[Federal Register Volume 59, Number 45 (Tuesday, March 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5277]


[[Page Unknown]]

[Federal Register: March 8, 1994]


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DEPARTMENT OF TRANSPORTATION

Coast Guard

46 CFR Parts 10 and 15

[CGD 81-059a]
RIN 2115-AB91

 

Licensing of Officers and Operators for Mobile Offshore Drilling 
Units

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

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SUMMARY: In an interim final rule published on April 18, 1990, (55 FR 
14792), the Coast Guard amended the regulations concerning the 
licensing of officers on mobile offshore drilling units (MODUs) and the 
manning of these vessels. The rulemaking implemented National 
Transportation Safety Board (NTSB) recommendations for the 
establishment of personnel qualifications and manning regulations for 
MODUs. These minimum standards were intended to ensure that licensed 
individuals on board MODUs are qualified to deal with specific marine 
safety matters. This rule adopts the interim final rule with minor 
changes.

EFFECTIVE DATE: This rule is effective on April 7, 1994.

FOR FURTHER INFORMATION CONTACT:
Mr. Paul W. Eulitt, Project Manager, Office of Marine Safety, Security 
and Environmental Protection, (G-MVP), phone (202) 267-0224.

SUPPLEMENTARY INFORMATION:

Drafting Information

    The principal persons involved in drafting this document are Mr. 
Paul W. Eulitt, Project Manager, Office of Marine Safety, Security and 
Environmental Protection, and Mr. Nicholas Grasselli, Project Counsel, 
Office of Chief Counsel.

Regulatory History

    On August 8, 1983, the Coast Guard published a notice of proposed 
rulemaking (NPRM) entitled ``Licensing of Officers and Operators and 
Registration of Staff Officers'' in the Federal Register, (48 FR 
35920), proposing to completely revise the licensing regulations in 
part 10 of title 46 Code of Federal Regulations. Included in the NPRM 
were proposed rules formalizing the requirements for MODU industry 
licenses.
    As a result of comments received concerning the licensing and 
manning requirements for MODU's, the Coast Guard published a separate 
supplemental notice of proposed rulemaking (SNPRM) on October 24, 1985, 
(50 FR 43366) addressing these issues.
    An interim final rule (IFR) was published on October 16, 1987 (52 
FR 38660). Comments received in response to this IFR indicated a need 
to re-address several issues related to MODU licensing and manning. A 
notice suspending the IFR's effective date was published on February 
28, 1989 (54 FR 8334).
    A second SNPRM published May 17, 1989 (54 FR 21246), proposed to 
revise the offshore installation manager qualifications and MODU 
manning levels. It also proposed a procedure by which unlicensed 
individuals currently serving in positions requiring licenses could 
obtain the required credentials.
    A second IFR published on April 18, 1990, (55 FR 14792), adopted 
the second SNPRM with minor changes and permitted the public the 
opportunity to submit additional comments on this rulemaking. The Coast 
Guard received 5 letters commenting on the IFR.
    A public hearing was not requested and one was not held.

Background and Purpose

    Public Law 96-378 (codified as 46 United States Code 7101(d)) 
requires the establishment, where possible, of suitable career 
patterns, service and qualifying requirements, and substitution of 
training time and courses of instruction for sea service on deck or in 
the engine department. This places responsibilities on the Coast Guard 
for modifying many sections of our licensing regulations.
    The Coast Guard has long recognized the need for special licenses 
adapted to the unique operations associated with MODUs. In response to 
a number of major marine casualties on U.S. flag MODUs, investigations 
were conducted by the NTSB and the Coast Guard marine boards of 
investigation. These investigations concluded that current Coast Guard 
regulations did not adequately address the unique characteristics 
inherent in the offshore oil drilling industry. These investigation 
reports recommended that the Commandant of the Coast Guard promulgate 
personnel qualification and manning regulations for MODUs. Therefore, 
the Coast Guard, with industry assistance proposed regulations enabling 
personnel serving in the offshore drilling industry to qualify for 
licenses.
    The purpose of this rulemaking is to adopt as final the IFR 
published in the Federal Register (55 FR 14792) on April 18, 1990, 
entitled ``Licensing of Officers and Operators for Mobile Offshore 
Drilling Units''. This rulemaking also makes minor changes adopting 
recommendations provided in the comments received to the IFR.

Discussion of Comments and Changes

    The Coast Guard appreciates the effort expended by the offshore 
drilling industry and other interested parties in commenting on this 
rulemaking. As addressed below, several commenters expressed similar 
opinions on specific issues.

