[Federal Register Volume 62, Number 247 (Wednesday, December 24, 1997)]
[Rules and Regulations]
[Pages 67278-67291]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33530]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Parts 250 and 251
RIN 1010-AC10
Geological and Geophysical (G&G) Explorations of the Outer
Continental Shelf
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Final rule.
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SUMMARY: This rule revises MMS' regulations and expands the Notice
requirement to include all oil, gas, and sulphur related G&G scientific
research not conducted under a permit. The revisions also update the
addresses for applying for a permit or filing a Notice, standardize
definitions, describe the procedures for protecting archaeological
resources, reflect changes in technology, and clarify the obligations
of third parties who obtain G&G data and information collected under a
permit. These revisions are being made because there have been
instances of commercial G&G exploration being conducted by academia
without a permit, the addresses for all the MMS regions have changed,
changes in technology need to be incorporated, and permittees and third
parties have questioned MMS access to certain G&G data and information
that were collected under a permit and further processed by third
parties. The modifications will enable MMS to better ensure safe use
and environmental protection of the outer continental shelf (OCS) for
all G&G related operations, expedite permit applications and Notices to
MMS, and make the regulatory language clearer
[[Page 67279]]
and more understandable. MMS also believes that it is necessary to more
clearly assert its authority to acquire G&G data and information.
Access to these data and information is needed to ensure that the
U.S. Government receives fair market value on leases, especially in
areas of complex geology, and for the Government to conduct analyses or
assessments for royalty relief and other purposes.
EFFECTIVE DATE: January 23, 1998.
FOR FURTHER INFORMATION CONTACT: David R. Zinzer, Resource Evaluation
Division, (703) 787-1515 or Kumkum Ray, Rules Processing Team, 703)
787-1600.
SUPPLEMENTARY INFORMATION: This final rule implements changes put
forward by our notice of proposed rulemaking (NPR) that was published
February 11, 1997 (62 FR 6149) and which solicited public comments. The
comment period was extended twice, the last extension ending July 29,
1997. We met with industry twice during the comment period, May 15 in
Washington, D.C., and July 10 in New Orleans, LA. We received 22 sets
of written comments and recommendations in response to the NPR. Ten of
these comments and recommendations were from industry associations, and
twelve were from permittees and third party users of G&G data and
information collected on the OCS. We have carefully considered each of
these comments and recommendations. We did not adopt recommendations
that did not appear to be in the public's best interest.
In order to assist industry in understanding how MMS will implement
the final rule, MMS will conduct a meeting with industry and other
interested parties in the Gulf of Mexico Region following publication
of a meeting time in the Federal Register.
Discussion and Analysis of Comments
Some commenters requested that MMS withdraw the final rule in its
entirety and/or conduct a negotiated rulemaking, citing adverse effects
on the oil and gas industry, including oil and gas producers,
independent oil and gas companies, and geophysical service companies,
accompanied by a significant reduction in the amount of data collection
and exploration by industry.
MMS has decided to proceed with the final rule after carefully
considering all written comments on the proposed rulemaking and after
lengthy discussions with industry at the meetings in Washington, D.C.,
and New Orleans, Louisiana. MMS appreciates the candor and scope of the
many comments that were put forth and the concerns of the industry.
However, we believe that specific concerns with the proposed rulemaking
have been addressed properly, and that where MMS and industry disagree,
MMS is acting appropriately as the Federal agency required by the OCS
Lands Act (OSCLA) to manage the oil and natural gas resources of the
OCS in an environmentally responsible and safe manner. MMS must oversee
G&G explorations on the OCS in an orderly and fair manner, balancing
the needs of industry and the public interest.
Some commenters questioned whether MMS had performed the analysis
required under the Regulatory Flexibility Act, or made an estimate of
how much it would cost the exploration and production industry to
comply with the proposed revisions to part 251. These comments cited
the potential administrative burdens of the proposed changes and their
significant impact on the ability of smaller companies to compete in
the Gulf of Mexico. MMS has addressed these concerns under the section
of the preamble titled, ``Regulatory Flexibility Act.''
Section-by-Section Analysis
Section 251.1 Definitions
The definition of exploration was expanded to include marine and
airborne surveys. Although MMS proposed changing the definition of
human environment, several comments criticized the proposed wording as
broad and ambiguous. MMS agrees to retain the existing definition.
The definitions of lease and lessee were changed to read the same
as the definitions in part 250.
The definitions of archaeological interest, material remains, and
significant archaeological resource were added to explain
archaeological protection requirements in part 251. The language
adopted in this rule is the same as that used in part 250.
The definition of third party was clarified to include all persons
who, by whatever means, obtained from permittees or other third parties
G&G data or information collected under a permit.
The definition of you was changed in response to comments that the
definition in the proposed rule was too vague and broad and should not
include persons who only inquire about a permit or Notice. You also
applies to third parties who assume certain responsibilities under
Secs. 251.11 and 251.12.
Section 251.2 Purpose of This Part
Paragraph (d) was added to this section to clarify the U.S.
Government's right to certain data and information, explain MMS'
obligation to pay certain reimbursements, and set out MMS' procedures
for safeguarding proprietary and privileged data and information
acquired from industry and other sources.
Section 251.3 Authority and Applicability of This Part
One commenter questioned whether, under the OCSLA, the Secretary of
the Interior (Secretary) could allow G&G exploration under a Notice,
instead of requiring a permit. Section 11 of the OCSLA (43 U.S.C. 1340)
gives the Secretary the authority to allow geological and geophysical
exploration. Because of the commercial nature of the activity, MMS
believes that it is preferable to require that G&G exploration be
conducted only under the auspices of a permit. G&G scientific research
can be conducted either under a permit or by filing a Notice, depending
on the activity being conducted.
The commenter also asked under what authority the Secretary applies
MMS regulations to ships or vessels, and exempts Federal agencies from
the permit procedures. The OCSLA definition of exploration includes
geophysical surveys where magnetic, gravity, seismic, or other systems
are used to detect or imply the presence of minerals. Ships and vessels
are commonly used in, and are an integral part of, geophysical surveys.
Therefore, it is necessary to apply MMS'' regulations to them. The
definition of person in the OCSLA does not include Federal agencies.
Thus, Federal agencies are not authorized as persons by the Secretary
to conduct G&G explorations in the OCS and thus are not subject to part
251.
Finally, the same commenter found no regulatory language dealing
with the Secretary's review or approval of permit applications or time
limits to take action on applications. While section 11 of the OCSLA
authorizes the Secretary to issue permits for exploration, it does not
require the Secretary to set forth time limits to issue permits. The
authority to review and approve permit applications is delegated to the
appropriate MMS Regional Director who exercises this authority under
Secs. 251.5 and 251.7, and sets the administrative time limits to
review and approve permit applications. Time limits may vary in each
OCS Region. Response times to permit applications have not been an
issue in the past.
