[Federal Register Volume 60, Number 167 (Tuesday, August 29, 1995)]
[Rules and Regulations]
[Pages 45006-45018]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-21292]




[[Page 45005]]

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Part V





Department of Transportation





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Coast Guard



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33 CFR 156



Designation of Lightering Zones in the Gulf of Mexico; Final Rule

  Federal Register / Vol. 60, No. 167 / Tuesday, August 29, 1995 / 
Rules and Regulations   

[[Page 45006]]


DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 156

[CGD 93-081]
RIN 2115-AE90


Designation of Lightering Zones

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Coast Guard is designating four lightering zones in the 
Gulf of Mexico, each more than 60 miles from the baseline from which 
the territorial sea of the United States is measured. By using these 
lightering zones, single hull tank vessels contracted for after June 
30, 1990, and older single hull tank vessels phased out by the Oil 
Pollution Act of 1990, will be permitted to offload oil in the U.S. 
Exclusive Economic Zone (EEZ) until January 1, 2015 for transshipment 
to U.S. ports. This rule establishes the first lightering zones 
designated by the Coast Guard. It also establishes three areas in the 
Gulf of Mexico where all lightering will be prohibited.

EFFECTIVE DATE: This rule is effective on August 29, 1995. The Director 
of the Federal Register approves as of August 29, 1995, the 
incorporation by reference of certain publications listed in 
Sec. 156.111.

ADDRESSES: Unless otherwise indicated, documents referred to in this 
preamble are available for inspection or copying at the office of the 
Executive Secretary, Marine Safety Council (G-LRA/3406), U.S. Coast 
Guard Headquarters, 2100 Second Street, SW., room 3406, Washington, DC 
20593-0001, between 8 a.m. and 3 p.m., Monday through Friday, except 
Federal holidays. The telephone number is (202) 267-1477.

FOR FURTHER INFORMATION CONTACT: LCDR Stephen Kantz, Project Manager, 
Oil Pollution Act (OPA 90) Staff, (G-MS-A), (202) 267-6740. This 
telephone is equipped to record messages on a 24-hour basis.

SUPPLEMENTARY INFORMATION:

Drafting Information

    The principal persons involved in drafting this document are LCDR 
Stephen Kantz, Project Manager, Oil Pollution Act (OPA 90) Staff, and 
C. G. Green, Project Counsel, Regulations and Administrative Law 
Division (G-LRA).

Regulatory History

    In November 1993, the Coast Guard received several requests to 
establish lightering zones in the Gulf of Mexico. On December 2, 1993, 
the Coast Guard published in the Federal Register a notice of these 
petitions for rulemaking and request for comment (58 FR 63544).
    The requests received by the Coast Guard for the designation of 
lightering zones varied in their specifics. One requested that all U.S. 
waters of the Gulf of Mexico more than 60 miles beyond the baseline 
from which the territorial sea is measured be designated as a 
lightering zone. Another sought a large lightering zone off the coast 
of Texas and a smaller one off the coast of Louisiana. The third 
request was for a lightering zone off the coast of Mississippi.
    On December 16, 1993, the Coast Guard published in the Federal 
Register a notice of public meeting to solicit opinions on whether 
lightering zones should be established and, if so, where they should be 
located and what operating conditions should be mandated (58 FR 65683). 
A public meeting was held in Houston, Texas, on January 18, 1994. 
Ninety-six people attended this meeting, representing industry, 
environmental advocates, and government agencies.
    On January 5, 1995, the Coast Guard published a notice of proposed 
rulemaking (NPRM) entitled ``Designation of Lightering Zones'' in the 
Federal Register (60 FR 1958). The Coast Guard received 23 letters 
commenting on the proposal.
    On January 13, 1995, the Coast Guard published in the Federal 
Register a notice of public meeting to solicit additional opinions on 
the NPRM (60 FR 3185). A public meeting was held in Metairie, 
Louisiana, on February 16, 1995. Fifty-five people attended this 
meeting, representing tankship owners and operators, service and 
support industries, and government agencies. Ten attendees made oral 
presentations, and most of these individuals subsequently provided 
written copies of their presentations for the docket. No additional 
public meeting was requested and none was held.

Background and Purpose

    Section 3703a of Title 46 of the United States Code establishes the 
requirements for tank vessels eventually to be equipped with double 
hulls, and includes a phaseout schedule for single hull tank vessels. 
This section also provides exemptions from the double hull requirement. 
Until January 1, 2015, a tank vessel need not comply with the double 
hull requirement when it is offloading oil at a deepwater port licensed 
under the Deepwater Port Act of 1974, as amended (33 U.S.C. 1501, et 
seq.) or within a lightering zone established under 46 U.S.C. 
3715(b)(5), which is more than 60 miles from the baseline from which 
the U.S. territorial sea is measured (46 U.S.C. 3703a(b)(3)). 
Currently, only the Louisiana Offshore Oil Port (LOOP) has been 
authorized under the Deepwater Port Act of 1974. No lightering zones 
have previously been established under 46 U.S.C. 3715(b)(5).
    By using designated lightering zones more than 60 miles from the 
baseline from which the territorial sea is measured, single hull tank 
vessels contracted for after June 30, 1990, and older single hull tank 
vessels phased out by the Oil Pollution Act of 1990 (OPA 90) (Pub. L. 
101-380), will be able to lighter until January 1, 2015. For 
clarification, throughout the preamble discussion for this final rule, 
the term ``double hull'' means a tank vessel meeting the requirements 
of 33 CFR 157.10d, or an equivalent to the requirements of 33 CFR 
157.10d. The term ``single hull'' tank vessel means any tank vessel 
which does not conform to, or is not considered equivalent to, the 
requirements of 33 CFR 157.10d.
    Before proposing the zones designated by this rule, in accordance 
with 33 CFR part 156, the Coast Guard considered the various factors in 
designating lightering zones: Traditional use of the area for 
lightering; weather and sea conditions; water depth; proximity to 
shipping lanes, vessel traffic schemes, anchorages, fixed structures, 
designated marine sanctuaries, fishing areas, and designated units of 
the National Park System, National Wild and Scenic Rivers System, 
National Wilderness Preservation System, properties included on the 
National Register of Historic Places and National Registry of Natural 
Landmarks, and National Wildlife Refuge System; and other relevant 
safety, environmental, and economic data (33 CFR 156.230). Current 
regulations at 33 CFR 156.225 provide the District Commander the 
authority to designate lightering zones. Due to the extensive 
environmental and economic analysis required, and because this 
rulemaking was determined to be a significant regulatory action under 
Department of Transportation (DOT) policy, this rulemaking was prepared 
by the Commandant of the Coast Guard. However, this rulemaking by the 
Commandant will not affect the District Commander's authority under 33 
CFR 156.225 to administer and modify these zones as appropriate or to 
designate subsequent lightering zones. 

[[Page 45007]]


Related Rulemakings

    On September 15, 1993, the Coast Guard published a final rule (CGD 
90-052) revising 33 CFR part 156, subpart B, to clarify that 
regulations issued under section 311(j) of the Federal Water Pollution 
Control Act (FWPCA) (33 U.S.C. 1321 et seq.) apply to offshore 
lightering operations when conducted in the U.S. marine environment (58 
FR 48436). Under that rulemaking, a Declaration of Inspection (as 
required by 33 CFR 156.150) and a vessel response plan (if required 
under part 155) serve as acceptable evidence of compliance with section 
311(j) of the FWPCA. The vessel to be lightered and the service vessel, 
as defined in 33 CFR 156.205, must both have such evidence of 
compliance on board at the time of a transfer. The rule also amended 33 
CFR 156.215, pre-arrival notice requirements, to include the number of 
transfers expected and the amount of cargo expected to be transferred 
during each lightering operation.
    On July 1, 1994, the Coast Guard published an interim final rule 
(CGD 91-005) implementing provisions concerning financial 
responsibility for vessels under OPA 90 and the Comprehensive 
Environmental Response, Compensation, and Liability Act (CERCLA), as 
amended. These provisions included expanding the applicability of the 
financial responsibility requirements of 33 CFR part 130 to ``vessels 
of any size using the waters of the exclusive economic zone to 
transship or lighter oil'', specifically meaning both the delivering 
and receiving vessels. Consequently, when lightering in the EEZ, both 
vessels are required to possess valid Certificates of Financial 
Responsibility (COFR) demonstrating evidence of insurance, or other 
evidence of financial responsibility, sufficient to meet the vessels' 
potential liability under OPA 90 and CERCLA for discharges or 
threatened discharges of oil. This requirement went into effect July 1, 
1994.

Effective Date

    This rule is being made effective on August 29, 1995. Under 5 
U.S.C. 553(d) a rule may be made effective less than 30 days after its 
publication if it grants or recognizes an exemption or relieves a 
restriction. At the present time, single hull tank vessels contracted 
for after June 30, 1990, and single hull tank vessels phased out by OPA 
90 cannot offload oil destined for the U.S. in the U.S. Exclusive 
Economic Zone (EEZ) except at a deepwater port or in a designated 
lightering zone. The first single hull vessel phase out date went into 
effect January 1, 1995. There is only one deepwater port (LOOP) and 
this deepwater port does not provide oil to many of the refineries 
along the Gulf Coast. This rule establishes the first designated 
lightering zones for the United States. By using these lightering 
zones, single hull tank vessels currently precluded from operating in 
the EEZ may lighter their oil cargo closer to the U.S. ports for which 
it is destined. For these reasons, the Coast Guard finds that this rule 
should be made effective in less than 30 days after publication.
Discussion of Comments and Changes

    The Coast Guard has reviewed all of the comments received in 
response to the NPRM and, in some instances, revised the final rule 
language based on these comments. The comments have been grouped by 
major issue or specific regulatory section and are discussed below.

