Outer Continental Shelf; oil, gas, and sulphur operations: Postlease operations safety; update and clarification,
[Federal Register: December 28, 1999 (Volume 64, Number 248)]
[Rules and Regulations]
[Page 72755-72795]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28de99-34]
[[Page 72755]]
Part V
Department of the Interior
Minerals Management Service
30 CFR Parts 218, 250, 252, etc.
Postlease Operations Safety; Final Rule
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Parts 218, 250, 252, 253, 256 and 282
RIN 1010-AC32
Postlease Operations Safety
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Final rule.
SUMMARY: This rule: Updates and clarifies requirements related to postlease operations and stresses diligence; Allows MMS to grant a right-of-use and easement for an Outer Continental Shelf (OCS) leased or unleased block to a State lessee; Brings uniformity to the public release time for all proprietary geophysical data and information gathered under prelease; Clarifies the distinction between granting and directing a suspension, and the different consequences of each; Requires evacuation statistics for natural occurrences; Sets out criteria to disqualify an operator with repeated poor operating performance from continuing as designated operator; and Allows operators the opportunity to propose alternative regulatory approaches if they can demonstrate an equal or higher level of performance.
EFFECTIVE DATE: The rule is effective on January 27, 2000. The incorporation by reference of certain publications listed in these rules is approved by the Director of the Federal Register as of January 27, 2000.
FOR FURTHER INFORMATION CONTACT: Kumkum Ray, Engineering and Operations Division, at (703) 787-1600.
SUPPLEMENTARY INFORMATION: On February 13, 1998, we published a Notice of Proposed Rulemaking (63 FR 7335), titled ``Postlease Operations Safety,'' revising the entire 30 CFR part 250, subpart A. The proposed rule was subsequently corrected in a notice on March 9, 1998 (63 FR 11385). We extended the 90-day comment period once (to provide a comment period of 120 days that closed on July 17, 1998). We received 11 responses during the comment period. On March 24, 1998 (during the comment period), we held a public meeting to consult on establishing criteria for the disqualification provision in the rule. This final rule amends the regulations at 30 CFR 218.154; 30 CFR part 250, subpart A; 30 CFR 256.1, 256.4, 256.35, and 256.73; and it corrects regulatory citations throughout the CFR to reflect the new subpart A sections.
Redesignation of 30 CFR Part 250
On May 29, 1998, we published a final rule that redesignated 30 CFR part 250 and assigned new section numbers to each section in part 250. The subpart A proposed rule was published before the redesignation. The redesignation rule allowed us to add more sections to the subpart A final rule and to break down lengthy sections into shorter and clearer sections. In our discussion of comments on the rule, we retained the section numbers from the proposed rule when we referred to the comments that we received. When we refer to the current regulations, we use the redesignated numbers as published in the final rule, published in the Federal Register on May 29, 1998 (also in the bound copy of the CFR, dated July 1, 1998).
MMS Position on Incorporated Documents
Incorporation by reference allows Federal agencies to comply with the requirements to publish regulations in the Federal Register by referring to materials already published elsewhere. The legal effect of incorporation by reference is that the material is treated as if it were published in the Federal Register. This material, like any other properly issued regulation, then has the force and effect of law. We hold operators accountable for complying with the documents incorporated by reference in our regulations.
Differences Between Proposed and Final Rules Not Directly Related to Comments
In addition to changes we made to the final rule in response to comments, we reworded certain complex sections for further clarity. We also changed the wording/format of several section titles and headings. Although not directly related to public comments on the proposed rule, these changes were often triggered by the comments to other sections because so many of the sections are interrelated. Following are the major changes by section. We emphasize that the wording revisions do not change any requirements. In many instances, the changes improve MMS's internal work processes to better serve its external customers.
‹bullet› In the table at Sec. 250.102(b), we added a reference to Oil Spill Financial Responsibility coverage.
‹bullet› We added Sec. 250.103 on issuing Notices to Lessees and Operators (NTLs).
‹bullet› In Sec. 250.105, we modified the definition of exploration to clarify that exploration is not just any drilling per se, but are those drilling activities conducted in searching for potential commercial quantities of oil and gas.
‹bullet› In Sec. 250.105, we removed the definition of ``information'' as the definition was too narrow and restrictive. In addition to geological and geophysical (G&G) information, we deal with many different kinds of information including archaeological, biological, engineering, environmental, financial, and technical.
‹bullet› In Sec. 250.105, we expanded definitions of (1) ``lessee'' to include the MMS-approved assignee of the lease or the operating rights; (2) ``operator'' to include a designated agent of the lessee(s); and (3) ``you'' to include a designated agent of the lessee(s) and a pipeline right-of-way holder.
‹bullet› In Sec. 250.105, for consistency, we used 30 CFR 251 definitions for terms related to G&G.
‹bullet› In Sec. 250.105, in defining ``sensitive reservoirs,'' we deleted the word ``initially'' and added the words ``for submitting the first MER.''
‹bullet› In Sec. 250.108, we clarified the recordkeeping timeframe for crane operator qualifications to 4 years instead of 2 years. This clarification ensures that the crane operator has completed the appropriate training within the past 4 years. The 4-year timeframe is consistent with the currently incorporated Third Edition of API RP 2D, which says that operator qualifications are to be maintained at a minimum of 4 years through appropriate refresher training.
‹bullet› In Sec. 250.115, we separated the criteria for determining whether a well was an oil well or a gas well.
‹bullet› In Secs. 250.118 through 250.124, wherever applicable, we changed ``reinject'' and ``reinjection'' to ``inject'' and ``injection'' to denote that the gas is being injected for the first time.
‹bullet› We revised Sec. 250.120 to read: (a) ``If you produce gas from an OCS lease and inject it into a reservoir on the lease or unit according to paragraph Sec. 250.118(b), you are not required to pay royalties until you remove or sell the gas from the reservoir. (b) If you store the gas according to paragraph Sec. 250.119(c), you are required to pay royalty before injecting it into the storage reservoir.'' The reason is that injection of gas for a commercial storage project is not for the benefit of the lease; therefore, royalties are due before injection. This is consistent with the subsurface storage project approved by the Gulf of Mexico (GOM) Region for Chandeleur Block 29.
‹bullet› In Sec. 250.140(a) we replaced ``written approval'' with ``written decision'' because it is not a foregone
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conclusion that the decision will be an approval.
‹bullet› In the last sentence of Sec. 250.162, we replaced the words ``provide you'' with the word ``recognize.'' The grant of the right-of-use or easement by MMS ``provides'' the ``rights.'' The lessee, or any subsequent lessee, simply recognizes those rights.
‹bullet› We deleted proposed Sec. 250.119(l)(5) which would have allowed us to grant a Suspension of Production (SOP) for exploratory reasons without a commitment to development and production. To give meaning to the primary term, we expect lessees to complete exploration and delineation to commit to production by the end of the lease term. We deleted proposed paragraph Sec. 250.119(l)(6) which would have clarified when geophysical work could be used as a basis for an SOP approval. We deleted it because the regulatory authority provided in Sec. 250.175(b)(1) allows us to grant an SOP when a lessee is committed to production and needs to complete geophysical work. In this section, we also removed the vague phrase ``good faith efforts.''
‹bullet› In Sec. 250.180, we inserted a new paragraph (a) to provide for reporting requirements for leases in their primary term and added clarity and specificity to paragraphs (e), (f), and (i).
‹bullet› In Sec. 250.190, we added a sentence at the end of paragraph (a)(2) to put the responsibility of the contents of a computer-generated form on the lessee/operator who generates the form.
‹bullet› In the table at Sec. 250.196, we added language to clarify that part 251 determines the public release of all proprietary geophysical data and information acquired under an exploration permit, even when the data and information are later submitted to MMS under part 250 stipulations. These permit data and information are protected under Sec. 251.14 (currently 50 years for data and 25 years for information). The proprietary terms of these permit data and information would be unaffected by lease expiration or relinquishment.
The vast majority of seismic data and information submitted by lessees was originally acquired under exploration permits. The lessees acquired the data and information indirectly on a nonexclusive basis under a license agreement among the permittee, the geophysical contractor who acquired the data and information under part 251, and the lessee, who is a third party to the data and information.
However, part 250 determines the release of proprietary geophysical data and information that were acquired on a lease exclusively by or for a lessee, under terms of a lease, and submitted to MMS under part 250. These data and information are protected for a period of 10 years, or until the lease is relinquished or expires, whichever is sooner. This would include all seismic data and information acquired exclusively by or for the lessee and submitted for unitization purposes, or in support of exploration or development and production plans.
‹bullet› In the table at Sec. 250.199(e)(1), we added the following reason for collecting information, specifically G&G data and information under 30 CFR part 250, subpart A: to support the unproved and proved reserve estimation, resource assessment, and fair market value determinations.
Comments on the Rule
We received comments on specific issues from the Trustees for Alaska (Trustees), the International Association of Drilling Contractors (IADC), Newfield Exploration Company, the State of Florida, and the Small Business Administration (SBA). The American Petroleum Institute (API) and Offshore Operator's Committee (OOC), representing the industry, sent a consolidated comments table and clearly depicted their suggested language changes and rationale. The National Ocean Industries Association, the Independent Petroleum Association of America, and some of the large oil companies sent letters endorsing the American Petroleum Institute/Offshore Operator's Committee (API/OOC) consolidated comments. We posted all comments on the MMS internet homepage. We noted a universal comment on the need for a side-by-side comparison of existing regulations and plain language rewrites; we will adopt this suggestion for future rules rewritten in plain language. We have included in this notice our responses to comments other than those included on the table submitted by API/OOC followed by the API/OOC comments in tabular form together with our responses. Some of the comments in the consolidated API/OOC comments table were reiterated by other commenters. Since our response was the same, we have not provided in this notice a separate set of comments and responses for those comments. We organized our responses to comments other than those included in the API/OOC table under the following topics: I. comments and responses to miscellaneous issues; II. disqualifying an operator; III. granting a right-of-use and easement (with detailed responses to the extensive comments we received on the section); and IV. comments from SBA.
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Comments and Responses to Miscellaneous Issues
‹bullet› Comment: The reference to conservation, which was under the Director's authority at current Sec. 250.104, was removed.
Response: The reference was never removed and appears at Sec. 250.101(b): Under this authority, the MMS Director requires that all operations conform to sound conservation practice to preserve, protect, and develop mineral resources of the OCS to balance orderly energy resource development with protection of the human, marine, and coastal environments.
‹bullet› Comment: Retain wording to the effect that the implementation of the regulation of operations on the OCS remains ``subject to the supervisory authority of the Secretary.''
Response: The Secretary's authority is stated clearly at Sec. 250.101: ``The Secretary of the Interior (Secretary) authorized the Minerals Management Service (MMS) to regulate oil, gas, and sulphur exploration, development, and production operations on the outer Continental Shelf (OCS). Under this authority, the Director requires that all operations. * * *'' To clarify that ``this authority'' refers to the Secretary's authority, we are changing the words in italics to read ``Under the Secretary's authority.''
Response: We strengthened the language at Sec. 250.106.
‹bullet› Comment: Include definition for natural resources.
Response: We included the OCS Lands Act (OCSLA) definition for natural resources.
‹bullet› Comment: Provide definitions for Eastern and Western GOM.
Response: We put back a definition for Eastern GOM, which was deleted in the proposed rule. We also included a definition for the Western GOM. In both definitions, we clarify that these areas are not to be confused with the planning areas that we use for lease sales.
‹bullet› Comment: The requirements for cranes at proposed Sec. 250.105 should not apply to mobile offshore drilling units (MODU) or other vessels.
Response: We clarified in Sec. 250.108(a) that the requirements for cranes apply only to fixed platforms.
‹bullet› Comment: Proposed change at Sec. 250.106(g)(5) (italicized): You may not weld while you drill, complete, workover, or conduct wireline operations unless the fluids in the well, (being drilled, completed, worked over, or having wireline operations conducted), are noncombustible, and
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you have precluded the entry of formation hydrocarbons into the wellbore either by mechanical means or by a positive overbalance toward the formation. The intent is to limit welding activities on or near wells that are being serviced or drilled, not limit welding because other wells in the wellbay are live.
Response: We have made the suggested changes at Sec. 250.113(c)(6).
‹bullet› Comment: ``You'' as used in proposed Sec. 250.13 is too restrictive and should be expanded to include any person an MMS order or decision may adversely impact.
Response: We deleted the reference related to civil penalty appeals from subpart A. On August 8, 1997 (62 FR 42668), we published a final rule revision to subpart N that provides information related to civil penalty appeals. We further shortened Sec. 250.104 on appeals because all appeals will be processed at the Department level and not at the agency level. We expanded the definition of ``you'' to include an operating rights holder, a designated operator of the lessee(s), a designated agent of the lessee(s), a pipeline right-of-way holder, or a State lessee granted a right-of-use and easement.
‹bullet› Comment: Should the U.S. Coast Guard (USCG), rather than MMS, be the recipient of such reports (Evacuation Statistics at proposed Sec. 250.123(b)).
Response: The requirement at Sec. 250.192 relates to our need to know, for national security reasons, the amount of production shut-in.
‹bullet› Comment: Question duplicative accident reporting to both MMS and USCG.
Response: We deleted the proposed accident reporting table (at proposed Sec. 250.120(a)). We retained the requirement in current regulations (at Sec. 250.119(a)) under Sec. 250.191 in this final rule. We will propose a separate rule to establish a joint MMS-USCG web-based system for reporting incidents to either agency. The rule will also give more guidance on thresholds for fires and factors that impair safety. (See comments and our responses in comment/response table.)
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Disqualifying an Operator
Industry asked that we delete this new section. Environmental groups supported it. In response to a comment to provide adequate notice before disqualifying an operator, we inserted language in the rule at Sec. 250.135. A commenter wanted to know what would happen if we revoked a company's designation as operator, and it was the sole lessee. If an operator is the sole lessee and designated operator of a lease, and has been disqualified from operating a facility on that lease, then the onus is on the lessee to find a new and acceptable designated operator and submit the change for our approval.
On March 24, 1998, we held a public meeting to consult on establishing criteria for the disqualification provision in the proposed rule. At the meeting we explained the disqualification process. The principal goal of the disqualification process is to improve performance and operational safety on the OCS by focusing on the designated operators. We analyze performance based on either a periodic assessment of specific measures or because of an event or performance concern.
At a minimum, we will analyze every operator's performance annually. Compliance history and accidents are the two primary areas of measurement we use to determine performance. In addition, we use other information gathered during annual performance reviews to determine an operator's overall performance. Using this information, we decide whether operators are acceptable or unacceptable performers.
We may also assess operator performance through a safety meeting. Several things may trigger a safety meeting--an accident, a bad inspection, failing a 30 CFR 250, subpart O training audit, or a civil penalty. During the meeting, we will discuss the triggering event with the operator and may also review their general performance if the situation warrants. We may issue a directed suspension if we perceive the triggering event as a continued threat to human safety or the environment. The actual event could lead us to determine that the operator is unacceptable.
In general, operators who exhibit unacceptable performance would undergo an incremental approach to improving their overall performance. At the annual performance review meeting, we would take the opportunity to highlight areas of concern regarding an operator's performance. The District Supervisor or Regional Supervisor for Field Operations may make specific recommendations to the operator for improving the safety of its operations.
It may be necessary for us to issue a directed suspension for a given facility because it poses an imminent threat to safety or the environment. A directed suspension or chronic poor performance could lead us to place an operator on probation. Four things then occur:
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We notify the designated operator and all relevant lessees in writing that the operator is on probation for a specific period. The Regional Director will determine the length of probation.
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We prohibit the designated operator from becoming the designated operator on leases during its probation.
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We require the designated operator to submit a Performance Improvement Plan (PIP) to address the performance concerns and detail how the operator will bring its inventory of facilities into compliance.
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We have the discretion to increase the number of performance review meetings as necessary.
Through additional performance analysis, we may determine that an operator's overall performance is improving, and the operator could be removed from probation. Conversely, an operator's performance could remain poor or worsen, and we may take more stringent actions such as:
‹bullet› A facility-specific disqualification as designated operator for a period of time set by the Regional Director;
‹bullet› A district-specific disqualification as designated operator for a period of time set by the Associate Director for Offshore Minerals Management (AD/OMM);
‹bullet› A region-specific disqualification as designated operator for a period of time set by the AD/OMM; and
‹bullet› An OCS-wide disqualification as designated operator for a period of time set by the Director of MMS.
We will not take these disqualification actions without the operator having the opportunity for a review by MMS officials. These actions require that an operator submit a PIP to us that details its efforts to improve the safety of its operations and bring its facilities back into regulatory compliance. The primary purpose of this rule is to ensure that operators who demonstrate a disregard for safety are unable to direct operations on leases on the OCS. We will pursue Department of the Interior debarment proceedings if we determine that it is appropriate to disqualify an operator from acquiring new leases/ assignments on an OCS-wide basis.
These adverse actions may take place sequentially or in any order that the Director of MMS deems appropriate.
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Granting a Right-of-Use and Easement
‹bullet› Comment: Trustees commented that the proposed rule did not provide sufficient rationale for the need to expand our authority to issue rights-of-use and easement in the OCS to accommodate State lessees and questioned the statutory authority for this expansion of the regulation. Specifically, Trustees do not believe
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that we have the legal authority to allow the placement of exploratory or production drill rigs or authorize other related uses in areas where we have not authorized OCS leasing, or where there are no active leases. (``As written, the proposed regulatory change might arguably allow exploration and related activities even in areas currently covered by OCS leasing moratoria, contrary to the expressed intent of Congress and recent Presidential actions.'')
Response: This rule simply clarifies our authority; the rule does not expand our authority. Between May 10, 1954, and December 13, 1979, Sec. 250.18 specifically authorized the Regional Supervisor to grant a Federal or State lessee a ``right-of-use and easement'' on leased or unleased lands ``for the conduct of operations on any other lease, State or Federal.'' On October 26, 1979, the U.S. Geological Survey (USGS) published a final rule (44 FR 61889) revising 30 CFR part 250 to implement the statutory changes of the OCSLA Amendments of September 18, 1978, and for other purposes. Instead of continuing its authority to grant rights-of-use and easement to State lessees, it stated that ``State lessees wishing to obtain a right-of-way across the OCS must apply for a grant from the Bureau of Land Management (BLM).'' In October of 1979, USGS exercised the Secretary's authority to grant rights-of-use and the authority to grant easements while BLM exercised the Secretary's authority to grant pipeline rights-of-way. BLM had convinced the USGS that it should stop granting rights-of-use and easement for lessee-owned pipelines that extended from the OCS to shore. The change in the 1979 rulemaking recognized the agreement between the USGS and BLM that the USGS would no longer grant a right- of-use and easement for lessees to construct and operate a pipeline from the OCS to shore.
Neither the OCSLA, nor the 1978 amendments, makes a distinction that permits the Secretary to grant a State lessee a right-of-way but not a right-of-use and easement. Furthermore, there is little reason for a State lessee to apply for a right-of-way across the OCS. The right-of-way provisions of section 5 seem to require that the right-of- way be granted for the transportation of oil and gas produced from areas leased under the OCSLA. MMS has always had the authority to grant rights-of-use and easements, but it was inadvertently dropped from the regulations in 1979. We are simply reinserting it specifically in the regulations.
We may grant a right-of-use or easement to authorize the grantee to construct and maintain one or more platforms, fixed structures, or artificial islands on areas of the OCS; to drill a directional well or wells to be bottomed under the lease area; to produce and rework the well or wells; and to handle, treat, and store the production from the well or wells. Normally, we grant a right-of-use and easement to permit a lessee to conduct leasehold-type activities at a more advantageous location off the leasehold. There has to be an existing Federal or State lease that entitles the lessee to conduct oil and gas activities before a right-of-use and easement could even be considered. This regulation change does not allow us to authorize the initiation of exploration or production drilling or related activities into areas where the driller does not already have active lease and rights to drill. In addition, MMS would not issue authority to conduct operations that are not consistent with the policy of the Department and the President.
‹bullet› Comment: Trustees also expressed concern that the proposed new language on rights-of-use and easement appears to arbitrarily broaden the rights of lessees without justifying the need for such a change. They felt that we had not identified where and for what purpose the regulations were being modified. Trustees specifically asked ``* * * does it cover gravel mining, placement of gravel mining, placement of gravel islands, disposal of dredge spoils, oil and natural gas pipeline construction and operation, processing platforms, seawater treatment plants, underground injection well sites, placement of exploratory drill ships or concrete island drilling structures?''
Response: The rule does not broaden the rights of lessees. Lessees must apply for a right-of-use and easement and show the need for conducting lease-related activities off the leasehold. We will continue to grant rights-of-use and easement to provide authority to conduct those leasehold-type activities that must be conducted off the leased areas; i.e., activities that would normally be approved under the authority of a lease (Federal OCS or State submerged lands) such as the ones listed in the comment.
‹bullet› Comment: Trustees expressed concern that the new language in the regulations on right-of-use and easement may further reduce the environmental standards and opportunities for public involvement in controversial oil drilling projects. They gave the example of ARCO's Warthog well that was drilled from Federal OCS leases into State leases off the coast of the Arctic National Wildlife Refuge.
Response: The Warthog exploration program was conducted from an OCS lease and received a complete technical and environmental review through the exploration plan review process established under 30 CFR 250.204. The Warthog program did not involve a right-of-use and easement. The new rule will not circumvent the lease sale, Exploration Plan (EP) and Development and Production Plan (DPP) review process to allow production from facilities located on unleased OCS areas without the benefit of public, National Environmental Policy Act (NEPA), and Coastal Zone Management Act (CZMA) consistency review.
The rule prescribes that any drilling under a right-of-use and easement must comply with the requirements of our regulations which, in turn, implement NEPA, CZMA, and the OCSLA requirements for public review; thus EP/DPP, NEPA, and CZMA consistency review and technical standards continue to apply. Consideration for a right-of-use and easement on unleased OCS lands, to conduct activity into adjoining State lands, will still require that a State lease would be in place and the issuance of that State lease would have included a public review/or equivalent process. The State lessee must also obtain State authorization for activities under a right-of-use and easement into or under the State lease before any exploration or development activity could begin.
The regulation will call for MMS officials to vigilantly ensure that the operations on Federal and State leases are conducted in an equitable way. We may have to verify that officials of the regulatory agency for the adjacent coastal State will permit wells to be drilled from State lands to reservoirs underlying Federal OCS leases that are located near or adjacent to the Federal and State boundary.
The regulation requires payment of fees and includes special bonding provisions to ensure that wells drilled from Federal OCS lands to explore for or develop and produce oil and gas from State leases are properly plugged and abandoned, that platforms and other facilities are removed, and that the seafloor is cleared of obstructions to other uses of the ocean.