[[Page 67280]]
Section 251.4 Types of G&G Activities That Require Permits or Notices
Several commenters asked whether commercial G&G research related to
developing or testing new equipment or techniques would require a
permit or could be conducted under a Notice. As mentioned earlier, MMS
believes that a Notice is not appropriate for commercial G&G
activities. Basically, whether the G&G company calls the activity
``research'' or ``exploration'' is not important. A permit is required
if the data collected from the ``research'' activity can be used in
exploration for oil, gas, or sulphur, or if the ``research'' activity
involves solid or liquid explosives, or deep stratigraphic tests. Other
research activities that only involve developing or testing new
equipment or techniques do not require a permit.
The underlying concern of the commenters, however, seemed to be
whether they were required to give MMS the testing and development work
they perform when a permit is required. Generally, descriptions of new
equipment, techniques, computer hardware/software, or the results of
tests on those items do not need to be given to MMS. However, if these
items were used to produce G&G data and information which must be
submitted to MMS, it may be necessary to provide some explanatory
information to MMS in order to allow the agency to properly evaluate
the data and information.
Section 251.5 Applying for Permits or Filing Notices
One commenter, addressing Sec. 251.5(c)(7), noted that
collaboration on research between industry and universities may make it
difficult to estimate the ``earliest time'' that data will be available
to the public. MMS recognizes this difficulty and only requires a good
faith estimate of the time that scientific research data and
information will be released to the public. To alleviate these
concerns, MMS has inserted the word ``practicable'' between
``earliest'' and ``time'' to conform with the wording used in part 251
since 1976.
Section 251.6 Obligations and Rights Under a Permit or a Notice.
One commenter objected to the use of ``human environment'' in
Sec. 251.6(a)(2), citing subjective judgments regarding the term
``quality of life'', which was part of the proposed definition of
``human environment.'' The definition of ``human environment'' was not
changed in response to this and other comments. However, the word
``property'' is added to Sec. 251.6(a)(2) to make the obligation under
this part conform with the standards in part 250 which apply to
operations under a lease, right of use or easement, or right-of-way.
Several commenters objected to the wording of Sec. 251.6(a)(7) which
removed the word ``unreasonably'' from the requirement to not interfere
with or cause harm to other users of an area. We agree, and
``unreasonably'' will be re-inserted before the word ``interfere'.
Several commenters objected to new wording in Sec. 251.6(c) that
requires entities conducting G&G operations to consult with and
coordinate their operational activities with specific users of an area.
The commenters argued that consultation is not always practicable and
that, in certain cases, proprietary information regarding the timing
and location of planned surveys would be unfairly revealed to
competitors. The wording has been changed to reflect that MMS's intent
is for companies to consult and coordinate their G&G activities solely
for navigational and safety purposes. MMS also recognizes that the
International Association of Geophysical Contractors acts on behalf of
the geophysical survey companies to coordinate its members' activities
through a time sharing system to promote safe operations and protect
members' proprietary survey designs and plans.
Several commenters objected to proposed language which expands the
use of the best available and safest technologies (BAST) beyond the
area of test drilling requirements. The wording in Sec. 251.6(d) is
changed to make clear that the BAST requirement only applies to shallow
test drilling and deep stratigraphic test drilling conducted under a
permit.
Section 251.7 Test Drilling Activities Under a Permit
One commenter suggested deleting Sec. 251.7(a)(2), stating that MMS
cannot mandate compliance of shallow test drilling activities with
requirements of the Coastal Zone Management Act (CZMA). We agree that
MMS cannot establish requirements under the auspices of the CZMA.
However, we disagree that the proposed language creates a new mandate.
Section 251.7(a)(2) simply advises permit applicants that MMS may
require submittal of consistency certification when a federally
approved coastal management program requires consistency review.
Section 251.7(b)(5), ``Protecting archaeological resources,'' is
revised in the final rule to make the wording conform with similar
requirements in part 250. Also, as mentioned previously, new
definitions related to archaeological resources were added in the
definitions section to better explain the requirements of this section.
Section 251.8 Inspection and Reporting Requirements for Activities
Under a Permit
One commenter questioned our proposed removal of the word
``actual'' from the term ``actual costs'' in determining the amount of
reimbursement to a permittee when MMS inspectors are required to be
accommodated during activities authorized under part 251. The point of
the proposed change was to impose a 90-day time limit for reimbursement
requests so that MMS can quickly clear such expenses. Permittees will
be reimbursed for actual expenses incurred as long as their request for
reimbursement is made within the 90-day period.
Some commenters noted that there was no provision in Sec. 251.8(b)
for permittees to make oral requests to MMS for modifications to their
programs with a followup in writing, although Sec. 251.4(b)(2) allows a
person to file a Notice orally with a followup in writing if
circumstances preclude a 30-day advance written Notice. MMS recognizes
that there are circumstances when written requests to modify programs
are not practicable, and that an oral request with a written followup
could be acceptable in such cases. The wording in Sec. 251.8(b) is
changed to allow for such oral requests, but we want to emphasize that
oral requests for modifications should only be made when necessary.
One commenter sought clarification as to the beginning date of the
30-day period to submit a final report under Sec. 251.8(c)(2). The
revised wording indicates that a final report of exploration or
scientific research activities under a permit is due within 30 days
after completion of ``acquisition activities.''
Section 251.9 Temporarily Stopping, Canceling, or Relinquishing
Activities Approved Under a Permit
This section sets out the situation under which MMS will halt
ongoing permit activities. Section 251.9(a)(2) was changed to include
G&G data and information in the examples of items required by MMS
which, if not submitted, could constitute a failure to comply with
applicable law, regulation, order, or provision of a permit and result
in MMS halting the permit activities.
[[Page 67281]]
Section 251.10 Penalties and Appeals
No comments were received regarding Sec. 251.10.
Section 251.11 Inspection, Selection, and Submission of Geological
Data and Information Collected Under a Permit and Processed by
Permittees or Third Parties
Several commenters objected to the proposed requirement in
Sec. 251.11(a)(1) that a permittee notify the Regional Director
``immediately'' after acquiring, analyzing, processing, or interpreting
geological data and information, citing excessive paperwork and other
burdens. MMS agrees. The wording has been changed to require the
permittee to notify the Regional Director after completion of the
initial analysis, processing, and interpretation of geological data and
information collected under a permit. MMS does not require continual
notification of every analysis, processing, and interpretation.
Furthermore, the reference in Sec. 251.11(a)(1) to acquisition of
geological data is redundant and was therefore removed, since the
requirement for reporting acquisition of geological data resides in
Sec. 251.8(c)(2).
Some commenters objected to the proposed wording in
Sec. 251.11(c)(1) which requires a record of all geological data and
information, ``describing each operation of analysis, processing, and
interpretation.'' The commenters considered this a shift of MMS focus
from geological information, as defined in part 251, to descriptions of
the technologies and techniques used to arrive at processed, analyzed,
or interpreted information. It is not the intent of MMS to acquire from
industry these types of proprietary or confidential technical
information. Therefore, MMS will require only a description of each
``type'' of analysis, processing, or interpretation, as specified in a
G&G permit.