General

    Of the comments received in response to the NPRM, most generally 
supported the designation of lightering zones in the Gulf of Mexico and 
noted that the need for lightering was increasing.
    An individual representing the American Institute of Merchant 
Shipping (AIMS), the American Petroleum Institute (API), and the 
Industry Task Force on Offshore Lightering (ITOL) spoke at the public 
meeting in New Orleans and also provided a letter to the docket, giving 
a number of detailed reasons why these organizations all support this 
rulemaking. Together these organizations represent over 300 companies 
engaged in all aspects of the petroleum and marine transportation 
industry. Since the comments, both at the public meeting and in a 
letter to the docket, present the views of the majority of commercial 
interests impacted by this rulemaking, they are identified as the 
``industry comments'' throughout the remaining preamble discussion, and 
the individual who spoke at the hearing is identified as the ``industry 
representative''.
    At the public meeting the industry representative stated that 
lightering has long been established as a safe and effective means of 
transferring imported crude oil from tankers too large for shallow 
water ports to small tankers that serve refineries ashore. He further 
stated that 25 percent of U.S. crude oil imports are delivered this way 
in the Gulf of Mexico at a rate of approximately 2 million barrels per 
day. He asserted that the establishment of these zones is absolutely 
critical to meet the supply requirements of U.S. refineries and noted 
that lightering operations historically have been conducted in a safe 
and environmentally sound manner. He cited the Coast Guard 1993 
Deepwater Ports Study which stated that between 1986 and 1990 only 15 
lightering casualties were reported for a total spillage of 45 barrels 
and that the relative risk factor of lightering operations in zones 40 
to 60 miles offshore was zero. The industry representative added that 
factors which would benefit spill response and mitigation should be 
considered in establishing lightering zones.
    Two comments from organizations involved in the shipbuilding 
industry generally opposed the proposed regulations. Both comments 
stated that the designation of lightering zones would be a disincentive 
to purchase new double hull tankers. They also stated that the 
continued use of single hull tankers would increase the potential risks 
of collisions and oil spills which OPA 90 was intended to prevent, and 
that the proposed regulations would circumvent the transition to double 
hull tankers.
    The Coast Guard has determined that establishing lightering zones 
will not encourage further single hull tanker construction. Such 
construction is effectively barred by the International Maritime 
Organization's (IMO) adoption of Regulation 13F of Annex I to the 
International Convention for the Prevention of Pollution from Ships, 
1973, as modified by the Protocol of 1978 (MARPOL 73/78) which requires 
double hull or mid-deck construction of all new tankers for which 
contracts are placed on or after July 6, 1993, or which are to be 
completed after July 6, 1996. (It should be noted that mid-deck 
construction is not an acceptable alternative to a double hull under 46 
U.S.C. 3703a). Additionally, the IMO has adopted Regulation 13G in 
Annex I of MARPOL 73/78. Regulation 13G subjects tank vessels to 
increasingly rigorous hull surveys at 5-year intervals and is 
practically certain to bring about the timely retirement of most aging 
single hull tankers. This retirement of single hull tankers would 
occur, notwithstanding the exemption under OPA 90 that permits single 
hull tankers to operate in U.S. waters until the year 2015 by using a 
designated lightering zone. It is the consensus of the worldwide 
industry that a minority of crude oil tankers will survive the 
prohibitively costly survey regimen that will begin at their 25th 
anniversary survey. The international regulations, in conjunction with 
the provisions of section 4115 of OPA 90, effectively 

[[Page 45008]]
ensure that the day of the single hull tanker is ending. Available data 
shows that many single hull tankers are being scrapped earlier than 
required by either OPA 90 or MARPOL 73/78.
    A letter from the Minerals Management Service (MMS) of the 
Department of the Interior expressed concern about establishing 
lightering zones in active oil and gas development areas on the Outer 
Continental Shelf (OCS). It was concerned with the safety of offshore 
production facilities which could be at risk from vessels in the 
proposed lightering zones. The comment urged that the Coast Guard work 
together with MMS to monitor lightering zones to avoid use conflicts 
and to promote safety, and suggested that the Coast Guard decrease the 
size of the proposed zones or require permanent mooring buoys for use 
by lightering vessels.
    The Coast Guard is aware of the active mineral and oil industry on 
the Gulf of Mexico's OCS and has historically been involved with the 
safety of the offshore marine industry and environment. The reserves 
and refineries of the western Gulf Coast region play a significant role 
in the nation's energy needs. The development of the extensive refining 
capacity which now exists along the Gulf Coast was a consequence of the 
development of regional land-based oil and gas reserves as well as 
those offshore. Due to the fluctuations in crude oil prices and the 
variations in crude oil composition, these Gulf Coast refineries must 
supplement their domestically produced sources with waterborne oil 
imports. This rule will help to meet the regional needs of these 
refiners for imported oil and provide stability to the nation's energy 
supply and economy. The designated lightering zones and prohibited 
areas in this rulemaking will only affect the lightering activities 
within their geographical bounds and will not interfere with or 
discourage the development of OCS oil and gas reserves.
    Regarding the safety of offshore production facilities from vessel 
activities in the lightering zones, only the South Sabine Point 
lightering zone and the northern tip of the Southtex lightering zone 
include waters where an appreciable number of production facilities 
have been constructed. A significant factor favoring construction of 
production platforms in these areas is the shallow water depths, 
generally less than 200 meters (109 fathoms). The shallower areas of 
the South Sabine Point and the northern tip of the Southtex lightering 
zones allow lightering to be conducted while vessels are anchored.
    During the last 15 years, offshore lightering in the vicinity of 
the South Sabine Point transshipment area (TSA) and Offshore Galveston 
No. 1 and No. 2 TSAs has not proven to be a safety hazard to the 
production platforms in the areas, nor has it affected offshore oil and 
gas development. It is anticipated that lightering will continue in 
these locations even after designation of lightering zones. The 
operational restrictions in this rule mirror several practices 
currently used by many offshore lightering companies. One of these 
industry practices is a 1-nautical mile minimum closest-point-of-
approach (CPA) to production platforms and drilling units. The 
maintenance of a 1-nautical mile CPA by lighterers has thus far proven 
adequate to provide for the safety of nearby offshore mineral, oil, and 
gas development facilities. Formally requiring this minimum CPA and 
other operating restrictions in the final rule enhances the safety of 
production facilities in the designated lightering zones. The remaining 
areas of the designated lightering zones, other than South Sabine Point 
and the northern tip of Southtex zones, have undergone little 
development and, therefore, provide expansive open waters to all users.
    This rulemaking establishes the first lightering zones designated 
by the Coast Guard. As discussed previously, the District Commander's 
authority at 33 CFR 156.225 to designate lightering zones and their 
operating requirements remains unaffected by this rulemaking. The 
Commander, Eighth Coast Guard District, located in New Orleans, 
Louisiana, will administer the lightering zones designated in this 
rule. If experience indicates that a realistic threat to offshore 
facilities exists or that additional safety criteria or procedures are 
warranted to regulate activities in these zones, the District Commander 
may revise these regulations as appropriate.
    One comment suggested that the proposed regulations should also 
authorize offloading of oil from deepwater production facilities 
located inside lightering zones. These facilities would include tension 
leg platforms, spars, semi-submersibles, and converted tankers.
    The comment misunderstood the NPRM as limiting authorized 
operations within lightering zones to lightering and bunkering 
operations from oceangoing tankers. There are no generally authorized 
or prohibited activities in designated lightering zones. Rather, this 
rule regulates how lightering activities should be conducted within the 
designated zones. Offloading of oil from deepwater production 
facilities in designated lightering zones is not prohibited or 
otherwise regulated by this rule. That activity continues to be subject 
to the regulations in 33 CFR part 154 and subpart A of part 156, 
whether the activity occurs inside or outside a designated lightering 
zone.

