[Federal Register Volume 60, Number 167 (Tuesday, August 29, 1995)]
[Rules and Regulations]
[Pages 44760-44762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21112]



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DEPARTMENT OF DEFENSE

Department of the Army
Corps of Engineers

33 CFR Part 322


Permits for Structures Located Within Shipping Safety Fairways

AGENCY: U.S. Army Corps of Engineers, DoD.

ACTION: Final rule.

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SUMMARY: The Corps is changing its rules regarding permits for the 
placement of temporary anchors, cables and chains for floating or 
semisubmersible drilling rigs within shipping safety fairways. Shipping 
safety fairways and anchorages are established on the Outer Continental 
Shelf by the U.S. Coast Guard to provide unobstructed approaches for 
vessels using U.S. ports. This change arises as a result of requests by 
offshore oil companies for exemptions to the provisions of the existing 
rule because drilling and production technologies have greatly extended 
the range of deepwater drilling and the 120 day time limits placed on 
temporary structures allowed within fairway boundaries are no longer 
reasonable.

EFFECTIVE DATE: September 28, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Ralph T. Eppard at (202) 761-1783.

SUPPLEMENTARY INFORMATION: Department of the Army permits are required 
for the construction of any 

[[Page 44761]]
structure in or over any navigable water of the United States pursuant 
to Section 10 of the Rivers and Harbors Act of 1899 (30 Stat. 1151; 33 
U.S.C. 403). This authority was extended to artificial islands and 
fixed structures located on the Outer Continental Shelf (OCS) by 
Section 4(f) of the Outer Continental Shelf Lands Act of 1953 (67 Stat. 
463; 43 U.S.C. 1333(e)).

Background

    Pursuant to the cited authorities, the Corps promulgated 
regulations in 33 CFR 209.135 establishing shipping safety fairways in 
the Gulf of Mexico to provide obstruction-free routes for vessels in 
approaches to United States ports. The Corps provided these 
obstruction-free routes by denying permits for structures within 
certain designated lanes. In 1978, the Ports and Waterways Safety Act 
(PWSA), was amended to delegate authority to the Department of 
Transportation and the Commandant, U.S. Coast Guard to establish vessel 
routing measures, including fairways and fairway anchorages. In 
accordance with the PWSA, the Coast Guard completed the required 
studies and published final rules establishing shipping safety fairways 
on May 13, 1982. The Corps subsequently revoked its fairway regulations 
in Section 209.135(d) but retained paragraph (b), which contains the 
conditions under which the nationwide permit for oil exploration and 
production structures on the OCS (33 CFR 330.5(a)(8)), was issued. On 
November 13, 1986, the Corps fairway regulations were repromulgated in 
33 CFR 322.5(l) to consolidate all permit regulations for structures in 
the same part.
    When the regulations allowing temporary structures within fairways 
were promulgated by the Corps in 1981, deepwater drilling occurred in 
water depths of 300 to 600 feet. At that time the limitation of 120 
days that temporary anchors would be allowed within fairways was 
considered reasonable. If the exploratory well was successful, a 
conventional fixed production platform would be used and there would be 
no further need to maintain the anchors within the fairway. Presently, 
according to offshore hydrocarbon exploration and production companies, 
technology has extended the range of deepwater drilling to water depths 
of 1,000 to 4,000 feet. As a result, drilling times have increased and 
production methods have changed. Accordingly, the limitation on the 
length of time (120 days), that an anchor is allowed within a fairway 
may not be appropriate, particularly in water depths in excess of 600 
feet. The industry has available many types of production platforms, 
including floating production systems that are anchored in place during 
the productive life of the reserves and then moved to a new location. 
In water depths greater than 600 feet, the floating production platform 
becomes an important production option and in water depths greater than 
1,000 feet these units are essential. In many instances, the only 
obstacle to using this type of system to drill and produce hydrocarbons 
is the location of a fairway. Current regulations require that the 
production system be placed at great distance from the fairway in order 
to keep the anchors clear of the fairway. The result is that there may 
be hydrocarbon bearing lease areas that cannot be effectively 
penetrated and produced. It should be noted that the requirement that 
the rig must be situated as necessary to insure that the minimum 
clearance over an anchor line within a fairway is 125 feet, is not 
changed by these amendments. In addition, these amendments are not 
intended to allow drilling structures within the fairways.
    On July 7, 1994, we published an advance notice of proposed 
rulemaking in the Federal Register, soliciting comments on four 
separate options concerning this matter. On May 1, 1995, we published a 
notice of proposed rulemaking in the Federal Register soliciting public 
comment on the option which would remove the 120 day time restrictions 
when water depths exceed 600 feet. We received eight letters in support 
of the proposed change. We did not receive any objections to the 
proposed change. Two of the commenters requested that the words 
``production facilities'' be added to clarify the rule. We agree with 
the addition of the production facilities as requested. The preamble to 
the advanced notice and the proposed rule referred to production 
platforms and production systems. As proposed, we are also amending the 
rules in 33 CFR 322.5(l) by removing the word ``temporary'', making it 
clear by restructuring the sentences that drilling rigs, including 
floating or semisubmersible drilling rigs, are not allowed within 
fairway boundaries and adding a sentence to subparagraph (i) to 
eliminate time restrictions on temporary and permanent anchors, 
attendant cable and chains within fairways when water depths exceed 600 
feet. Such anchors, attendant cable and chains must be for floating or 
semisubmersible exploratory or production drilling rigs only. In areas 
where water depths are less than 600 feet, the time limit of 120 days 
continues to apply.

