[Federal Register Volume 59, Number 125 (Thursday, June 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15945]
[[Page Unknown]]
[Federal Register: June 30, 1994]
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DEPARTMENT OF THE INTERIOR
Oil and Gas and Sulphur Operations in the Outer Continental Shelf
AGENCY: Minerals Management Service, Interior.
ACTION: Notice.
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SUMMARY: The Minerals Management Service (MMS) is continuing the
evaluation of the safety and environmental management program (SEMP)
concept. The SEMP is a safety management system that is intended to
reduce the risk and occurrence of accidents and pollution events on
offshore oil and gas drilling and production facilities. The MMS
believes that development and implementation of SEMP, by individual
companies operating Outer Continental Shelf (OSC) drilling and
production facilities, promotes safety and environmental protection in
the OCS. The MMS encourages all OCS lessees and operators to
voluntarily adopt and implement the SEMP concept. The MMS will monitor
the implementation of this voluntary program over the next 2 years to
determine whether rulemaking is needed to meet the goals of the SEMP
concept.
DATES: Comments may be submitted at any time.
ADDRESSES: Interested parties may send comments regarding the SEMP
concept and this notice to the Chief, Inspection, Compliance and
Training Division; Minerals Management Service; Mail Stop 4800; 381
Elden Street; Herndon, Virginia 22070-4817.
FOR FURTHER INFORMATION CONTACT:
Bill Cook, Chief, Inspection and Enforcement Branch; Mail Stop 4800;
Minerals Management Service; 381 Elden Street; Herndon, Virginia 22070-
4817, telephone (703) 787-1591.
SUPPLEMENTARY INFORMATION: The MMS inspection program is mandated by
the OCS Lands Act (43 U.S.C. 1348) to conduct annual onsite inspections
at all OCS facilities, as well as periodic unannounced inspections, to
ensure compliance with environmental and safety regulations. In 1989,
MMS requested that the Marine Board study the inspection program to
develop and assess alternative inspection strategies and recommend
alternative inspection procedures which will improve operational safety
and the effectiveness of the inspection process. One of the Marine
Board report findings was that although the inspection program adhered
to the OCS Lands Act inspection requirements, OCS operator compliance
with regulations did not equal safety. The Marine Board recommended
that MMS develop programs to motivate operators to incorporate safety
directly into OCS drilling and production operations.
In the same year, an MMS internal task force also assessed the OCS
inspection and enforcement program. The MMS directed the task force to
develop measures to (1) enhance the inspection program operations and
(2) increase the safety of OCS operations. The task force found that
the inspection program was presently effective but may not meet future
inspection demands without incorporating innovative alternative
inspection strategies. One recommended strategy was to require OCS
operators to develop and implement an MMS-approved SEMP to stimulate
safety consciousness.
July 1991 Federal Register Notice
On July 2, 1991, MMS published a Federal Register Notice (56 FR
30400) that announced its investigation of alternative strategies to
promote safety and environmental protection in the OCS. The notice
discussed the SEMP concept and outlined key points of a SEMP plan that
a lessee/operator should adopt to ensure safety and environmental
protection while conducting operations in the OCS, including:
--Management Policy--short policy statement by appropriate management
official;
--Organizational Structure--description of responsibilities,
authorities, and communications for actions implementing SEMP;
--Policies and Procedures--responsibilities of officials, employees,
and contractors necessary to ensure safety and environmental
protection;
--Training Program--program to describe and demonstrate safe practice,
also a process for ensuring that all personnel, including contractors,
are adequately trained;
--Inspection, Testing, and Maintenance Program--program to ensure
inspections and tests are performed and equipment is maintained to
ensure safe and proper operation;
--Corrective Action--process to correct non-conformance of a SEMP
element;
--Accident Prevention and Investigation Program--procedures to address
accidents, operational upsets, and near misses, including a system to
review, analyze, and correct practices;
--Internal Review--process to systematically review and assess the SEMP
effectiveness;
--Procurement--policies and procedures to address procurement; and
--Documentation--all policies, procedures, and internal programs to be
documented.
The notice also solicited information on the SEMP concept and the
efforts necessary to implement a SEMP-like program. The MMS received
comments from offshore operators, trade organizations, government
entities, consultants, an engineering society, and an environmental
organization. Generally, the commenters supported MMS's efforts to
enhance safety and environmental protection in the OCS. Some were
concerned that SEMP would cross jurisdictional lines and create
regulatory conflict and confusion. Many commenters urged MMS to defer
publishing SEMP regulations and allow the American Petroleum Institute
(API) to develop a voluntary standard that addresses safety and
environmental protection.
In November 1991 and January 1992, as a part of the SEMP
information gathering process, MMS invited a cross section of operators
to give presentations on their safety policies and safety management
programs. Those discussions were useful for gaining a better
understanding of the overall development of industry safety programs
for both large and small operators. Most company presenters were
encouraged by the SEMP initiative. Several suggested that MMS wait
until the API completed its recommended practice before making a SEMP
decision. Some encouraged MMS to set goals for safety rather than
promulgate regulations, while others suggested that MMS coordinate SEMP
efforts with all other OCS-related agencies to streamline the
regulatory environment.