Addition of Fourth Lightering Zone at South Sabine Point

    In the NPRM for this rulemaking, the Coast Guard specifically 
requested comments on whether an additional area off Galveston, Texas, 
in the vicinity of South Sabine Point TSA, should be designated as a 
fourth lightering zone. Twelve comments addressed this issue.
    These comments supported designating the area as an additional 
lightering zone. The comments indicated that this area is closest to 
lightering support centers of Texas refining complexes and within range 
of all support helicopters. The comments also indicated that the South 
Sabine Zone would decrease congestion in the northwestern corner of the 
Southtex zone by providing additional anchorage area for lightering 
operations. Industry comments at the public meeting in New Orleans 
detailed reasons why an additional zone at South Sabine Point should be 
established. These reasons were stated as follows:
    (1) The South Sabine Point zone is closest to shoreside responders 
and response vessels pre-staged to respond to a pollution incident.
    (2) In many environmental conditions, anchoring is the preferred 
method of lightering. This procedure generally is not available to 
tankers lightering in the other lightering zone off the coast of Texas 
(Southtex), where the waters are largely too deep.
    (3) Shallower water depths in the South Sabine Point zone 
contribute to more moderate sea conditions than those generally found 
in the Southtex zone.
    (4) This area is currently being used for lightering and 
historically has been so used for almost 20 years.
    (5) It is the closest zone to the principal lightering support 
centers of eastern Texas.
    (6) This area is also within the range of most helicopters from the 
Houston-Galveston-Port Arthur areas which can fly round trip, without 
requiring refueling.
    (7) The majority of oil lightered in the Gulf of Mexico is destined 
for the Houston-Galveston-Port Arthur areas. If the Southtex zone were 
the only one available for tankers with oil destined 

[[Page 45009]]
for Houston, Galveston, or Port Arthur, the added costs for support and 
transportation would create an additional economic burden for many 
Texas refineries. This burden would not be shared by other refineries 
on the Gulf Coast, placing them at an economic disadvantage.
    (8) Because of proximity to ports and shallower water depths for 
anchoring, the northwestern corner of the Southtex zone would get very 
crowded if lightering were not allowed in the South Sabine Point zone.
    (9) The extension of the logistics lines for lightering support is 
a major safety and economic concern.
    Unified comments from three international organizations heavily 
involved in the tanker industry, Oil Companies International Marine 
Forum (OCIMF), the International Chamber of Shipping (ICS), and the 
International Association of Independent Tanker Owners (INTERTANKO), 
expressed support for the designation of the proposed lightering zones. 
These organizations also supported the designation of South Sabine 
Point zone, citing many of the same reasons as in the industry 
comments. The Texas GLO also supported the designation of the South 
Sabine Point zone.
    Data contained in the Regulatory Assessment on 1992 U.S. crude oil 
imports by water show that all offshore lightering for the U.S. was 
conducted in the Gulf of Mexico. The data further indicate that 
lightered oil delivered to the Houston, Galveston, and Port Arthur 
areas was approximately 50 percent of the total lightered oil, 
averaging over 800,000 barrels per day. Similar import data for 1993 
shows an increase to 900,400 barrels per day. This latter figure 
represents 60 percent of the oil lightered in the Gulf of Mexico. Based 
on the data, the industry comments expressed at the public meeting, and 
comment letters to the docket, the Coast Guard has decided to designate 
a fourth zone named ``South Sabine Point.'' The boundaries of the South 
Sabine Point zone have been added to Sec. 156.300 as a new paragraph 
(d). The same operational conditions and restrictions which apply in 
the proposed three lightering zones will apply to this new zone.

Request for Comments on Additional Rulemaking

    In response to the Coast Guard's request for comments on whether to 
consider a rulemaking to change the traditional lightering areas into 
formal lightering zones and whether any of the concepts contained in 
the NPRM could be used in such a subsequent rulemaking, comments from 
industry noted that lightering operations are highly professional cargo 
transfer operations and that the industry's record for safety is 
outstanding. The comments stated that the purpose of this rulemaking is 
to implement the clear language of OPA 90 which allows single hull 
vessels to continue to lighter in the Gulf of Mexico until January 1, 
2015, and that there is no need for this rulemaking to regulate current 
long-standing lightering operations being conducted elsewhere in the 
Gulf of Mexico.
    The Texas GLO stated that the proposed weather, operational, and 
work hour limitations should apply to all vessels engaged in lightering 
activities regardless of their location. The GLO also suggested that 
lightering should be prohibited in all areas, except for the proposed 
designated lightering zones, and that designation of lightering zones 
would minimize the area which must be patrolled and inspected for 
compliance with the Coast Guard's rule. It added that the ability to 
plan for responses to offshore spills would be greatly enhanced by 
allowing lightering only in specific areas, asserting that failure to 
contain and remove oil from the offshore environment often results in 
substantial impact to Texas shores. The GLO cited the recent spill from 
the BERGE BANKER\1\ as an example of such impact, noting that most of 
the fuel oil sank and that large tar mats and tar balls washed ashore 
in Texas weeks after the spill, threatening recreational use of the 
beaches.

    \1\The collision between two Norwegian tankers, the BERGE BANKER 
and the SKAUBAY, which were maneuvering in preparation for 
lightering, occurred on February 5, 1995. The vessels collided in 
the vicinity of the Offshore Galveston No. 2 transshipment area, 45 
miles off the Texas coast. This incident constitutes the first 
transit casualty related to offshore lightering, and, although no 
cargo oil was spilled, nearly 900 barrels of heavy fuel oil spilled 
into the Gulf, creating an oil sheen 3 miles long. This collision is 
still under investigation.
    The Coast Guard was the Federal On-Scene Coordinator for this 
spill cleanup both offshore and later on shore when beach impact 
occurred. The offshore cleanup of this spill was limited in its 
effectiveness due to two related factors: the type of oil spilled, a 
heavy bunker fuel oil, and the sea and weather conditions at the 
time. Although two oil spill recovery vessels were used for a period 
of 3 days, less than 5 barrels of oil was recovered. Due to 
subsequent winds and currents, the weathered oil washed ashore 12 
days later on Matagorda Island, predominantly in the form of tar 
mats and balls.
    The Coast Guard has decided to limit this rulemaking to designating 
lightering zones and prescribing some restrictions on lightering 
activities within the zones to implement the exceptions in OPA 90 to 
the double hull standards. The rule does not affect existing 
regulations concerning the response to and recovery of spilled oil. 
Other than the prohibited areas designated in Sec. 156.310, the Coast 
Guard is not restricting lightering activities elsewhere in the Gulf of 
Mexico at this time, but it may do so in the future if circumstances 
change. The final rule contains a new paragraph in Sec. 156.330 that 
governs vessels maneuvering in preparation for mooring alongside. Like 
the other operational restrictions in the final rule, it applies only 
in the lightering zones and is intended to prevent the occurrence of 
oil spills associated with that aspect of lightering activities in the 
zones.
    One comment from National Oceanic and Atmospheric Administration 
(NOAA) suggested moving the northernmost boundary of the Southtex 
lightering zone 15 nautical miles to the south. This suggestion was 
based upon spill trajectory data concerning the Flower Gardens 
Sanctuary, which NOAA had obtained from the MMS. The suggested boundary 
change would keep the zone outside a 10 percent contact probability 
area over a 3-day period during the spring and summer seasons.
    The Coast Guard has reviewed this trajectory information and has 
decided to retain the boundaries of the Southtex lightering zone as 
proposed in the NPRM. Accommodating the requested 3-day/10-percent 
seasonal contact probability would remove from the zone some of the 
area closer to shore where most users in this zone would operate. There 
are already numerous oil and gas production platforms within an 8 
nautical mile range of the sanctuary. Additionally, the main east-west 
shipping fairway extends through the Flower Garden prohibited area 
between the marine sanctuary and the northern edge of the Southtex 
lightering zone. The Coast Guard believes that providing an 8 nautical 
mile distance from the northernmost boundary of the Southtex zone 
affords an adequate range of protection to the sanctuary against 
surface spillage. In the event of an oil spill originating at or near 
the water surface, the toxic effects of the soluble and lighter 
aromatic components of crude oil (C-12 [crude oil with 12 carbon 
molecules] or less) can reasonably be expected to be minimal after 24 
hours of exposure to air, surface wave action, and the relatively warm 
climatic conditions of the Gulf. As indicated in a 1987 MMS study, 
small surface spills are unlikely to have any significant impact on the 
health of Flower Garden Banks corals. Oil from surface spills, driven 
into the water column to depths of 10 meters (33 feet), is found only 
at concentrations several 

[[Page 45010]]
orders of magnitude lower that those shown to have an effect on corals. 
Oil released in surface spills and driven 15 meters (50 feet) deep to 
the shallowest point on the Flower Garden Banks would be in such low 
concentrations that, according to the study, it would have no 
significant impact on these reefs.

