appropriate designee, within 60 days of the effective date of any of the following actions:

(1) The issuance of a lease;

(2) The approval of the assignment of a lease;

(3) The approval of a grant of a right-of-way;

(4) The approval of the assignment of a right-of-way; or

(5) The approval of the designation of an operator who will conduct activities on the OCS.

A lessee or holder of a Federal authorization who has a current AAP on file with the authorized officer may comply with the requirements of this paragraph (c) by requesting that the existing approved AAP for an area also cover the activities relating to the additional lease or other Federal authorization within the area.

(d)(1) The authorized officer shall establish a specific location where AAP's will be kept on file and made available for public inspection.

(2) The authorized officer shall review and accept or reject each AAP within 60 days from the date of its receipt.

(3) In the event the authorized officer rejects an AAP, the lessee or holder of a Federal authorization who submitted the AAP shall be informed of the rejection, in writing, and given a detailed listing of all deficiencies noted in the AAP. Normally the authorized officer shall grant the lessee or holder of a Federal authorization a period of 30 days to correct the noted deficiencies. However, the authorized officer may grant a longer period of time if he/she determines that the correction of the noted deficiencies will require more than 30 days.

(4) When changes in circumstances warrant, the authorized officer shall require that additional data be submitted to support a previously submitted or approved AAP. Data requested by the authorized officer shall be submitted within 30 days of the receipt of the request therefor, unless, for good cause, the authorized officer grants a longer period of time for response.

(5) The authorized officer may initiate civil penalty procedures as provided in § 35.8 when a lessee or holder of a Federal authorization fails: (i) To timely submit an AAP; (ii) to correct the deficiencies noted in a rejected AAP; (iii) to correct deficiencies noted in goals rejected by the authorized officer pursuant to § 35.7; or (iv) to re

spond to a request for data within the time specified.

(e) The lessee or holder of a Federal authorization shall include in the AAP a description of the specific actions to be taken to assure non-discrimination against qualified MBE's and WBE's in OCS exploration, development, and production activities. The AAP shall contain the following:

(1) The identification of a liaison officer who will administer the lessee's affirmative action program and a brief description of the liaison officer's duties, responsibilities, and authorities. The liaison officer shall be the principal contact point for MBE's and WBE's to obtain information and present proposals for their involvement in OCS activities.

(2) The development, maintenance, and utilization of up-to-date separate listings of MBE's and WBE's including:

(i) A description of each business; (ii) Type of organization;

(iii) The product or service offered; (iv) Information on ownership and control; and

(v) All additional relevant data and affidavits which establish that the enterprise is owned, controlled, and managed by minorities and/or women. Lists of MBE's and WBE's compiled by vendor trade organizations, and by Federal, State, and local agencies will be acceptable provided those lists are developed and maintained in accordance with the requirements of paragraph (e)(3) of this section.

(3) Specific procedures to be adopted for the purpose of certifying and verifying ownership and control of companies identified as MBE's and WBE's. The procedures shall include the requirements that firms submit affidavits as to their status as MBE's and WBE's as defined in § 35.2 (g) and (k) of this part.

(4) Identification of the steps that will be taken to ensure timely and full consideration of qualified MBE's and WBE's in all procurement decisions, including:

(i) A description of how such procedures will be implemented;

(ii) A description of procedures for the identification and elimination of

nonessential technical requirements and procedures;

(iii) A description of specific efforts that will be made to participate in MBE and WBE technical and other assistance programs of Federal and State agencies, including the Small Business Administration, the Minority Business Development Agency, and the Economic Development Administration; and

(iv) A description of the lessee's or authorization holder's efforts to involve qualified MBE and WBE distributorships in their procurement of fabricated tubular goods, pipe fittings, valves, and other equipment.

(5) Specific procedures for the compilation and dissemination of information on procurement opportunities in OCS business practices to MBE and WBE trade organizations and associations, in sufficient detail and with sufficient advance notice to permit maximum opportunities for MBE and WBE participation.

(6) Specific practices that will be followed in explaining MBE and WBE policies and procedures to executives, managers, supervisors, employees and all procurement office personnel, stressing individual responsibilities for the effective implementation of those policies and procedures.

(7) Separately established goals, expressed as a percentage of the lessee's or the authorization holder's total annual expenditures relating to the activites covered by the AAP, for MBE and WBE participation in all identified, planned, or anticipated OCS related activities. Such goals shall be based on available qualified MBE and WBE sources.

(8) A planned MBE and WBE subcontracting program for all prime contract awards valued at $500,000 or more. The subcontracting program must include a description of the method by which potential prime contractors will be informed that plans to assure non-discrimination against MBE's and WBE's in the selection of subcontractors will be a significant consideration in the selection of prime contractors to meet the lessee's or other authority holder's requirements. It must also include details on how

MBE and WBE subcontractors will be verified and reported.

NOTE: At 46 FR 14129, Feb. 26, 1981 § 35.5 was suspended in part.

§ 35.6 Certificate of exemption.

In lieu of submitting an AAP, a lessee or holder of a Federal authori zation may submit a certificate of exemption in those instances where that entity has only an ownership interest in a lease or other Federal authorization and does not, in any way, intend to engage in any post-lease activities related to the OCS.

§ 35.7 Compliance reviews.

(a) An annual compliance report shall be submitted to the authorized officer by the lessee or holder of a Federal authorization within 90 days after the end of each calendar year subsequent to the first anniversary of the approval of the AAP. The compliance report shall be submitted in format and level of detail approved or prescribed by the authorized officer. The annual report shall also contain a justification for any failure to meet the goals for MBE or WBE participation established in accordance with § 35.5(e)(7) of this part or with this section. The justification shall describe those good faith efforts which the lessee or holder of a Federal authorization has made to meet its goals. The annual report shall set forth goals for MBE and WBE participation for the coming year. Changes in a lessee's or other authorization holder's goals from the previous year shall be based on changes in the availability of qualified MBE and WBE sources. The goals for the coming year shall be reviewed and accepted or rejected by the authorized officer in accordance with § 35.5(d) (2) and (3), as if they were an AAP. In reviewing an annual compliance report, the authorized officer may request that changes be made in the lessee's or authorization holder's AAP. In determining subsequently, pursuant to § 35.8, whether a lessee or authorization holder failed without good cause to meet any of its goals, the authorized officer may consider whether the lessee or authorization holder made and implemented the