1. Time Limitation for Conversion of Existing MODU Licenses

    Two comments indicated that the IFR was unclear as to how long a 
holder of a license could convert an existing Master or Mate MODU 
license to either one of three licenses: (1) Offshore Installation 
Manager (OIM); (2) Barge Supervisor (BS); or (3) Ballast Control 
Operator (BCO). The holder of an ``old'' MODU license will continue to 
be able to convert the ``old'' MODU license as long as the holder comes 
forward prior to the end of the one year grace period after the 
expiration of their existing license (five years from the date of 
issue) and the holder provides the appropriate required training 
certificates. Thus, a license can be converted at any time after July 
1, 1990, until the license lapses. Once the license has lapsed, an 
applicant must follow the procedures for re-issuance of a license and 
comply with the new requirements.
    These same two comments also expressed a concern that license 
holders would not get the word about converting to the ``new'' MODU 
license prior to expiration of their ``old'' license. Comments 
requested that the Coast Guard notify all MODU license holders by 
letter of their opportunity to convert their ``old'' license. The Coast 
Guard believes that the holder of a license has the responsibility for 
the timely renewal of a license and believes it would be inefficient 
for the Coast Guard to attempt to contact and inform all license 
holders about this rulemaking. However, the Coast Guard intends to 
publish articles in ``Proceedings of the Marine Safety Council'' as 
well as in industry magazines and newsletters addressing changes 
published in the Federal Register on licensing requirements. Also, the 
Coast Guard will keep the membership of the National Offshore Safety 
Advisory Committee advised of initiatives effecting the licensing 
requirements for industry personnel.

2. Stability Courses

    Two comments were received regarding the applicant's requirement to 
complete a training course on MODU stability. One comment requested a 
waiver of the requirement to complete a stability training course for 
applicants until July 1, 1995, similar to what had been done with the 
MODU survival suit/craft training. When this comment was received, the 
Coast Guard had not yet developed specific guidelines for MODU 
stability courses. Since publication of the IFR, the Coast Guard 
developed MODU stability course guidelines and approved numerous MODU 
stability training courses sufficient to meet the demand of the 
industry. Therefore, the Coast Guard is retaining the requirement for 
individuals to complete approved MODU stability training prior to 
converting or obtaining an original MODU license. The second comment 
suggested that since specific MODU stability course guidelines had not 
been developed, the Coast Guard should accept certificates of 
completion from all presently approved MODU stability courses to 
satisfy this requirement. The Coast Guard agrees and will accept a 
certificate from an applicant to meet the licensing requirement for the 
successful completion of a presently approved MODU stability course.

3. Licensing and Manning Requirements for Tension Leg Platforms (TLPs)

    The Coast Guard received a comment which requested that all 
requirements for licensing and manning of TLPs be suspended until 
specific TLP requirements could be developed. Essentially, the TLP is a 
site specific buoyant outer continental shelf facility securely and 
substantially moored so that it cannot be moved without special effort 
and not intended for periodic relocation. In contrast, a MODU is a 
buoyant vessel not site specific and capable of getting underway under 
its own power without assistance to an alternate site. Even though 
there are some significant differences between a MODU and a TLP, a TLP 
still has characteristics of conventional MODUs. Although the TLP is a 
new and unique offshore facility, the Coast Guard considers it a vessel 
and believes it inappropriate to altogether suspend licensing and 
manning requirements for TLPs. Due to the limited number of TLPs 
presently in operation, the local Officer in Charge of Marine 
Inspection (OCMI) will continue to consider TLP manning on a case by 
case basis. Therefore, an individual assigned on board a TLP will 
continue to be required to hold an endorsement for TLPs on an existing 
MODU license until specific sea service and training requirements can 
be developed.
    The Coast Guard will review on a case by case basis the 
qualifications and training recommendations to determine whether there 
is a need to require specific license and manning regulations for TLPs. 
Because of the unit's unique mooring design, a stability training 
course specific to TLPs or, when in the operating mode, a weight 
distribution and tendon tension monitoring training may be more 
appropriate than conventional stability training for a TLP license. 
However, when a TLP is underway, a licensed individual is required to 
have completed an appropriate stability training course for the 
position held.