Section 156.111  Incorporation by Reference

    Five comments addressed this section of the NPRM. One comment 
agreed with the inclusion of documents mentioned in this section. A 
letter from the Oil Companies International Marine Forum (OCIMF) 
provided an updated address for their organization as well as for the 
International Chamber of Shipping (ICS). These two organizations are 
the co-authors of the Ship to Ship Transfer Guide (Petroleum). This 
section has been amended to reflect these new addresses.
    Three of the comments suggested additional materials be included in 
this section. One comment suggested incorporating by reference the 
``Limitation/Obstruction Markings'' discussion in the American 
Petroleum Institute publication, API Recommended Practice for Planning, 
Designing, and Construction of Heliports for Fixed Offshore Platforms 
in Sec. 156.330, arguing that such guidelines should be included 
because markings benefit landing safety on shipboard helodecks. This 
same comment suggested making the International Chamber of Shipping 
(ICS) Guide to Helicopter/Ship Operations, Third Edition (1989), a 
recommended rather than mandated reference for operations in these 
lightering zones. Two comments suggested incorporation of two 
additional standards in Sec. 156.330: the ITOL Guidelines for Offshore 
Lightering (1994), and the Rubber Manufacturers Association 
Specifications for Rubber Hose for Oil Suction and Discharge 
Specification (1991).
    Comments from the Texas General Land Office (GLO), although 
generally supporting the rulemaking, stated that the goals of the 
rulemaking could be better served by requiring that the practices in 
the Oil Companies International Marine Forum (OCIMF) Ship to Ship 
Transfer Guide (Petroleum), Second Edition, 1988, and in the 
International Chamber of Shipping Guide to Helicopter/Ship Operations, 
Third Edition, 1989, apply to all lightering in the Gulf of Mexico.
    Industry comments at the public meeting in New Orleans encouraged 
the Coast Guard to incorporate by reference industry standards and 
operating practices wherever possible as this is the most cost-
effective and non-redundant method of establishing effective practical 
standards. The industry representative noted that the ITOL Operating 
Guidelines were developed specifically to address the conditions faced 
by lighterers in the Gulf of Mexico and that it would be appropriate 
that these guidelines be incorporated by reference into Sec. 156.330 of 
the final regulations. He added that along these same lines, while the 
ICS helicopter guide is an excellent reference, there are some sections 
in the guide for which local conditions dictate a somewhat different 
approach to lightering operations and that the local helicopter 
guidelines should be incorporated by reference in Sec. 156.330 in the 
regulations. Another comment from Gulf Coast helicopter operators also 
urged that conformity with the ICS helicopter guide not be required, 
citing the same reasons articulated by the industry representative.
    The Coast Guard has reviewed both the OCIMF Guide and ICS Guide in 
light of these comments. The Coast Guard's position is that the 
authority and responsibility for the safety of a vessel, its crew, and 
its cargo rests with the master of that vessel. Consequently, since the 
practices and considerations presented in the OCIMF Guide, and the ICS 
Guide, are generally procedural recommendations, the Coast Guard is not 
making them mandatory in the lightering zones designated by this final 
rule. Rather, they should be implemented to the maximum extent 
practicable for vessels conducting lightering operations in these 
zones. The recommended procedures and checkoff sheets in these guides, 
along with the operational restrictions specified in this rulemaking, 
provide for safe lightering practices while still providing the masters 
of the respective vessels sufficient latitude to exercise their 
responsibility for safe navigation and cargo operations. This allows 
flexibility, for instance, in the use of peculiar fendering 
arrangements based upon the general arrangement of the vessels involved 
and the lighterers' preference based upon experience.
    The Coast Guard is not incorporating by reference the ITOL 
Guidelines for Offshore Lightering (1994). However, several pertinent 
provisions of the ITOL Guidelines are reflected in Sec. 156.330 of this 
final rule. Additionally, the Coast Guard agrees that the flow rates 
used with certain cargo oil transfer hoses should be left up to the 
lighterers' discretion based on the pumps and piping systems of the 
vessels involved. The Coast Guard notes that hoses which comply with 
the Rubber Manufacturers Association Specifications for Rubber Hose for 
Oil Suction and Discharge Specification (1991) would satisfy the 
requirements of 33 CFR 155.800. However, incorporation of a hose 
standard that would affect vessels other than those in the designated 
lightering zones is beyond the scope of this rulemaking.
    Since the OCIMF Guide is not mandatory, the requirement for a radio 
voice warning in Sec. 156.330(c) has been revised to require certain 
information identified in section 5.6 of the OCIMF Guide. This specific 
information includes:

--The names of the vessels involved;
--The vessels' geographical positions and general headings;
--A description of the operations;
--The expected time of commencement and duration of the operation; and
--Request for wide berth.

Section 156.205  Definitions

    Three comments addressed this section. One comment stated that the 
definition of lightering at 33 CFR 156.205(b) should clearly state that 
oil spill response vessels (OSRVs), including barges, conducting ship 
to ship transfers as part of oil spill response operations are exempt 
from lightering regulations. This comment claimed that compliance with 
the proposed regulations might interfere with response activities. The 
Coast Guard agrees that operations related to the transfer of recovered 
oil from OSRVs were not intended to fall within the scope of the OCIMF 
Ship to Ship Transfer Guide (Petroleum).
    Additionally, the equipment, arrangement, and construction 
requirements for OSRVs are specifically addressed by other Coast Guard 
requirements. Lightering conducted as a shipboard spill mitigation 
procedure under a spill response plan approved under subpart D of 33 
CFR part 155 already incorporates the use of the OCIMF Guide transfer 
procedures. Consequently, the Coast Guard agrees that the lightering 
regulations in subpart B of 33 CFR part 156 should not apply to OSRVs 
or to vessels of opportunity in accordance with the National 
Contingency Plan (40 CFR parts 9 and 300) when transferring oil during 
oil spill response activities. In lieu of the requested revision to 
Sec. 156.205, the Coast Guard is revising the applicability section for 
subpart B, Sec. 156.200, to exclude such activity by these vessels from 
the requirements of this subpart. 

[[Page 45011]]


Section 156.210  General

    Four comments were received in response to this section of the 
NPRM. Two comments supported the proposed work hour limitations, while 
another comment argued that the limitations should conform to the 
stricter requirements proposed under the International Convention on 
Standards of Training, Certification and Watchkeeping for Seafarers, 
1978 (STCW Convention). Taking unilateral action to impose the proposed 
STCW standards would be inappropriate. The Coast Guard will not 
initiate a rulemaking on these requirements until the provisions of the 
STCW Convention are finalized and adopted by the United States.
    The fourth comment requested clarification as to whether the 
proposed work hour limitations would apply to laden service vessels 
actually located in designated lightering zones but not engaged in 
cargo transfer activities or to service vessels located in designated 
lightering zones but not carrying cargo. Industry generally supported 
the application of work hour and rest period restrictions to lightering 
operations, but recommended that the applicability of this requirement 
be clarified in the final rule.
    The Coast Guard has clarified this section in the final rule, 
specifying the activity and the time period involved. When in the 
designated zones, the crews of both the tank vessels to be lightered 
and the crews of the service vessels are subject to the work hour 
limitations throughout the duration of lightering operations, as 
defined in 33 CFR 156.205(b). For these licensed individuals and seamen 
to start work during lightering operations in a lightering zone, their 
work hours during the last 24 and 72 hours prior to the commencement of 
the lightering operation must be considered, and the individual must be 
in compliance with this section. This section has been revised to 
clarify these applications.

Section 156.310  Prohibited Areas

    Four comments addressed this section. One comment argued that the 
proposed prohibited areas were too extensive. Three comments suggested 
that only vessels lightering at anchor should be barred from these 
areas and not all lightering operations.
    At the public meeting in Metairie, the industry representative 
commented that it appeared that the prohibited areas would apply to all 
lightering operations, not just those conducted by new or phased out 
single hull tankers. Industry perceived that the Coast Guard's concern 
with lightering in these areas comes principally from the potential for 
seabed damage associated with anchoring, and stated that vessels 
currently lightering in the proposed prohibited areas do not anchor in 
these areas. However, lightering vessels do drift through these areas 
if that is where the prevailing winds and currents take them. Industry 
urged the Coast Guard to allow this practice to continue.
    The Coast Guard disagrees. This rule does not prohibit anchoring 
over or in the vicinity of the prohibited areas. This rulemaking 
addresses lightering activities and only prohibits these operations. 
While the Coast Guard acknowledges the detrimental effect anchoring may 
have in these areas, this rulemaking will prevent anchoring in the 
prohibited areas only to the extent that such anchoring would have 
occurred for the purposes of lightering.
    The definition of lightering in Sec. 156.205(b) includes all phases 
of the operation from the beginning of the mooring operation to the 
departure of the service vessel from the vessel to be lightered. Two 
catastrophic events which could occur during offshore lightering 
activities are transit casualties, such as collisions, and intrinsic 
casualties, such as pump room explosions. Prohibiting lightering 
activities over biologically active areas will help to prevent a worst 
case scenario of one or more vessels engaged in lightering operations 
sinking in these areas while laden with a large quantity of oil. Such 
an occurrence would be a significant environmental hazard in the most 
ecologically sensitive offshore regions of the Gulf of Mexico. Figure 1 
is a pictorial representation of the lightering zones and prohibited 
areas.

BILLING CODE 4910-14-P

[[Page 45012]]
[GRAPHIC][TIFF OMITTED]TR29AU95.001



BILLING CODE 4910-14-C

[[Page 45013]]