Several commenters objected to the provisions in Sec. 251.11(d),
relating to the obligations of permittees and third parties who obtain
geological data and information. Since the requirements of this section
are similar to Sec. 251.12(d), we have combined our discussion of those
two sections. Please see the section titled ``Third Party Issues'' for
a complete discussion of obligations when G&G data and information
collected under a permit are obtained by a third party.
Section 251.12 Inspection, Selection, and Submission of Geophysical
Data and Information Collected Under a Permit and Processed by
Permittees or Third Parties
Similar to the comments on Sec. 251.11(a)(1), many commenters
objected to the requirement in Sec. 251.12(a)(1) that a permittee
notify the Regional Director ``immediately'' after initially acquiring,
processing, and interpreting any geophysical data and information
collected under a permit, again citing excessive costs and other
burdens. MMS agrees. The wording is changed to require the permittee to
notify the Regional Director after completion of the initial processing
and interpretation of geophysical data and information collected under
a permit. MMS does not intend to require continual notification of
every step of initial processing and interpretation. In addition, the
reference in Sec. 251.12(a)(1) to acquisition of geophysical data is
redundant and removed, since the requirement for reporting acquisition
of geophysical data also resides in Sec. 251.8(c)(2).
Some commenters questioned the provisions in Secs. 251.12(c)(2) and
251.12(c)(3) which require that processed geophysical information be
submitted to MMS in a ``quality'' format suitable for processing or
interpretive evaluation. There was a misunderstanding as to what was
meant by ``quality'' format. Here ``quality'' means the same level of
format used by a permittee or third party in the normal course of their
business.
Some commenters questioned whether MMS was seeking ``black box''
technologies that are privileged and proprietary to the person
submitting the G&G data and information. MMS requires only the
information, including a detailed format, necessary to load digital
data and information. MMS does not request nor seek proprietary
software or procedures used to prepare the data and information.
Third Party Issues
Several commenters strongly objected to Secs. 251.11(d) and
251.12(d), which clarify the permit obligations placed on both the
permittee and the third party when geological and geophysical data and
information are transferred by any means to a third party. Most
commenters argued that the provisions of Secs. 251.11 and 251.12 should
not apply to third parties who obtain G&G data and information from
permittees through a license agreement since no ``transfer'' of data
and information takes place. We disagree. The obligation to notify the
Regional Supervisor when a permittee provides geophysical data or
processed information to a third party, or a third party provides data
and information received from a permittee to another third party, has
been in place since part 251 was added to Title 30 of the Code of
Federal Regulations, effective June 11, 1976.
MMS has always considered a license agreement a form of transfer or
exchange, as are a sale, trade, or other agreement between a permittee
and a third party. In order to clarify any confusion resulting from
industry's interpretation of what constitutes a transfer, MMS has
revised the language of the regulation to make clear that the
obligations under Secs. 251.11 and 251.12 are triggered whenever a
third party obtains by any means data and information collected under a
permit. However, in an effort to alleviate industry concerns over the
burden and cost of reporting all license agreements, MMS will require
identification of third parties who obtain data and information under
licensing agreements only in response to a written request by MMS to
the permittee, or to the third party which licensed the data to another
third party.
The commenters also questioned the statutory authority of MMS to
acquire G&G data and information from third parties who obtain the data
and information under a license agreement. The authority for obtaining
data and information that were collected under a permit and further
processed by a third party is at section 11 of the OCSLA (43 U.S.C.
1340 (a)(1)). This section provides that only persons ``authorized'' by
the Secretary may conduct G&G activities on the OCS. In the absence of
a lease, MMS ``authorization'' is the ``permit.''
One of the terms of the permit is the permittee's agreement to
provide MMS with all of the data and information collected,
interpretations, etc., and to identify third parties. The regulations
in turn, at former Secs. 251.11(c) and 251.12 (c) required the
recipients of those data and information or interpretation to accept
those same permit obligations as a condition of receipt. Third party
recipients are still subject to the regulatory requirements of a
permittee in the revised Secs. 251.11 and 251.12, including the
obligation to submit G&G data and information for inspection and
possible retention by MMS.
Several commenters stated that there would be an additional
administrative burden on third parties who would be required to submit
such data and information to MMS for inspection and possible retention,
than is the case
[[Page 67282]]
under the current regulations. We acknowledge an increase in
administrative work and costs to third parties. However, MMS does not
consider the extra burden under the revised rule to be significant.
Furthermore, the requirement for third parties to submit data and
information is not new relative to the requirement of the existing
regulations. MMS does anticipate a larger percentage of its data needs
coming from third parties. However, we anticipate that most of MMS'
future data needs will continue to come directly from permittees, who
have provided over 95 percent of processed seismic information that MMS
has acquired on the OCS.
Some commenters also claimed that the proposed language would
require that third parties assume all responsibilities of permittees,
including operational and environmental requirements. That is not the
intent of MMS. The responsibilities of third parties to whom data and
information were transferred from permittees have always been limited
to the data submittal sections of part 251, specifically Secs. 251.11
and 251.12. The final rule has been modified so that third parties who
obtained data and information are exempt from the Secs. 251.11(a)(1)
and 251.12(a)(1) requirement of automatic notification to MMS. This
exemption is a change from the proposed rulemaking and from previous
final rulemakings and will ease the potential administrative burdens on
third parties.
Several commenters objected to the provisions that required third
parties to submit data and information obtained from permittees to MMS,
arguing that the terms of license agreements will be violated and/or
license agreements will have to be rewritten to accommodate submittal
to MMS, resulting in a large paperwork burden. MMS has always required
that third parties assume all the data submittal obligations of a
permittee if data and information are transferred to the third party by
a permittee. License agreements should therefore have always reflected
the possibility of submittal of data and information to MMS by third
parties.
Some commenters stated that the acquisition of G&G data and
information by MMS from third parties who obtained the data under
license agreements is a taking of private property. MMS disagrees.
Applicants for a permit accept, as part of the permit terms, an
obligation to provide data obtained under the permit to MMS. In
addition, applicants agree to require that any third party who obtains
the data accept those same obligations. If an applicant is unwilling to
agree, they have the choice of not obtaining the permit. Third parties
who agree to the requirements can obtain the data from the permittees.
Those who choose not to agree also have an option. They simply cannot
accept the data without also accepting the obligation imposed by the
permit.