‹bullet› Comment: Trustees also suggested that, ``The failure to better define `right-of-use' in the regulations may be the nub of this problem.''
Response: The definition of ``right-of-use'' provided in the rule simply refers a reader to the regulations and is broadly defined since the regulations are clear on the use of this term. We have also provided a definition for the term ``easement.''
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Comments from SBA
SBA commented on the Regulatory Flexibility Act (RFA) section in the proposed rule preamble and pointed out that it was devoid of specific data on firm size and receipts. They also pointed out that although we discussed the economic effects of the rule (factual statement), a more thorough analysis was needed. In response to those comments, we have rewritten the RFA portion of the preamble.
Table of MMS Responses to American Petroleum Institute/Offshore Operator's Committee (API/OOC) Comments to 30 CFR Part 250, Subpart A
In the table, under the comments column, we show words in ``brackets'' that were in bold/strikeout in the original comments. We show in ``italics'' words that were underscored in bold type. We have provided the new citations in the MMS response column.
Section
API/OOC comments
API/OOC rationale
MMS response
218.154(a)(1)........................... (1) Directs the
The MMS proposal would We simplified the suspension of [both] require lessees to wording to make clear operations [and] or pay rental or minimum that rentals and production; or
royalty if an SOO is minimum royalties are granted on a lease due when a suspension when there is no
is granted, or when production but there directed due to the is a producible well. lessee's failure to This is contrary to comply with existing practice in applicable law, which there is a
regulation, order, or distinction and
provision of a lease obligation to pay or permit. based on ``who'' directed or requested the suspension. It is entirely possible to have an MMS-directed suspension on the lease with a producible well in its history but no production. In such case, lessees should be relieved of the responsibility to pay. 218.154(a)(2)........................... (2) Directs the
Safety and
See comment to Sec. suspension of
environmental
218.154(a)(1). operations on a lease requirements have on which there is no been excluded on a producible well under lease with no the provisions of 30 producible well. It CFR 250.19(j)(1), is entirely possible (j)(2), (j)(3),
that such a (j)(4) or (k)(2). requirement could be imposed by an agency with authority over such area near the end of a lease term. In such an instance a drilling rig might need to be re- outfitted. This could require a mobilization to a shore location (such as a shipyard) to add, for example, zero-discharge required equipment. Lessees should not be required to pay under these circumstances. This would be a departure from current practice since the suspension would be granted at the direction of the agency. 250.2................................... Best available and The Regional Director We changed the safest technology and the Regional
authority from (BAST) means the best Staff customarily Secretary to the MMS available and safest analyze what
Director (Sec. technologies which equipment is best 250.105 and Sec. the [Secretary]
suited to protect 250.107(d)). Regional Director or safety, health, and his designee
the environment. The determines to be
Regional Offices economically feasible consult with wherever failure of Headquarters Staff equipment would have when necessary in a significant effect cases that require on safety, health, or additional input. the environment. Competitive reservoir Clarification......... We made the suggested means a reservoir in
changes (Sec. which there are one
250.105) or more producible or producing well completions on each of two or more leases or portions of leases, with different lease operating interests, from which the lessees plan future production.
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Conservation means The term conservation We deleted the preservation,
as proposed is too definition since it [economy], and
vague. Generally
is not defined in the avoidance of waste of speaking, it is the OCSLA or our economically viable preservation and
regulations. The hydrocarbons. [It is prevention of waste OCSLA gives us the especially important of economically
authority to issue in the petroleum
viable hydrocarbons, regulations and rules industry, since oil which is intended. in the interest of and gas are
conservation. The DOI irreplaceable.].
needs the broad authority to allow for flexibility in regulating the Federal offshore program (Sec. 250.105). Development means Clarification......... We made the suggested those activities
changes (Sec. which take place
250.105). 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. Easement means an The proposed
We made the suggested authorization to use definition is a new change with respect a portion of an OCS one. OCS tract is now to the term lease block which is an archaic term. The ``tract.'' We non-possessory and use of the phrase disagree with the non-exclusive. [for a ``non-possessory and suggested wording non-possessory, non- non-exclusive
changes and have not exclusive interest in interest'' is
made them (Sec. a portion of an OCS misleading since the 250.105). tract, whether leased basic nature of or unleased, which easement is right-of- specifies the rights use as opposed to of the holder to use interest which the area embraced in appears to focus more the easement in a on a possessory right. manner consistent with] The easement may be granted on leased or unleased blocks and the rights of the holder to use shall be specified and limited to the terms and conditions of the granting authority. Facility, as used in The word onshore must We deleted the Sec. 250.11
be a typo, otherwise, reference to concerning
this new definition ``onshore'' and inspections, means would improperly
inserted (per any installation
expand MMS's
comments from IADC) a permanently or
jurisdiction in the reference to MODUs. temporarily attached area of inspection to We also revised the to the seabed on the onshore facilities. definition of OCS (that includes This would allow the facility as used in manmade islands, and MMS to inspect gas Sec. 250.303 to bottom-sitting
plants that process clarify that ``during structures)[and any OCS gas, coastal
production, multiple onshore installation] facilities that
installations or used for oil, gas, or separate oil/gas/ devices are a single sulphur drilling, water, and other
facility if the production, or
similar facilities installations or related activities. for which the MMS devices are at a It also includes
does not have
single site'' (Sec. facilities for
jurisdiction. Also 250.105). product measurement the MMS does not have and royalty
jurisdiction over the verification (e.g., State Agencies that LACT units, gas
already perform these meters) of OCS
functions. The production located on recommended change installations not on clarifies that the OCS. Any group of facilities are on the OCS installations OCS. that is interconnected with walkways, or any group of installations that includes a central or primary installation with processing equipment and one or more satellite or secondary installations, is a single facility unless the Regional Supervisor determines that the complexity of the individual installations justifies their classification as separate facilities. Lessee means a person Clarification......... We made the suggested who has entered into
changes and expanded a lease, [or who is
the definition (Sec. the MMS-approved
250.105). assignee of, a lease] with the United States to explore for, develop, and produce the leased minerals. The term lessee also includes an owner of operating rights for that lease and the MMS-approved assignee of that lease.
[[Page 72762]]
[Of] Archaeological The words ``capable We did not make the interest means that of'' are unclear when suggested changes it directly leads to used in the context except to delete the [capable of]
of this definition word ``of'' to be providing scientific and can be
consistent with 30 or humanistic
misinterpreted. The CFR part 251. We understanding of past proposed words
defined the terms human behavior.
provide clarification. ``Archaeological resource, Of archaeological interest, Material remains, and Significant archaeological resource'' in a final rule published on 10/ 21/94 (59 FR 53091). The National Trust for Historic Preservation and the Office of the Department Consulting Archaeologist both commented that we define the term ``archaeological resource'' to be consistent with the definition provided in the implementing regulations for the Archaeological Resources Protection Act of 1979 (16 U.S.C. 470, aa-mm, 43 CFR 7.3) (Sec. 250.105). Operating rights means By including borehole We made the suggested any interest held in in this definition, changes (Sec. a lease with right to the proposed language 250.105). explore for, develop, is too specific. and produce leased There are more cases substances. Any
when operating rights assignment or
are assigned or transfer of operating transferred to a rights may specify stratigraphic depth the depth [of the or other point, borehole down] to without a borehole which the operating descriptor. rights extend. Producing in paying Two separate sets of We deleted this quantities means
tests have been
definition (Sec. [that] a well is
specified which will 250.105). producing in paying lead to ambiguity. quantities when it The proposed meets the criteria definition suggests set out in Section an economic test. 250.9 [able to
Section 250.9 produce oil, gas, or suggests specific both in a cost-
tests which in most effective manner. cases lead to This means that the economic production. production quantities However, there is no must yield a greater guarantee that the return than the total two definitions will costs, including well- always be equal and completion costs, of overlap. This may producing the
lead over time to hydrocarbons at the great confusion in wellhead].
administering minimum royalty payment and in determining lease status for possible suspension. Production Areas are Need to add
We made the suggested those areas where clarification.
changes (Sec. flammable petroleum Definition is from 250.105). gas and volatile
API RP 500. liquids are produced, processed (e.g. compressed), stored, transferred (e.g. pumped), or otherwise handled prior to entering the transportation process. Sensitive reservoir The word ``initially'' We made the suggested means a reservoir in in this definition is changes (Sec. which high reservoir ambiguous. The
250.105). production rates will classification of a decrease ultimate sensitive reservoir recovery. For the can be defined in the submittal of the
first MER and if first MER
necessary, the MMS [Initially], all oil can determine after reservoirs with an that point if the associated gas cap treatment as a are classified as sensitive reservoir sensitive.
should continue. Suspension means a Clarification......... We made the suggested [granted or directed
changes with minor deferral of the
modifications (Sec. requirement] deferral
250.105). granted at the request of the lessee or directed by the MMS of the requirement to produce (Suspension of Production (SOP)) or to conduct leaseholding operations (Suspension of Operations (SOO)). Well bay is the
Clarification.
Since a perimeter is perimeter of the
Definition was from just an outer border, outer most wellheads. an MMS workshop in we modified the conjunction with the suggested definition implementation of to read: ``Wellbay is regulations in 1988. the area on a platform within the perimeter of the outermost wellheads' (Sec. 250.105)
[[Page 72763]]
250.3................................... (b) Prevent loss of Suggested changes We inserted ``injury life.
include the word
or'' before ``loss of (c [b]) Prevent
unreasonable when life.'' We did not unreasonable damage considering damage to add the word to or waste of any natural resources, ``unreasonable' (Sec. natural resource, property, or
250.106). property, or the
environment environment; and. recognizing that oil (d [e]) Cooperate and and gas developments consult with affected can not avoid some States, local
minimal amount of governments, other damages. interested parties, Prevent losses of life and relevant Federal does not have the agencies.
unreasonableness test. 250.5................................... What standards must There is no technical We agree and deleted crane operations
or safety
the paragraph on the meet?
justification for Pacific Region To ensure the safety requiring more
requirements. We also of the facility
stringent
completed the section operations, you must requirements in the so that it is a meet the requirements Pacific Region.
performance-based of paragraph (a) of Varying regulatory regulation (Sec. this section. [If requirements for
250.108). your facility is
operating areas located in the
creates confusion Pacific OCS Region, with no measurable you must also meet value. the requirements of paragraph (b) of this section.]. [(b)This paragraph applies if your facility is located in the Pacific OCS Region. You may use . * * * ]. 250.6(a)................................ You must submit a It should not be
We reworded the Welding, Burning, and necessary to keep a paragraph. It is Hot Tapping Safe
copy of the plan and important for the Practices and
approval letter at welder on each Procedures Plan to all facilities and facility to be the District
drilling rigs for familiar with the Supervisor before you their life. A copy in plan. We changed the begin drilling or the field, similar to wording to be clear production activities the requirement for that the plan is on a lease. You may H2S Contingency
needed at the site not begin welding Plans, should be
where welding occurs. activities until the sufficient. District Supervisor has approved your plan. A copy of the plan and its approval letter must be kept in the field [available at the facility for the life of the facility (platform or drilling rig).].
(b)(4).............................. [Drawings showing any Drawings of safe- We have reworded the d] Designated safe- welding areas of all paragraph and have welding areas;
facilities covered by addressed the drawings showing
the plan should not commenter's concern. designated safe-
be required in the welding areas shall plan. A drawing be maintained on the showing the facility; and
designated safe- welding area developed by following the procedures identified in the plan should be maintained on the facility and should not be required with the plan. This is consistent with existing regulations.
(e)................................. Before you weld, you Clarification......... We made the suggested must move any
changes (Sec. equipment containing
250.113(a)). hydrocarbons or other flammable substances at least 35 feet horizontally from the welding area [work site. * * *].
(g)(1).............................. You may not begin Including welding We made the suggested welding until the supervisor is
changes (Sec. welding supervisor or consistent with
250.113(c)). designated person-in- 250.6(c). charge has authorized in writing that it is safe to proceed with the welding activity. Before beginning welding, the designated person-in- charge and the welder(s) must inspect the work area and areas below the work area for potential fire and explosion hazards.
(g)(4).............................. You may not weld [in, Provides clarification We made the suggested or] within 10 feet of shut-in
changes (Sec. of[,] a well-bay [or requirements.
250.113(c)). production area] unless you have shut in all producing wells in that [area] wellbay. You may not weld within 10 feet of a production area, unless you have shut- in that production area.
[[Page 72764]]
(g)(5).............................. You may not weld while Clarification......... We made the suggested you drill, complete,
changes and added the workover, or conduct
words ``either by wireline operations
mechanical means or'' unless the fluids in
(Sec. 250.113(c)(6)) the well are
. noncombustible and you have precluded the entry of formation hydrocarbons into the wellbore by a positive overbalance toward the formation. This does not apply to welding in an approved safe-welding area. 250.7................................... What requirements Recognizes the latest We are proposing a apply to electrical edition of API RP500 rule to incorporate equipment? The
APIRP 505 as an
by reference API RP requirements in this alternative.
505, first edition. section apply to all Distribution systems We made most of the electrical equipment are just one of many suggested change to on all platforms, parts of the
(b) and (d) (Sec. artificial islands, electrical system and 250.114). fixed structures, and do not need to be their facilities. separately identified. (a) You must classify ...................... all areas in accordance with either API RP 500, Recommended Practice for Classification of Locations for Electrical Installations at Petroleum Facilities Classified as Class I, Division 1 and Division 2, or API RP 505, Recommended Practice for Classification of Locations for Electrical Installations at Petroleum Facilities Classified as Class I, Zone 0, Zone 1 and Zone 2. (b)You must use
...................... trained and experienced personnel to maintain your electrical systems. They must have expertise in area classification, [distribution systems,] and the performance characteristics and operation of electrical equipment, as well as [and] associated hazards. (c) You must install ...................... all electrical systems in accordance with API RP 14F, Recommended Practice for Design and Installation of Electrical Systems for Offshore Production Platforms. You do not have to comply with Sections 7.4, Emergency Lighting, and 9.4, Aids to Navigation Equipment. (d) On each engine that has electric ignition system, [Y]you must use an [low tension] ignition system [on each engine that has electric ignition. You must.] that is designed and maintained [the ignition system] to minimize the release of electrical energy. 250.8................................... (b) Whenever
Adds flexibility
We made the suggested practicable, y[Y]ou consistent with
changes and further must use BAST on
existing regulations. clarified the existing operations
language (Sec. to avoid failure of
250.107(c)). equipment that would have a significant effect on safety, health, or the environment if the Director determines that:
[[Page 72765]]
250.9................................... To determine whether a This is consistent We made the suggested well is capable of with the present
change of alternative producing in paying regulation found in determination of well quantities, submit a Section 250.11(b). producibility to written request to The intent is to
apply to the GOM the District
provide an
region. We rewrote Supervisor. You must alternative
this section for then meet the
mechanism, not to clarity with no new criteria in
require additional requirements. Another paragraphs (a) and requirements. If a change is that the (b) of this section. well test is
written request for Once a lease has a unavailable, the
determining well well that MMS
operator can submit producibility must be determines is capable data; it is not
submitted to the of producing in
necessary to have Regional Supervisor. paying quantities, no both a well test and The District further determination data. The present Supervisor will of well producibility regulation states continue to carry the will be made on the ``In the Gulf of
function of lease. A
Mexico OCS Region, witnessing tests determination of well the following shall (Sec. 250.116). producibility invokes also be considered minimum royalty
collectively as status on the lease reliable evidence as provided in 30 CFR that a well is 202.53. If your well capable of producing is located in the oil and gas in paying Gulf of Mexico (GOM), quantities.'' you [must also] may alternatively meet the requirements of paragraph (c) of this section. 250.9(c)(1)............................. [The producible
The reason for the We did not delete the section must not
deletion is that all sentence that ensures include any interval reservoir rocks are that several thin which appears to be to some extent water sands with a water water saturated.] saturated. This would contact are not disqualify all
grouped into a reservoir rocks.
producible interval (Sec. 250.116(c)). 250.9(c)(1)(iii)........................ A minimum true
This would clarify We made the correction resistivity ratio of this definition which (Sec. 250.116(d)(1)) the producible
has been incorrect in . section to the
the existing nearest clean or
regulations. water-bearing sand of at least 5:1. 250.9(c)(4)............................. A wireline formation This language which We did not make the test and/or mud-
was left out in the suggested changes. We logging analysis
rewrite is very
do not agree with the which indicates that critical and should suggestion. We the section is
be included. It is deleted the language capable of producing not unusual for
in the proposed rule oil or gas or
wildcat/exploratory because the wording evidence that an
wells to have hole- was very vague. We attempt was made to problems when pay is use several ways to obtain such tests. exposed.
qualify a well using standard practices. Keeping this wording would dilute the qualification process and make it a rubber stamp exercise (Sec. 250.116 (b)(3)). 250.11.................................. (1) MMS conducts a Operating properly We made the suggested scheduled onsite
needs further
change. Also, in Sec. inspection of each definition to
250.130(b), we offshore facility preclude differing removed the words that is subject to interpretations. The ``at least once a environmental or
current language in year'' as this limits safety regulations Subpart A clarifies the scope of under the Act at
that operating
scheduling and added least once a year. properly means in the words ``according The inspection
accordance with the to the determines whether requirements of this requirements.'' In environmental
part. This current Sec. 250.132(a) we protection and safety language should be removed the words equipment designed to maintained.
``at all reasonable prevent or ameliorate
times'' as the phrase blowouts, fires,
is subjective and not spillages, or other
necessary (Sec. major accidents has
250.130). been installed and is operating properly in accordance with the requirements of this part. 250.12.................................. Delete this section... The MMS proposed
We disagree with the language is
opinion that the inconsistent with the language is OCS Lands Act and inconsistent with the should be deleted. If OCSLA. We explained MMS plans to include the disqualification this section in the process in the final rulemaking, preamble of this then it should
rule. In response to include the criteria the comment, we added for determining
the sentence ``MMS disqualification as will provide adequate well as the specific notice and procedures which
opportunity for a includes prior notice review by MMS and opportunity for a officials before hearing.
imposing a disqualification procedure'' (Secs. 250.135 and 250.136). 250.14(c)............................... Approval for
Clarification......... We made the suggested departures. If
changes (Sec. certain aspects of
250.142). your operations deviate from [proposed procedure or equipment deviate from or are not covered by] MMS regulations, MMS may prescribe or approve exceptions from the operating requirements of this part.
[[Page 72766]]
250.15(a)............................... You must provide the The existing
We did not make the Regional Supervisor regulation in 250.8 suggested change. an executed
allows the designated With the move towards Designation of
operator to begin performance based Operator form unless operations on the regulations, we are you are the only
lease after the
responsible for lessee and are the Regional Supervisor ensuring that only person
``receives'' the
designated operators conducting lease
designation of
are acceptable (Sec. operations. When
operator. The revised 250.143). there is more than version contained in one lessee then the 250.15(a) does not Regional Supervisor allow operations to must receive [and begin until after the approve] the
Regional Supervisor Designation of
has ``received and Operator form from approved'' the each lessee before designation. Thus, the designated
the new version operator may commence appears to have operations on the imposed an additional leasehold.
requirement on lessees. In addition, the MMS may typically be delayed in processing these approvals and would delay changes which should take place as soon as the operators are ready. 250.15(a)(2)............................ When you are no longer It is recommended that We made the suggested the designated
this requirement not change (Sec. operator, you must be included in this 250.146). immediately provide section and be placed in writing the
in the Royalty termination of your Management Program Designation of
part of the MMS Operator to the
regulations, since Regional Supervisor. the royalty payment If you are also a staff of operators do designated royalty not look at this 30 payor and will not CFR 250 which is an continue to be in the operational future, you must also regulation. notify the Royalty Management Program of the termination of your Designation of Operator. 250.15(d)............................... Whenever the
As written, this
We did not make the regulations in 30 CFR section overstates suggested changes as parts 250 to 282
the obligations of paragraphs (a), (b), require the lessee to the co-lessee.
and (c) are needed to meet a requirement or Subpart (b) of the clarify the various perform an action, same section already conditions when all persons who
makes the co-lessee responsibility needs conduct lease
responsible for
to be spelled out activities on behalf fulfilling the
(Sec. 250.146). of the lessee or
obligation of the operator must also lessee in case of comply with the
failure by the regulations. [the operator. The lessee, operator (if recommended language one has been
adds clarification designated), and the that is consistent person actually
with the intent of performing the
the preamble. activity to which the requirement applies are jointly and severally responsible for compliance with the regulation.]. 250.16.................................. Naming and Identifying The word ``platform'' We made the suggested [Platforms]
implies a multiple changes. For detailed Facilities and Wells legged fixed
descriptions on (does not include structure. With the naming and numbering MODUS).
use of caissons,
wells for reporting, How do I name
spars, TLP's and
operators should [platforms]
FPS's a more
refer to the Notice facilities and wells? appropriate term
to Lessees (NTL) No. would be
97-2N (issued on 8/1/ ``facilities.'' An 97) ``Well Naming and alternative to this Numbering Standards'' recommended change and to any later would be to include revisions of this an applicable
NTL. We will issue definition of
another NTL to platform. This
provide more section should not instructions for the apply to MODUs that well naming and may be considered a numbering to be used facility when
for reports and attached to the sea digital data (Secs. floor.
250.150 through 250.153). 250.16(a)............................... In the Gulf of Mexico The word ``platform'' We made the suggested Region: (1) Assign was changed to
changes (Sec. each [platform]
``facility'' for
250.150) facility a letter consistency (see designation except above rational [sic]) for those types of for the recommended facilities identified change). Furthermore, in paragraph
the statement (a)(3)(i) of this ``except for those section. For example, type facilities A, B, CA, or CB.
identified in paragraph (a)(3)(i) of this section'' was added in the recommended changes because Sec. 250.16(a)(3)(I)[i] allows a numeric representation of single well caissons without production facilities.