Section 156.320  Minimum Operating Conditions

    Six comments were received on this section. Three comments 
supported the proposed prohibition on beginning lightering when there 
are 30 knot winds and 10 foot seas in the same direction, but 
recommended that the operating criteria prohibiting mooring when wind 
and sea direction vary by 30 degrees be removed because the effects of 
these factors could not be accurately predicted. Three comments opposed 
the unmooring requirements, stating that it may be safer to remain 
moored during some severe weather conditions. One of these comments 
also noted that this section did not address the situation when the 
current is counter to the wind, stating that such a condition may make 
ship to ship transfer impossible even though the speed of the wind may 
only measure a few knots.
    Industry comments questioned the Coast Guard's determination of the 
weather parameters set in Sec. 156.320. They stated that the proposed 
conditions exceed those contained in the operating manuals of different 
lightering companies. This comment stated that Sec. 156.320 should be 
revised to either eliminate the requirement to unmoor or to increase 
the proposed operating criteria, noting that it may be dangerous for 
some vessels to unmoor in the weather conditions proposed and that, 
except for the most severe weather conditions, it often may be safer to 
stay moored until the weather abates. They stated that ultimately it 
should be the decision of the masters of the service vessel and the 
vessel to be lightered to remain moored or to unmoor, based upon their 
evaluation of the weather conditions in the operating area and the 
handling characteristics of their vessels. Industry added that if the 
Coast Guard is convinced that maximum criteria are necessary, then it 
should be absolutely certain that it is not asking ships' masters to 
perform maneuvers that may endanger crew and cargo.
    Comments from industry and those from the OCIMF, ICS, and 
INTERTANKO stated that the lightering provisions regarding hurricanes 
were too restrictive. They argued that lightering operations can be 
discontinued quickly, lightering vessels can be disconnected quickly, 
and lightering personnel should be responsible for monitoring reports 
from the National Weather Service to determine if lightering operations 
should proceed.
    The Coast Guard has reviewed the provisions of several lightering 
manuals regarding weather restrictions and the Coast Guard agrees that 
the decision to unmoor should rest with the masters of the respective 
vessels. Factors such as stability and structural limitations must be 
considered in tank vessel loading and ballasting operations. 
Consequently, to mandate an unmooring criteria for all vessels based 
solely on factors external to the vessel, such as weather and sea state 
conditions, would not be prudent. The Coast Guard also agrees that 
simplifying the weather conditions to consideration of only wind 
velocity and wave height adequately addresses the weather and sea state 
conditions which are significant to lightering and are parameters which 
can be more definitively observed by mariners. Additionally, the Coast 
Guard has determined that stipulating the maximum criteria under which 
cargo transfers may be safely conducted is a better approach for 
environmental and occupational safety reasons. The Coast Guard also 
agrees that lightering vessels can disconnect relatively quickly and 
unmoor. Having a maximum wave height and wind speed criteria makes it 
unnecessary to specifically address hurricane evasion. As previously 
stated, the master of a vessel is ultimately responsible for the safety 
of the ship, its crew, and its cargo. Therefore, Sec. 156.320 has been 
renamed as ``Maximum operating conditions'' and has been revised to 
remove the proposed restrictions of lightering operations based on 
relative wind and wave directions and on swell heights, to remove the 
proposed hurricane restrictions, and to specify a maximum wind velocity 
and wave height for cargo transfers. Nothing prohibits terminating 
lightering operations under less severe conditions, and the Coast Guard 
encourages the development of conservative company policies in this 
regard.

Section 156.330  Operational Restrictions

    Several comments responded to this section of the NPRM. Two comment 
writers noted that the definition of ``bunkering'' was excluded. Two 
other commenters also addressed the issue of bunkering. Comments from 
industry cautioned the Coast Guard against using the rulemaking as a 
basis for limiting other operations, such as bunkering, which can 
safely occur during lightering operations, and that any interpretation 
of the rulemaking which could ban bunkering operations would be 
unnecessary and unwarranted. The Texas GLO pointed out that the 
explosion and resultant spill from the tankship FLORIDA EXPRESS in the 
Gulf of Mexico on February 27, 1995, indicates the need for expanding 
the scope of the rulemaking to include bunkering activities. It argued 
that the difference in the threat of an oil spill from bunkering and 
from lightering is really not distinguishable and that both should be 
subject to weather, operation, and work hour limitations. It suggested 
that the Coast Guard propose a rule in the near future to correct this.
    Bunkering a large (VLCC or ULCC) crude carrier from another 
tankship in the offshore environment is not categorized as lightering 
under current regulations. The definition of lightering in 33 CFR 
156.205(b) specifically excludes cargo which is intended only for use 
as a fuel or lubricant aboard the receiving vessel. The FLORIDA EXPRESS 
incident is still under investigation, but it is noted that the vessel 
was not involved in bunkering when the incident occurred. Should a 
safety issue be identified by the investigation, the Coast Guard may 
consider regulations specifically for ship to ship bunkering in the 
future. One primary safety concern when bunkering while also conducting 
cargo transfer operations is in providing adequate personnel for both 
operations. Under Coast Guard regulations, tankships are not prohibited 
from bunkering while also transferring cargo. It would be inconsistent 
to restrict this activity in offshore lightering zones while allowing 
its occurrence elsewhere in the Gulf of Mexico and on the inland waters 
of coastal ports which are in areas much more likely to be affected by 
oil spills. Paragraph (g) in Sec. 156.330 has been revised to more 
clearly state that bunkering is not within the definition of 
lightering.
    Five comments at the public meeting recommended that the proposed 
operational restrictions in paragraphs (h) and (i) of Sec. 156.330, 
which refer to minimum distances to offshore structures and mobile 
offshore drilling units (MODUs), be consistent. They noted that the 
proposed Sec. 156.330(i) requires that lightering operations not be 
conducted while underway within 3 miles of an offshore structure or 
MODU, while Sec. 156.330(h) allows lightering operations to be 
conducted while anchored up to 1 mile from an offshore structure or 
MODU. They stated that vessels lightering underway maintain a 
navigation watch and can maneuver, and that there is no compromise to 
safety by allowing both anchored lightering vessels and vessels 
lightering underway to operate subject to the 1-mile restriction. They 
stated that a 1-mile buffer provides adequate protection under present 
operating 

[[Page 45014]]
conditions and should be permitted to continue.
    The Coast Guard has considered these comments and agrees that the 
requirement of Sec. 156.330(i) prohibiting underway lightering 
operations within 3 nautical miles of an offshore structure or MODU is 
inconsistent with the 1-mile range given in Sec. 156.330(h) for 
lightering at anchor. The definition for lightering operations in 
Sec. 156.205(b) includes both drifting and transiting under power while 
moored alongside. The Coast Guard agrees that the current practice of 
using 1 nautical mile clearance from offshore structures and MODUs when 
involved in lightering as defined under Sec. 156.205(b) has provided an 
adequate margin of safety in the past and agrees that there is 
insufficient justification to further expand this range. The Coast 
Guard also acknowledges that, when moored alongside, these vessels 
typically advance at speeds of less than 4 knots and can adequately 
maneuver around stationary objects such as production platforms. 
Therefore, Sec. 156.330(i) has been modified to reflect a 1 nautical 
mile range for all modes of lightering.
    MMS generally supported the provisions of this section, but 
suggested that it also address pipelines because anchors could rupture 
a pipeline when the vessels are setting the anchor or dragging the 
anchor during rough weather. MMS also indicated that the largest spills 
in the Gulf of Mexico have been from pipelines that were ruptured by 
anchors.
    With reference to pipeline safety, the Coast Guard notes that, 
since 1992, offshore pipelines have been required to be surveyed 
annually and reports submitted to the Research and Special Programs 
Administration (RSPA) by the pipeline operators (49 CFR 195.413). Under 
current regulations (49 CFR part 190), an offshore pipeline is 
considered a hazard to navigation only when the top of the pipeline is 
closer than 12 inches to the seabed in waters less than 15 feet deep. 
Regardless of whether a pipeline is officially considered a hazard to 
navigation, the Coast Guard agrees that mariners should not anchor over 
such structures when their location is known. In order to avoid 
pipeline damage when anchoring in designated lightering zones, the 
mariner must rely on charts depicting pipeline locations. Therefore, 
Sec. 156.330(j) has been revised to provide that, during lightering 
operations, vessels may not anchor over charted pipelines, artificial 
reefs, or historical resources.
    Additionally, the Norwegian Maritime Administration provided to the 
Coast Guard preliminary statements which were taken during the 
investigation of the BERGE BANKER and SKAUBAY collision. These 
statements indicate that the BERGE BANKER, the vessel to be lightered, 
and the SKAUBAY, the service vessel, were on nearly reciprocal courses 
when the collision occurred. Normal practice in the industry is for the 
vessel to be lightered to maintain a constant heading during the 
approach by the service ship immediately prior to mooring alongside. 
The service vessel approaches from astern, generally broad on the 
quarter, which means that the service ship is aft of the vessel to be 
lightered on a heading within 45 degrees to port, or 45 degrees to 
starboard, of the course maintained by the vessel to be lightered. This 
industry practice is recognized in the Oil Companies International 
Marine Forum (OCIMF) Ship to Ship Transfer Guide (Petroleum), Second 
Edition, 1988, as the best approach when preparing to moor alongside. 
In order to reduce the risk of a similar collision, paragraph (k) has 
been added to Sec. 156.330 in the final rule mandating this approach 
and requiring a minimum safe distance of 1000 meters between the two 
vessels prior to the service vessel being positioned broad on the 
quarter of the ship to be lightered. The Coast Guard has renamed this 
section in the final rule as ``Operations''.

Incorporation by Reference

    The Director of the Federal Register has approved the material in 
Sec. 156.111 for incorporation by reference under 5 U.S.C. 552 and 1 
CFR part 51. The material is available as indicated in that section.

Assessment

    A draft Regulatory Assessment was prepared in support of the NPRM 
for the designation of lightering zones, which was published in the 
Federal Register on January 5, 1995 (60 FR 1958). An Addendum to that 
Assessment has been prepared to update statistical data and other 
information since the publication of the NPRM.
    The Addendum indicates that changes which have occurred since the 
publication of the NPRM do not materially alter the findings and 
conclusions of the draft Regulatory Assessment which, as amended, are 
adopted as the findings and conclusions of the Final Regulatory 
Assessment.
    This Final Regulatory Assessment was prepared in accordance with 
Executive Order 12866. Under the criteria of Executive Order 12866, the 
designation of lightering zones in the Gulf of Mexico is not a 
significant regulatory action and will not have a significant economic 
impact on the maritime industry. However, this rulemaking is 
significant under the regulatory policies and procedures of the 
Department of Transportation (44 FR 11040; February 26, 1979) and has 
been reviewed by the Office of Management and Budget (OMB). The 
Regulatory Assessment is available in the docket for inspection or 
copying where indicated under ADDRESSES.