Several commenters expressed concern about revealing to MMS the
identity of third parties who obtained data and information from
permittees. The commenters noted that public disclosure of a third
party's identity, or the areas on the OCS for which the third party
obtained data, could jeopardize a third party's competitive position
and reveal business strategies of operating and obtaining leases on the
OCS. MMS agrees that public disclosure of a third party's business
interests and strategies, or of other privileged and proprietary
information, would have a deleterious effect on third parties. Such
information has been protected in the past by MMS, and we are
reaffirming through these regulations that such information would
continue to be protected by MMS as trade secrets or confidential
business information which are exempt from the Freedom of Information
Act and not subject to release under regulations which come under the
purview of MMS. A new provision in Sec. 251.14(a)(3) provides further
protection for third party recipients of data and information collected
under permits. Under this provision, MMS will keep confidential the
identities of third party recipients and will not release these
identities unless both the permittee and the third parties agree to the
disclosure.
Several commenters suggested that MMS continue using the ``trial
procedures'' set up in 1995 between MMS and industry as a mechanism for
leases in the Gulf of Mexico. Under these procedures, bidders on a
particular tract were required to submit to MMS specific seismic
information collected under a permit and processed by the bidder (a
third party). While some of the commenters acknowledged problems with
implementation of the ``trial procedures,'' they encouraged MMS to
pursue improvements instead of proceeding with this final rule.
MMS has always considered the ``trial procedures'' to be temporary
and has indicated such to industry. In the two meetings with industry,
MMS cited instances of noncompliance, in some cases perhaps deliberate,
with the provisions of the ``trial procedures.'' It is now also
becoming apparent that there are data necessary for a thorough
assessment of tracts receiving bids that are not available under the
``trial procedures.'' Furthermore, MMS now needs to clarify and
finalize the process of obtaining G&G data and information collected
under permits for all of the OCS, not only the Gulf of Mexico.
Section 251.14 Protecting and Disclosing Data and Information
Submitted to MMS Under a Permit
Some commenters recommended that the Director, MMS, rather than the
appropriate Regional Director, be responsible for the provisions of
Sec. 251.14(c), the procedure that MMS follows to disclose acquired
data and information to a contractor for reproduction, processing, and
interpretation. The commenters argued that wrongful disclosure of data
could have disastrous consequences from a competitive standpoint, and
that ensuring that the top official of MMS is bound by all applicable
laws and regulations regarding dissemination of the data would better
protect data. We feel that it is unnecessary to specify that only the
Director be responsible for disclosure of data or that only the
Director can notify the proper party of disclosure of data to
contractors for authorized purposes. The Director is still responsible
for actions of subordinates acting in an official capacity.
Section 251.14(c) was changed to clarify that the person, whether a
permittee or third party, who submitted the data and information under
Secs. 251.11 or 251.12 will be advised by MMS of any contemplated
disclosure to a contractor for reproduction, processing, and
interpretation.
In this rulemaking, MMS is also making two corrections in 30 CFR
part 250.
The first correction is to Sec. 250.209(c). This technical
amendment amends the citation in (c) from ``43 CFR part 62 subpart D''
to ``43 CFR part 12 subpart D.'' The second correction is to subpart O.
The numbering of subpart O will be moved down one. The subpart will
begin at Sec. 250.210 and end at Sec. 250.234.
Authors: David R. Zinzer, Resource Evaluation Division, and Kumkum
Ray, Rules Processing Team.
Executive Order (E.O.) 12866
This rule is not significant under E.O. 12866, ``Regulatory
Planning and Review,'' and does not require a review by the Office of
Management and Budget (OMB). Most revisions to the rule are generally
nonsubstantive changes and will have a negligible economic effect on
the oil, gas, sulphur, and mining industries or scientific researchers.
Bonding requirements in the rule affect G&G exploration costs as
[[Page 67283]]
outlined below. MMS estimated the economic effects by assuming that one
deep stratigraphic well will be drilled per year, based on past history
of frequency of wells drilled. Bonding requirements for single deep
stratigraphic wells recently increased from $50,000 to $200,000; at a
2-percent maximum rate, the bonding cost recently increased from $1,000
to $4,000.
MMS does not expect that any company will drill enough deep
stratigraphic wells to warrant an area bond. If a company did want an
area bond, then the bonding requirement would increase from $300,000 to
$1,000,000; at a 2-percent maximum rate, the bonding cost would
increase from $6,000 to $20,000. Since this increase in bonding cost
will not have a major economic effect (less than $100 million), the
proposed rule is not considered an economically significant rule.
Additionally, the proposed revisions will not create a serious
inconsistency or otherwise interfere with an action taken or planned by
another agency, materially alter the budgetary impact of entitlements,
grants, user fees, or loan programs, or raise novel legal or policy
issues.
Regulatory Flexibility Act
The changes to 30 CFR part 251 will not have a significant economic
effect on the oil and gas industry or small business entities. The
final rulemaking may involve small businesses or other small entities
if they desire to perform geological or geophysical exploration or
scientific research on the OCS. The Small Business Administration
defines a small business as having:
Annual revenues of $5 million or less for exploration
service and field service companies;
Less than 500 employees for drilling companies and for
companies that extract oil, gas, or natural gas liquids.
However, a typical exploratory well in the shallow waters of the
Gulf of Mexico costs more than $2.7 million to drill; and the
acquisition and processing of a single block (9 sq. mi) of exclusive 3D
seismic data could cost as much as $1 million. Because of the technical
and financial resources needed to perform these activities offshore,
the majority of entities conducting these activities are not considered
small.
The primary economic effect on small businesses is the cost
associated with information collection activities. The final rulemaking
contains virtually all of the same reporting requirements and attendant
costs as the existing regulations. There is only one change in
reporting requirements which represents a small increase. The increased
burden is not on the oil and gas industry, but for entities involved in
scientific research.
The increased reporting requirement contained in these regulations
relates to the filing of a Notice for all scientific research involving
geological and geophysical activities. Previously, the requirement for
a Notice existed solely for certain geological scientific research
activities, namely shallow test drilling. We estimate that the new
requirement will result in the filing of an additional two to four
Notices annually, all from small entities: 24 to 36 hours; $840 to
$1,260.
Several commenters on the proposed regulations commented on the
extreme burden that would be imposed on the oil and gas industry if
they were made to comply with our clarification of ``transfer.'' They
alluded to the need to modify the large number of existing data
licenses. MMS does not agree with the contention that there is a
material change in the definition. We maintain that the requirement is
unchanged from the existing regulations. To the extent existing
licenses need to be revised we believe the burden and cost of this
revision will not be incurred directly by small business entities. MMS
will, however, be making requests directly to small business entities.
These new requests will be offset in part by elimination of the current
procedures.
MMS concludes that complying with these regulations will not have a
substantial or significant effect on small business entities operating
on the OCS. MMS in its existing approved information collection budget
estimated the total burden in complying with these regulations is
10,604 hours for a total of $371,140. Our estimate of the annual burden
to small business entities is approximately 1,060 hours at a cost of
$37,100. This represents about 10 percent of the total compliance
burden. These costs are insignificant given the fiscal resources
required to perform exploration and development activities on the OCS.
Furthermore, virtually all of this burden existed under the old rule.