[[Page 72767]]
250.16(a)(i)............................ After a [platform] The word ``platform'' We made the suggested facility is
was changed to
changes (Sec. installed, rename ``facility'' for
250.150(a)(1)). each pre-drilled well consistency (see that was assigned above rational [sic]) only a number and was for the recommended temporarily suspended change). The word at the mudline or at ``template'' would the surface. [drilled only account for through a template those wells drilled and was assigned a through a drilling number.] Use a letter template, when in and number
fact, most pre- designation. The
drilled wells are letter used should be suspended at mudline the same as that of as casing stubs, or the production
suspended as a facility and number caisson at the used should
surface, while correspond to the awaiting platform order which the well installation. The was completed, not recommend change necessarily the
would account for all number assigned when pre-drilled wells. it was drilled. For The wells drilled, example, the first for completion as well completed for producers, are not production on
necessarily the first Facility A would be wells drilled on a renamed Well A-1, the lease and would have second would be Well an assigned number A-2, and so on [For higher than one (1). example, rename Well Therefore, to account No. 1: A-1, B-1, or C- for this, we 1]; and.
recommended that the well be assigned the sequential number given in the order it was completed for production, after the facility is installed, starting with the number one (1). 250.16(a)(ii)........................... When you have more See comments for
We made the suggested than one [platform in 250.16(a)(iii).
changes (Sec. a field (excluding
250.150(a)(2)). complexes), include the designations for the field and use a different letter designation for each platform.] facility on a block, each facility installed, and not bridge- connected to another facility, should be named using a different letter in sequential order. For example, [EC 221-A, EC 222-B, EC 223-C] EC222A, EC222B, EC222C. 250.16(a)(iii).......................... ADD: (iii) When you The proposed draft We made the suggested have more than one only addresses more changes (Sec. facility on multiple than one facility on 250.150(a)(3)). blocks in a local multiple blocks or in area that are being a field. However, the co-developed, each recommended change facility installed, accounts for multiple and not connected facilities on a with a walkway to single block. We another facility, recommend that a should be named using separate paragraph be a different letter in added to address this sequential order with scenario. The word the block number
``field'' and the corresponding to the word ``complexes'' block on which the have very broad platform is located. definitions. For example, EC 221 Therefore, we A, EC 222 B and EC recommend the 223 C.
language change or an accurate definition of these terms as they apply to this section be added to this subpart. 250.16(a)(3)(i)......................... For single well
Clarification......... We made the suggested caissons that are not
change (Sec. attached to a
250.150(c)(1)). [platform] facility with a walkway, use the well designation. For example, Well No. 1; 250.16(a)(3)(ii)........................ For single well
Clarification......... We made the suggested caissons that are
change (Sec. attached to a
250.150(c)(2)). [platform] facility with a walkway, use the same designation as the platform. For example, rename Well No. 10 as A-10; and 250.16(a)(3)(iii)....................... For single well
The intention of this We made the suggested caissons with
paragraph is to use changes (Sec. production equipment the letter
250.150(c)(3)). use a letter
designation for those designation for the caissons with facility name and a substantial letter plus number processing equipment. designation for the Furthermore, this well. For example, requirement should the Well No. 1
not only outline the caisson would be
requirement for well designated as
naming but also the Facility A, and the facility name. As well would be Well proposed, the caisson [as] A-1.
would be named Well A- 1, not Facility A.
[[Page 72768]]
250.16(d)............................... ADDITION: All
Due to the enormous We made the suggested facilities installed administrative and changes and added and wells drilled economic burden that ``unless required by prior to the
would be placed on the Regional effective date of the industry and the Director'' to the end this revision do not MMS, existing
of the sentence. This need to be renamed if structures should be gives the Regional they do not meet the allowed to retain Director the naming criteria
their current names, discretion to require outlined in this
if they do meet the renaming in case of a section.
requirements outlined well numbering herein.
problem (Sec. 250.153). 250.17(a)............................... You must identify all Clarification......... We made the suggested facilities
change (Sec. [platforms,
250.154). structures], artificial islands, and mobile drilling units with a sign. 250.17(a)(2)............................ (2) When helicopter Weight capacity is not We responded to this landing facilities necessary for
suggestion by adding are present, you must platform
the words ``unless display an additional identification and noted on the top of identification sign would not be visible the helipad'' after that is visible from on the signs. Weight the words ``and must the air. The sign capacity is
also display the must use at least 12- customarily noted on weight capacity of inch letters and
the top of the
the helipad (Sec. figures[, and must helipad.
250.154(a)(2)) also display the weight capacity of the helipad]. If this sign is visible to both helicopter and boat traffic, then the sign in paragraph (a)(1) of this section is not required. 250.17(a)(3)(ii)........................ In the GOM OCS Region, This requirement
We made the suggested list the area
applies to both
change (Sec. designation or
mobile drilling units 250.154(a)(3)(ii)). abbreviation and the and all facilities. block number of the [platform] facility location as depicted on OCS Official Protraction Diagrams or leasing maps; 250.17(b)(2)............................ For wells with
We recommend the
We made the suggested multiple completions, inclusion of downhole changes (Sec. downhole splitter splitter wells and 250.154(c)(3)(ii)). wells, and
multilateral wells multilateral wells, which are unique identify each
completions completion in
identified by the MMS addition to the well in NTL 97-2N. name and lease number Furthermore, we individually on the believe the lease and well flowline at the well name need to be wellhead; and
identified in addition to the completion code on the flowline of each completion. 250.17(b)(3)............................ For subsea [wellheads] The recommended change We made the suggested wells which flow
lends clarity to
changes (Sec. individually into situations where
250.154(b)(3)). separate pipelines, numerous subsea wells affix the required flow into a single sign on the pipeline pipeline. or surface flowline Furthermore, we that [connects to the believe it is not pipeline] is
practical to dedicated to that separately identify subsea well at a
each subsea well convenient location flowing into a single on the receiving
pipeline. platform. For multiple subsea wells which flow into a common pipeline or pipelines, no sign is required. 250.17(c)............................... Each identifying sign Redundant............. We deleted this [must be visible to
section. approaching traffic and] maintained in a legible condition. 250.18(a)(1)(ii)........................ Used for conducting Limiting the right-of- We made the suggested exploration,
way and easement to change. It is noted development, and
an owned lease is too that the comment uses production activities limiting. In deep the term ``right-of- or other operations water subsea
way'' (as in pipeline [on your lease].
projects, development right-of-way) whereas may dictate that
the section referred several leases flow to (Sec. 250.18) to a single platform. related to granting a Under these
``right-of-use and circumstances, the easement.'' right-of-way may continue and be needed even after the platform owner has ceased production. 250.19(i)............................... MMS must receive the The way that this We did not make the request before the subsection was
suggested change lease term ends
reworded, this
since a suspension unless the lease is existing provision would not be needed held by operations. was omitted. It is if the lease were possible to have a held by operations. lease that is about We further clarified to expire held by the sections operations (such as (``Suspensions'' drilling) which
sections). automatically extends the term of the lease until that period ends.
[[Page 72769]]
250.19(j)(1)............................ (6) When needed to In recent times,
We did not make the comply with a
Presidential decrees suggested change Presidential decree have required
since a Presidential or directive.
cessation of activity decree or directive on the West Coast, would be implemented portions of Offshore via a policy Florida, and the East statement from the Coast. When the
Director Executive Department (''Suspensions'' requires this, it sections). should be included as a cause for an MMS- directed suspension which extends the lease term. 250.19(j)(2)............................ When activities pose a This requirement to We did not make this threat of serious, perform an on-site change. This is not a irreparable, or
specific study should new requirement, and immediate harm. This be founded on
we are retaining this would include damage something other than authority so that we to life (including the discretionary can require a study fish and other
authority of the MMS when it is necessary aquatic life),
to grant a
(``Suspensions'' property, any mineral suspension. The cost sections). deposit, or the
of on-site surveys marine, coastal, or can be quite high, human environment. often benefit the [MMS may require you entire area as to do a site-specific opposed to an study (see Sec.
individual lease, and 250.19(o)(1));]
MMS has demonstrated no statutory authority to impose such excess costs as a condition of exercising leaseholds rights granted under the lease. 250.19(l)............................... The Regional
This change is
We did not add the Supervisor may grant necessary in order to words ``and/or an or direct an SOP and/ correctly mirror
SOO'' because SOOs do or an SOO when: the current 30 CFR 250.10 not apply to this set suspension is in the which provides for of regulations. We national interest; not only suspension deleted the phrase [you have exercised of production but a ``you have exercised diligence in pursuing suspension of
diligence in pursuing production]; the
operations as well. production.'' Since lease was drilled and The requirement to diligence is not a well was determined exercise diligence in easily defined, we to be producible in production appears to place more emphasis accordance with 30 already have been met on the lessee's CFR 250.9 or 250.253; by the requirement to commitment to and it is necessary have the producible production and a because the
well present. No
sound activity suspension will meet criteria have been schedule when one of the following identified to
analyzing SOP criteria:
determine diligence requests in production. Once (''Suspensions'' the lease is in a sections). producible status, by declaration of a producible well, this criteria seems to have already been met. 250.19(l)(3)............................ It will allow you a In today's gas
We did not make the reasonable amount of environment, the
change as time to enter a sales transportation
transportation is or transportation contract is as
covered contract for oil, important as a sales (``Suspensions'' gas, or sulphur. You contract; therefore sections). must show that you the regulatory are making a good language should faith effort to enter include both. into the contract(s); 250.19(o)(1)............................ [Conduct a site-
This requirement to We did not make this specific study(s);]. perform an on-site change. This is not a specific study should new requirement, and be founded on
we are retaining this something other than authority so that we the discretionary can require a study authority of the MMS when it is necessary to grant a
(``Suspensions'' suspension. The cost sections). of on-site surveys can be quite high, often benefit the entire area as opposed to an individual lease, and MMS has demonstrated no statutory authority to impose such excess costs as a condition of exercising leaseholds rights granted under the lease.
[[Page 72770]]
250.20.................................. Except for
Definitions of
We deleted the requirements to
accidents are
accident reporting report oil spills, inconsistent with table at proposed delete all other
those used in SEMP Sec. 250.120(a). We reporting
(NTL 98 -6N) and
will propose a requirements and
those required by the separate rule to incorporate
USCG for similar
establish a joint MMS- recommendations of incidents. These
USCG web-based the USCG NOSAC
proposed regulations reporting system for Incident Reporting in many cases
incidents that have Subcommittee
duplicate reporting to be reported to established on April requirements of the either agency. We 22, 1998 consisting United States Coast retained the current of MMS, USCG and
Guard. At a meeting requirement at Sec. industry personnel. of NOSAC (National 250.119(a) (Sec. Offshore Advisory 250.191). Committee) in Washington on April 22, 1998, a Subcommittee was established to review and recommend changes to improve the process of defining and reporting incidents to the MMS and the USCG. This effort was endorsed by Carolita Kallaur, Associate Director for Offshore Minerals Management. Recommendations will be completed by October 1998. Significant administrative burden would be added to all operators if this proposed regulation was implemented. This would be the most expedient method to resolve this issue and avoid OMB and other intervention in adding this administrative burden to operators and contractors. 250.20(a)............................... Industry has expressed To avoid uncertainty, We will propose a concerns to the MMS the rule should
separate rule on that ``fires'' needs include the
incident reporting to be better defined definition,
(see response to since industry has especially when the previous comment). confusion on what MMS is planning to The rule will give needs to be reported. use fires as one of more guidance on We recommend that the the criteria included thresholds for fires MMS include a
with the
and factors that description or
disqualification
impair safety. definition for what a procedures found in fire is and what
this proposed rule in types of fires they Section 250.12. The expect to receive in preamble states that the reports.
more guidance will be given in an NTL. We prefer that the language be included in a rule. The MMS should include The MMS should respect We will propose a language that allows the confidentiality separate rule on the Operator to
and sensitivity of incident reporting submit this
information marked (see response to information marked ``Confidential'' as previous comment) and ``Confidential'' and they do with other consider the comment the MMS to maintain information they
in that rulemaking. it in such a way
receive from without divulging the operators. details that may be involved in legal action. 250.20(a)(1)............................ We recommend that this It would be impossible We made the suggested subsection qualify for a pipeline right- changes (Sec. that the operation of-way owner to be 250.191(b)). must be related to aware of any the exercise of the accidents which might easement, right-of- happen to occur way, or other permit. within the pipeline right-of-way corridor which did not directly influence or impact the exercise of the right-of-way itself. 250.20(a)(2)............................ We recommend that the The cited portions of We made the suggested final rule qualify the OCS Lands Act changes (Sec. the investigative specify that either 250.191(c)). authority so that it the Secretary or the is not exercised by U.S. Coast Guard may both the Department institute of Transportation's investigations but United States Coast not both. This Guard and the
limitation must be Department of [the] contained in the Interior's MMS.
regulations in order for them to be lawful.
[[Page 72771]]
250.20(a)(2)............................ We recommend that the This provision
We did not make the striking of the
violates the
suggested changes. provision which only provisions of Section However, since allows panel members 22(f) of the OCS
commenters have and panel experts to Lands Act which
objection to the address questions to requires that the proposed wording, we the person giving production of
used the wording testimony.
documents and the exactly as it is in handling of testimony our current and witnesses be
regulations (Sec. analogous to the
250.191(c)). Federal Rules of Civil Procedure. The Federal Rules Of Civil Procedure give the party at risk for citation the opportunity to participate in questioning of witnesses in the course of any hearing. 250.20(b)............................... The MMS should clarify The MMS should clarify We listed evacuation that they want to get what they need since statistics needs as personnel evacuation the word
the following: numbers only, to
``statistics'' is not facilities and rigs avoid uncertainty. defined. In addition, evacuated and the Also, the MMS should the MMS needs to
amount of production add the words ``as understand the
shut-in for oil and conditions allow'' critical nature and gas. We inserted ``as immediately after plans that require conditions allow'' (b)(2) after ``11 full operator
(Sec. 250.192). AM'' in this sentence. attention for safe evacuation of personnel, ensuring the operations are safely and environmentally shut- in, housing the evacuated personnel, and ensuring the safety of office management/staff. This process must have higher priority than reporting ``statistics'' by 11 AM during the period of shut-in and evacuation. MMS offices are also evacuated when natural events such as hurricanes approach populated areas, so the ``statistics'' would probably not be accessible. 250.21.................................. Any person may report This will prevent the We have not made the to MMS an apparent MMS from being forced changes because MMS violation or failure to investigate
procedures will to comply with any frivolous or baseless determine the provision of the Act, allegations which are validity (Sec. any provision of a apparent on their 250.193). lease, license, or face. permit issued under the Act, or any provision of any regulation or order issued under the Act. When MMS receives a report of an apparent violation, or when an MMS employee detects an apparent violation, after making a determination of the validity, MMS will investigate in accordance with its procedures.
[[Page 72772]]
250.23(a)............................... Your lease expires at Ordinary oil and gas We deleted the word the end of its
principles extend a continuous from this primary term unless lease provided a
section (Sec. you are producing in continuous
250.180). paying quantities or exploratory drilling conducting drilling program is in or well-reworking operation. The operations on your present wording does lease (see 30 CFR not appear to include part 256). The
this fact, but objective of the
instead focuses drilling or well- solely on production reworking operations or the re-institution must be to establish of production itself. continuous production A lessee could on the lease. For maintain a lease by a purposes of this
continual and section, the term diligent exploratory operations means
program through [continuous]
continuous drilling production, drilling, activity. This or well-reworking. concept is missing in the proposed rule. In addition, the last sentence as is will cause confusion and it contradicts the remainder of Section 250.23. It is possible during drilling or well- reworking to start and stop operations within the 180-day clock, such as to get different equipment, personnel, other operations on the platform, etc. As long as the word ``continuous'' is there, it can be interpreted as being on-going and not allowing for start and stops. This is unrealistic with regard to how offshore operations take place. 250.25.................................. When will MMS
Since the
We made Sec. 250.195 reimburse me for
reimbursement
parallel to 30 CFR reproduction,
provision is for
part 251. This processing, and other other areas than
section only refers costs?
reproduction, it will to reimbursements for be easier for the G&G data and operator to find this information. section. 250.27(b) Table......................... When your lease
Ten years is not
We have not made the terminates or [10] 15 enough in the case of suggested change. To years after the date deepwater leases
change the release you submit the data (deep water leases time for these data whichever is earlier. have a 10 year
would make releasing [10] 15 years after primary term) where data and information the date you submit an exploratory well more complicated and it.
is drilled, an SOP make it extremely obtained pending
difficult to track development. Same as properly. Following above. In addition, our current there could exist regulations, we have open acreage next to already released deep- a lease that has not water data. The been fully developed suggested change since operations in would not enhance our deep water tend to be ability to get fair more complex.
market value for leases (Sec. 250.196). MMS will disclose Operator should have We did not make this information not
the opportunity to change. This change collected on MMS
review the current would mean that we forms in accordance situation and decide would have to go to with the following whether or not
the lessee before we table: if--The
release of the data transfer proprietary director determines would jeopardize its data and information that data and
competitive position. (paleo reports, etc.) information are
to anyone doing work needed for specific
on our behalf. This scientific or
is not a good idea. research purposes for
It limits our ability the Government MMS
and rights to do will release--
research and detailed Geophysical data,
studies (Sec. geological data,
250.196). interpreted G&G information, processed and reprocessed geophysical information, analyzed geological information. At this time--Anytime Additional provisions--MMS will release data and information with the review and consent of the lessee only if release would further the national interest without unduly damaging the competitive position of the lessee.
[[Page 72773]]
[2] 10 years after you Two years is not
We have not made the submit it or 60 days enough in the case of suggested change. To after a lease sale if deepwater leases
change the release any portion of an (deep water leases time for these data offered block is
have a 10 year
would make releasing within 50 miles of a primary term) where data/information more well, whichever is an exploratory well complicated and make later.
is drilled, an SOP it extremely obtained pending
difficult to track development. Same as properly. Following above. In addition, our current there could exist regulations, we have open acreage next to already released deep- a lease that has not water data. been fully developed Additionally, the since operations in suggested change deep water tend to be would not enhance our more complex.
ability to get fair market value for leases (Sec. 250.196). 256.73(a)............................... (a) [Normally,] a A The existing Section We have deleted the suspension extends 256.73(a) clearly word ``normally'' and the term of a lease. states the primary rewritten the entire The extension is
term of the lease section for clarity. equal to the length will be extended if of time the
the lessee is granted suspension is in
an SOO or SOP effect. The
pursuant to 30 CFR suspension will not 250.10(a), (b)(2) extend the lease term through (b)(7), or when the Regional (c). This very clear Supervisor directs a and concise provision suspension because has been rewritten to of:
state that a suspension ``normally'' extends the term of a lease. Since the term ``normally'' is not defined, the net result of this change is a provision that is less specific.
API/OOC Comments and MMS Responses on Documents Incorporated By Reference
In addition to the comments in the preceding table, API/OOC provided numerous suggestions to update the documents incorporated by reference in proposed Sec. 250.28. Some have already been updated; this final rule will make the recommended changes to most of the others; and we will consider the remaining few for future rulemaking.
The following is a list of the documents incorporated by reference that we updated in the table in Sec. 250.198(e):
API MPMS, Chapter 2, Section 2B API MPMS, Chapter 3, Section 1B API MPMS, Chapter 4, Section 7 API MPMS, Chapter 6 API MPMS, Chapter 6, Section 6 API MPMS, Chapter 7, Section 3 API MPMS, Chapter 10, Section 4; also available as ANSI/ASTM D 96 API MPMS, Chapter 11 API MPMS, Chapter 11.1; also available as ANSI/ASTM D1250 API MPMS, Chapter 14, Section 3, Part 1; also available as ANSI/API 2530, Part 1 API MPMS, Chapter 14, Section 3, Part 2; also available as ANSI/API 2530, Part 2 API MPMS, Chapter 14, Section 6 API RP 2A API RP 2A, Supplement 1 API Spec Q1 API Standard 2545 incorporated as MPMS, Chapters 3.1A and 3.1B API Standard 2551 API Standard 2552 API Standard 2555
The following is a list of documents incorporated by reference that we have already addressed through other rulemakings published on July 9, 1998 (63 FR 37066) and May 12, 1998 (63 FR 26365):
API MPMS, Chapter 14, Section 8 API MPMS, Chapter 20 API MPMS, Chapter 21 API RP 14C API Spec 14D
We are considering, or will consider, the following for future changes in documents incorporated by reference:
API MPMS, Chapter 14, Section 1 API RP 500 (proposed rule published 3/19/99, 64 FR 13535) API RP 505 (proposed rule published 3/19/99, 64 FR 13535) API 510 (currently under review) API Specification 6D, Supplement 2 API Specification 14A, Supplement 1
Procedural Matters
Takings Implication Assessment Executive Order (E.O.) 12630
MMS certifies that this rule does not represent a governmental action capable of interference with constitutionally protected property rights.
Federalism (E.O. 13132)
According to E.O. 13132, this rule does not have Federalism implications. This rule:
(a) Does not substantially and directly affect the relationship between the Federal and State governments;
(b) Does not impose costs on States or localities;
(c) Does not preempt State law.
Regulatory Planning and Review (E.O. 12866)
This document is not a significant rule and is not subject to review by the Office of Management and Budget (OMB) under E.O. 12866.
(1) This rule will not have an effect of $100 million or more on the economy. It will not adversely affect in a material way the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities. The new or expanded requirements in the rule are designed to safeguard lives, property, and the environment. They do not impose extensive burdens. The economic effects of the rule will be minimal.
The revised regulations will allow lessees of a State lease located adjacent to the OCS to apply for a right-of-use and easement. Although MMS has always had the authority to grant rights-of-use and easements, it was inadvertently dropped from the regulations in 1979, and we are simply reinserting it specifically in the regulations. We anticipate very few situations occurring when a State lessee would need to take advantage of this provision in the regulations. Therefore, we estimate possibly one application from a State lessee annually. If a State lessee applies for a right-of-use and easement, they will be required to pay a $2,350 application fee and $500 in annual rental. The fee and rental are the same as those required for pipeline right-of-way grants in our current
[[Page 72774]]
regulations. We used this as the cost basis because of the similarity in complexity between approving current pipeline right-of-way grants and the new right-of-use and easement applications allowed under this regulation.
The total reporting and recordkeeping burdens on all entities affected are minimal (less than $400,000 per year).
(2) This rule will not create a serious inconsistency or otherwise interfere with an action taken or planned by another agency. The proposed rule had a new accident reporting table that raised a question of duplicative accident reporting to both MMS and USCG. We have deleted the table from the final rule. We will propose a separate rule to establish a joint MMS-USCG web-based system for reporting accidents/ incidents to either agency.
(3) This rule does not alter the budgetary effects or entitlements, grants, user fees, or loan programs or the rights or obligations of their recipients. This rule will only have a minimal effect with respect to user fees. State lessees will have to pay a small fee and hold a bond for the benefit of receiving the right-of-use and easement in the OCS.
(4) This rule does not raise novel legal or policy issues. The new or expanded requirements in the rule are based on the longstanding legal authority of the OCSLA and other laws. As previously stated, the rule emphasizes MMS's commitment towards ensuring safe operations.
Civil Justice Reform (E.O. 12988)
DOI has certified to OMB that the rule meets the applicable reform standards provided in sections 3(a) and 3(b)(2) of E.O. 12988.
National Environmental Policy Act
DOI has determined that this action does not constitute a major Federal action affecting the quality of the human environment; therefore, an Environmental Impact Statement is not required.
Paperwork Reduction Act of 1995 (PRA)
We examined the proposed and final rule under the PRA. We determined that the approved information collection requirements remain unchanged for 30 CFR part 218; 30 CFR part 250, subparts E and F; and 30 CFR part 256.