Small Entities

    Adoption of this final rule will avert adverse small entity impacts 
and preserve the current revenues derived by small entities from tanker 
lightering in the Gulf of Mexico, and the adverse impact of this final 
rule on small business 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 rule will not have a significant 
economic impact on a substantial number of small entities.

Collection of Information

    This rule contains no new collection-of-information requirements or 
additions to currently approved information collections under the 
Paperwork Reduction Act (44 U.S.C. 3501 et seq.). The sections in this 
rule that contain collection-of-information requirements are 
Secs. 156.110 and 156.215 which are approved under OMB Control Numbers 
2115-0096 and 2115-0539 respectively.

Federalism

    The Coast Guard has analyzed this rule under the principles and 
criteria contained in Executive Order 12612 and has determined that 
this rule does not have sufficient federalism implications to warrant 
the preparation of a Federalism Assessment.

Environment

    The Coast Guard considered the environmental impact of this rule 
and concluded that preparation of an Environmental Impact Statement is 
not necessary. An Environmental Assessment and a Finding of No 
Significant Impact are available in the docket for inspection or 
copying as indicated under ADDRESSES.
    The Environmental Assessment considered, among other things, the 
factors set out in 33 CFR 156.230: traditional use of the area for 
lightering; weather and sea conditions; water depth; proximity to 
shipping lanes, vessel traffic schemes, anchorages, fixed structures, 
designated marine sanctuaries, fishing areas, and designated units of 
the National Park 

[[Page 45015]]
System, National Wild and Scenic Rivers System, National Wilderness 
Preservation System, properties included on the National Register of 
Historic Places and National Registry of Natural Landmarks, and 
National Wildlife Refuge System; and other relevant safety, 
environmental, and economic data. The Coast Guard also specifically 
looked at wildlife and marine habitats and topographic features in the 
proposed lightering zones.
    The topographic features of the Gulf of Mexico considered during 
this rulemaking include areas on the offshore banks where reef-building 
activity occurs. These reefs support diverse communities of marine 
plant and animal species in large numbers. The following areas are of 
particular concern: the East and West Flower Gardens, 32 Fathom Bank, 
Coffee Lump, Claypile Bank, Stetson Bank, Hospital Bank, North Hospital 
Bank, Sackett Bank, Diaphus Bank, Fishnet Bank, and Sweet Bank. These 
areas are charted and are considered sensitive ecosystems. These areas 
are particularly vulnerable to damage from anchoring and, to a lesser 
extent, from oil spills. While oil spills on the surface of these areas 
are not expected to have a significant effect on the biota of concern, 
the Coast Guard is establishing three ``prohibited areas'' where 
lightering will not be permitted. Establishment of ``prohibited areas'' 
over these features will further ensure protection of these vital 
ecosystems. Operational restrictions for designated lightering zones 
would also reduce the likelihood of spillage from the tank vessels 
utilizing these zones. Although the likelihood is remote, the Coast 
Guard is also concerned with catastrophic casualties which could result 
in the sinking of a tanker. The potential sinking of a very large or 
ultra large crude carrier as a result of a collision or intrinsic 
casualty, with millions of barrels of oil on board or as cargo, could 
pose a serious long term environmental hazard to these ecosystems.
    The Endangered Species Act of 1973 (16 U.S.C. 1531 through 1543), 
as amended, seeks to protect endangered and threatened species and the 
ecosystems on which they depend. The Act is administered by the Fish 
and Wildlife Service (FWS) and the National Marine Fisheries Service 
(NMFS). Several protected marine species (e.g., Right whales, Kemp's 
Ridley sea turtles, and hawksbill turtles) are located throughout the 
Gulf region.
    The Coast Guard consulted with the regional NMFS office in St. 
Petersburg, Florida, and the FWS regional offices in Alberquerque, New 
Mexico, and Atlanta, Georgia, regarding the effect of the proposed 
regulations on endangered and threatened species as well as on 
sensitive environmental areas such as wildlife refuges. Both the NMFS 
and FWS have issued a written concurrence with the Coast Guard's 
finding that the proposed rule, including the designation of the South 
Sabine Point lightering zone discussed in the preamble of the NPRM, 
will not have an adverse effect on endangered or threatened species.
    ``Historic property'' or ``historic resources'' are defined under 
the National Historic Preservation Act (16 U.S.C. 470w) as prehistoric 
or historic sites, buildings, structures, or objects. This definition 
includes shipwrecks registered with the National Register of Historic 
Places. There are no known historical properties or resources in the 
lightering zones.
    Military warning areas are located throughout the Gulf of Mexico 
and are clearly demarcated. The coordinates of the designated 
lightering zones will overlap Eglin Water Test Areas One and Three 
(EWTA 1, EWTA 3), and Military Warning Areas 92, 228, and 602 (W-92, W-
228, W-602). Military operations are undertaken in each of these zones 
and have been considered in this rulemaking. Lightering operations have 
been conducted throughout the Gulf of Mexico for many years, often 
within these designated military zones. Lightering industry 
spokespersons report that they have never been asked by a military 
department to divert operations due to military exercises. 
Announcements for most military exercises are published in notices to 
mariners. The Department of Defense commands responsible for these 
warning areas were advised of the proposed rulemaking and have 
expressed no opposition to the establishment of these lightering zones. 
The Coast Guard does not expect the missions of these military warning 
areas to be adversely impacted by this rulemaking.
    The Coast Guard has considered the implications of the Coastal Zone 
Management Act (16 U.S.C. 1451, et seq.) with regard to this 
rulemaking. Under this Act, the Coast Guard must determine whether the 
activities proposed by it are consistent with activities covered by a 
federally approved coastal zone management plan for each state which 
may be affected by this federal action. The States of Louisiana, 
Mississippi, Florida, and Alabama have federally approved coastal zone 
management plans. The Governor of the State of Texas has withdrawn its 
submission of the proposed Texas Coastal Management Plan to NOAA.
    The Coast Guard has determined that the designation of lightering 
zones, as provided in this rulemaking, will have no effect on the 
coastal zones of Mississippi, Alabama, or Florida. Designation of the 
lightering zones has the potential of an indirect effect on the coastal 
zones of Louisiana and Texas.
    The approved plan for Louisiana regulates a number of listed uses 
which ``directly and substantially affect coastal waters and which are 
in need of coastal management, and which have impacts of greater than 
local significance or which significantly affect interests of regional, 
state, or national concerns.'' (La. Rev. Stat. 49:213.5(A)(1)). 
Louisiana has not listed the designation of offshore lightering zones 
as an activity subject to state review, and research and review of 
environmental effects indicate only a slight chance that these 
regulations would indirectly affect the coastal zone of Louisiana.
    The Coast Guard consulted with the State of Louisiana after it had 
an opportunity to review the NPRM, Environmental Assessment, and draft 
Regulatory Assessment. The Administrator of the State Coast Management 
Division for Louisiana responded by a letter in which the Administrator 
stated that this rulemaking may affect the Louisiana coastal zone and 
requested that the Coast Guard make a consistency determination. The 
Coast Guard found that the regulations in the NPRM were consistent, to 
the maximum extent practicable, with the enforceable policies of the 
federally approved coastal zone management plan and submitted a 
consistency determination to that effect. The State Administrator 
responded, concurring with the Coast Guard consistency determination 
that establishing lightering zones would be consistent with the 
Louisiana Coastal Resource Program.
    Also, during the preparation of this assessment, the Coast Guard 
informally contacted the Environmental Section of the Texas GLO's Legal 
Services Division, providing the NPRM, Environmental Assessment, and 
draft Regulatory Assessment for review. The State had recently approved 
a Coastal Management Plan and had submitted the Plan for federal 
approval. The Oil Spill Prevention and Response Division of the Texas 
GLO responded, informing the Coast Guard that it supports the Coast 
Guard's plan to establish four lightering zones and that the Governor 
of Texas has withdrawn the submission of the Texas Coastal Management 
Plan 