Paperwork Reduction Act
As required by the Paperwork Reduction Act of 1995 (44 U.S.C. 3501
et seq.), we submitted the collection of information contained in the
proposed rule to OMB. The OMB approved the information collection
requirements in proposed 30 CFR part 251, Geological and Geophysical
(G&G) Explorations of the Outer Continental Shelf and assigned OMB
control number 1010-0048. We have examined the information collection
requirements in this final rule and have determined that there is no
significant change from the currently approved collection of
information for the proposed rule. The estimated annual burden for this
collection of information is 10,604 hours, an average of 7.7 hour per
response.
Takings Implication Assessment
The rule does not represent a government action capable of
interference with constitutionally protected property rights. A new
requirement in the rule is a Notice for scientific research in the OCS.
Since MMS is not requiring the researcher to submit data and
information or analyses resulting from the research activity, there is
no direct or indirect taking.
The rule also clarifies the obligations of a third party. When a
permittee transfers data and information to a third party, there is a
transfer of the obligation to provide access to MMS as well. Further,
the recipient of the data and information is subject to the same
penalty provisions as the original permittee--if a third party fails to
provide access. These clarifications better define existing
requirements and add no new requirements.
Other changes are not substantive or were made to put the
regulation into plain English. Thus, a Takings Implication Assessment
need not be prepared pursuant to E.O. 12630, ``Governmental Actions and
Interference with Constitutionally Protected Property Rights.''
Unfunded Mandates Reform Act of 1995
DOI has determined and certifies according to the Unfunded Mandates
Reform Act, 2 U.S.C. 1502 et seq., that this rule will not impose a
cost of $100 million or more in any given year on local, tribal, and
State governments, or the private sector.
E.O. 12988
DOI has certified to OMB that the rule meets the applicable reform
standards provided in sections 3(a) and 3(b)(2) of E.O. 12988, ``Civil
Justice Reform.''
National Environmental Policy Act
DOI has also determined that this action does not constitute a
major Federal action affecting the quality of the human environment;
therefore, an Environmental Impact Statement is not required.
[[Page 67284]]
List of Subjects
30 CFR Part 250
Continental shelf, Environmental impact statements, Environmental
protection, Government contracts, Incorporation by reference,
Investigations, Mineral royalties, Oil and gas development and
production, Oil and gas exploration, Oil and gas reserves, Penalties,
Pipelines, Public lands--mineral resources, Public lands--rights-of-
way, Reporting and recordkeeping requirements, Sulphur development and
production, Sulphur exploration, Surety bonds.
30 CFR Part 251
Continental shelf, Freedom of information, Oil and gas exploration,
Public lands-- mineral resources, Reporting and recordkeeping
requirements, Research.
Dated: December 16, 1997.
Bob Armstrong,
Assistant Secretary, Land and Minerals Management.
For the reasons stated in the preamble, Minerals Management Service
(MMS) amends 30 CFR parts 250 and 251 to read as follows:
PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
1. The authority citation for part 250 continues to read as
follows:
Authority: 43 U.S.C. 1334.
Subpart N--Outer Continental Shelf (OCS) Civil Penalties
2. Section 250.209 paragraph (c) is revised as follows:
Sec. 250.209 What are my rights?
* * * * *
(c) * * * The Department of Interior's regulations implementing
these authorities are found at 43 CFR part 12 subpart D.
Subpart O--Training
3. In subpart O, Secs. 250.209 through 250.233 are redesignated as
Secs. 250.210 through 250.234, respectively.
4. 30 CFR part 251 is revised to read as follows:
PART 251--GEOLOGICAL AND GEOPHYSICAL (G&G) EXPLORATIONS OF THE
OUTER CONTINENTAL SHELF
Sec.
251.1 Definitions.
251.2 Purpose of this part.
251.3 Authority and applicability of this part.
251.4 Types of G&G activities that require permits or Notices.
251.5 Applying for permits or filing Notices.
251.6 Obligations and rights under a permit or a Notice.
251.7 Test drilling activities under a permit.
251.8 Inspection and reporting requirements for activities under a
permit.
251.9 Temporarily stopping, canceling, or relinquishing activities
approved under a permit.
251.10 Penalties and appeals.
251.11 Submission, inspection, and selection of geological data and
information collected under a permit and processed by permittees or
third parties.
251.12 Submission, inspection, and selection of geophysical data
and information collected under a permit and processed by permittees
or third parties.
251.13 Reimbursement for the cost of reproducing data and
information and certain processing costs.
251.14 Protecting and disclosing data and information submitted to
MMS under a permit.
251.15 Authority for information collection.
Authority: 43 U.S.C. 1331 et seq.
Sec. 251.1 Definitions.
Terms used in this part have the following meaning:
Act means the Outer Continental Shelf Lands Act (OCSLA), as amended
(43 U.S.C. 1331 et seq.).
Analyzed geological information means data collected under a permit
or a lease that have been analyzed. Analysis may include, but is not
limited to, identification of lithologic and fossil content, core
analyses, laboratory analyses of physical and chemical properties, well
logs or charts, results from formation fluid tests, and descriptions of
hydrocarbon occurrences or hazardous conditions.
Archaeological interest means capable of providing scientific or
humanistic understanding of past human behavior, cultural adaptation,
and related topics through the application of scientific or scholarly
techniques, such as controlled observation, contextual measurements,
controlled collection, analysis, interpretation, and explanation.
Archaeological resources means any material remains of human life
or activities that are at least 50 years of age and of archaeological
interest.
Coastal environment means the physical, atmospheric, and biological
components, conditions, and factors that interactively determine the
productivity, state, condition, and quality of the terrestrial
ecosystem from the shoreline inward to the boundaries of the coastal
zone.
Coastal Zone means the coastal waters (including the lands therein
and thereunder) and the adjacent shorelands (including the waters
therein and thereunder), strongly influenced by each other and in
proximity to the shorelines of the several coastal States and extends
seaward to the outer limit of the U.S. territorial sea.
Coastal Zone Management Act means the Coastal Zone Management Act
of 1972, as amended (16 U.S.C. 1451 et seq.).
Data means facts, statistics, measurements, or samples that have
not been analyzed, processed, or interpreted.
Deep stratigraphic test means drilling that involves the
penetration into the sea bottom of more than 500 feet (152 meters).
Director means the Director of the Minerals Management Service,
U.S. Department of the Interior, or a subordinate authorized to act on
the Director's behalf.
Exploration means the commercial search for oil, gas, and sulphur.
Activities classified as exploration include, but are not limited to:
(1) Geological and geophysical marine and airborne surveys where
magnetic, gravity, seismic reflection, seismic refraction, gas
sniffers, coring, or other systems are used to detect or imply the
presence of oil, gas, or sulphur; and
(2) Any drilling, whether on or off a geological structure.
Geological and geophysical scientific research means any oil, gas,
or sulphur related investigation conducted in the OCS for scientific
and/or research purposes. Geological, geophysical, and geochemical data
and information gathered and analyzed are made available to the public
for inspection and reproduction at the earliest practicable time. The
term does not include commercial geological or geophysical exploration
or research.