With respect to 30 CFR part 250, subpart D, the rule removes sections that contain approved collections of information and relocates them to 30 CFR part 250, subpart A. We will submit an inventory correction to OMB to update the approved 30 CFR part 250, subpart D information collection requirements (OMB control number 1010-0053).
Because of the changes in 30 CFR part 250, subpart A, as part of the proposed rulemaking process, we submitted the information collection requirements (including form MMS-132) to OMB for approval. The final rule made very few changes in the collection of information, but we resubmitted the revisions to OMB for approval under section 3507(d) of the PRA. OMB has approved the collection of information under OMB control number 1010-0114. The title of this collection of information is ``30 CFR 250, Subpart A--General.'' The PRA provides that an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.
The minor differences in the information collection requirements in the proposed rulemaking from those approved for the final rule are:
‹bullet› Eliminated the requirement to submit information on the use of BAST-requests would be considered under new or alternative procedures.
‹bullet› Clarified the recordkeeping retention requirements for crane operator qualifications to be consistent with the standards in the document incorporated by reference for this activity.
‹bullet› Eliminated the ``proposed'' accident reporting requirements and retained the ``current'' subpart A accident reporting and estimated burden.
In responding to comments, we have concluded that the procedures leading to disqualification of an operator could result in respondents submitting a performance improvement plan to avoid disqualification. Although this is part of our internal enforcement process and not specifically identified in the regulations, the ICR approved for the final rule includes the burden for this contingency.
We use the collection of information required by this rule to ensure that operations on the OCS are carried out in a manner that is safe, pollution-free, does not interfere with the rights of other users on the OCS, and balances the protection and development of OCS resources. The frequency of submission varies according to requirement but is generally ``on occasion.'' Responses are mandatory.
We estimate there are approximately 131 respondents to this collection of information--130 Federal OCS lessees and operators and one State lessee.
Reporting and Recordkeeping ``Hour'' Burden: The approved annual burden of this collection of information is 7,231 reporting hours and 3,485 recordkeeping hours, for a total of 10,716 burden hours. Based on $35 per hour, we estimate the total hour burden cost to respondents to be $375,060.
Reporting and Recordkeeping ``Non-Hour Cost'' Burden: The approved paperwork non-hour cost burden remained unchanged in the final rule. We still anticipate that only one State lessee per year might apply for a right-of-use and easement. The respondent is required to pay a cost recovery application fee of $2,350.
Regulatory Flexibility Act
The changes proposed in 30 CFR part 250, subpart A, will not have a significant economic effect on offshore lessees and operators, including those that are classified as small businesses. The Small Business Administration (SBA) defines a small business as having:
‹bullet› Annual revenues of $5 million or less for exploration service and field service companies.
‹bullet› Fewer than 500 employees for drilling companies and for companies that extract oil, gas, or natural gas liquids.
The Small Business Administration's Office of Advocacy in commenting on this rule referred to Standard Industrial Classification (SIC) 1381, Drilling Oil and Gas Wells. Under this SIC code, MMS estimates that there is a total of 1,380 firms that drill oil and gas wells onshore and offshore. Of these, approximately 130 companies are offshore lessees/operators, based on current estimates. According to SBA estimates, 39 companies qualify as large firms, leaving 91 companies qualified as small firms with fewer than 500 employees.
The primary economic effect of the revised subpart A on small businesses is the cost associated with information collection activities. The rule is a plain language rewrite of 30 CFR 250, subpart A, and contains virtually all of the same reporting and recordkeeping requirements and attendant costs as the existing regulations. The changes in reporting requirements will not significantly increase the information collection hour burden on respondents--large or small. Based on the average number of lessees being 130, we estimate a combined annual burden of 10,716 hours for all entities. Using a standard average hourly cost of $35.00 to determine the paperwork burden, the total hourly cost burden is $375,060. This reflects an increase in the paperwork burden from the current regulation of 2,288 hours, for a cost burden increase of $80,080 or $616 per
[[Page 72775]]
entity (large or small) from the current regulation.
There is also a reporting cost burden associated with one of the new benefits to State lessees that requires a fee of $2,350, but only if a State lessee/operator chooses to apply for a right-of-use and easement. If a State lessee applies for a right-of-use and easement, they will be required to pay a $2,350 application fee and $500 in annual rental. We do not anticipate more than one application for a right-of-use and easement from a State lessee annually.
Based on these calculations, this rule has no significant economic impact on the small entities.
Your comments are important. The Small Business and Agriculture Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were established to receive comments from small business about Federal agency enforcement actions. The Ombudsman will annually evaluate the enforcement activities and rate each agency's responsiveness to small business. If you wish to comment on the enforcement actions of MMS, call toll-free (888) 734-3247.
Small Business Regulatory Enforcement Fairness Act (SBREFA)
This rule is not a major rule under 5 U.S.C. 804(2), SBREFA. This rule:
(a) Does not have an annual effect on the economy of $100 million or more. The proposed rule will not cause any significant costs to lessees or operators. The primary purpose of this rule is to restructure it for better reorganization and to simplify regulatory language. The restructuring and plain language revisions will not result in any economic effects to small or large entities. The only costs will be for the purchase of the new documents incorporated by reference and minor revisions to some operating procedures. The minor revisions to operating procedures may result in some minor costs or may actually result in minor costs savings.
(b) Will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions. The new costs associated with this rule are minimal. State lessees will have to pay a fee and rental to obtain the benefits of a right-of-use and easement in the Federal OCS.
(c) Does not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises. The regulation will not have any adverse effects on competition or other business/commercial aspects of the regulated industry. It contains a few new requirements that are not burdensome and that ensure that operations in the OCS remain safe and environmentally sound.
Unfunded Mandates Reform Act of 1995
DOI has determined and certifies under 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 State, local, and tribal governments, or the private sector.
List of Subjects
30 CFR Part 218
Continental shelf, Electronic funds transfers, Geothermal energy, Government contracts, Indians--lands, Mineral royalties, Oil and gas exploration, Public lands--mineral resources, Reporting and recordkeeping requirements.
Continental shelf, Environmental impact statements, Environmental protection, Government contracts, Incorporation by reference, Investigations, Mineral royalties, Oil and gas development and production, Oil and gas exploration, Oil and gas reserves, Penalties, Pipelines, Public lands--mineral resources, Public lands--rights-of- way, Reporting and recordkeeping requirements, Sulphur, Surety bonds.
30 CFR Part 252
Continental shelf, Freedom of information, Intergovernmental relations.
30 CFR Part 253
Continental shelf, Environmental protection, Insurance, Oil and gas exploration, Oil pollution, Penalties, Pipelines, Public lands--mineral resources, Public lands--rights-of-way, Reporting and recordkeeping requirements, Surety bonds.
Administrative practice and procedure, Continental shelf, Environmental protection, Government contracts, Mineral royalties, Oil and gas exploration, Pipelines, Public lands--mineral resources, Public lands--rights-of-way, Reporting and recordkeeping requirements, Surety bonds.
30 CFR Part 282
Continental shelf, Prospecting, Public lands--mineral resources, Reporting and recordkeeping requirements, Surety bonds.
Dated: November 5, 1999. Sylvia V. Baca, Acting Assistant Secretary, Land and Minerals Management.
For the reasons stated in the preamble, the Minerals Management Service (MMS) amends 30 CFR parts 218, 250, 252, 253, 256 and 282 as follows:
PART 218--COLLECTION OF ROYALTIES, RENTALS, BONUSES AND OTHER MONIES DUE THE FEDERAL GOVERNMENT
-
The authority citation continues to read as follows:
Authority: 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.A. 3335; 43 U.S.C. 1301 et seq.; 1331 et seq.; 1801 et seq.
-
In Sec. 218.154 paragraphs (a) and (b) are revised to read as follows:
Sec. 218.154 Effect of suspensions on royalty and rental.
(a) MMS will not relieve the lessee of the obligation to pay rental or minimum royalty for or during the suspension if the Regional Supervisor:
(1) Grants a suspension of operations or production, or both, at the request of the lessee; or
(2) Directs a suspension of operations or production, or both, under 30 CFR 250.173(a).
(b) MMS will not require a lessee to pay rental or minimum royalty for or during the suspension if the Regional Supervisor directs a suspension of operations or production, or both, except as provided in (a)(2) of this section. * * * * *
PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER CONTINENTAL SHELF
-
The authority citation for part 250 continues to read as follows:
Authority: 43 U.S.C. 1331 et seq.
-
Subpart A is revised to read as follows:
Subpart A--General
Authority and Definition of Terms
Sec. 250.101 Authority and applicability. 250.102 What does this part do? 250.103 Where can I find more information about the requirements in this part? 250.104 How may I appeal a decision made under MMS regulations? 250.105 Definitions.
[[Page 72776]]
Performance Standards
250.106 What standards will the Director use to regulate lease operations? 250.107 What must I do to protect health, safety, property, and the environment? 250.108 What requirements must I follow for cranes and other material-handling equipment? 250.109 What documents must I prepare and maintain related to welding? 250.110 What must I include in my welding plan? 250.111 Who oversees operations under my welding plan? 250.112 What standards must my welding equipment meet? 250.113 What procedures must I follow when welding? 250.114 How must I install and operate electrical equipment? 250.115 How do I determine well producibility? 250.116 How do I determine producibility if my well is in the Gulf of Mexico? 250.117 How does a determination of well producibility affect royalty status? 250.118 Will MMS approve gas injection? 250.119 Will MMS approve subsurface gas storage? 250.120 How does injecting, storing, or treating gas affect my royalty payments? 250.121 What happens when the reservoir contains both original gas in place and injected gas? 250.122 What effect does subsurface storage have on the lease term? 250.123 Will MMS allow gas storage on unleased lands? 250.124 Will MMS approve gas injection into the cap rock containing a sulphur deposit?
Inspection of Operations
250.130 Why does MMS conduct inspections? 250.131 Will MMS notify me before conducting an inspection? 250.132 What must I do when MMS conducts an inspection? 250.133 Will MMS reimburse me for my expenses related to inspections?
Disqualification
250.135 What will MMS do if my operating performance is unacceptable? 250.136 How will MMS determine if my operating performance is unacceptable?
Special Types of Approvals
250.140 When will I receive an oral approval? 250.141 May I ever use alternate procedures or equipment? 250.142 How do I receive approval to use alternate procedures or equipment for departures? 250.143 How do I designate an operator? 250.144 How do I designate a new operator when a designation of operator terminates? 250.145 How do I designate an agent or a local agent? 250.146 Who is responsible for fulfilling leasehold obligations?
Naming and Identifying Facilities and Wells (Does Not Include MODUs)
250.150 How do I name facilities and wells in the Gulf of Mexico Region? 250.151 How do I name facilities in the Pacific Region? 250.152 How do I name facilities in the Alaska Region? 250.153 Do I have to rename an existing facility or well? 250.154 What identification signs must I display?
Right-of-Use and Easement
250.160 When will MMS grant me a right-of-use and easement, and what requirements must I meet? 250.161 What else must I submit with my application? 250.162 May I continue my right-of-use and easement after the termination of any lease on which it is situated? 250.163 If I have a State lease, will MMS grant me a right-of-use and easement? 250.164 If I have a State lease, what conditions apply for a right- of-use and easement? 250.165 If I have a State lease, what fees do I have to pay for a right-of-use and easement? 250.166 If I have a State lease, what surety bond must I have for a right-of-use and easement?
Suspensions
250.168 May operations or production be suspended? 250.169 What effect does suspension have on my lease? 250.170 How long does a suspension last? 250.171 How do I request a suspension? 250.172 When may the Regional Supervisor grant or direct an SOO or SOP? 250.173 When may the Regional Supervisor direct an SOO or SOP? 250.174 When may the Regional Supervisor grant or direct an SOP? 250.175 When may the Regional Supervisor grant an SOO? 250.176 Does a suspension affect my royalty payment? 250.177 What additional requirements may the Regional Supervisor order for a suspension?
Primary Lease Requirements, Lease Term Extensions, and Lease Cancellations
250.180 What am I required to do to keep my lease term in effect? 250.181 When may the Secretary cancel my lease and when am I compensated for cancellation? 250.182 When may the Secretary cancel a lease at the exploration stage? 250.183 When may MMS or the Secretary extend or cancel a lease at the development and production stage? 250.184 What is the amount of compensation for lease cancellation? 250.185 When is there no compensation for a lease cancellation?
Information and Reporting Requirements
250.190 What reporting information and report forms must I submit? 250.191 What accident reports must I submit? 250.192 What evacuation statistics must I submit? 250.193 Reports and investigations of apparent violations. 250.194 What archaeological reports and surveys must I submit? 250.195 Reimbursements for reproduction and processing costs. 250.196 Data and information to be made available to the public.
References
250.198 Documents incorporated by reference. 250.199 Paperwork Reduction Act statements--information collection.
Subpart A--General
Authority and Definition of Terms
Sec. 250.101 Authority and applicability.
The Secretary of the Interior (Secretary) authorized the Minerals Management Service (MMS) to regulate oil, gas, and sulphur exploration, development, and production operations on the outer Continental Shelf (OCS). Under the Secretary's authority, the Director requires that all operations:
(a) Be conducted according to the OCS Lands Act (OCSLA), the regulations in this part, MMS orders, the lease or right-of-way, and other applicable laws, regulations, and amendments; and
(b) Conform to sound conservation practice to preserve, protect, and develop mineral resources of the OCS to:
(1) Make resources available to meet the Nation's energy needs;
(2) Balance orderly energy resource development with protection of the human, marine, and coastal environments;
(3) Ensure the public receives a fair and equitable return on the resources of the OCS;
(4) Preserve and maintain free enterprise competition; and
(5) Minimize or eliminate conflicts between the exploration, development, and production of oil and natural gas and the recovery of other resources.
Sec. 250.102 What does this part do?
(a) 30 CFR part 250 contains the regulations of the MMS Offshore program that govern oil, gas, and sulphur exploration, development, and production operations on the OCS. When you conduct operations on the OCS, you must submit requests, applications, and notices, or provide supplemental information for MMS approval.
[[Page 72777]]
(b) The following table of general references shows where to look for information about these processes.
Table--Where To Find Information for Conducting Operations
For information about
Refer to
(1) Abandoning wells........................ Sec. 250.701. (2) Applications for Permit to Drill........ Sec. 250.414. (3) Development and Production Plans (DPP).. Sec. 250.204. (4) Downhole commingling.................... Sec. 250.1106. (5) Exploration Plans (EP).................. Sec. 250.203. (6) Flaring................................. Sec. 250.1105. (7) Gas measurement......................... Sec. 250.1203. (8) Off-lease geological and geophysical 30 CFR 251. permits. (9) Oil spill financial responsibility
30 CFR 253. coverage. (10) Oil and gas production safety systems... Sec. 250.802. (11) Oil spill response plans................ 30 CFR 254. (12) Oil and gas well-completion operations.. Sec. 250.513. (13) Oil and gas well-workover operations.... Sec. 250.613. (14) Platforms and structures................ Sec. 250.901. (15) Pipelines............................... Sec. 250.1009. (16) Pipeline right-of-way................... Sec. 250.1010. (17) Sulphur operations...................... Sec. 250.1604. (18) Training................................ Sec. 250.1500. (19) Unitization............................. Sec. 250.1300.
Sec. 250.103 Where can I find more information about the requirements in this part?
MMS may issue Notices to Lessees and Operators (NTLs) that clarify, supplement, or provide more detail about certain requirements. NTLs may also outline what you must provide as required information in your various submissions to MMS.
Sec. 250.104 How may I appeal a decision made under MMS regulations?
To appeal orders or decisions issued under MMS regulations in 30 CFR parts 250 to 282, follow the procedures in 30 CFR part 290.
Sec. 250.105 Definitions.
Terms used in this part will have the meanings given in the Act and as defined in this section:
Act means the OCS Lands Act, as amended (43 U.S.C. 1331 et seq.).
Affected State means with respect to any program, plan, lease sale, or other activity proposed, conducted, or approved under the provisions of the Act, any State:
(1) The laws of which are declared, under section 4(a)(2) of the Act, to be the law of the United States for the portion of the OCS on which such activity is, or is proposed to be, conducted;
(2) Which is, or is proposed to be, directly connected by transportation facilities to any artificial island or installation or other device permanently or temporarily attached to the seabed;
(3) Which is receiving, or according to the proposed activity, will receive oil for processing, refining, or transshipment that was extracted from the OCS and transported directly to such State by means of vessels or by a combination of means including vessels;
(4) Which is designated by the Secretary as a State in which there is a substantial probability of significant impact on or damage to the coastal, marine, or human environment, or a State in which there will be significant changes in the social, governmental, or economic infrastructure, resulting from the exploration, development, and production of oil and gas anywhere on the OCS; or
(5) In which the Secretary finds that because of such activity there is, or will be, a significant risk of serious damage, due to factors such as prevailing winds and currents to the marine or coastal environment in the event of any oil spill, blowout, or release of oil or gas from vessels, pipelines, or other transshipment facilities.
Air pollutant means any airborne agent or combination of agents for which the Environmental Protection Agency (EPA) has established, under section 109 of the Clean Air Act, national primary or secondary ambient air quality standards.
Analyzed geological information means data collected under a permit or a lease that have been analyzed. Analysis may include, but is not limited to, identification of lithologic and fossil content, core analysis, laboratory analyses of physical and chemical properties, well logs or charts, results from formation fluid tests, and descriptions of hydrocarbon occurrences or hazardous conditions.
Archaeological interest means capable of providing scientific or humanistic understanding of past human behavior, cultural adaptation, and related topics through the application of scientific or scholarly techniques, such as controlled observation, contextual measurement, controlled collection, analysis, interpretation, and explanation.
Archaeological resource means any material remains of human life or activities that are at least 50 years of age and that are of archaeological interest.
Attainment area means, for any air pollutant, an area that is shown by monitored data or that is calculated by air quality modeling (or other methods determined by the Administrator of EPA to be reliable) not to exceed any primary or secondary ambient air quality standards established by EPA.
Best available and safest technology (BAST) means the best available and safest technologies that the Director determines to be economically feasible wherever failure of equipment would have a significant effect on safety, health, or the environment.
Best available control technology (BACT) means an emission limitation based on the maximum degree of reduction for each air pollutant subject to regulation, taking into account energy, environmental and economic impacts, and other costs. The Regional Director will verify the BACT on a case-by-case basis, and it may include reductions achieved through the application of processes, systems, and
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techniques for the control of each air pollutant.
Coastal environment means the physical, atmospheric, and biological components, conditions, and factors that interactively determine the productivity, state, condition, and quality of the terrestrial ecosystem from the shoreline inward to the boundaries of the coastal zone.
Coastal zone means the coastal waters (including the lands therein and thereunder) and the adjacent shorelands (including the waters therein and thereunder) strongly influenced by each other and in proximity to the shorelands of the several coastal States. The coastal zone includes islands, transition and intertidal areas, salt marshes, wetlands, and beaches. The coastal zone extends seaward to the outer limit of the U.S. territorial sea and extends inland from the shorelines to the extent necessary to control shorelands, the uses of which have a direct and significant impact on the coastal waters, and the inward boundaries of which may be identified by the several coastal States, under the authority in section 305(b)(1) of the Coastal Zone Management Act (CZMA) of 1972.
Competitive reservoir means a reservoir in which there are one or more producible or producing well completions on each of two or more leases or portions of leases, with different lease operating interests, from which the lessees plan future production.
Correlative rights when used with respect to lessees of adjacent leases, means the right of each lessee to be afforded an equal opportunity to explore for, develop, and produce, without waste, minerals from a common source.
Data means facts and statistics, measurements, or samples that have not been analyzed, processed, or interpreted.
Departures means approvals granted by the appropriate MMS representative for operating requirements/procedures other than those specified in the regulations found in this part. These requirements/ procedures may be necessary to control a well; properly develop a lease; conserve natural resources, or protect life, property, or the marine, coastal, or human environment.
Development means those activities that 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 producing the minerals discovered.
Director means the Director of MMS of the U.S. Department of the Interior, or an official authorized to act on the Director's behalf.
District Supervisor means the MMS officer with authority and responsibility for operations or other designated program functions for a district within an MMS Region.
Easement means an authorization for a nonpossessory, nonexclusive interest in a portion of the OCS, whether leased or unleased, which specifies the rights of the holder to use the area embraced in the easement in a manner consistent with the terms and conditions of the granting authority.
Eastern Gulf of Mexico means all OCS areas of the Gulf of Mexico the Director decides are adjacent to the State of Florida. The Eastern Gulf of Mexico is not the same as the Eastern Planning Area, an area established for OCS lease sales.
Emission offsets means emission reductions obtained from facilities, either onshore or offshore, other than the facility or facilities covered by the proposed Exploration Plan (EP) or Development and Production Plan (DPP).
Enhanced recovery operations means pressure maintenance operations, secondary and tertiary recovery, cycling, and similar recovery operations that alter the natural forces in a reservoir to increase the ultimate recovery of oil or gas.
Existing facility, as used in Sec. 250.303, means an OCS facility described in an Exploration Plan or a Development and Production Plan approved before June 2, 1980.
Exploration means the commercial search for oil, gas, or sulphur. Activities classified as exploration include but are not limited to:
(1) Geophysical and geological (G&G) surveys using magnetic, gravity, seismic reflection, seismic refraction, gas sniffers, coring, or other systems to detect or imply the presence of oil, gas, or sulphur; and
(2) Any drilling conducted for the purpose of searching for commercial quantities of oil, gas, and sulphur, including the drilling of any additional well needed to delineate any reservoir to enable the lessee to decide whether to proceed with development and production.
Facility means:
(1) As used in Sec. 250.130, any installation permanently or temporarily attached to the seabed on the OCS (including manmade islands and bottom-sitting structures). It includes mobile offshore drilling units (MODUs) or other vessels engaged in drilling or downhole operations, used for oil, gas, or sulphur drilling, production, or related activities. It also includes facilities for product measurement and royalty determination (e.g., Lease Automatic Custody Transfer units, gas meters) of OCS production on installations not on the OCS. Any group of OCS installations interconnected with walkways, or any group of installations that includes a central or primary installation with processing equipment and one or more satellite or secondary installations is a single facility. The Regional Supervisor may decide that the complexity of the individual installations justifies their classification as separate facilities.
(2) As used in Sec. 250.303, means any installation or device permanently or temporarily attached to the seabed. It includes mobile offshore drilling units (MODUs), even while operating in the ``tender assist'' mode (i.e. with skid-off drilling units) or other vessels engaged in drilling or downhole operations. They are used for exploration, development, and production activities for oil, gas, or sulphur and emit or have the potential to emit any air pollutant from one or more sources. During production, multiple installations or devices are a single facility if the installations or devices are at a single site. Any vessel used to transfer production from an offshore facility is part of the facility while it is physically attached to the facility.