[[Page 45016]]
to NOAA. It presently is unclear whether Texas will participate in the 
federal coastal zone management program. The Coast Guard's research and 
review of environmental effects indicate only a low probability that 
these regulations would indirectly affect the coastal zone of Texas.
    Five comments specifically addressed items in the Environmental 
Assessment. The Fish and Wildlife Service concurred that the South 
Sabine Point and Southtex lightering zones are not likely to have a 
negative impact on marine species (sea turtles and coastal birds that 
use the Texas coastline) for which it is responsible. Another comment 
argued that the Environmental Assessment and the text of the NPRM do 
not substantiate the need for the proposed extensive prohibited areas. 
Two comments agreed with the Environmental Assessment's discussion of 
the dangers of anchoring. However, these comments also stated that 
section 5.5 of the Environmental Assessment, ``Endangered and 
Threatened Species'', needs clarification. The comments contend that 
this section indicates that there is an extremely low probability that 
spillage would contact an environmental resource, yet upon reviewing 
the Environmental Assessment, the commenter reasons that spills making 
land impact would cross over the prohibited areas. For clarification, 
the reference to contact with environmental resources used in the 
Environmental Assessment has been revised to specify land-based 
environmental resources in that particular section.
    A fifth comment stated that the Environmental Assessment appeared 
to be based on crude oil demand and imports remaining constant. 
Instead, the Environmental Assessment should assume at least a 4 
percent per annum increase in crude oil imports with a concomitant 
increase in transfer by lightering.
    The Environmental Assessment for this rulemaking addressed the 
environmental considerations required under National Environmental 
Policy Act (NEPA). The Environmental Assessment discussed the 
environmental effects of creating these lightering zones versus taking 
a no action alternative and not designating these lightering zones. The 
Environmental Assessment also states that this rulemaking alone is not 
expected to significantly effect the volume of oil lightered. The 
Environmental Assessment supports a Finding of No Significant Impact 
and shows that, by establishing these lightering zones, there exists a 
possibility that a portion of current and future lightering activity 
could be conducted at locations further offshore that pose less of an 
environmental threat than would otherwise occur.
    Also, the Final Regulatory Assessment for this rulemaking 
considered 1994 waterborne oil import data. This data reflected an 
increase in U.S. oil imports from 6.8 million barrels per day (BPD) in 
1993 to 7.0 million BPD in 1994. Yet, in contrast to this 0.2 million 
BPD increase in importation, offshore lightering's share of imports by 
water in the Gulf of Mexico declined from 32.0 percent in 1993 to 28.5 
percent in 1994. In terms of volume, this corresponded to a decrease 
from 1.48 million BPD to 1.30 million BPD in 1994. This decline in 
demand for lightering was due to shifts from Arabian Gulf and West 
African supplies to closer Caribbean supplies. These closer supplies 
are generally transported in smaller tankers which are able to make 
direct deliveries, negating the need for lightering. The Regulatory 
Assessment shows that the small shifts in sources of origin which 
occurred in 1994 entailed a significant reduction in the distance 
transported, and consequently, the type of tanker used for its 
conveyance. This one example of cause and effect illustrates that the 
demand for offshore lightering is driven by many market factors which 
are unrelated to this rulemaking.
Clean Air Act

    As stated in the NPRM, volatile organic compound (VOC) air 
emissions result from the operation of ship engines and from oil 
transfers, such as the lightering of oil from one vessel to another. 
Also, nitrogen oxides (NOX) are produced by ship engines. Both VOC and 
NOX are precursors of the National Ambient Air Quality Standards' 
(NAAQS) criteria pollutant ozone. However, since this rulemaking is not 
expected to materially affect the frequency or volume of oil currently 
transferred in the Gulf of Mexico, the designation of lightering zones 
should not lead to a net increase in air emissions.
    The NPRM also noted that the NAAQS, promulgated by the 
Environmental Protection Agency (EPA) pursuant to the Clean Air Act 
(CAA) (42 U.S.C. 7401 et seq.), provide benchmarks against which air 
quality is gauged. Those areas within a state's borders which do not 
attain the NAAQS (nonattainment areas) are subject to controls aimed at 
improving the air quality. Federal agencies taking actions in 
nonattainment or maintenance areas which would result in air emissions 
must make determinations of conformity with the applicable controls, 
usually a State Implementation Plan (SIP), before acting. However, the 
lightering zones created by this rule are well outside the boundaries 
of the coastal states (more than 60 nautical miles from the baseline 
for the territorial sea) and, therefore, are outside any nonattainment 
or maintenance areas. Thus, by the terms of 40 CFR part 51, the 
conformity rule is not applicable to this rulemaking.
    The Breton Wilderness Area is 112 nautical miles north of the 
Gulfmex No. 2 lightering zone and 67 nautical miles northwest of the 
Offshore Pascagoula No. 2 lightering zone. Between the two lightering 
zones and the Breton Wilderness Area are two transshipment areas 
(TSAs). Offshore Pascagoula TSA (39 nautical miles south of Mobile 
Point, Alabama) is located midway between the Breton Wilderness Area 
and the Offshore Pascagoula No. 2 lightering zone. Gulfmex No. 1 TSA 
(105 nautical miles south of Breton Wilderness Area) is located 7 
nautical miles northeast of the Gulfmex No. 2 lightering zone. Both of 
these TSAs are sites of ongoing lightering operations.
    Lightering is a traditional, well-established activity which occurs 
in a variety of near shore areas in the Gulf of Mexico. This rulemaking 
is not expected to materially affect the frequency or volume of oil 
transferred in the Gulf of Mexico. Thus, the designated lightering 
zones will not lead to a net increase in emissions. Moreover, to the 
extent that these lightering zones are used for oil transfer 
operations, it is expected that the practical effects of this 
rulemaking will be to facilitate transfers farther offshore than would 
otherwise occur. Since transfer operations are not practical nor 
economical outside 200 nautical miles, tankers limited to using these 
lightering zones would be expected to effectively reduce the lightering 
activity that would otherwise occur at the closer near shore areas 
currently used for lightering.
    The Coast Guard considered the FWS comments regarding air quality 
and, for the reasons noted above, has concluded that the impact of 
these regulations, if any, will be to increase, on average, the 
separation between the location of lightering transfers and the Brenton 
Wilderness Area.
    The Coast Guard also notes that its authority does not include the 
regulation of vessel air emissions for the purposes of improving air 
quality. Furthermore, in its NPRM proposing Federal Standards for 
Marine Tank Vessel Loading and Unloading (59 FR 25004, May 13, 1994), 
EPA stated that those proposed regulations would not 

[[Page 45017]]
apply to offshore lightering but that EPA might consider addressing 
offshore lightering operations as a separate source category in the 
future.
    As discussed in the Environmental Assessment, this rulemaking is 
expected to have no significant effect on any State's attainment of air 
quality standards.

List of Subjects in 33 CFR Part 156

    Hazardous substances, Oil pollution, Reporting and recordkeeping 
requirements, Water pollution control.

    For the reasons set out in the preamble, the Coast Guard amends 33 
CFR part 156 as follows:
PART 156--OIL AND HAZARDOUS MATERIAL TRANSFER OPERATIONS

    1. The authority citation for part 156 is revised to read as 
follows:

    Authority: 33 U.S.C. 1231, 1321(j)(1) (C) and (D); 46 U.S.C. 
3703a. Subparts B and C are also issued under 46 U.S.C. 3715.

    2. In Sec. 156.110, the introductory text of paragraph (a) is 
revised to read as follows:


Sec. 156.110  Exemptions.

    (a) The Chief, Office of Marine Safety, Security and Environmental 
Protection, acting for the Commandant, may grant an exemption or 
partial exemption from compliance with any requirement in this part, 
and the District Commander may grant an exemption or partial exemption 
from compliance with any operating condition or requirement in subpart 
C of this part, if:
* * * * *
    3. Section 156.111 is added to read as follows:


Sec. 156.111  Incorporation by reference.

    (a) Certain material is incorporated by reference into this part 
with the approval of the Director of the Federal Register under 5 
U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other than that 
specified in paragraph (b) of this section, the Coast Guard must 
publish notice of the change in the Federal Register; and the material 
must be available to the public. All approved material is available for 
inspection at the Office of the Federal Register, 800 North Capitol 
Street, NW., suite 700, Washington, DC, and at the U.S. Coast Guard, 
Marine Environmental Protection Division (G-MEP), room 2100, 2100 
Second Street, SW, Washington, DC 20593-0001 and is available from the 
sources indicated in paragraph (b) of this section.
    (b) The material approved for incorporation by reference in this 
part and the sections affected are as follows:

Oil Companies International Marine Forum (OCIMF)

    15th Floor, 96 Victoria Street, London SW1E 5JW, England.
    Ship to Ship Transfer Guide (Petroleum), Second Edition, 1988--
156.330.

International Chamber of Shipping

    12 Carthusian Street, London EC1M 6EB, England.
    Guide to Helicopter/Ship Operations, Third Edition, 1989--
156.330.

    4. Section 156.200 is revised to read as follows:


Sec. 156.200  Applicability.

    This subpart applies to each vessel to be lightered and each 
service vessel engaged in a lightering operation in the marine 
environment beyond the baseline from which the territorial sea is 
measured when the oil or hazardous material lightered is destined for a 
port or place subject to the jurisdiction of the U.S. This subpart does 
not apply to lightering operations involving public vessels, or to the 
dedicated response vessels and vessels of opportunity in accordance 
with the National Contingency Plan (40 CFR parts 9 and 300) when 
conducting response activities. These rules are in addition to the 
rules of subpart A of this part, as well as the rules in the applicable 
sections of parts 151, 153, 155, 156, and 157 of this chapter.
    5. In Sec. 156.205, paragraph (a) and the introductory text to 
paragraph (b) are revised, and the definition of ``work'' is added in 
alphabetical order to read as follows:


Sec. 156.205  Definitions.

    (a) In addition to the terms defined in this section, the 
definitions in Sec. 154.105 of this chapter apply to this subpart and 
to subpart C.
    (b) As used in this subpart and subpart C:
* * * * *
    Work includes any administrative duties associated with the vessel 
whether performed on board the vessel or onshore.
    6. In Sec. 156.210, paragraph (d) is added to read as follows:


Sec. 156.210  General.