Geological exploration means exploration that uses geological and
geochemical techniques (e.g., coring and test drilling, well logging,
and bottom sampling) to produce data and information on oil, gas, and
sulphur resources in support of possible exploration and development
activities. The term does not include geological scientific research.
Geophysical exploration means exploration that utilizes geophysical
techniques (e.g., gravity, magnetic, or seismic) to produce data and
information on oil, gas, and sulphur resources in support of possible
exploration and development activities. The term does not include
geophysical scientific research.
Governor means the Governor of a State or the person or entity
lawfully designated to exercise the powers
[[Page 67285]]
granted to a Governor pursuant to the Act.
Human environment means the physical, social, and economic
components, conditions, and factors which interactively determine the
state, condition, and quality of living conditions, employment, and
health of those affected, directly or indirectly, by activities
occurring on the OCS.
Hydrocarbon occurrence means the direct or indirect detection
during drilling operations of any liquid or gaseous hydrocarbons by
examination of well cuttings, cores, gas detector readings, formation
fluid tests, wireline logs, or by any other means. The term does not
include background gas, minor accumulations of gas, or heavy oil
residues on cuttings and cores.
Information means geological and geophysical data that have been
analyzed, processed, or interpreted.
Interpreted geological information means knowledge, often in the
form of schematic cross sections, 3-dimensional representations, and
maps, developed by determining the geological significance of
geological data and analyzed and processed geologic information.
Interpreted geophysical information means knowledge, often in the
form of seismic cross sections, 3-dimensional representations, and
maps, developed by determining the geological significance of
geophysical data and processed geophysical information.
Lease means an agreement which is issued under section 8 or
maintained under section 6 of the Act and which authorizes exploration
for, and development and production of, minerals or the area covered by
that authorization, whichever is required by the context.
Lessee means a person who has entered into, or is the MMS approved
assignee of, a lease with the United States to explore for, develop,
and produce the leased minerals. The term ``lessee'' also includes an
owner of operating rights.
Marine environment means the physical, atmospheric, and biological
components, conditions, and factors that interactively determine the
quality of the marine ecosystem in the coastal zone and in the OCS.
Material remains mean physical evidence of human habitation,
occupation, use, or activity, including the site, location, or context
in which such evidence is situated.
Minerals mean oil, gas, sulphur, geopressured-geothermal and
associated resources, and all other minerals which are authorized by an
Act of Congress to be produced from public lands as defined in section
103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C.
1702).
Notice means a written statement of intent to conduct geological or
geophysical scientific research related to oil, gas, and sulphur in the
OCS other than under a permit.
Oil, gas, and sulphur mean oil, gas, sulphur, geopressured-
geothermal, and associated resources.
Outer Continental Shelf (OCS) means all submerged lands lying
seaward and outside the area of lands beneath navigable waters as
defined in section 2 of the Submerged Lands Act (43 U.S.C. 1301), and
of which the subsoil and seabed appertain to the United States and are
subject to its jurisdiction and control.
Permit means the contract or agreement, other than a lease, issued
pursuant to this part, under which a person acquires the right to
conduct on the OCS, in accordance with appropriate statutes,
regulations, and stipulations:
(1) Geological exploration for mineral resources;
(2) Geophysical exploration for mineral resources;
(3) Geological scientific research; or
(4) Geophysical scientific research.
Permittee means the person authorized by a permit issued pursuant
to this part to conduct activities on the OCS.
Person means a citizen or national of the United States; an alien
lawfully admitted for permanent residence in the United States as
defined in section 8 U.S.C. 1101(a)(20); a private, public, or
municipal corporation organized under the laws of the United States or
of any State or territory thereof; and associations of such citizens,
nationals, resident aliens, or private, public, or municipal
corporations, States, or political subdivisions of States or anyone
operating in a manner provided for by treaty or other applicable
international agreements. The term does not include Federal agencies.
Processed geological or geophysical information means data
collected under a permit and later processed or reprocessed. Processing
involves changing the form of data so as to facilitate interpretation.
Processing operations may include, but are not limited to, applying
corrections for known perturbing causes, rearranging or filtering data,
and combining or transforming data elements. Reprocessing is the
additional processing other than ordinary processing used in the
general course of evaluation. Reprocessing operations may include
varying identified parameters for the detailed study of a specific
problem area.
Secretary means the Secretary of the Interior or a subordinate
authorized to act on the Secretary's behalf.
Shallow test drilling means drilling into the sea bottom to depths
less than those specified in the definition of a deep stratigraphic
test.
Significant archaeological resource means those archaeological
resources that meet the criteria of significance for eligibility to the
National Register of Historic Places as defined in 36 CFR 60.4.
Third Party means any person other than the permittee or a
representative of the United States, including all persons who obtain
data or information acquired under a permit from the permittee, or from
another third party, by sale, trade, license agreement, or other means.
Violation means a failure to comply with any provision of the Act,
or a provision of a regulation or order issued under the Act, or any
provision of a lease, license, or permit issued under the Act.
You means a person who applies for and/or obtains a permit, or
files a Notice to conduct geological or geophysical exploration or
scientific research related to oil, gas, and sulphur in the OCS.
Sec. 251.2 Purpose of this part.
(a) To allow you to conduct G&G activities in the OCS related to
oil, gas, and sulphur on unleased lands or on lands under lease to a
third party.
(b) To ensure that you carry out G&G activities in a safe and
environmentally sound manner so as to prevent harm or damage to, or
waste of, any natural resources (including any mineral deposit in areas
leased or not leased), any life (including fish and other aquatic
life), property, or the marine, coastal, or human environment.
(c) To inform you and third parties of your legal and contractual
obligations.
(d) To inform you and third parties of the U.S. Government's rights
to access G&G data and information collected under permit in the OCS,
reimbursement for submittal of data and information, and the
proprietary terms of data and information submitted to, and retained
by, MMS.
Sec. 251.3 Authority and applicability of this part.
MMS authorizes you to conduct exploration or scientific research
activities under this part in accordance with the Act, the regulations
in this part, orders of the Director/Regional Director, and other
applicable statutes, regulations, and amendments.
(a) This part does not apply to G&G exploration conducted by or on
behalf
[[Page 67286]]
of the lessee on a lease in the OCS. Refer to 30 CFR part 250 if you
plan to conduct G&G activities related to oil, gas, or sulphur under
terms of a lease.
(b) Federal agencies are exempt from the regulations in this part.
(c) G&G exploration or G&G scientific research related to minerals
other than oil, gas, and sulphur is covered by regulations at 30 CFR
part 280.
Sec. 251.4 Types of G&G activities that require permits or Notices.
(a) Exploration. You must have an MMS-approved permit to conduct
G&G exploration, including deep stratigraphic tests, for oil, gas, or
sulphur resources. If you conduct both geological and geophysical
exploration, you must have a separate permit for each.