(3) As used in Sec. 250.417(b), means a vessel, a structure, or an artificial island used for drilling, well-completion, well-workover, and/or production operations.
Gas reservoir means a reservoir that contains hydrocarbons predominantly in a gaseous (single-phase) state.
Gas-well completion means a well completed in a gas reservoir or in the associated gas-cap of an oil reservoir.
Governor means the Governor of a State, or the person or entity designated by, or under, State law to exercise the powers granted to such Governor under the Act.
H‹INF›2‹/INF›S absent means:
(1) Drilling, logging, coring, testing, or producing operations have confirmed the absence of H‹INF›2‹/INF›S in concentrations that could potentially result in atmospheric concentrations of 20 ppm or more of H‹INF›2‹/INF›S; or
(2) Drilling in the surrounding areas and correlation of geological and seismic data with equivalent stratigraphic units have confirmed an absence of H‹INF›2‹/INF›S throughout the area to be drilled.
H‹INF›2‹/INF›S present means drilling, logging, coring, testing, or producing operations
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have confirmed the presence of H‹INF›2‹/INF›S in concentrations and volumes that could potentially result in atmospheric concentrations of 20 ppm or more of H‹INF›2‹/INF›S.
H‹INF›2‹/INF›S unknown means the designation of a zone or geologic formation where neither the presence nor absence of H‹INF›2‹/INF›S has been confirmed.
Human environment means the physical, social, and economic components, conditions, and factors that interactively determine the state, condition, and quality of living conditions, employment, and health of those affected, directly or indirectly, by activities occurring on the OCS.
Interpreted geological information means geological knowledge, often in the form of schematic cross sections, 3-dimensional representations, and maps, developed by determining the geological significance of data and analyzed geological information.
Interpreted geophysical information means geophysical knowledge, often in the form of schematic cross sections, 3-dimensional representations, and maps, developed by determining the geological significance of geophysical data and analyzed geophysical information.
Lease means an agreement that is issued under section 8 or maintained under section 6 of the Act and that authorizes exploration for, and development and production of, minerals. The term also means the area covered by that authorization, whichever the context requires.
Lease term pipelines means those pipelines owned and operated by a lessee or operator that are completely contained within the boundaries of a single lease, unit, or contiguous (not cornering) leases of that lessee or operator.
Lessee means a person who has entered into a lease with the United States to explore for, develop, and produce the leased minerals. The term lessee also includes the MMS-approved assignee of the lease, and the owner or the MMS-approved assignee of operating rights for the lease.
Major Federal action means any action or proposal by the Secretary that is subject to the provisions of section 102(2)(C) of the National Environmental Policy Act of 1969, 42 U.S.C. (2)(C) (i.e., an action that will have a significant impact on the quality of the human environment requiring preparation of an environmental impact statement under section 102(2)(C) of the National Environmental Policy Act).
Marine environment means the physical, atmospheric, and biological components, conditions, and factors that interactively determine the productivity, state, condition, and quality of the marine ecosystem. These include the waters of the high seas, the contiguous zone, transitional and intertidal areas, salt marshes, and wetlands within the coastal zone and on the OCS.
Material remains means physical evidence of human habitation, occupation, use, or activity, including the site, location, or context in which such evidence is situated.
Maximum efficient rate (MER) means the maximum sustainable daily oil or gas withdrawal rate from a reservoir that will permit economic development and depletion of that reservoir without detriment to ultimate recovery.
Maximum production rate (MPR) means the approved maximum daily rate at which oil or gas may be produced from a specified oil-well or gas- well completion.
Minerals includes oil, gas, sulphur, geopressured-geothermal and associated resources, and all other minerals that are authorized by an Act of Congress to be produced.
Natural resources includes, without limiting the generality thereof, oil, gas, and all other minerals, and fish, shrimp, oysters, clams, crabs, lobsters, sponges, kelp, and other marine animal and plant life but does not include water power or the use of water for the production of power.
Nonattainment area means, for any air pollutant, an area that is shown by monitored data or that is calculated by air quality modeling (or other methods determined by the Administrator of EPA to be reliable) to exceed any primary or secondary ambient air quality standard established by EPA.
Nonsensitive reservoir means a reservoir in which ultimate recovery is not decreased by high reservoir production rates.
Oil reservoir means a reservoir that contains hydrocarbons predominantly in a liquid (single-phase) state.
Oil reservoir with an associated gas cap means a reservoir that contains hydrocarbons in both a liquid and gaseous (two-phase) state.
Oil-well completion means a well completed in an oil reservoir or in the oil accumulation of an oil reservoir with an associated gas cap.
Operating rights means any interest held in a lease with the right to explore for, develop, and produce leased substances.
Operator means the person the lessee(s) designates as having control or management of operations on the leased area or a portion thereof. An operator may be a lessee, the MMS-approved designated agent of the lessee(s), or the holder of operating rights under an MMS- approved operating rights assignment.
Outer Continental Shelf (OCS) means all submerged lands lying seaward and outside of the area of lands beneath navigable waters as defined in section 2 of the Submerged Lands Act (43 U.S.C. 1301) whose subsoil and seabed appertain to the United States and are subject to its jurisdiction and control.
Person includes, in addition to a natural person, an association (including partnerships and trusts), a State, a political subdivision of a State, or a private, public, or municipal corporation.
Pipelines are the piping, risers, and appurtenances installed for transporting oil, gas, sulphur, and produced waters.
Processed geological or geophysical information means data collected under a permit or a lease that have been processed or reprocessed. Processing involves changing the form of data to facilitate interpretation. Processing operations may include, but are not limited to, applying corrections for known perturbing causes, rearranging or filtering data, and combining or transforming data elements. Reprocessing is the additional processing other than ordinary processing used in the general course of evaluation. Reprocessing operations may include varying identified parameters for the detailed study of a specific problem area.
Production means those activities that take place after the successful completion of any means for the removal of minerals, including such removal, field operations, transfer of minerals to shore, operation monitoring, maintenance, and workover operations.
Production areas are those areas where flammable petroleum gas, volatile liquids or sulphur are produced, processed (e.g., compressed), stored, transferred (e.g., pumped), or otherwise handled before entering the transportation process.
Projected emissions means emissions, either controlled or uncontrolled, from a source or sources.
Regional Director means the MMS officer with responsibility and authority for a Region within MMS.
Regional Supervisor means the MMS officer with responsibility and authority for operations or other designated program functions within an MMS Region.
Right-of-use means any authorization issued under this part to use OCS lands.
Right-of-way pipelines are those pipelines that are contained within:
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(1) The boundaries of a single lease or unit, but are not owned and operated by a lessee or operator of that lease or unit;
(2) The boundaries of contiguous (not cornering) leases that do not have a common lessee or operator;
(3) The boundaries of contiguous (not cornering) leases that have a common lessee or operator but are not owned and operated by that common lessee or operator; or
(4) An unleased block(s).
Routine operations, for the purposes of subpart F, means any of the following operations conducted on a well with the tree installed:
(1) Cutting paraffin;
(2) Removing and setting pump-through-type tubing plugs, gas-lift valves, and subsurface safety valves that can be removed by wireline operations;
(3) Bailing sand;
(4) Pressure surveys;
(5) Swabbing;
(6) Scale or corrosion treatment;
(7) Caliper and gauge surveys;
(8) Corrosion inhibitor treatment;
(9) Removing or replacing subsurface pumps;
(10) Through-tubing logging (diagnostics);
(11) Wireline fishing;
(12) Setting and retrieving other subsurface flow-control devices; and
(13) Acid treatments.
Sensitive reservoir means a reservoir in which high reservoir production rates will decrease ultimate recovery. For submitting the first MER, all oil reservoirs with an associated gas cap are classified as sensitive.
Significant archaeological resource means those archaeological resources that meet the criteria of significance for eligibility to the National Register of Historic Places as defined in 36 CFR 60.4, or its successor.
Suspension means a granted or directed deferral of the requirement to produce (Suspension of Production (SOP)) or to conduct leaseholding operations (Suspension of Operations (SOO)).
Waste of oil, gas, or sulphur means:
(1) The physical waste of oil, gas, or sulphur;
(2) The inefficient, excessive, or improper use, or the unnecessary dissipation of reservoir energy;
(3) The locating, spacing, drilling, equipping, operating, or producing of any oil, gas, or sulphur well(s) in a manner that causes or tends to cause a reduction in the quantity of oil, gas, or sulphur ultimately recoverable under prudent and proper operations or that causes or tends to cause unnecessary or excessive surface loss or destruction of oil or gas; or
(4) The inefficient storage of oil.
Welding means all activities connected with welding, including hot tapping and burning.
Wellbay is the area on a facility within the perimeter of the outermost wellheads.
Well-completion operations means the work conducted to establish production from a well after the production-casing string has been set, cemented, and pressure-tested.
Well-control fluid means drilling mud, completion fluid, or workover fluid as appropriate to the particular operation being conducted.
Western Gulf of Mexico means all OCS areas of the Gulf of Mexico except those the Director decides are adjacent to the State of Florida. The Western Gulf of Mexico is not the same as the Western Planning Area, an area established for OCS lease sales.
Workover operations means the work conducted on wells after the initial well-completion operation for the purpose of maintaining or restoring the productivity of a well.
You means a lessee, the owner or holder of operating rights, a designated agent of the lessee(s), a pipeline right-of-way holder, or a State lessee granted a right-of-use and easement.
Performance Standards
Sec. 250.106 What standards will the Director use to regulate lease operations?
The Director will regulate all operations under a lease, right-of- use and easement, or right-of-way to:
(a) Promote orderly exploration, development, and production of mineral resources;
(b) Prevent injury or loss of life;
(c) Prevent damage to or waste of any natural resource, property, or the environment; and
(d) Cooperate and consult with affected States, local governments, other interested parties, and relevant Federal agencies.
Sec. 250.107 What must I do to protect health, safety, property, and the environment?
(a) You must protect health, safety, property, and the environment by:
(1) Performing all operations in a safe and workmanlike manner; and
(2) Maintaining all equipment in a safe condition.
(b) You must immediately control, remove, or otherwise correct any hazardous oil and gas accumulation or other health, safety, or fire hazard.
(c) You must use the best available and safest technology (BAST) whenever practical on all exploration, development, and production operations. In general, we consider your compliance with MMS regulations to be the use of BAST.
(d) The Director may require additional measures to ensure the use of BAST:
(1) To avoid the failure of equipment that would have a significant effect on safety, health, or the environment;
(2) If it is economically feasible; and
(3) If the benefits outweigh the costs.
Sec. 250.108 What requirements must I follow for cranes and other material-handling equipment?
(a) If you operate a crane installed on fixed platforms you must:
(1) Follow the American Petroleum Institute (API) Recommended Practice (RP) for Operation and Maintenance of Offshore Cranes (API RP 2D);
(2) Keep inspection, testing, and maintenance records at the OCS facility for at least 2 years; and
(3) Keep crane operator qualifications at the facility for at least 4 years.
(b) You must operate and maintain all other material-handling equipment in a manner that ensures safe operations and prevents pollution.
Sec. 250.109 What documents must I prepare and maintain related to welding?
(a) You must submit a Welding Plan to the District Supervisor before you begin drilling or production activities on a lease. You may not begin welding until the District Supervisor has approved your plan.
(b) You must keep the following at the site where welding occurs:
(1) A copy of the plan and its approval letter; and
(2) Drawings showing the designated safe-welding areas.
Sec. 250.110 What must I include in my welding plan?
You must include all of the following in the Welding Plan that you prepare under Sec. 250.109:
(a) Standards or requirements for welders;
(b) How you will ensure that only qualified personnel weld;
(c) Practices and procedures for safe welding that address:
(1) Welding in designated safe areas;
(2) Welding in undesignated areas, including wellbay;
(3) Fire watches;
(4) Maintenance of welding equipment; and
(5) Plans showing all designated safe-welding areas.
(d) How you will prevent spark-producing activities (i.e., grinding, abrasive blasting/cutting and arc-welding) in hazardous locations.
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Sec. 250.111 Who oversees operations under my welding plan?
A welding supervisor or a designated person in charge must be thoroughly familiar with your welding plan. This person must ensure that each welder is properly qualified according to the welding plan. This person also must inspect all welding equipment before welding.
Sec. 250.112 What standards must my welding equipment meet?
Your welding equipment must meet the following requirements:
(a) All engine-driven welding equipment must be equipped with spark arrestors and drip pans;
(b) Welding leads must be completely insulated and in good condition;
(c) Hoses must be leak-free and equipped with proper fittings, gauges, and regulators; and
(d) Oxygen and fuel gas bottles must be secured in a safe place.
Sec. 250.113 What procedures must I follow when welding?
(a) Before you weld, you must move any equipment containing hydrocarbons or other flammable substances at least 35 feet horizontally from the welding area. You must move similar equipment on lower decks at least 35 feet from the point of impact where slag, sparks, or other burning materials could fall. If moving this equipment is impractical, you must protect that equipment with flame-proofed covers, shield it with metal or fire-resistant guards or curtains, or render the flammable substances inert.
(b) While you weld, you must monitor all water-discharge-point sources from hydrocarbon-handling vessels. If a discharge of flammable fluids occurs, you must stop welding.
(c) If you cannot weld in one of the designated safe-welding areas that you listed in your safe welding plan, you must meet the following requirements:
(1) You may not begin welding until:
(i) The welding supervisor or designated person in charge advises in writing that it is safe to weld.
(ii) You and the designated person in charge inspect the work area and areas below it for potential fire and explosion hazards.
(2) During welding, the person in charge must designate one or more persons as a fire watch. The fire watch must:
(i) Have no other duties while actual welding is in progress;
(ii) Have usable firefighting equipment;
(iii) Remain on duty for 30 minutes after welding activities end; and
(iv) Maintain a continuous surveillance with a portable gas detector during the welding and burning operation if welding occurs in an area not equipped with a gas detector.
(3) You may not weld piping, containers, tanks, or other vessels that have contained a flammable substance unless you have rendered the contents inert and the designated person in charge has determined it is safe to weld. This does not apply to approved hot taps.
(4) You may not weld within 10 feet of a wellbay unless you have shut in all producing wells in that wellbay.
(5) You may not weld within 10 feet of a production area, unless you have shut in that production area.
(6) You may not weld while you drill, complete, workover, or conduct wireline operations unless:
(i) The fluids in the well (being drilled, completed, worked over, or having wireline operations conducted) are noncombustible; and
(ii) You have precluded the entry of formation hydrocarbons into the wellbore by either mechanical means or a positive overbalance toward the formation.
Sec. 250.114 How must I install and operate electrical equipment?
The requirements in this section apply to all electrical equipment on all platforms, artificial islands, fixed structures, and their facilities.
(a) You must classify all areas according to API RP 500, Recommended Practice for Classification of Locations for Electrical Installations at Petroleum Facilities classified as Class I, Division 1 and Division 2.
(b) Employees who maintain your electrical systems must have expertise in area classification and the performance, operation and hazards of electrical equipment.
(c) You must install all electrical systems according to API RP 14F, Recommended Practice for Design and Installation of Electrical Systems for Offshore Production Platforms. You do not have to comply with Sections 7.4, Emergency Lighting, and 9.4, Aids to Navigation Equipment.
(d) On each engine that has an electric ignition system, you must use an ignition system designed and maintained to reduce the release of electrical energy.
Sec. 250.115 How do I determine well producibility?
You must follow the procedures in this section to determine well producibility if your well is not in the GOM. If your well is in the GOM you must follow the procedures in either this section or in Sec. 250.116 of this subpart.
(a) You must write to the Regional Supervisor asking for permission to determine producibility.
(b) You must either:
(1) Allow the District Supervisor to witness each test that you conduct under this section; or
(2) Receive the District Supervisor's prior approval so that you can submit either test data with your affidavit or third party test data.
(c) If the well is an oil well, you must conduct a production test that lasts at least 2 hours after flow stabilizes.
(d) If the well is a gas well, you must conduct a deliverability test that lasts at least 2 hours after flow stabilizes, or a four-point back pressure test.
Sec. 250.116 How do I determine producibility if my well is in the Gulf of Mexico?
If your well is in the GOM, you must follow either the procedures in Sec. 250.115 of this subpart or the procedures in this section to determine producibility.
(a) You must write to the Regional Supervisor asking for permission to determine producibility.
(b) You must provide or make available to the Regional Supervisor, as requested, the following log, core, analyses, and test criteria that MMS will consider collectively:
(1) A log showing sufficient porosity in the producible section.
(2) Sidewall cores and core analyses that show that the section is capable of producing oil or gas.
(3) Wireline formation test and/or mud-logging analyses that show that the section is capable of producing oil or gas.
(4) A resistivity or induction electric log of the well showing a minimum of 15 feet (true vertical thickness except for horizontal wells) of producible sand in one section.
(c) No section that you count as producible under paragraph (b)(4) of this section may include any interval that appears to be water saturated.
(d) Each section you count as producible under paragraph (b)(4) of this section must exhibit:
(1) A minimum true resistivity ratio of the producible section to the nearest clean or water-bearing sand of at least 5:1; and
(2) One of the following:
(i) Electrical spontaneous potential exceeding 20-negative millivolts beyond the shale baseline; or
(ii) Gamma ray log deflection of at least 70 percent of the maximum gamma ray deflection in the nearest clean
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water-bearing sand--if mud conditions prevent a 20-negative millivolt reading beyond the shale baseline.
Sec. 250.117 How does a determination of well producibility affect royalty status?
A determination of well producibility invokes minimum royalty status on the lease as provided in 30 CFR 202.53.
Sec. 250.118 Will MMS approve gas injection?
The Regional Supervisor may authorize you to inject gas on the OCS, on and off-lease, to promote conservation of natural resources and to prevent waste.
(a) To receive MMS approval for injection, you must:
(1) Show that the injection will not result in undue interference with operations under existing leases; and
(2) Submit a written application to the Regional Supervisor for injection of gas.
(b) The Regional Supervisor will approve gas injection applications that:
(1) Enhance recovery;
(2) Prevent flaring of casinghead gas; or
(3) Implement other conservation measures approved by the Regional Supervisor.
Sec. 250.119 Will MMS approve subsurface gas storage?
The Regional Supervisor may authorize subsurface storage of gas on the OCS, on and off-lease, for later commercial benefit. To receive MMS approval you must:
(a) Show that the subsurface storage of gas will not result in undue interference with operations under existing leases; and
(b) Sign a storage agreement that includes the required payment of a storage fee or rental.
Sec. 250.120 How does injecting, storing, or treating gas affect my royalty payments?
(a) If you produce gas from an OCS lease and inject it into a reservoir on the lease or unit for the purposes cited in Sec. 250.118(b), you are not required to pay royalties until you remove or sell the gas from the reservoir.
(b) If you produce gas from an OCS lease and store it according to Sec. 250.119, you must pay royalty before injecting it into the storage reservoir.
(c) If you produce gas from an OCS lease and treat it at an off- lease or off-unit location, you must pay royalties when the gas is first produced.
Sec. 250.121 What happens when the reservoir contains both original gas in place and injected gas?
If the reservoir contains both original gas in place and injected gas, when you produce gas from the reservoir you must use an MMS- approved formula to determine the amounts of injected or stored gas and gas original to the reservoir.
Sec. 250.122 What effect does subsurface storage have on the lease term?
If you use a lease area for subsurface storage of gas, it does not affect the continuance or expiration of the lease.
Sec. 250.123 Will MMS allow gas storage on unleased lands?
You may not store gas on unleased lands unless the Regional Supervisor approves a right-of-use and easement for that purpose, under Secs. 250.160 through 250.166 of this subpart.
Sec. 250.124 Will MMS approve gas injection into the cap rock containing a sulphur deposit?
To receive the Regional Supervisor's approval to inject gas into the cap rock of a salt dome containing a sulphur deposit, you must show that the injection:
(a) Is necessary to recover oil and gas contained in the cap rock; and
(b) Will not significantly increase potential hazards to present or future sulphur mining operations.
Inspection of Operations
Sec. 250.130 Why does MMS conduct inspections?
MMS will inspect OCS facilities and any vessels engaged in drilling or other downhole operations. These include facilities under jurisdiction of other Federal agencies that we inspect by agreement. We conduct these inspections:
(a) To verify that you are conducting operations according to the Act, the regulations, the lease, right-of-way, the approved Exploration Plan or Development and Production Plans; or right-of-use and easement, and other applicable laws and regulations; and
(b) To determine whether equipment designed to prevent or ameliorate blowouts, fires, spillages, or other major accidents has been installed and is operating properly according to the requirements of this part.
Sec. 250.131 Will MMS notify me before conducting an inspection?
MMS conducts both scheduled and unscheduled inspections.
Sec. 250.132 What must I do when MMS conducts an inspection?
(a) When MMS conducts an inspection, you must provide:
(1) Access to all platforms, artificial islands, and other installations on your leases or associated with your lease, right-of- use and easement, or right-of-way; and
(2) Helicopter landing sites and refueling facilities for any helicopters we use to regulate offshore operations.
(b) You must make the following available for us to inspect:
(1) The area covered under a lease, right-of-use and easement, right-of-way, or permit;
(2) All improvements, structures, and fixtures on these areas; and
(3) All records of design, construction, operation, maintenance, repairs, or investigations on or related to the area.
Sec. 250.133 Will MMS reimburse me for my expenses related to inspections?
Upon request, MMS will reimburse you for food, quarters, and transportation that you provide for MMS representatives while they inspect lease facilities and operations. You must send us your reimbursement request within 90 days of the inspection.
Disqualification
Sec. 250.135 What will MMS do if my operating performance is unacceptable?
If your operating performance is unacceptable, MMS may disapprove or revoke your designation as operator on a single facility or multiple facilities. We will give you adequate notice and opportunity for a review by MMS officials before imposing a disqualification.
Sec. 250.136 How will MMS determine if my operating performance is unacceptable?
In determining if your operating performance is unacceptable, MMS will consider, individually or collectively:
(a) Accidents and their nature;
(b) Pollution events, environmental damages and their nature;
(c) Incidents of noncompliance;
(d) Civil penalties;
(e) Failure to adhere to OCS lease obligations; or
(f) Any other relevant factors.
Special Types of Approvals
Sec. 250.140 When will I receive an oral approval?
When you apply for MMS approval of any activity, we normally give you a written decision. The following table shows circumstances under which we may give an oral approval.
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When you
We may
And
(a) Request approval orally............. Give you an oral approval. You must then confirm the oral request by sending us a written request within 72 hours. (b) Request approval in writing......... Give you an oral approval We will send you a written approval if quick action is needed. afterward. It will include any conditions that we place on the oral approval. (c) Request approval orally for gas Give you an oral approval. You don't have to follow up with a flaring.
written request unless the Regional Supervisor requires it. When you stop the approved flaring, you must promptly send a letter summarizing the location, dates and hours, and volumes of liquid hydrocarbons produced and gas flared by the approved flaring. (See 30 CFR 250, subpart K.)