* * * * *
    (d) On vessels conducting lightering operations in a designated 
lightering zone, a licensed individual or seaman may not work, except 
in an emergency or a drill, more than 15 hours in any 24-hour period, 
or more than 36 hours in any 72-hour period, including the 24-hour and 
72-hour periods prior to commencing lightering operations.
    7. In Sec. 156.215, paragraph (d) is added to read as follows:


Sec. 156.215  Pre-arrival notices.

* * * * *
    (d) In addition to the other requirements in this section, the 
master, owner, or agent of a vessel that requires a Tank Vessel 
Examination (TVE) or other special Coast Guard inspection in order to 
lighter in a designated lightering zone must request the TVE or other 
inspection from the cognizant Captain of the Port at least 72 hours 
prior to commencement of lightering operations.
    8. In part 156, a new subpart C is added to read as follows:
Subpart C--Lightering Zones and Operational Requirements for the Gulf 
of Mexico
Sec.
156.300  Designated lightering zones.
156.310  Prohibited areas.
156.320  Maximum operating conditions.
156.330  Operations.


Sec. 156.300  Designated lightering zones.

    The following lightering zones are designated in the Gulf of Mexico 
and are more than 60 miles from the baseline from which the territorial 
sea is measured:
    (a) Southtex--lightering zone. This lightering zone and the 
geographic area for this zone are coterminous and consist of the waters 
bounded by a line connecting the following points beginning at:


Latitude N.                          Longitude W.                       
                                                                        
27 deg.40'00'',                      93 deg.00'00'', thence to          
27 deg.40'00'',                      94 deg.35'00'', thence to          
28 deg.06'30'',                      94 deg.35'00'', thence to          
27 deg.21'00'',                      96 deg.00'00'', thence to          
26 deg.30'00'',                      96 deg.00'00'', thence to          
26 deg.30'00'',                      93 deg.00'00'', and thence to the  
                                      point of beginning.               
                                                                        

(NAD 83)
    (b) Gulfmex No. 2--lightering zone. This lightering zone and the 
geographic area for this zone are coterminous and consist of the waters 
bounded by a line connecting the following points beginning at:


Latitude N.                          Longitude W.                       
                                                                        
27 deg.53'00'',                      89 deg.00'00'', thence to          
27 deg.53'00'',                      91 deg.30'00'', thence to          
26 deg.30'00'',                      91 deg.30'00'', thence to          
26 deg.30'00'',                      89 deg.00'00'', and thence to the  
                                      point of beginning.               
                                                                        

(NAD 83)
    (c) Offshore Pascagoula No. 2--lightering zone. This lightering 
zone and the geographic area for this zone are coterminous and consist 
of the waters bounded by a line connecting the following points 
beginning at:


                                                                        

[[Page 45018]]
Latitude N.                          Longitude W.                       
                                                                        
29 deg.20'00'',                      87 deg.00'00'', thence to          
29 deg.12'00'',                      87 deg.45'00'', thence to          
28 deg.39'00'',                      88 deg.00'00'', thence to          
28 deg.00'00'',                      88 deg.00'00'', thence to          
28 deg.00'00'',                      87 deg.00'00'', and thence to the  
                                      point of beginning.               
                                                                        



(NAD 83)
    (d) South Sabine Point--lightering zone. This lightering zone and 
the geographic area for this zone are coterminous and consist of the 
waters bounded by a line connecting the following points beginning at:


Latitude N.                          Longitude W.                       
                                                                        
28 deg.30'00'',                      92 deg.38'00'', thence to          
28 deg.44'00'',                      93 deg.24'00'', thence to          
28 deg.33'00'',                      94 deg.00'00'', thence to          
28 deg.18'00'',                      94 deg.00'00'', thence to          
28 deg.18'00'',                      92 deg.38'00'', and thence to the  
                                      point of beginning.               
                                                                        

(NAD 83)


Sec. 156.310  Prohibited areas.

    Lightering operations are prohibited within the following areas in 
the Gulf of Mexico:
    (a) Claypile--prohibited area. This prohibited area consists of the 
waters bounded by a line connecting the following points beginning at:


Latitude N.                          Longitude W.                       
                                                                        
28 deg.15'00'',                      94 deg.35'00'', thence to          
27 deg.40'00'',                      94 deg.35'00'', thence to          
27 deg.40'00'',                      94 deg.00'00'', thence to          
28 deg.33'00'',                      94 deg.00'00'', and thence to the  
                                      point of beginning.               
                                                                        

(NAD 83)
    (b) Flower Garden--prohibited area. This prohibited area consists 
of the waters bounded by a line connecting the following points 
beginning at:


Latitude N.                          Longitude W.                       
                                                                        
27 deg.40'00'',                      94 deg.00'00'', thence to          
28 deg.18'00'',                      94 deg.00'00'', thence to          
28 deg.18'00'',                      92 deg.38'00'', thence to          
28 deg.30'00'',                      92 deg.38'00'', thence to          
28 deg.15'00'',                      91 deg.30'00'', thence to          
27 deg.40'00'',                      91 deg.30'00'', and thence to the  
                                      point of beginning.               
                                                                        

(NAD 83)
    (c) Ewing--prohibited area. This prohibited area consists of the 
waters bounded by a line connecting the following points beginning at:


Latitude N.                          Longitude W.                       
                                                                        
27 deg.53'00'',                      91 deg.30'00'', thence to          
28 deg.15'00'',                      91 deg.30'00'', thence to          
28 deg.15'00'',                      90 deg.10'00'', thence to          
27 deg.53'00'',                      90 deg.10'00'', and thence to the  
                                      point of beginning.               
                                                                        

(NAD 83)


Sec. 156.320  Maximum operating conditions.

    Unless otherwise specified, the maximum operating conditions in 
this section apply to tank vessels operating within the lightering 
zones designated in this subpart.
    (a) A tank vessel shall not attempt to moor alongside another 
vessel when either of the following conditions exist:
    (1) The wind velocity is 56 km/hr (30 knots) or more; or
    (2) The wave height is 3 meters (10 feet) or more.
    (b) Cargo transfer operations shall cease and transfer hoses shall 
be drained when--
    (1) The wind velocity exceeds 82 km/hr (44 knots); or
    (2) Wave heights exceed 5 meters (16 feet).


Sec. 156.330  Operations.

    (a) Unless otherwise specified in this subpart, or when otherwise 
authorized by the cognizant Captain of the Port (COTP) or District 
Commander, the master of a vessel lightering in a zone designated in 
this subpart shall ensure that all officers and appropriate members of 
the crew are familiar with the guidelines in paragraphs (b) and (c) of 
this section and that the requirements of paragraphs (d) through (l) of 
this section are complied with.
    (b) Lightering operations should be conducted in accordance with 
the Oil Companies International Marine Forum Ship to Ship Transfer 
Guide (Petroleum), Second Edition, 1988, to the maximum extent 
practicable.
    (c) Helicopter operations should be conducted in accordance with 
the International Chamber of Shipping Guide to Helicopter/Ship 
Operations, Third Edition, 1989, to the maximum extent practicable.
    (d) The vessel to be lightered shall make a voice warning prior to 
the commencement of lightering activities via channel 13 VHF and 2182 
Khz. The voice warning shall include:
    (1) The names of the vessels involved;
    (2) The vessels' geographical positions and general headings;
    (3) A description of the operations;
    (4) The expected time of commencement and duration of the 
operation; and
    (5) Request for wide berth.
    (e) In the event of a communications failure between the lightering 
vessels or the respective persons-in-charge of the transfer, or an 
equipment failure affecting the vessel's cargo handling capability or 
ship's maneuverability, the affected vessel shall suspend lightering 
activities and shall sound at least five short, rapid blasts on the 
vessel's whistle. Lightering activities shall remain suspended until 
corrective action has been completed.
    (f) No vessel involved in a lightering operation may open its cargo 
system until the servicing vessel is securely moored alongside the 
vessel to be lightered.
    (g) If any vessel not involved in the lightering operation or 
support activities approaches within 100 meters of vessels engaged in 
lightering, the vessel engaged in lightering shall warn the approaching 
vessel by sounding a loud hailer, ship's whistle, or any other 
appropriate means.
    (h) Only a lightering tender, a supply boat, or a crew boat, 
equipped with a spark arrestor on its exhaust, or a tank vessel 
providing bunkers, may moor alongside a vessel engaged in lightering 
operations.
    (i) Lightering operations shall not be conducted within 1 nautical 
mile of offshore structures or mobile offshore drilling units.
    (j) No vessel engaged in lightering activities may anchor over 
charted pipelines, artificial reefs, or historical resources.
    (k) All vessels engaged in lightering activities shall be able to 
immediately maneuver at all times while inside a designated lightering 
zone. The main propulsion system must not be disabled at any time.
    (l) In preparing to moor alongside the vessel to be lightered, a 
service vessel shall not approach the vessel to be lightered closer 
than 1000 meters unless the service vessel is positioned broad on the 
quarter of the vessel to be lightered. The service vessel must 
transition to a nearly parallel heading prior to closing to within 50 
meters of the vessel to be lightered.

    Dated: August 22, 1995.
A.E. Henn,
Vice Admiral, U.S. Coast Guard, Acting Commandant.
[FR Doc. 95-21292 Filed 8-28-95; 8:45 am]
BILLING CODE 4910-14-P