(b) Scientific research. You may only conduct G&G scientific
research related to oil, gas, and sulphur in the OCS after you obtain
an MMS-approved permit or file a Notice.
(1) Permit. You must obtain a permit if the research activities you
propose to conduct involve:
(i) Using solid or liquid explosives;
(ii) Drilling a deep stratigraphic test; or
(iii) Developing data and information for proprietary use or sale.
(2) Notice. Any other G&G scientific research that you conduct
related to oil, gas, and sulphur in the OCS requires you to file a
Notice with the Regional Director at least 30 days before you begin. If
circumstances preclude a 30-day Notice, you must provide oral
notification and followup in writing. You must also inform MMS in
writing when you conclude your work.
Sec. 251.5 Applying for permits or filing Notices.
(a) Permits. You must submit a signed original and three copies of
the MMS permit application form (Form MMS-327). The form includes names
of persons, type, location, purpose, and dates of activity, and
environmental and other information.
(b) Disapproval of permit application. If MMS disapproves your
application for a permit, the Regional Director will state the reasons
for the denial and will advise you of the changes needed to obtain
approval.
(c) Notices. You must sign and date a Notice and state:
(1) The name(s) of the person(s) who will conduct the proposed
research;
(2) The name(s) of any other person(s) participating in the
proposed research, including the sponsor;
(3) The type of research and a brief description of how you will
conduct it;
(4) The location in the OCS, indicated on a map, plat, or chart,
where you will conduct research;
(5) The proposed dates you project for your research activity to
start and end;
(6) The name, registry number, registered owner, and port of
registry of vessels used in the operation;
(7) The earliest practicable time you expect to make the data and
information resulting from your research activity available to the
public;
(8) Your plan of how you will make the data and information you
collected available to the public;
(9) That you and others involved will not sell or withhold for
exclusive use the data and information resulting from your research;
and
(10) At your option, you may submit (as a substitute for the
material required in paragraphs (c)(7), (c)(8), and (c)(9) of this
section) the nonexclusive use agreement for scientific research
attachment to Form 327.
(d) Filing locations. You must apply for a permit or file a Notice
at one of the following locations:
(1) For the OCS off the State of Alaska--the Regional Supervisor
for Resource Evaluation, Minerals Management Service, Alaska OCS
Region, 949 East 36th Avenue, Anchorage, Alaska 99508-4302.
(2) For the OCS off the Atlantic Coast and in the Gulf of Mexico--
the Regional Supervisor for Resource Evaluation, Minerals Management
Service, Gulf of Mexico OCS Region, 1201 Elmwood Park Boulevard, New
Orleans, Louisiana 70123-2394.
(3) For the OCS off the coast of the States of California, Oregon,
Washington, or Hawaii--the Regional Supervisor for Resource Evaluation,
Minerals Management Service, Pacific OCS Region, 770 Paseo Camarillo,
Camarillo, California 93010-6064.
Sec. 251.6 Obligations and rights under a permit or a Notice.
While conducting G&G exploration or scientific research activities
under MMS permit or Notice:
(a) You must not:
(1) Interfere with or endanger operations under any lease, right-
of-way, easement, right-of-use, Notice, or permit issued or maintained
under the Act;
(2) Cause harm or damage to life (including fish and other aquatic
life), property, or to the marine, coastal, or human environment;
(3) Cause harm or damage to any mineral resource (in areas leased
or not leased);
(4) Cause pollution;
(5) Disturb archaeological resources;
(6) Create hazardous or unsafe conditions; or
(7) Unreasonably interfere with or cause harm to other uses of the
area.
(b) You must immediately report to the Regional Director if you:
(1) Detect hydrocarbon occurrences;
(2) Detect environmental hazards which imminently threaten life and
property; or
(3) Adversely affect the environment, aquatic life, archaeological
resources, or other uses of the area where you are conducting
exploration or scientific research activities.
(c) You must also consult and coordinate your G&G activities with
other users of the area for navigation and safety purposes.
(d) Any persons conducting shallow test drilling or deep
stratigraphic test drilling activities under a permit must use the best
available and safest technologies that the Regional Director determines
to be economically feasible.
(e) You may not claim any oil, gas, sulphur, or other minerals you
discover while conducting operations under a permit or Notice.
Sec. 251.7 Test drilling activities under a permit.
(a) Shallow test drilling. Before you begin shallow test drilling
under a permit, the Regional Director may require you to:
(1) Gather and submit seismic, bathymetric, sidescan sonar,
magnetometer, or other geophysical data and information to determine
shallow structural detail across and in the vicinity of the proposed
test.
(2) Submit information for coastal zone consistency certification
according to paragraphs (b)(3) and (b)(4) of this section, and for
protecting archaeological resources according to paragraph (b)(5) of
this section.
(3) Allow all interested parties the opportunity to participate in
the shallow test according to paragraph (c) of this section, and meet
bonding requirements according to paragraph (d) of this section.
(b) Deep stratigraphic tests. You must submit to the appropriate
Regional Director, at the address given in Sec. 251.5, a drilling plan,
an environmental report, and an application for permit to drill (Form
MMS-123) as follows:
(1) Drilling plan. The drilling plan must include:
(i) The proposed type, sequence, and timetable of drilling
activities;
(ii) A description of your drilling rig, indicating the important
features with special attention to safety, pollution prevention, oil-
spill containment and cleanup plans, and onshore disposal procedures;
[[Page 67287]]
(iii) The location of each deep stratigraphic test you will
conduct, including the location of the surface and projected bottomhole
of the borehole;
(iv) The types of geological and geophysical survey instruments you
will use before and during drilling;
(v) Seismic, bathymetric, sidescan sonar, magnetometer, or other
geophysical data and information sufficient to evaluate seafloor
characteristics, shallow geologic hazards, and structural detail across
and in the vicinity of the proposed test to the total depth of the
proposed test well; and
(vi) Other relevant data and information that the Regional Director
requires.
(2) Environmental report. The environmental report must include all
of the following material:
(i) A summary with data and information available at the time you
submitted the related drilling plan. MMS will consider site-specific
data and information developed since the most recent environmental
impact statement or other environmental impact analysis in the
immediate area. The summary must meet the following requirements:
(A) You must concentrate on the issues specific to the site(s) of
drilling activity. However, you only need to summarize data and
information discussed in any environmental reports, analyses, or impact
statements prepared for the geographic area of the drilling activity.
(B) You must list referenced material. Include brief descriptions
and a statement of where the material is available for inspection.
(C) You must refer only to data that are available to MMS.
(ii) Details about your project such as:
(A) A list and description of new or unusual technologies;
(B) The location of travel routes for supplies and personnel;
(C) The kinds and approximate levels of energy sources;
(D) The environmental monitoring systems; and
(E) Suitable maps and diagrams showing details of the proposed
project layout.