Sec. 250.141 May I ever use alternate procedures or equipment?
You may use alternate procedures or equipment after receiving approval as described in this section.
(a) Any alternate procedures or equipment that you propose to use must provide a level of safety and environmental protection that equals or surpasses current MMS requirements.
(b) You must receive the District or Regional Supervisor's written approval before you can use alternate procedures or equipment.
(c) To receive approval, you must either submit information or give an oral presentation to the appropriate Supervisor. Your presentation must describe the site-specific application(s), performance characteristics, and safety features of the proposed procedure or equipment.
Sec. 250.142 How do I receive approval to use alternate procedures or equipment for departures?
We may approve departures to the operating requirements. You may apply for a departure by writing to the Regional Supervisor.
Sec. 250.143 How do I designate an operator?
(a) You must provide the Regional Supervisor an executed Designation of Operator form unless you are the only lessee and are the only person conducting lease operations. When there is more than one lessee, each lessee must submit the Designation of Operator form and the Regional Supervisor must approve the designation before the designated operator may begin operations on the leasehold.
(b) This designation is authority for the designated operator to act on your behalf and to fulfill your obligations under the Act, the lease, and the regulations in this part.
(c) You, or your designated operator, must immediately provide the Regional Supervisor a written notification of any change of address.
Sec. 250.144 How do I designate a new operator when a designation of operator terminates?
(a) When a Designation of Operator terminates, the Regional Supervisor must approve a new designated operator before you may continue operations. Each lessee must submit a new executed Designation of Operator form.
(b) If your Designation of Operator is terminated, or a controversy develops between you and your designated operator, you and your designated operator must protect the lessor's interests.
Sec. 250.145 How do I designate an agent or a local agent?
(a) You or your designated operator may designate for the Regional Supervisor's approval, or the Regional Director may require you to designate an agent empowered to fulfill your obligations under the Act, the lease, or the regulations in this part.
(b) You or your designated operator may designate for the Regional Supervisor's approval a local agent empowered to receive notices and submit requests, applications, notices, or supplemental information.
Sec. 250.146 Who is responsible for fulfilling leasehold obligations?
(a) When you are not the sole lessee, you and your co-lessee(s) are jointly and severally responsible for fulfilling your obligations under the provisions of 30 CFR parts 250 through 282, unless otherwise provided in these regulations.
(b) If your designated operator fails to fulfill any of your obligations under 30 CFR parts 250 through 282, the Regional Supervisor may require you or any or all of your co-lessees to fulfill those obligations or other operational obligations under the Act, the lease, or the regulations.
(c) Whenever the regulations in 30 CFR parts 250 through 282 require the lessee to meet a requirement or perform an action, the lessee, operator (if one has been designated), and the person actually performing the activity to which the requirement applies are jointly and severally responsible for complying with the regulation.
Naming and Identifying Facilities and Wells (Does Not Include MODUs)
Sec. 250.150 How do I name facilities and wells in the Gulf of Mexico Region?
(a) Assign each facility a letter designation except for those types of facilities identified in paragraph (c)(1) of this section. For example, A, B, CA, or CB.
(1) After a facility is installed, rename each predrilled well that was assigned only a number and was suspended temporarily at the mudline or at the surface. Use a letter and number designation. The letter used must be the same as that of the production facility, and the number used must correspond to the order in which the well was completed, not necessarily the number assigned when it was drilled. For example, the first well completed for production on Facility A would be renamed Well A-1, the second would be Well A-2, and so on; and
(2) When you have more than one facility on a block, each facility installed, and not bridge-connected to another facility, must be named using a different letter in sequential order. For example, EC 222A, EC 222B, EC 222C.
(3) When you have more than one facility on multiple blocks in a local area being co-developed, each facility installed and not connected with a walkway to another facility should be named using a different letter in sequential order with the block number corresponding to the block on which the platform is located. For example, EC 221A, EC 222B and EC 223C.
(b) In naming multiple well caissons, you must assign a letter designation.
(c) In naming single well caissons, you must use certain criteria as follows:
(1) For single well caissons not attached to a facility with a walkway, use the well designation. For example, Well No. 1;
(2) For single well caissons attached to a facility with a walkway, use the same designation as the facility. For example, rename Well No.10 as A-10; and
(3) For single well caissons with production equipment, use a letter designation for the facility name and a
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letter plus number designation for the well. For example, the Well No. 1 caisson would be designated as Facility A, and the well would be Well A-1.
Sec. 250.151 How do I name facilities in the Pacific Region?
The operator assigns a name to the facility.
Sec. 250.152 How do I name facilities in the Alaska Region?
Facilities will be named and identified according to the Regional Director's directions.
Sec. 250.153 Do I have to rename an existing facility or well?
You do not have to rename facilities installed and wells drilled before January 27, 2000, unless the Regional Director requires it.
Sec. 250.154 What identification signs must I display?
(a) You must identify all facilities, artificial islands, and mobile offshore drilling units with a sign maintained in a legible condition.
(1) You must display an identification sign that can be viewed from the waterline on at least one side of the platform. The sign must use at least 3-inch letters and figures.
(2) When helicopter landing facilities are present, you must display an additional identification sign that is visible from the air. The sign must use at least 12-inch letters and figures and must also display the weight capacity of the helipad unless noted on the top of the helipad. If this sign is visible to both helicopter and boat traffic, then the sign in paragraph (a)(1) of this section is not required.
(3) Your identification sign must:
(i) List the name of the lessee or designated operator;
(ii) In the GOM OCS Region, list the area designation or abbreviation and the block number of the facility location as depicted on OCS Official Protraction Diagrams or leasing maps;
(iii) In the Pacific OCS Region, list the lease number on which the facility is located; and
(iv) List the name of the platform, structure, artificial island, or mobile offshore drilling unit.
(b) You must identify singly completed wells and multiple completions as follows:
(1) For each singly completed well, list the lease number and well number on the wellhead or on a sign affixed to the wellhead;
(2) For wells with multiple completions, downhole splitter wells, and multilateral wells, identify each completion in addition to the well name and lease number individually on the well flowline at the wellhead; and
(3) For subsea wells that flow individually into separate pipelines, affix the required sign on the pipeline or surface flowline dedicated to that subsea well at a convenient location on the receiving platform. For multiple subsea wells that flow into a common pipeline or pipelines, no sign is required.
Right-of-use and Easement
Sec. 250.160 When will MMS grant me a right-of-use and easement, and what requirements must I meet?
MMS may grant you a right-of-use and easement on leased and unleased lands on the OCS, if you meet these requirements:
(a) You must need the right-of-use and easement to construct and maintain platforms, artificial islands, and installations and other devices at an OCS site other than an OCS lease you own, that are:
(1) Permanently or temporarily attached to the seabed; and
(2) Used for conducting exploration, development, and production activities or other operations on or off lease; or
(3) Used for other purposes approved by MMS.
(b) You must exercise the right-of-use and easement according to the regulations of this part;
(c) You must meet the requirements at 30 CFR 256.35 (Qualification of lessees); establish a regional Company File as required by MMS; and must meet bonding requirements;
(d) If you apply for a right-of-use and easement on a leased area, you must notify the lessee and give her/him an opportunity to comment on your application; and
(e) You must receive MMS approval for all platforms, artificial islands, and installations and other devices permanently or temporarily attached to the seabed.
Sec. 250.161 What else must I submit with my application?
With your application, you must describe the proposed use giving:
(a) Details of the proposed uses and activities including access needs and special rights of use that you may need;
(b) A description of all facilities for which you are seeking authorization;
(c) A map or plat describing primary and alternate project locations; and
(d) A schedule for constructing any new facilities, drilling or completing any wells, anticipated production rates, and productive life of existing production facilities.
Sec. 250.162 May I continue my right-of-use and easement after the termination of any lease on which it is situated?
If your right-of-use and easement is on a lease, you may continue to exercise the right-of-use and easement after the lease on which it is situated terminates. You must only use the right-of-use and easement for the purpose that the grant specifies. All future lessees of that portion of the OCS on which your right-of-use and easement is situated must continue to recognize the right-of-use and easement for the purpose that the grant specifies.
Sec. 250.163 If I have a State lease, will MMS grant me a right-of-use and easement?
(a) MMS may grant a lessee of a State lease located adjacent to or accessible from the OCS a right-of-use and easement on the OCS.
(b) MMS will only grant a right-of-use and easement under this paragraph to enable a State lessee to conduct and maintain a device that is permanently or temporarily attached to the seabed (i.e., a platform, artificial island, or installation). The lessee must use the device to explore for, develop, and produce oil and gas from the adjacent or accessible State lease and for other operations related to these activities.
Sec. 250.164 If I have a State lease, what conditions apply for a right-of-use and easement?
(a) A right-of-use and easement granted under the heading of ``Right-of-use and easement'' in this subpart is subject to MMS regulations, 30 CFR parts 250 through 282, and any terms and conditions that the Regional Director prescribes.
(b) For the whole or fraction of the first calendar year, and annually after that, you must pay to MMS, in advance, an annual rental payment.
Sec. 250.165 If I have a State lease, what fees do I have to pay for a right-of-use and easement?
When you apply for a right-of-use and easement, you must pay:
(a) A nonrefundable filing fee as specified in Sec. 250.1010(a); and (b) The first year's rental as specified in Sec. 250.1009(c)(2).
Sec. 250.166 If I have a State lease, what surety bond must I have for a right-of-use and easement?
(a) Before MMS issues you a right-of-use and easement on the OCS, you must furnish the Regional Director a surety bond for $500,000.
(b) The Regional Director may require additional security from you (i.e., security above the prescribed $500,000) to cover additional costs and liabilities
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for regulatory compliance. This additional surety:
(1) Must be in the form of a supplemental bond or bonds meeting the requirements of Sec. 256.54 (General requirements for bonds) or an increase in the coverage of an existing surety bond.
(2) Covers additional costs and liabilities for regulatory compliance, including well abandonment, platform and structure removal, and site clearance from the seafloor of the right-of-use and easement.
Suspensions
Sec. 250.168 May operations or production be suspended?
(a) You may request approval of a suspension, or the Regional Supervisor may direct a suspension (Directed Suspension), for all or any part of a lease or unit area.
(b) Depending on the nature of the suspended activity, suspensions are labeled either Suspensions of Operations (SOO) or Suspensions of Production (SOP).
Sec. 250.169 What effect does suspension have on my lease?
(a) A suspension may extend the term of a lease (see Sec. 250.180(b)). The extension is equal to the length of time the suspension is in effect, except as provided in paragraph (b) of this section.
(b) A Directed Suspension does not extend the term of a lease when the Regional Supervisor directs a suspension because of:
(1) Gross negligence; or (2) A willful violation of a provision of the lease or governing statutes and regulations.
Sec. 250.170 How long does a suspension last?
(a) MMS may issue suspensions for up to 5 years per suspension. The Regional Supervisor will set the length of the suspension based on the conditions of the individual case involved. MMS may grant consecutive suspension periods.
(b) An SOO ends automatically when the suspended operation commences.
(c) An SOP ends automatically when production begins.
(d) A Directed Suspension normally ends as specified in the letter directing the suspension.
(e) MMS may terminate any suspension when the Regional Supervisor determines the circumstances that justified the suspension no longer exist or that other lease conditions warrant termination. The Regional Supervisor will notify you of the reasons for termination and the effective date.
Sec. 250.171 How do I request a suspension?
You must submit your request for a suspension to the Regional Supervisor, and MMS must receive the request before the end of the lease term (i.e., end of primary term, end of the 180-day period following the last leaseholding operation, and end of a current suspension).
(a) The justification for the suspension including the length of suspension requested;
(b) A reasonable schedule of work leading to the commencement or restoration of the suspended activity;
(c) A statement that a well has been drilled on the lease and determined to be producible according to Secs. 250.115, 250.116, or 250.1603 (SOP only); and
(d) A commitment to production (SOP only).
Sec. 250.172 When may the Regional Supervisor grant or direct an SOO or SOP?
The Regional Supervisor may grant or direct an SOO or SOP under any of the following circumstances:
(a) When necessary to comply with judicial decrees prohibiting any activities or the permitting of those activities. The effective date of the suspension will be the effective date required by the action of the court;
(b) When activities pose a threat of serious, irreparable, or immediate harm or damage. This would include a threat to life (including fish and other aquatic life), property, any mineral deposit, or the marine, coastal, or human environment. MMS may require you to do a site-specific study. (See Sec. 250.177(a).)
(c) When necessary for the installation of safety or environmental protection equipment;
(d) When necessary to carry out the requirements of NEPA or to conduct an environmental analysis; or
(e) When necessary to allow for inordinate delays encountered in obtaining required permits or consents, including administrative or judicial challenges or appeals.
Sec. 250.173 When may the Regional Supervisor direct an SOO or SOP?
The Regional Supervisor may direct a suspension when:
(a) You failed to comply with an applicable law, regulation, order, or provision of a lease or permit; or
(b) The suspension is in the interest of national security or defense.
Sec. 250.174 When may the Regional Supervisor grant or direct an SOP?
The Regional Supervisor may grant or direct an SOP when the suspension is in the national interest, and it is necessary because the suspension will meet one of the following criteria:
(a) It will allow you to properly develop a lease, including time to construct and install production facilities;
(b) It will allow you time to obtain adequate transportation facilities;
(c) It will allow you time to enter a sales contract for oil, gas, or sulphur. You must show that you are making an effort to enter into the contract(s); or
(d) It will avoid continued operations that would result in premature abandonment of a producing well(s).
Sec. 250.175 When may the Regional Supervisor grant an SOO?
The Regional Supervisor may grant an SOO when necessary to allow you time to begin drilling or other operations when you are prevented by reasons beyond your control, such as unexpected weather, unavoidable accidents, or drilling rig delays.
Sec. 250.176 Does a suspension affect my royalty payment?
A directed suspension may affect the payment of rental or royalties for the lease as provided in Sec. 218.154.
Sec. 250.177 What additional requirements may the Regional Supervisor order for a suspension?
If MMS grants or directs a suspension under paragraph Sec. 250.172(b), the Regional Supervisor may require you to:
(a) Conduct a site-specific study.
(1) The Regional Supervisor must approve or prescribe the scope for any site-specific study that you perform.
(2) The study must evaluate the cause of the hazard, the potential damage, and the available mitigation measures.
(3) You must pay for the study unless you request, and the Regional Supervisor agrees to arrange, payment by another party.
(4) You must furnish copies and results of the study to the Regional Supervisor.
(5) MMS will make the results available to other interested parties and to the public.
(6) The Regional Supervisor will use the results of the study and any other information that becomes available:
(i) To decide if the suspension can be lifted; and
(ii) To determine any actions that you must take to mitigate or avoid any damage to the environment, life, or property.
(b) Submit a revised Exploration Plan (including any required mitigating measures);
(c) Submit a revised Development and Production Plan (including any required mitigating measures); or
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(d) Submit a revised Development Operations Coordination Document according to 30 CFR Part 250, subpart B.
Primary Lease Requirements, Lease Term Extensions, and Lease Cancellations
Sec. 250.180 What am I required to do to keep my lease term in effect?
(a) If your lease is in its primary term:
(1) You must submit a report to the District Supervisor according to paragraphs (h) and (i) of this section whenever production begins initially, whenever production ceases during the last 180 days of the primary term, and whenever production resumes during the last 180 days of the primary term.
(2) Your lease expires at the end of its primary term unless you are conducting operations on your lease (see 30 CFR part 256). For purposes of this section, the term operations means, drilling, well- reworking, or production in paying quantities. The objective of the drilling or well-reworking must be to establish production in paying quantities on the lease.
(b) If you stop conducting operations during the last 180 days of your primary lease term, your lease will expire unless you either resume operations or receive an SOO or an SOP from the Regional Supervisor under Secs. 250.172, 250.173, 250.174, or 250.175 before the end of the 180th day after you stop operations.
(c) If you extend your lease term under paragraph (b) of this section, you must pay rental or minimum royalty, as appropriate, for each year or part of the year during which your lease continues in force beyond the end of the primary lease term.
(d) If you stop conducting operations on a lease that has continued beyond its primary term, your lease will expire unless you resume operations or receive an SOO or an SOP from the Regional Supervisor under Sec. 250.172, 250.173, 250.174, or 250.175 before the end of the 180th day after you stop operations.
(e) You may ask the Regional Supervisor to allow you more than 180 days to resume operations on a lease continued beyond its primary term when operating conditions warrant. The request must be in writing and explain the operating conditions that warrant a longer period. In allowing additional time, the Regional Supervisor must determine that the longer period is in the national interest, and it conserves resources, prevents waste, or protects correlative rights.
(f) When you begin conducting operations on a lease that has continued beyond its primary term, you must immediately notify the District Supervisor either orally or by fax or e-mail and follow up with a written report according to paragraph (g) of this section.
(g) If your lease is continued beyond its primary term, you must submit a report to the District Supervisor under paragraphs (h) and (i) of this section whenever production begins initially, whenever production ceases, whenever production resumes before the end of the 180-day period after having ceased, or whenever drilling or well- reworking operations begin before the end of the 180-day period.
(h) The reports required by paragraphs (a) and (g) of this section must contain:
(1) Name of lessee or operator;
(2) The well number, lease number, area, and block;
(3) As appropriate, the unit agreement name and number; and
(4) A description of the operation and pertinent dates.
(i) You must submit the reports required by paragraphs (a) and (g) of this section within the following timeframes:
(1) Initialization of production--within 5 days of initial production.
(2) Cessation of production--within 15 days after the first full month of zero production.
(3) Resumption of production--within 5 days of resuming production after ceasing production under paragraph (i)(2) of this section.
(4) Drilling or well reworking operations--within 5 days of beginning and completing the leaseholding operations.
(j) For leases continued beyond the primary term, you must immediately report to the District Supervisor if operations do not begin before the end of the 180-day period.
Sec. 250.181 When may the Secretary cancel my lease and when am I compensated for cancellation?
If the Secretary cancels your lease under this part or under 30 CFR part 256, you are entitled to compensation under Sec. 250.184. Section 250.185 states conditions under which you will receive no compensation. The Secretary may cancel a lease after notice and opportunity for a hearing when:
(a) Continued activity on the lease would probably cause harm or damage to life (including fish and other aquatic life), property, any mineral deposits (in areas leased or not leased), or the marine, coastal, or human environment;
(b) The threat of harm or damage will not disappear or decrease to an acceptable extent within a reasonable period of time;
(c) The advantages of cancellation outweigh the advantages of continuing the lease in force; and (d) A suspension has been in effect for at least 5 years or you request termination of the suspension and lease cancellation.
Sec. 250.182 When may the Secretary cancel a lease at the exploration stage?
MMS may not approve an exploration plan (EP) under 30 CFR part 250, subpart B, if the Regional Supervisor determines that the proposed activities may cause serious harm or damage to life (including fish and other aquatic life), property, any mineral deposits, the national security or defense, or to the marine, coastal, or human environment, and that the proposed activity cannot be modified to avoid the condition(s). The Secretary may cancel the lease if:
(a) The primary lease term has not expired (or if the lease term has been extended) and exploration has been prohibited for 5 years following the disapproval; or
(b) You request cancellation at an earlier time.
Sec. 250.183 When may MMS or the Secretary extend or cancel a lease at the development and production stage?
(a) MMS may extend your lease if you submit a DPP and the Regional Supervisor disapproves the plan according to the regulations in 30 CFR part 250, subpart B. Following the disapproval:
(1) MMS will allow you to hold the lease for 5 years, or less time at your request;
(2) Any time within 5 years after the disapproval, you may reapply for approval of the same or a modified plan; and
(3) The Regional Supervisor will approve, disapprove, or require modification of the plan under 30 CFR part 250, subpart B.
(b) If the Regional Supervisor has not approved a DPP or required you to submit a DPP for approval or modification, the Secretary will cancel the lease:
(1) When the 5-year period in paragraph (a)(1) of this section expires; or
(2) If you request cancellation at an earlier time.
Sec. 250.184 What is the amount of compensation for lease cancellation?
When the Secretary cancels a lease under Secs. 250.181, 250.182 or 250.183 of this subpart, you are entitled to receive compensation under 43 U.S.C. 1334 (a)(2)(C). You must show the Director that the amount of compensation claimed is the lesser of paragraph (a) or (b) of this section:
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(a) The fair value of the cancelled rights as of the date of cancellation, taking into account both:
(1) Anticipated revenues from the lease; and
(2) Costs reasonably anticipated on the lease, including:
(i) Costs of compliance with all applicable regulations and operating orders; and
(ii) Liability for cleanup costs or damages, or both, in the case of an oil spill.
(b) The excess, if any, over your revenues from the lease (plus interest thereon from the date of receipt to date of reimbursement) of:
(1) All consideration paid for the lease (plus interest from the date of payment to the date of reimbursement); and
(2) All your direct expenditures (plus interest from the date of payment to the date of reimbursement):
(i) After the issue date of the lease; and
(ii) For exploration or development, or both.
(c) Compensation for leases issued before September 18, 1978, will be equal to the amount specified in paragraph (a) of this section.
Sec. 250.185 When is there no compensation for a lease cancellation?
You will not receive compensation from MMS for lease cancellation if:
(a) MMS disapproves a DPP because you do not receive concurrence by the State under section 307(c)(3)(B) (i) or (ii) of the CZMA, and the Secretary of Commerce does not make the finding authorized by section 307(c)(3)(B)(iii) of the CZMA;
(b) You do not submit a DPP under 30 CFR part 250, subpart B or do not comply with the approved DPP;
(c) As the lessee of a nonproducing lease, you fail to comply with the Act, the lease, or the regulations issued under the Act, and the default continues for 30 days after MMS mails you a notice by overnight mail;
(d) The Regional Supervisor disapproves a DPP because you fail to comply with the requirements of applicable Federal law; or
(e) The Secretary forfeits and cancels a producing lease under section 5(d) of the Act (43 U.S.C. 1334(d)).
Information and Reporting Requirements
Sec. 250.190 What reporting information and report forms must I submit?
(a) You must submit information and reports as MMS requires.
(1) You may obtain copies of forms from, and submit completed forms to, the Regional or District Supervisor.
(2) Instead of paper copies of forms available from the Regional or District Supervisor, you may use your own computer-generated forms that are equal in size to MMS's forms. You must arrange the data on your form identical to the MMS form. If you generate your own form and it omits terms and conditions contained on the official MMS form, we will consider it to contain the omitted terms and conditions.
(3) You may submit digital data when the Region/District is equipped to accept it.
(b) When MMS specifies, you must include, for public information, an additional copy of such reports.