Regulatory Analyses and Notices

    The Corps has determined in accordance with E.O. 12866 that this 
rule is not a major rule. It will not result in an annual effect on the 
economy of $100 million or more. There will be no major increase in 
costs or prices for consumers; individual industries, Federal, State or 
local Governments or geographic regions. It will not have a significant 
adverse effect on competition, employment, investment, productivity, or 
the ability of United States-based enterprises to compete with foreign-
based enterprises in domestic or export markets. Pursuant to the 
Regulatory Flexibility Act, Pub. L. 96-354, I certify that this rule 
will not have a significant economic effect on a substantial number of 
small entities as the rule would remove a restriction allowing access 
to areas on the outer continental shelf previously unavailable.

List of Subjects in 33 CFR Part 322

    Continental shelf, Electric power, Navigation, Water pollution 
control, Waterways.

    In consideration of the above, the Corps of Engineers is amending 
Part 322 of Title 33, as follows:

PART 322--PERMITS FOR STRUCTURES OR WORK IN OR AFFECTING NAVIGABLE 
WATERS OF THE UNITED STATES

    1. The authority citation for Part 322 continues to read as 
follows:

    Authority: 33 U.S.C. 403.

    2. Section 322.5 is amended by revising the introductory text of 
paragraph (l)(1), redesignating paragraphs (l)(1)(i) through (l)(1)(vi) 
as paragraphs (l)(1)(ii) through (l)(1)(vii) respectively, adding a new 
paragraph (l)(1)(i), and revising redesignated paragraph (l)(1)(ii) to 
read as follows:
Sec. 322.5  Special policies.

* * * * *
    (l) Shipping safety fairways and anchorage areas.
* * * * *
    (1) The Department of the Army will grant no permits for the 
erection of structures in areas designated as fairways, except that 
district engineers may permit anchors and attendant cables or chains 
for floating or semisubmersible drilling rigs to be placed within a 
fairway provided the following conditions are met:
    (i) The purpose of such anchors and attendant cables or chains as 
used in 

[[Page 44762]]
this section is to stabilize floating production facilities or 
semisubmersible drilling rigs which are located outside the boundaries 
of the fairway.
    (ii) In water depths of 600 feet or less, the installation of 
anchors and attendant cables or chains within fairways must be 
temporary and shall be allowed to remain only 120 days. This period may 
be extended by the district engineer provided reasonable cause for such 
extension can be shown and the extension is otherwise justified. In 
water depths greater than 600 feet, time restrictions on anchors and 
attendant cables or chains located within a fairway, whether temporary 
or permanent, shall not apply.
* * * * *
    Dated: August 15, 1995.
Stanley G. Genega,
Major General, U.S. Army, Director of Civil Works.
[FR Doc. 95-21112 Filed 8-28-95; 8:45 am]
BILLING CODE 3710-92-M