4. Service Requirement on Self-Propelled Vessels for MODU Engineer 
Licenses

    One comment requested that the Coast Guard delete the self-
propelled service requirement on MODUs for engineering licenses. The 
Coast Guard disagrees and believes that engineers must have propulsion 
machinery experience to ensure the safety of self-propelled MODUs 
operating in a marine environment. Therefore, the requirement for a 
portion of the sea service time for a license as engineer (MODU) will 
continue to include experience assigned to self-propelled units fitted 
with propulsion machinery.
    The Coast Guard recognizes the difficulty some applicants 
experience in obtaining the required self-propelled service Therefore, 
the Coast Guard is adopting a provision in this rule to enable those 
applicants unable to meet the service requirement for self-propelled 
units to be issued a license limited to non-self-propelled units.
    If an applicant has obtained the total sea service required to 
qualify for a MODU engineering license without having satisfied that 
portion of the service required on board self-propelled or propulsion 
assisted units, then the OCMI may allow those individuals to complete a 
modified examination and if successfully passed be issued a license 
limited to non-self-propelled units. Upon presentation of the required 
self-propelled sea service and completion of any examination 
deficiencies, the non-self-propelled limitation may be removed.

5. Acceptance of Foreign Training Courses

    Three comments were received urging the ``acceptance'' of foreign 
training courses. Suggestions recommended that either a joint Coast 
Guard/industry panel be created as a mechanism for review and 
acceptance of foreign courses or accept those training programs which 
have received approval by the foreign coastal state administration 
where the course is offered. Previously, the Coast Guard has required 
the industry to demonstrate that a shortage exists of domestically 
located Coast Guard approved courses and the economic justification is 
sufficient to allow for approval or acceptance of courses overseas. The 
Coast Guard has been reluctant to approve courses offered overseas 
because it has neither the oversight authority or resource capability 
to conduct an approval program for courses offered worldwide.
    Recognizing the introduction of international standards for 
seafarers and the increased level of U.S. maritime industry activity 
overseas, the Coast Guard may consider the acceptance of foreign 
courses similar to domestically approved courses. The Coast Guard will 
study the appropriateness of accepting or approving foreign training 
courses when it conducts the next review of the course approval 
process. Consideration will be given to ensure that sufficient 
resources are allocated to properly perform the oversight 
responsibilities of a foreign course acceptance/approval program.

6. Unlimited Master Examination Requirement for OIM Endorsements

    One comment requested that the Coast Guard not require the holder 
of a license as ``Master, oceans, any gross tons'' to complete 
additional examination requirements in order to obtain an OIM 
endorsement. The Coast Guard agrees that the professional competence of 
an individual who has obtained an unlimited license as master has 
already been successfully established to the satisfaction of the Coast 
Guard. Therefore, an unlimited licensed master who possesses the 
minimum sea service for any of the various OIM endorsements, and 
completes the required Coast Guard approved courses, is qualified to 
have the appropriate endorsement added to the license without 
examination.

7. MODU License Application Evaluation Offices

    In order to keep evaluations consistent, the IFR restricted MODU 
license application approvals to the Coast Guard Regional Examination 
Center (REC) in New Orleans until July 1, 1992. Although no comments 
were received regarding MODU license evaluation offices, applications 
may now be submitted for evaluation and examinations administered at 
any REC.

Regulatory Evaluation

    This rule is not a significant regulatory action under Executive 
Order 12866 and is not significant under the Department of 
Transportation Regulatory Policies and Procedures (44 FR 11040; 
February 26, 1979). A full regulatory evaluation was prepared and 
placed in the rulemaking docket. It may be inspected or copied at the 
Marine Safety Council (G-LRA-2/36) [CGD 81-059a], Room 3600, U.S. Coast 
Guard Headquarters, 2100 Second Street SW., Washington, DC 20593-0001, 
from 8 a.m. to 3 p.m.
    The costs associated with this rulemaking are primarily related to 
the training of MODU personnel. It requires individuals serving in 
certain responsible positions aboard MODUs (self-propelled or non-self-
propelled) to obtain a Coast Guard issued license or endorsement that 
authorizes them to serve in those positions. Individuals assigned to 
these positions on MODUs will have to meet licensing qualifications 
which include specific length of service experience on board MODUs, 
completion of training courses, physical standards and a professional 
examination. The training and qualifications contained in this rule, 
were strongly recommended by the National Transportation Safety Board 
and supported by the mobile offshore drilling industry and the 
international community.
    The costs associated with licensing and qualification of the 
personnel in positions of responsibility on MODUs are relatively 
insignificant when compared to typical MODU construction costs and 
operating fees. Implementation of this requirement will not increase 
manning requirements on MODUs but rather set a standard for training 
and level of experience for licensed individuals assigned to MODUs. 
Most drilling companies already require high standards of experience 
and training for individuals serving aboard their mobile offshore 
units. Therefore, since this rulemaking does not require any major 
expenditures by the maritime industry, consumers, Federal, state or 
local governments, it is not expected to have a significant economic 
impact.