(1) You must mark it Public Information.
(2) You must include all required information, except information exempt from public disclosure under Sec. 250.196 or otherwise exempt from public disclosure under law or regulation.
Sec. 250.191 What accident reports must I submit?
(a) You must notify the District Supervisor of all serious accidents, any death or serious injury, and all fires, explosions, and blowouts connected with any activities or operations on the lease. You must report all spills of oil or other liquid pollutants according to 30 CFR part 254.
(b) If you hold an easement, right-of-way, or other permit, and your operation is related to the exercise of the easement, right-of- way, or other permit, you must comply with paragraph (a) by notifying and reporting to the Regional Supervisor any accidents occurring on the area covered by the easement, right-of-way, or other permit.
(c) Any investigation that the Secretary or the U.S. Coast Guard (USCG) conducts under the authority of sections 22(d)(1) and (2) of the Act (43 U.S.C. 1348 d(1) and (2)), is a fact-finding proceeding with no civil or criminal issues and no adverse parties. The purpose of the investigation is to prepare a public report that determines the cause or causes of the accident. The investigation may involve panel meetings conducted by a chairperson appointed by MMS. The following requirements must be met for any panel meetings involving persons giving testimony:
(1) A person giving testimony may have legal and/or other representative(s) present to provide advice or counsel while the person is giving testimony. The chairperson may require a verbatim transcript to be made of all oral testimony. The chairperson also may accept a sworn written statement in lieu of oral testimony.
(2) Only panel members, panel's legal advisors, and any experts the panel deems necessary may address questions to any person giving testimony.
(3) The chairperson may issue subpoenas to persons to appear and provide testimony and/or documents at a panel meeting. A subpoena may not require a person to attend a panel meeting held at a location more than 100 miles from where a subpoena is served.
(4) Any person giving testimony may request compensation for mileage and fees for service within 90 days after the panel meeting. The compensated expenses must be similar to mileage and fees the U.S. District Courts allow.
Sec. 250.192 What evacuation statistics must I submit?
You must submit evacuation statistics to the Regional Supervisor for a natural occurrence such as an earthquake or hurricane. MMS will notify local and national authorities and the public, as appropriate. Statistics include facilities and rigs evacuated and amount of production shut-in for gas and oil. You must:
(a) Submit the statistics by fax or e-mail as soon as possible when evacuation occurs;
(b) Submit statistics on a daily basis by 11:00 a.m., as conditions allow, during the period of shut-in and evacuation;
(c) Inform MMS when you resume production; and
(d) Submit statistics either by MMS district or the total figures for your operations in the Region.
Sec. 250.193 Reports and investigations of apparent violations.
Any person may report to MMS an apparent violation or failure to comply with any provision of the Act, any provision of a lease, license, or permit issued under the Act, or any provision of any regulation or order issued under the Act. When MMS receives a report of an apparent violation, or when an MMS employee detects an apparent violation after making an initial determination of the validity, MMS will investigate according to MMS procedures.
Sec. 250.194 What archaeological reports and surveys must I submit?
(a) If it is likely that an archaeological resource exists in the lease area, the Regional Director will notify you in writing. You must include an archaeological report in the EP or DPP. If the archaeological report suggests that an archaeological resource may be present, you must either:
[[Page 72788]]
(1) Locate the site of any operation so as not to adversely affect the area where the archaeological resource may be; or
(2) Establish to the satisfaction of the Regional Director that an archaeological resource does not exist or will not be adversely affected by operations. This requires further archaeological investigation, conducted by an archaeologist and a geophysicist, using survey equipment and techniques the Regional Director considers appropriate. You must submit the investigation report to the Regional Director for review.
(b) If the Regional Director determines that an archaeological resource is likely to be present in the lease area and may be adversely affected by operations, the Regional Director will notify you immediately. You must not take any action that may adversely affect the archaeological resource until the Regional Director has told you how to protect the resource.
(c) If you discover any archaeological resource while conducting operations in the lease area, you must immediately halt operations within the area of the discovery and report the discovery to the Regional Director. If investigations determine that the resource is significant, the Regional Director will tell you how to protect it.
Sec. 250.195 Reimbursements for reproduction and processing costs.
(a) MMS will reimburse you for costs of reproducing data and information that the Regional Director requests if:
(1) You deliver geophysical and geological (G&G) data and information to MMS for the Regional Director to inspect or select and retain;
(2) MMS receives your request for reimbursement and the Regional Director determines that the requested reimbursement is proper; and
(3) The cost is at your lowest rate or at the lowest commercial rate established in the area, whichever is less.
(b) MMS will reimburse you for the costs of processing geophysical information (that does not include cost of data acquisition):
(1) If, at the request of the Regional Director, you processed the geophysical data or information in a form or manner other than that used in the normal conduct of business; or
(2) If you collected the information under a permit that MMS issued to you before October 1, 1985, and the Regional Director requests and retains the information.
(c) When you request reimbursement, you must identify reproduction and processing costs separately from acquisition costs.
(d) MMS will not reimburse you for data acquisition costs or for the costs of analyzing or processing geological information or interpreting geological or geophysical information.
Sec. 250.196 Data and information to be made available to the public.
MMS will protect data and information you submit under this part, as described in this section. The tables in paragraphs (a) and (b) of this section describe what data and information will be made available to the public without the consent of the lessee and under what circumstances and in what time period.
(a) MMS will disclose data and information you submit on MMS forms according to the following table:
Data and information that you submit on form
In the following items Will be released
And
(1) MMS-123, Application for Permit All entries except At any time........... The data and information in to Drill.
items 17, 24, and 25.
items 17, 24, and 25 will be released according to the table in paragraph (b) of this section or when the well goes on production, whichever is earlier. (2) MMS-124, Sundry Notices and All entries except At any time........... The data and information in Reports on Wells.
item 36.
item 36 will be released according to the table in paragraph (b) or when the well goes on production, whichever is earlier. (3) MMS-125, Well Summary Report... All entries except At any time........... The data and information in items 17, 24, 34, 37,
the excepted items will be and 46 through 87.
released according to the table in paragraph (b) of this section or when the well goes on production, whichever is earlier. However, items 78 through 87 will not be released when the well goes on production unless the period of time in the table in paragraph (b) has expired (4) MMS-126, Well Potential Test All entries except When the well goes on The data and information in Report.
item 101.
production.
item 101 will be released 2 years after you submit it. (5) MMS-127, Request for Reservoir All entries except At any time........... The data and information in Maximum Efficient Rate (MER).
items 124 through 168.
items 124 through 168 will be released according to the time periods in the table in paragraph (b) of this section. (6) MMS-128, Semiannual Well Test All entries........... At any time........... Report.
(b) MMS will disclose lease data and information that you submit, but that are not usually submitted on MMS forms, according to the following table:
If
MMS will release
At this time
Special provisions
(1) The Director determines that Geophysical data, At any time........... Data and information will data and information are needed to Geological data,
be shown only to persons unitize operations on two or more Interpreted (G&G)
with an interest in the leases, to determine whether a information,
issue. reservoir is competitive to ensure Processed G&G proper plans of development for information, Analyzed competitive reservoirs, or to
geological promote operational safety or
information. protect the environment.
[[Page 72789]]
(2) The Director determines that Geophysical data, At any time........... MMS will release data and data and information are needed Geological data
information only if for specific scientific or
Interpreted G&G
release would further the research purposes for the
information,
national interest without Government.
Processed G&G
unduly damaging the information, Analyzed
competitive position of geological
the lessee. information. (3) Data or information is
Geophysical data, 60 days after MMS MMS will release the data collected with high-resolution Geological data,
receives the data or and information earlier systems (e.g., bathymetry, side- Interpreted G&G
information, if the than 60 days if the scan sonar, subbottom profiler, information,
Regional Supervisor Regional Supervisor and magnetometer) to comply with Processed geological deems it necessary. determines it is needed by safety or environmental protection information, Analyzed
affected States to make requirements.
geological
decisions under subpart B. information.
The Regional Supervisor will reconsider earlier release if you satisfy him/ her that it would unduly damage your competitive position. (4) Your lease is no longer in Geophysical data, When your lease
This release time applies effect.
Geological data,
terminates.
only if the provisions in Processed G&G
this table governing high- information
resolution systems and the Interpreted G&G
provisions in Sec. 252.7 information, Analyzed
do not apply. The release geological
time applies to the information.
geophysical data and information only if acquired postlease for a lessee's exclusive use. (5) Your lease is still in effect.. Geophysical data
10 years after you This release time applies Processed geophysical submit the data and only if the provisions in information,
information.
this table governing high- Interpreted G&G
resolution systems and the information.
provisions in Sec. 252.7 do not apply. This release time applies to the geophysical data and information only if acquired postlease for a lessee's exclusive use. (6) Your lease is still in effect Geological data,
2 years after the These release times apply and within the primary term
Analyzed geological required submittal only if the provisions in specified in the lease.
information.
date or 60 days after this table governing high- a lease sale if any resolution systems and the portion of an offered provisions in Sec. 252.7 lease is within 50 do not apply. If the miles of a well,
primary term specified in whichever is later. the lease is extended under the heading of ``Suspensions'' in this subpart, the extension applies to this provision. (7) Your lease is in effect and Geological data,
2 years after the None. beyond the primary term specified Analyzed geological required submittal in the lease.
information.
date. (8) Data is released to the owner Directional survey If the lessee from None. of an adjacent lease under subpart data.
whose lease the D of part 250.
directional survey was taken consents. (9) Data and information are
Any data or
At any time........... None. obtained from beneath unleased information obtained. land as a result of a well deviation that has not been approved by the Regional or District Supervisor. (10) Data and information acquired Geophysical data, Geophysical data: 50 None. by a permit under part 251 is
Processed geophysical years, Geophysical submitted by a lessee under part information,
information: 25 years 250.
Interpreted
after you submit it. geophysical information.
References
Sec. 250.198 Documents incorporated by reference.
(a) MMS is incorporating by reference the documents listed in the table in paragraph (e) of this section. The Director of the Federal Register has approved this incorporation by reference according to 5 U.S.C. 552(a) and 1 CFR part 51.
(1) MMS will publish any changes to these documents in the Federal Register.
(2) MMS may make the rule amending the document effective without prior opportunity for public comment when MMS determines:
(i) That the revisions to a document result in safety improvements or represent new industry standard technology and do not impose undue costs on the affected parties; and
(ii) MMS meets the requirements for making a rule immediately effective under 5 U.S.C. 553.
(b) MMS incorporated each document or specific portion by reference in the sections noted. The entire document is incorporated by reference, unless the text of the corresponding sections in this part calls for compliance with specific portions of the listed documents. In each instance, the applicable document is the specific edition or specific edition and supplement or addendum cited in this section.
(c) Under Secs. 250.141 and 250.142, you may comply with a later edition of a specific document incorporated by reference, provided:
(1) You show that complying with the later edition provides a degree of protection, safety, or performance equal to or better than would be achieved by compliance with the listed edition; and
[[Page 72790]]
(2) You obtain the prior written approval for alternative compliance from the authorized MMS official.
(d) You may inspect these documents at the Minerals Management Service, 381 Elden Street, Room 3313, Herndon, Virginia; or at the Office of the Federal Register, 800 North Capitol Street, NW, Suite 700, Washington, DC. You may obtain the documents from the publishing organizations at the addresses given in the following table:
For
Write to
ACI Standards................... American Concrete Institute, P. O. Box 19150, Detroit, MI 48219. AISC Standards.................. American Institute of Steel Construction, Inc., P.O. Box 4588, Chicago, IL 60680. ANSI/ASME Codes................. American National Standards Institute, Attention Sales Department, 1430 Broadway, New York, NY 10018; and/or American Society of Mechanical Engineers, United Engineering Center, 345 East 47th Street, New York, NY 10017. API Recommended Practices,
American Petroleum Institute, 1220 L Specs, Standards, Manual of Street, NW, Washington, DC 20005- Petroleum Measurement Standards 4070. (MPMS) chapters. ASTM Standards.................. American Society for Testing and Materials, 100 Barr Harbor Drive, West Conshohocken, PA 19428-2959. AWS Codes....................... American Welding Society, 550 NW, LeJeune Road, P.O. Box 351040, Miami, FL 33135. NACE Standards.................. National Association of Corrosion Engineers, P.O. Box 218340, Houston, TX 77218.
(e) This paragraph lists documents incorporated by reference. To easily reference text of the corresponding sections with the list of documents incorporated by reference, the list is in alphanumerical order by organization and document.
Incorporated by Title of documents
reference at
ACI Standard 318-95, Building Code Requirements Sec. 250.908(b)(4)(i) for Reinforced Concrete, plus Commentary on , (b)(6)(i), (b)(7), Building Code Requirements for Reinforced
(b)(8)(i), (b)(9), Concrete (ACI 318R-95).
(b)(10), (c)(3), (d)(1)(v), (d)(5), (d)(6), (d)(7), (d)(8), (d)(9), (e)(1)(i), (e)(2)(i). ACI Standard 357R-84, Guide for the Design and Sec. 250.900(g); Sec. Construction of Fixed Offshore Concrete
250.908(c)(2), Structures, 1984.
(c)(3). AISC Standard Specification for Structural Steel Sec. 250.907(b)(1)(ii Buildings, Allowable Stress Design and Plastic ), (c)(4)(ii), Design, June 1, 1989, with Commentary.
(c)(4)(vii). ANSI/ASME Boiler and Pressure Vessel Code,
Sec. 250.803(b)(1), Section I, Power Boilers, including Appendices, (b)(1)(i); Sec. 1995 Edition.
250.1629(b)(1), (b)(1)(i). ANSI/ASME Boiler and Pressure Vessel Code,
Sec. 250.803(b)(1), Section IV, Heating Boilers including
(b)(1)(i); Sec. Nonmandatory Appendices A, B, C, D, E, F, H, I, 250.1629(b)(1), and J, and the Guide to Manufacturers Data
(b)(1)(i). Report Forms, 1995 Edition. ANSI/ASME Boiler and Pressure Vessel Code,
Sec. 250.803(b)(1), Section VIII, Pressure Vessels, Divisions 1 and (b)(1)(i); Sec. 2, including Nonmandatory Appendices, 1995
250.1629(b)(1), Edition.
(b)(1)(i). ANSI/ASME B 16.5-1988 (including Errata) and B Sec. 250.1002(b)(2). 16.5a-1992 Addenda, Pipe Flanges and Flanged Fittings. ANSI/ASME B 31.8-1995, Gas Transmission and Sec. 250.1002(a). Distribution Piping Systems. ANSI/ASME SPPE-1-1994 and SPPE-1d-1996 ADDENDA, Sec. 250.806(a)(2)(i) Quality Assurance and Certification of Safety . and Pollution Prevention Equipment Used in Offshore Oil and Gas Operations. ANSI Z88.2-1992, American National Standard for Sec. 250.417(g)(4)(iv Respiratory Protection.
), (j)(13)(ii). API MPMS, Chapter 1, Vocabulary, Second Edition, Sec. 250.1201. July 1994, API Stock No., H01002.. API MPMS, Chapter 2, Tank Calibration, Section Sec. 250.1202(1)(4). 2A, Measurement and Calibration of Upright Cylindrical Tanks by the Manual Strapping Method, First Edition, February 1995, API Stock No. H022A1. API MPMS, Chapter 2, Section 2B, Calibration of Sec. 250.1202(1)(4). Upright Cylindrical Tanks Using the Optical Reference Line Method, First Edition, March 1989, reaffirmed May 1997, API Stock No. H30023. API MPMS, Chapter 3, Tank Gauging, Section 1A, Sec. 250.1202(1)(4). Standard Practice for the Manual Gauging of Petroleum and Petroleum Products, First Edition, December 1994, API Stock No. H031A1. API MPMS, Chapter 3, Section 1B, Standard
Sec. 250.1202(1)(4). Practice for Level Measurement of Liquid Hydrocarbons in Stationary Tanks by Automatic Tank Gauging, First Edition, April 1992, reaffirmed January 1997, API Stock No. H30060. API MPMS, Chapter 4, Proving Systems, Section 1, Sec. 250.1202(a)(3), Introduction, First Edition, July 1988,
(f)(1). reaffirmed October 1993, API Stock No. H30081. API MPMS, Chapter 4, Section 2, Conventional Sec. 250.1202(a)(3), Pipe Provers, First Edition, October 1988,
(f)(1). reaffirmed October 1993, API Stock No. H30082. API MPMS, Chapter 4, Section 3, Small Volume Sec. 250.1202(a)(3), Provers, First Edition, July 1988, reaffirmed (f)(1). October 1993, API Stock No. H30083. API MPMS, Chapter 4, Section 4, Tank Provers, Sec. 250.1202(a)(3), First Edition, October 1988, reaffirmed October (f)(1). 1993, API Stock No. H30084. API MPMS, Chapter 4, Section 5, Master-Meter Sec. 250.1202(a)(3), Provers, First Edition, October 1988,
(f)(1). reaffirmed October 1993, API Stock No. H30085. API MPMS, Chapter 4, Section 6, Pulse
Sec. 250.1202(a)(3), Interpolation, First Edition, July 1988,
(f)(1). reaffirmed October 1993, API Stock No. H30086. API MPMS, Chapter 4, Section 7, Field-Standard Sec. 250.1202(a)(3), Test Measures, First Edition, October 1988, (f)(1). reaffirmed March 1993, API Stock No. H30087.
[[Page 72791]]
API MPMS, Chapter 5, Metering, Section 1,
Sec. 250.1202(a)(3). General Considerations for Measurement by Meters, Third Edition, September 1995, API Stock No. H05013. API MPMS, Chapter 5, Section 2, Measurement of Sec. 250.1202(a)(3). Liquid Hydrocarbons by Displacement Meters, Second Edition, November 1987, reaffirmed October 1992, API Stock No. H30102. API MPMS, Chapter 5, Section 3, Measurement of Sec. 250.1202(a)(3). Liquid Hydrocarbons by Turbine Meters, Third Edition, September 1995, API Stock No. H05033. API MPMS, Chapter 5, Section 4, Accessory
Sec. 250.1202(a)(3). Equipment for Liquid Meters, Third Edition, September 1995, with Errata, March 1996, API Stock No. H05043. API MPMS, Chapter 5, Section 5, Fidelity and Sec. 250.1202(a)(3). Security of Flow Measurement Pulsed-Data Transmission Systems, First Edition, June 1982, reaffirmed October 1992, API Stock No. H30105. API MPMS, Chapter 6, Metering Assemblies,
Sec. 250.1202(a)(3). Section 1, Lease Automatic Custody Transfer (LACT) Systems, Second Edition, May 1991, reaffirmed July 1996, API Stock No. H30121. API MPMS, Chapter 6, Section 6, Pipeline
Sec. 250.1202(a)(3). Metering Systems, Second Edition, May 1991, reaffirmed July 1996, API Stock No. H30126. API MPMS, Chapter 6, Section 7, Metering Viscous Sec. 250.1202(a)(3). Hydrocarbons, Second Edition, May 1991, API Stock No. H30127. API MPMS, Chapter 7, Temperature Determination, Sec. 250.1202(a)(3), Section 2, Dynamic Temperature Determination, (l)(4). Second Edition, March 1995, API Stock No. H07022. API MPMS, Chapter 7, Section 3, Static
Sec. 250.1202(a)(3), Temperature Determination Using Portable
(l)(4). Electronic Thermometers, First Edition, July 1985, reaffirmed May 1996, API Stock No. H30143. API MPMS, Chapter 8, Sampling, Section 1,
Sec. 250.1202(b)(4)(i Standard Practice for Manual Sampling of
), (l)(4). Petroleum and Petroleum Products, Third Edition, October 1995; also available as ANSI/ ASTM D 4057-88, API Stock No. H30161. API MPMS, Chapter 8, Section 2, Standard
Sec. 250.1202(a)(3), Practice for Automatic Sampling of Liquid
(l)(4). Petroleum and Petroleum Products, Second Edition, October 1995; also available as ANSI/ ASTM D 4177, API Stock No. H30162. API MPMS, Chapter 9, Density Determination, Sec. 250.1202(a)(3), Section 1, Hydrometer Test Method for Density, (l)(4). Relative Density (Specific Gravity), or API Gravity of Crude Petroleum and Liquid Petroleum Products, First Edition, June 1981, reaffirmed October 1992; also available as ANSI/ASTM D 1298, API Stock No. H30181. API MPMS, Chapter 9, Section 2, Pressure
Sec. 250.1202(a)(3), Hydrometer Test Method for Density or Relative (l)(4). Density, First Edition, April 1982, reaffirmed October 1992, API Stock No. H30182. API MPMS, Chapter 10, Sediment and Water,
Sec. 250.1202(a)(3), Section 1, Determination of Sediment in Crude (l)(4). Oils and Fuel Oils by the Extraction Method, First Edition, April 1981, reaffirmed December 1993; also available as ANSI/ASTM D 473, API Stock No. H30201. API MPMS, Chapter 10, Section 2, Determination Sec. 250.1202(a)(3), of Water in Crude Oil by Distillation Method, (l)(4). First Edition, April 1981, reaffirmed December 1993; also available as ANSI/ASTM D 4006, API Stock No. H30202. API MPMS, Chapter 10, Section 3, Determination Sec. 250.1202(a)(3), of Water and Sediment in Crude Oil by the
(l)(4). Centrifuge Method (Laboratory Procedure), First Edition, April 1981, reaffirmed December 1993; also available as ANSI/ASTM D 4007, API Stock No. H30203. API MPMS, Chapter 10, Section 4, Determination Sec. 250.1202(a)(3), of Sediment and Water in Crude Oil by the
(l)(4). Centrifuge Method (Field Procedure), Second Edition, May 1988, reaffirmed May 1998; also available as ANSI/ASTM D 96, API Stock No. H30204. API MPMS, Chapter 11.1, Volume Correction
Sec. 250.1202(a)(3), Factors, Volume 1, Table 5A--Generalized Crude (g)(3), (l)(4). Oils and JP-4 Correction of Observed API Gravity to API Gravity at 60 deg.F, and Table 6A--Generalized Crude Oils and JP-4 Correction of Observed API Gravity to API Gravity at 60 deg.F, First Edition, August 1980, reaffirmed March 1997; also available as ANSI/ASTM D 1250, API Stock No. H27000. API MPMS, Chapter 11.2.1, Compressibility
Sec. 250.1202(a)(3), Factors for Hydrocarbons: 0-90 deg. API Gravity (g)(4). Range, First Edition, August 1984, reaffirmed May 1996, API Stock No. H27300. API MPMS, Chapter 11.2.2, Compressibility
Sec. 250.1202(a)(3), Factors for Hydrocarbons: 0.350-0.637 Relative (g)(4). Density (60 deg.F/60 deg.F) and -50 deg.F to 140 deg.F Metering Temperature, Second Edition, October 1986, reaffirmed October 1992; also available as Gas Processors Association (GPA) 8286-86, API Stock No. H27307. API MPMS, Chapter 11, Physical Properties Data, Sec. 250.1202(a)(3). Addendum to Section 2.2, Compressibility Factors for Hydrocarbons, Correlation of Vapor Pressure for Commercial Natural Gas Liquids, First Edition, December 1994, reaffirmed March 1997; also available as GPA TP-15, API Stock No. H27308. API MPMS, Chapter 11.2.3, Water Calibration of Sec. 250.1202(f)(1). Volumetric Provers, First Edition, August 1984, reaffirmed, May 1996, API Stock No. H27310. API MPMS, Chapter 12, Calculation of Petroleum Sec. 250.1202(a)(3), Quantities, Section 2, Calculation of Petroleum (g)(1), (g)(2). Quantities Using Dynamic Measurement Methods and Volumetric Correction Factors, Including Parts 1 and 2, Second Edition, May 1995; also available as ANSI/API MPMS 12.2-1981, API Stock No. H30302. API MPMS, Chapter 14, Natural Gas Fluids
Sec. 250.1203(b)(2). Measurement, Section 3, Concentric Square-Edged Orifice Meters, Part 1, General Equations and Uncertainty Guidelines, Third Edition, September 1990, reaffirmed August 1995; also available as ANSI/API 2530, Part 1, 1991, API Stock No. H30350. API MPMS, Chapter 14, Section 3, Part 2,
Sec. 250.1203(b)(2)). Specification and Installation Requirements, Third Edition, February 1991, reaffirmed May 1996; also available as ANSI/API 2530, Part 2, 1991, reaffirmed May 1996; API Stock No. H30351. API MPMS, Chapter 14, Section 3, Part 3, Natural Sec. 250.1203(b)(2). Gas Applications, Third Edition, August 1992, also available as ANSI/API 2530, Part 3, API Stock No. H30353. API MPMS, Chapter 14, Section 5, Calculation of Sec. 250.1203(b)(2). Gross Heating Value, Relative Density, and Compressibility Factor for Natural Gas Mixtures From Compositional Analysis, Revised, 1996; also available as ANSI/API MPMS 24.5-1981, order from Gas Processors Association, 6526 East 60th Street, Tulsa, Oklahoma 74145.Sec. 250.1203(b)(2).API MPMS, Chapter 14, Section 6, Continuous Density Measurement, Second Edition, April 1991, reaffirmed May 1998, API Stock No. H30346.
