[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