Small Entities

    This rule applies to licenses for individuals only. The effect will 
formalize the requirements to attend industry-specific training. Such 
training was optional for individuals serving aboard MODUs. Because 
this rule is essentially procedural and will permit the drilling 
companies to operate according to current, long-standing industry 
practice, the economic impact of this action is expected to be minimal. 
Therefore, the Coast Guard certifies under section 605(b) of the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.) that this final rule 
will not have a significant economic impact on a substantial number of 
small entities.

Collection of Information

    This rule contains collection of information requirements. 
Individuals seeking MODU licenses will be required to apply for a 
license and provide certificates as evidence of having successfully 
completed the required training. The certificate will be supplied by 
the training facilities which provide the course(s). The Coast Guard 
submitted the requirements to the Office of Management and Budget (OMB) 
of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) and OMB has 
approved them. The section numbers are in Sec. 10.107, and 
Secs. 10.470, 10.472, 10.474, 10.542, and 10.544 and the corresponding 
OMB approval number is OMB Control Number 2115-AB91. The time required 
to comply with this requirement is inconsequential.

Federalism

    The Coast Guard has analyzed this rulemaking under the principles 
and criteria contained in Executive Order 12612 and has determined that 
this action does not have sufficient federalism implications to warrant 
the preparation of a Federalism Assessment. This final rule adopts a 
new licensing structure for licensed officers aboard MODUs and provides 
for safe manning of these vessels. This action was necessary to 
establish personnel qualifications and manning regulations for this 
type of vessel particular to the offshore drilling industry. Compliance 
with these minimum standards will ensure that properly trained and 
qualified individuals are on board MODUs to perform the daily marine 
safety related matters. The Coast Guard is preempting any state action 
addressing this same subject matter.

Environment

    The Coast Guard considered the environmental impact of this rule 
and concluded that under section 2.B.2 of Commandant Instruction 
M16475.1B, this rule is categorically excluded from further 
environmental documentation. The rule is procedural in nature and 
permits the affected vessels to continue to operate according to 
current industry practice. Therefore, this rule is included in the 
categorical exclusion in subsection 2.B.2.1, ``Administrative actions 
or procedural regulations and policies which clearly do not have any 
environmental impact.'' A Categorical Exclusion Determination has been 
placed in the docket.

List of Subjects in 46 CFR Part 10 and Part 15

    Marine safety, Navigation (water), Reporting and record keeping 
requirements, Seamen, Vessels and mobile offshore drilling units.

    In consideration of the foregoing, the interim rule amending 46 CFR 
parts 10 & 15 which was published at 55 FR 14792 on April 18, 1990, is 
adopted as a final rule with the following changes.
    1. Section 10.542 is amended by adding paragraph (c) to read as 
follows:


Sec. 10.542  License for chief engineer (MODU).

* * * * *
    (c) If an applicant successfully completes a modified examination 
and possesses the total required sea service for a license as chief 
engineer (MODU), but does not possess the required sea service on board 
self-propelled or propulsion assisted units, the OCMI may issue the 
applicant a license limited to non-self-propelled units. The OCMI may 
remove the limitation upon presentation of satisfactory evidence of the 
required self-propelled sea service and completion of any additional 
required examination.
    2. Section 10.544 is amended by adding paragraph (c) to read as 
follows:


Sec. 10.544  License for assistant engineer (MODU).

* * * * *
    (c) If an applicant successfully completes a modified examination 
and possesses the total required sea service for a license as an 
assistant engineer (MODU), but does not possess the required sea 
service on board self-propelled or propulsion assisted units, the OCMI 
may issue the applicant a license limited to non-self-propelled units. 
The OCMI may remove the limitation upon presentation of the 
satisfactory evidence of the required self-propelled sea service and 
completion of any additional required examination.
    3. Section 10.903 is amended by redesignating existing paragraphs 
(b)(1) through (b)(3) as (b)(2) through (b)(4) respectively and by 
adding a new paragraph (b)(1) to read as follows:


Sec. 10.903  Licenses requiring examinations.

* * * * *
    (b) * * * (1) Master ocean any gross tons when adding an 
endorsement as Offshore Installation Manager.
* * * * *
    Dated: March 1, 1994.
A.E. Henn,
Rear Admiral, Coast Guard, Chief, Office of Marine Safety, Security and 
Environmental Protection.
[FR Doc. 94-5277 Filed 3-7-94; 8:45 am]
BILLING CODE 4910-14-M