[[Page 72792]]
API MPMS, Chapter 14, Section 8, Liquefied
Sec. 250.1203(b)(2). Petroleum Gas Measurement, Second Edition, July 1997; reaffirmed May 1996, API Stock No. H14082. API MPMS, Chapter 20, Section 1, Allocation Sec. 250.1202(k)(1). Measurement, First Edition, September 1993, API Stock No. H30730. API MPMS, Chapter 21, Section 1, Electronic Gas Sec. 250.1203(b)(4). Measurement, First Edition, September 1993, API Stock No. H30730. API RP 2A, Recommended Practice for Planning, Sec. 250.900(g); Sec. Designing and Constructing Fixed Offshore
250.912(a). Platforms Working Stress Design, Nineteenth Edition, August 1, 1991, API Stock No. 811- 00200. API RP 2A-WSD, Recommended Practice for
Sec. 250.900(g); Sec. Planning, Designing and Constructing Fixed
250.912(a). Offshore Platforms-Working Stress Design; Twentieth Edition, July 1, 1993, API Stock No. G00200. API RP 2A-WSD, Recommended Practice for
Sec. 250.900(g); Sec. Planning, Designing and Constructing Fixed
250.912(a). Offshore Platforms-Working Stress Design; Twentieth Edition, July 1, 1993, Supplement 1, December 1996, Effective Date, February 1, 1997, API Stock No. G00205. API RP 2D, Recommended Practice for Operation Sec. 250.120(c); Sec. and Maintenance of Offshore Cranes, Third
250.1605(g). Edition, June 1, 1995, API Stock No. G02D03. API RP 14B, Recommended Practice for Design, Sec. 250.801(e)(4); Installation, Repair and Operation of
Sec. 250.804(a)(1)(i Subsurface Safety Valve Systems, Fourth
). Edition, July 1, 1994, with Errata dated June 1996, API Stock No. G14B04. API RP 14C, Recommended Practice for Analysis, Sec. 250.802(b), Design, Installation and Testing of Basic
(e)(2); Sec. Surface Safety Systems for Offshore Production 250.803(a), Platforms, Sixth Edition, March 1998, API Stock (b)(2)(i), (b)(4), No. G14C06.
(b)(5)(i), (b)(7), (b)(9)(v), (c)(2); Sec. 250.804(a), (a)(5); Sec. 250.1002(d); Sec. 250.1004(b)(9); Sec. 250.1628(c), (d)(2); Sec. 250.1629(b)(2), (b)(4)(v); Sec. 250.1630(a). API RP 14E, Recommended Practice for Design and Sec. 250.802(e)(3); Installation of Offshore Production Platform Sec. 250.1628(b)(2), Piping Systems, Fifth Edition, October 1, 1991, (d)(3). API Stock No. G07185. API RP 14F, Recommended Practice for Design and Sec. 250.114(c); Sec. Installation of Electrical Systems for Offshore 250.803(b)(9)(v); Production Platforms, Third Edition, September Sec. 250.1629(b)(4)( 1, 1991, API Stock No. G07190.
v). API RP 14G, Recommended Practice for Fire
Sec. 250.803(b)(8), Prevention and Control on Open Type Offshore (b)(9)(v); Sec. Production Platforms, Third Edition, December 250.1629(b)(3), 1, 1993, API Stock No. G07194.
(b)(4)(v). API RP 14H, Recommended Practice for
Sec. 250.802(d). Installation, Maintenance and Repair of Surface Safety Valves and Underwater Safety Valves Offshore, Fourth Edition, July 1, 1994, API Stock No. G14H04. API RP 500, Recommended Practice for
Sec. 250.114(a); Sec. Classification of Locations for Electrical
250.802(e)(4)(i); Installations at Petroleum Facilities, First Sec. 250.803(b)(9)(i Edition, June 1, 1991, API Stock No. G06005. ); Sec. 250.1628(b)(3); (d)(4)(i); Sec. 250.1629(b)(4)(i). API RP 2556, Recommended Practice for Correcting Sec. 250.1202(l)(4). Gauge Tables for Incrustation, Second Edition, August 1993, API Stock No. H25560; also available under the umbrella of the MPMS. API Spec Q1, Specification for Quality Programs, Sec. 250.806(a)(2)(ii Fifth Edition, December 1994, API Stock No. ). GQ1005. API Spec 6A, Specification for Wellhead and Sec. 250.806(a)(3); Christmas Tree Equipment, Seventeenth Edition, Sec. 250.1002 February 1, 1996, API Stock No. G06A17.
(b)(1), (b)(2). API Spec 6AV1, Specification for Verification Sec. 250.806(a)(3). Test of Wellhead Surface Safety Valves and Underwater Safety Valves for Offshore Service, First Edition, February 1, 1996, API Stock No. G06AV1.. API Spec 6D, Specification for Pipeline Valves Sec. 250.1002(b)(1). (Gate, Plug, Ball, and Check Valves), Twenty- first Edition, March 31, 1994, API Stock No. G03200. API Spec 14A, Specification for Subsurface
Sec. 250.806(a)(3). Safety Valve Equipment, Ninth Edition, July 1, 1994, API Stock No. G14A09. API Standard 2551, Standard Method for
Sec. 250.1202(l)(4). Measurement and Calibration of Horizontal Tanks, First Edition, 1965, reaffirmed January 1997; API Stock No. H25510; also available under the umbrella of the MPMS. API Standard 2552, Measurement and Calibration Sec. 250.1202(l)(4). of Spheres and Spheroids, First Edition, 1966, reaffirmed January 1997, API Stock No. H25520; also available under the umbrella of the MPMS. API Standard 2555, Method for Liquid Calibration Sec. 250.1202(l)(4). of Tanks, September 1966, reaffirmed January 1997, API Stock No. H25550; also available under the umbrella of the MPMS. ASTM Standard C33-93, Standard Specification for Sec. 250.908(b)(4)(i) Concrete Aggregates including Nonmandatory Appendix. ASTM Standard C94-96, Standard Specification for Sec. 250.908(e)(2)(i) Ready-Mixed Concrete.
. ASTM Standard C150-95a, Standard Specification Sec. 250.908(b)(2)(i) for Portland Cement.
. ASTM Standard C330-89, Standard Specification Sec. 250.908(b)(4)(i) for Lightweight Aggregates for Structural
. Concrete. ASTM Standard C595-94, Standard Specification Sec. 250.908(b)(2)(i) for Blended Hydraulic Cements.
. AWS D1.1-96, Structural Welding Code--Steel, Sec. 250.907(b)(1)(i) 1996, including Commentary. AWS D1.4-79, Structural Welding Code--
Sec. 250.908(e)(3)(ii Reinforcing Steel, 1979.
) NACE Standard MR.01-75-96, Sulfide Stress
Sec. 250.417(p)(2) Cracking Resistant Metallic Materials for Oil Field Equipment, January 1996. NACE Standard RP 01-76-94, Standard Recommended Sec. 250.907(d). Practice, Corrosion Control of Steel Fixed Offshore Platforms Associated with Petroleum Production.
Sec. 250.199 Paperwork Reduction Act statements--information collection.
(a) OMB has approved the information collection requirements in part 250 under 44 U.S.C. 3501 et seq. The table in paragraph (e) of this section lists the subpart in the rule requiring the information and its title, provides the OMB control number, and summarizes the reasons for collecting the information and how MMS uses the information. The associated MMS forms required by this part are listed at the end of this table with the relevant information.
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(b) Respondents are OCS oil, gas, and sulphur lessees and operators. The requirement to respond to the information collections in this part is mandated under the Act (43 U.S.C. 1331 et seq.) and the Act's Amendments of 1978 (43 U.S.C. 1801 et seq.). Some responses are also required to obtain or retain a benefit or may be voluntary. Proprietary information will be protected under Sec. 250.196, Data and information to be made available to the public; parts 251 and 252; and the Freedom of Information Act (5 U.S.C. 552) and its implementing regulations at 43 CFR part 2.
(c) The Paperwork Reduction Act of 1995 requires us to inform the public that an agency may not conduct or sponsor, and you are not required to respond to, a collection of information unless it displays a currently valid OMB control number.
(d) Send comments regarding any aspect of the collections of information under this part, including suggestions for reducing the burden, to the Information Collection Clearance Officer, Minerals Management Service, Mail Stop 4230, 1849 C Street, NW, Washington, DC 20240.
(e) MMS is collecting this information for the reasons given in the following table:
30 CFR 250 subpart/title (OMB control
Reasons for collecting No.)
information and how used
(1) Subpart A, General (1010-0114)..... To inform MMS of actions taken to comply with general operational requirements on the OCS. To ensure that operations on the OCS meet statutory and regulatory requirements, are safe and protect the environment, and result in diligent exploration, development, and production on OCS leases. To support the unproved and proved reserve estimation, resource assessment, and fair market value determinations. (2) Subpart B, Exploration and
To inform MMS, States, and the Development and Production Plans (1010- public of planned exploration, 0049).
development, and production operations on the OCS. To ensure that operations on the OCS are planned to comply with statutory and regulatory requirements, will be safe and protect the human, marine, and coastal environment, and will result in diligent exploration, development, and production of leases. (3) Subpart C, Pollution Prevention and To inform MMS of measures to be Control (1010-0057).
taken to prevent water and air pollution. To ensure that appropriate measures are taken to prevent water and air pollution. (4) Subpart D, Oil and Gas Drilling To inform MMS of the equipment Operations (1010-0053).
and procedures to be used in drilling operations on the OCS. To ensure that drilling operations are safe and protect the human, marine, and coastal environment. (5) Subpart E, Oil and Gas Well-
To inform MMS of the equipment Completion Operations (1010-0067). and procedures to be used in well-completion operations on the OCS. To ensure that well- completion operations are safe and protect the human, marine, and coastal environment. (6) Subpart F, Oil and Gas Well-
To inform MMS of the equipment Workover Operations (1010-0043).
and procedures to be used during well-workover operations on the OCS. To ensure that well-workover operations are safe and protect the human, marine, and coastal environment. (7) Subpart G, Abandonment of Wells To inform MMS of procedures to (1010-0079).
be used during the temporary and permanent abandonment of wells. To ensure that wells are abandoned in a manner that is safe and minimizes conflicts with other uses of the OCS. (8) Subpart H, Oil and Gas Production To inform MMS of the equipment Safety Systems (1010-0059).
and procedures to be used during production operations on the OCS. To ensure that production operations are safe and protect the human, marine, and coastal environment. (9) Subpart I, Platforms and Structures To provide MMS with information (1010-0058).
regarding the design, fabrication, and installation of platforms on the OCS. To ensure the structural integrity of platforms installed on the OCS. (10) Subpart J, Pipelines and Pipeline To provide MMS with information Rights-of-Way (1010-0050).
regarding the design, installation, and operation of pipelines on the OCS. To ensure that pipeline operations are safe and protect the human, marine, and coastal environment. (11) Subpart K, Oil and Gas Production To inform MMS of production Rates (1010-0041).
rates for hydrocarbons produced on the OCS. To ensure economic maximization of ultimate hydrocarbon recovery. (12) Subpart L, Oil and Gas Production To inform MMS of the Measurement, Surface Commingling, and measurement of production, Security (1010-0051).
commingling of hydrocarbons, and site security plans. To ensure that produced hydrocarbons are measured and commingled to provide for accurate royalty payments and security is maintained. (13) Subpart M, Unitization (1010-0068) To inform MMS of the unitization of leases. To ensure that unitization prevents waste, conserves natural resources, and protects correlative rights. (14) Subpart N, Remedies and Penalties The requirements in subpart N (1010-0121).
are exempt from the Paperwork Reduction Act of 1995 according to 5 CFR 1320.4. (15) Subpart O, Training (1010-0078)... To inform MMS of training program curricula, course schedules, and attendance. To ensure that training programs are technically accurate and sufficient to meet safety and environmental requirements, and that workers are properly trained to operate on the OCS.
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(16) Subpart P, Sulphur Operations To inform MMS of sulphur (1010-0086).
exploration and development operations on the OCS. To ensure that OCS sulphur operations are safe; protect the human, marine, and coastal environment; and will result in diligent exploration, development, and production of sulphur leases. (17) Forms MMS-123, Application for To inform MMS of the procedures Permit to Drill, and MMS-123S,
and equipment to be used in Supplemental APD Information Sheet, drilling operations. To ensure Subparts D, E, P (1010-0044 and 1010- that drilling and well- 0131).
completion are safe and protect the environment, use adequate equipment, conform with provisions of the lease, and the public is informed. (18) Form MMS-124, Sundry Notices & To inform MMS of well- Reports on Wells, Subparts D, E, F, G, completion and well-workover P (1010-0045).
operations, changes to any ongoing well operations, and well abandonment operations. To ensure that MMS has up-to- date and accurate information on OCS drilling and other lease operations; operations are safe and protect the human, marine, and coastal environment; abandoned sites are cleared of obstructions; and the public is informed. (19) Form MMS-125, Well Summary Report, To inform MMS of the results of Subparts D, E, F, P (1010-0046).
well-completion or well- workover operations or changes in well status or condition. To ensure that MMS has up-to- date and accurate information on the status and condition of wells. (20) Form MMS-126, Well Potential Test To inform MMS of the production Report, Subpart K (1010-0039).
potential of an oil or gas well and to verify a requested production rate. To ensure that production results in ultimate full recovery of hydrocarbons, and energy resources are produced at a prudent rate. (21) Form MMS-127, Request for
To inform MMS of data Reservoir Maximum Efficiency Rate
concerning oil and gas well- (MER), Subpart K (1010-0018).
completion in a rate-sensitive reservoir and to verify requested efficiency rate. To ensure that reservoirs are classified correctly and the requested production rate will not waste oil or gas. (22) Form MMS-128, Semiannual Well Test To inform MMS of the status and Report, Subpart K (1010-0017).
capacity of gas wells and verify production capacity. To ensure that depletion of reservoirs results in greatest ultimate recovery of hydrocarbons. (23) Form MMS-131, Performance Measures To collect data related to a Data (Voluntary) (1010-0112).
set of performance measures. To evaluate the effectiveness of industry's continued improvement of safety and environmental management in the OCS. (24) Form MMS-132, Evacuation
To inform MMS in the event of a Statistics (used in the GOM Region), major disruption in the Subpart A (1010-0114).
availability and supply of natural gas and oil due to natural occurrences/ hurricanes. To advise the USCG of rescue needs, and to alert the news media and interested public entities when production is shut in and when resumed. (25) Form MMS-133, Weekly Activity To inform MMS of well status, Report (used in the GOM Region),
well and casing tests, and Subpart D (1010-0132).
well casing configuration data. To have accurate data and information on the wells under MMS jurisdiction to ensure compliance with approved plans.
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In Sec. 250.203(m), the citation ``250.112'' is revised to read ``250.182''.
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In Sec. 250.204(p) and (r), the citation ``250.112'' is revised to read ``250.183''.
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In Sec. 250.304(e)(2), the citation ``250.110'' is revised to read ``250.174''.
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Sections 250.402, 250.403, 250.507, 250.508, 250.607, and 250.608 are removed and reserved.
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In Sec. 250.414(a), the citation ``250.106(a)'' is revised to read ``250.140'' and in Sec. 250.414(g), the citation ``250.117'' is revised to read ``250.190''.
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In Sec. 250.415(d), the citation ``250.117'' is revised to read ``250.190''.
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In Sec. 250.416(b), the citation ``250.110'' is revised to read ``250.170''.
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In Sec. 250.513(d), the citation ``250.117'' is revised to read ``250.190''.
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In Sec. 250.1102(a) (9), (b)(8), and (b)(9), the citation ``250.117'' is revised to read ``250.190''.
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In the introductory text of Sec. 250.1201, the citation ``250.101'' is revised to read ``250.198''.
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In Sec. 250.1202(a)(3), (b)(4)(i), the introductory text of (g), (k)(1), (l)(4), the citation ``250.101'' is revised to read ``250.198''.
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In Sec. 250.1203(b)(2) and (b)(4), the citation ``250.101'' is revised to read ``250.198''.
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In Sec. 250.1301(d), (g)(1), (g)(2)(ii), the citation ``250.110'' is revised to read ``250.170'' and the citation ``250.113'' in (d) and (g)(1) is revised to read ``250.180''.
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In Sec. 250.1507, in the table, the second column for the entry ``Welding and burning'' is revised to ``A''.
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In Sec. 250.1617(a), the citation ``250.106(a)'' is revised to read ``250.140'' and in paragraph (d), the citation ``250.117'' is revised to read ``250.190''.
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In Sec. 250.1618(a), the citation ``250.106(a)'' is revised to read ``250.140''.
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In Sec. 250.1619(b), the citation ``250.110'' is revised to read ``250.170''.
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In Sec. 250.1629(a), the citation ``250.291'' is revised to read ``250.1628''.
PART 252--OUTER CONTINENTAL SHELF (OCS) OIL AND GAS INFORMATION PROGRAM
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The authority citation continues to read as follows:
Authority: OCS Lands Act, 43 U.S.C. 1331 et seq., as amended, 92 Stat. 629; Freedom of Information Act, 5 U.S.C. 552.
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In Sec. 252.7(a)(2)(i) and (ii), the citation ``250.4'' is revised to read ``250.106''.
PART 253--OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE FACILITIES
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The authority citation continues to read as follows:
Authority: 33 U.S.C. 2701 et seq.
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In Sec. 253.11(b)(2), the citation ``250.108'' is revised to read ``250.143''.
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In Sec. 253.51(d), the citation ``250.110'' is revised to read ``250.170''.
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PART 256--LEASING OF SULPHUR OR OIL AND GAS IN THE OUTER CONTINENTAL SHELF
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The authority citation for part 256 is revised to read as follows:
Authority: 43 U.S.C. 1331 et seq., 42 U.S.C. 6213.
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Section 256.1 is revised to read as follows:
Sec. 256.1 Purpose.
The purpose of the regulations in this part is to establish the procedures under which the Secretary of the Interior (Secretary) will exercise the authority to administer a leasing program for oil, gas and sulphur. The procedures under which the Secretary will exercise the authority to administer a program to grant rights-of-way, rights-of-use and easements are addressed in other parts .
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Section 256.4, Authority, is revised to read as follows:
Sec. 256.4 Authority.
The outer Continental Shelf Lands Act (OCSLA) (43 U.S.C. 1331 et seq.) authorizes the Secretary of the Interior to issue, on a competitive basis, leases for oil and gas, and sulphur, in submerged lands of the outer Continental Shelf (OCS). The Act authorizes the Secretary to grant rights-of-way, rights-of-use and easements through the submerged lands of the OCS. The Energy Policy and Conservation Act of 1975 (42 U.S.C. 6213), prohibits joint bidding by major oil and gas producers.
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Section 256.35 is amended by adding paragraph (c) as follows:
256.35 Qualifications of lessees.
* * * * *
(c) MMS may disqualify you from acquiring any new leaseholdings or lease assignments if your operating performance is unacceptable according to 30 CFR 250.135.
32-33. In Sec. 256.70, the citation ``250.113'' is revised to read ``250.180''.
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Section 256.73 is revised to read as follows:
Sec. 256.73 Effect of suspensions on lease term.
(a) A suspension may extend the term of a lease (see 30 CFR 250.171) with the extension being the length of time the suspension is in effect except as provided in paragraph (b) of this section.
(b) A Directed Suspension does not extend the lease term when the Regional Supervisor directs a suspension because of:
(1) Gross negligence; or (2) A willful violation of a provision of the lease or governing regulations.
(c) MMS may issue suspensions for a period of up to 5 years per suspension. The Regional Supervisor will set the length of the suspension based on the conditions of the individual case involved. MMS may grant consecutive suspensions. For more information on suspension of operations or production refer to the section under the heading ``Suspensions'' in 30 CFR part 250, subpart A.
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In Sec. 256.77(d)(3), the citation ``250.112'' is revised to read ``250.182''.
PART 282--OPERATIONS IN THE OUTER CONTINENTAL SHELF FOR MINERALS OTHER THAN OIL, GAS, AND SULPHUR
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The authority citation for part 282 continues to read as follows:
Authority: 43 U.S.C. 1331 et seq.
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In Sec. 282.28(a), the citation ``250.126'' is revised to read ``250.194''.
[FR Doc. 99-31869Filed12-27-99; 8:45 am]
BILLING CODE 4310-MR-P
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