The MMS participated on the API subcommittee that developed
``Recommended Practices for Development of a Safety and Environmental
Management Program for Outer Continental Shelf (OCS) Operations and
Facilities'' (API RP 75), published in May 1993. We believe API RP 75
provides a good foundation for promoting safety and environmental
protection in the offshore oil and gas industry. The document generally
captures our perception of what SEMP should contain.
The API and Offshore Operators Committee (OOC) conducted three API
RP 75 workshops in 1993, one in New Orleans and two in Houston. The
purpose of the workshops was to provide attendees (especially small-
and medium-sized independent operators) a better understanding of the
purpose of API RP 75 and guidance for its implementation. The MMS
participated in all three workshops. Approximately 600 persons attended
the three workshops.
The MMS Intentions and Monitoring Plan
The MMS urges all operators to voluntarily implement the principles
of SEMP through API RP 75. In addition, MMS will cooperate with the
API/OOC SEMP committee (the Committee) in the continuing development of
the SEMP concept and will monitor industry's progress towards the
implementation of SEMP, while assessing its success.
The Committee, with assistance from MMS, will develop a survey for
distribution during 1994 to determine the status of industry's
implementation of API RP 75. The Committee may also sponsor a retreat
for all OCS operators to consider survey results and report on the
progress (and any problems) concerning the implementation of API RP 75.
Annually, the Committee will distribute followup surveys to assess the
progress of SEMP implementation.
For its part, MMS will postpone rulemaking for the general
application of SEMP for OCS facilities. During the next 2 years, MMS
will monitor the progress of API RP 75 application by (1) soliciting
informal information on the implementation of API RP 75 directly from
operators, (2) making general inquiries at offshore facilities to
monitor API RP 75 development, and (3) evaluating the results of the
Committee's survey. The MMS will also gather data on the need for SEMP
on OCS facilities and develop strategies for measuring SEMP application
and benefits.
The MMS will examine the progress and success of industry-wide
voluntary adoption of API RP 75. From these assessments, MMS will, at
the end of 2 years, decide whether to continue to monitor industry
progress or to proceed with rulemaking.
Future Options for SEMP
At the completion of the 2-year monitoring program, MMS will
determine if voluntary implementation of API RP 75 accomplishes the
goals of SEMP. Options for proceeding from that point include: (1)
Continuing to encourage voluntary implementation of the program, or (2)
establishing a structured regulatory program for all operations. Other
options may also be available, such as (1) only requiring SEMP for
specific areas, or (2) requiring SEMP where inspections or safety
records reveal less-than-acceptable performance. The MMS will identify
other options as well and select one or more options based on
monitoring results, industry's safety record, and other factors.
The MMS could also decide to continue monitoring the progress of
the voluntary implementation of SEMP. The MMS would monitor industry's
approach to safety management and accident rates, while inspectors
check for application of SEMP on platforms and facilities.
If voluntary adoption of API RP 75 is deemed unsuccessful, MMS may
require all operators to formally develop and implement SEMP. The MMS
could incorporate API RP 75 into the regulations, or it could
promulgate new SEMP requirements, possibly similar to the Occupational
Safety and Health Administration's 29 CFR 1910 regulations. The MMS
would alter its inspection program accordingly to ensure operators
implement SEMP.
The MMS may determine that SEMP is also suited for specialized
applications, such as in deep water or the arctic where operational
demands are greater. Under this option, a specific SEMP plan would
cover all operational activities at a site, including activities not
covered by current regulations. For example, a site-specific SEMP plan
would address contingency planning, risk analysis, and departures from
the regulations, as well as routine operations. This would compel an
operator to explain how it would ensure the safety of operations at a
specific site. The MMS is currently evaluating the application of the
SEMP concept to deep-water development.
Another option MMS may examine requires operators with less-than-
acceptable performance to develop and implement SEMP plans. The MMS
could evaluate operators based on inspection records and accident data.
This regulatory approach focuses on operators needing improvement and
does not place additional requirements on operators that consistently
operate in a safe manner.
Discussion of these regulatory options should not be considered an
indication that MMS is backing away from its commitment to the SEMP
concept or faith in API RP 75. The MMS strongly supports voluntary
implementation of API RP 75 by all lessees and operators.
Comments
We welcome your comments on MMS's SEMP concept, API RP 75, OCS
safety and environmental protection issues in general, implementation
strategies, and related matters. Send comments to MMS, Attention:
Chief, Inspection, Compliance, and Training Division; Mail Stop 4800;
381 Elden Street; Herndon, Virginia 22070-4817.
Dated: June 16, 1994.
Tom Fry,
Director, Minerals Management Service.
[FR Doc. 94-15945 Filed 6-29-94; 8:45 am]
BILLING CODE 4310-MR-M