(iii) A description of the existing environment. For this section,
you must include the following information on the area:
(A) Geology;
(B) Physical oceanography;
(C) Other uses of the area;
(D) Flora and fauna;
(E) Existing environmental monitoring systems; and
(F) Other unusual or unique characteristics that may affect or be
affected by the drilling activities.
(iv) A description of the probable impacts of the proposed action
on the environment and the measures you propose for mitigating these
impacts.
(v) A description of any unavoidable or irreversible adverse
effects on the environment that could occur.
(vi) Other relevant data that the Regional Director requires.
(3) Copies for coastal States. You must submit copies of the
drilling plan and environmental report to the Regional Director for
transmittal to the Governor of each affected coastal State and the
coastal zone management agency of each affected coastal State that has
an approved program under the Coastal Zone Management Act. (The
Regional Director will make the drilling plan and environmental report
available to appropriate Federal agencies and the public according to
the Department of the Interior's policies and procedures).
(4) Certification of coastal zone management program consistency
and State concurrence. When required under an approved coastal zone
management program of an affected State, your drilling plan must
include a certification that the proposed activities described in the
plan comply with enforceable policies of, and will be conducted in a
manner consistent with such State's program. The Regional Director may
not approve any of the activities described in the drilling plan unless
the State concurs with the consistency certification or the Secretary
of Commerce makes the finding authorized by section 307(c)(3)(B)(iii)
of the Coastal Zone Management Act.
(5) Protecting archaeological resources. If the Regional Director
believes that an archaeological resource may exist in the area that may
be affected by drilling, the Regional Director will notify you of the
need to prepare an archaeological report.
(i) If the evidence suggests that an archaeological resource may be
present, you must:
(A) Locate the site of the drilling so as to not adversely affect
the area where the archaeological resources may be, or
(B) Establish to the satisfaction of the Regional Director that an
archaeological resource does not exist or will not be adversely
affected by drilling. This must be done by further archaeological
investigation, conducted by an archaeologist and a geophysicist, using
survey equipment and techniques deemed necessary by the Regional
Director. A report on the investigation must be submitted to the
Regional Director for review.
(ii) If the Regional Director determines that an archaeological
resource is likely to be present in the area that may be affected by
drilling, and may be adversely affected by drilling, the Regional
Director will notify you immediately. You must take no action that may
adversely affect the archaeological resource unless further
investigations determine that the resource is not archaeologically
significant.
(iii) If you discover any archaeological resource while drilling,
you must immediately halt drilling and report the discovery to the
Regional Director. If investigations determine that the resource is
significant, the Regional Director will inform you how to protect it.
(6) Application for permit to drill (APD). Before commencing deep
stratigraphic test drilling activities under an approved drilling plan,
you must submit an APD (Form MMS-123) and receive approval. You must
comply with all regulations relating to drilling operations in 30 CFR
part 250.
(7) Revising an approved drilling plan. Before you revise an
approved drilling plan, you must obtain the Regional Director's
approval.
(8) After drilling. When you complete the test activities, you must
permanently plug and abandon the boreholes of all deep stratigraphic
tests in compliance with 30 CFR part 250. If the tract on which you
conducted a deep stratigraphic test is leased to another party for
exploration and development, and if the lessee has not disturbed the
borehole, MMS will hold you and not the lessee responsible for problems
associated with the test hole.
(9) Deadline for completing a deep stratigraphic test. If your deep
stratigraphic test well is within 50 geographic miles of a tract that
MMS has identified for a future lease sale, as listed on the currently
approved OCS leasing schedule, you must complete all drilling
activities and submit the data and information to the Regional Director
at least 60 days before the first day of the month in which MMS
schedules the lease sale. However, the Regional Director may extend
your permit duration to allow you to complete drilling activities and
submit data and information if the extension is in the national
interest.
(c) Group participation in test drilling. MMS encourages group
participation for deep stratigraphic tests.
(1) Purpose of group participation. The purpose is to minimize
duplicative
[[Page 67288]]
G&G activities involving drilling into the seabed of the OCS.
(2) Providing opportunity for participation in a deep stratigraphic
test. When you propose to drill a deep stratigraphic test, you must
give all interested persons an opportunity to participate in the test
drilling through a signed agreement on a cost-sharing basis. You may
include a penalty for late participation of not more than 100 percent
of the cost to each original participant in addition to the original
share cost.
(i) The participants must assess and distribute late participation
penalties in accordance with the terms of the agreement.
(ii) For a significant hydrocarbon occurrence that the Regional
Director announces to the public, the penalty for subsequent late
participants may be raised to not more than 300 percent of the cost of
each original participant in addition to the original share cost.
(3) Providing opportunity for participation in a shallow test
drilling project. When you apply to conduct shallow test drilling
activities, you must, if ordered by the Regional Director or required
by the permit, give all interested persons an opportunity to
participate in the test activity on a cost-sharing basis. You may
include a penalty provision for late participation of not more than 50
percent of the cost to each original participant in addition to the
original share cost.
(4) Procedures for group participation in drilling activities. You
must:
(i) Publish a summary statement that describes the approved
activity in a relevant trade publication;
(ii) Forward a copy of the published statement to the Regional
Director;
(iii) Allow at least 30 days from the summary statement publication
date for other persons to join as original participants;
(iv) Compute the estimated cost by dividing the estimated total
cost of the program by the number of original participants; and
(v) Furnish the Regional Director with a complete list of all
participants before starting operations, or at the end of the
advertising period if you begin operations before the advertising
period is over. The names of any subsequent or late participants must
also be furnished to the Regional Director.
(5) Changes to the original application for test drilling. If you
propose changes to the original application and the Regional Director
determines that the changes are significant, the Regional Director will
require you to publish the changes for an additional 30 days to give
other persons a chance to join as original participants.
(d) Bonding requirements. You must submit a bond under this part
before you may start a deep stratigraphic test.
(1) Before MMS issues a permit authorizing the drilling of a deep
stratigraphic test, you must either:
(i) Furnish to MMS a bond of not less than $200,000 that guarantees
compliance with all the terms and conditions of the permit; or
(ii) Maintain a $1 million bond that guarantees compliance with all
the terms and conditions of the permit you hold for the OCS area where
you propose to drill.
(2) You must provide additional security to MMS if the Regional
Director determines that it is necessary for the permit or area.
(3) The Regional Director may require you to provide a bond, in an
amount the Regional Director prescribes, before authorizing you to
drill a shallow test well.
(4) Your bond must be on a form approved by the Associate Director
for Offshore Minerals Management.
Sec. 251.8 Inspection and reporting requirements for activities under
a permit.
(a) Inspection of permit activities. You must allow MMS
representatives to inspect your exploration or scientific research
activities under a permit. They will determine whether operations are
adversely affecting the environment, aquatic life, archaeological
resources, or other uses of the area. MMS will reimburse you for food,
quarters, and transportation that you provide for MMS representatives
if you send in your reimbursement request to the Region that issued the
permit within 90 days of the inspection.
(b) Approval for modifications. Before you begin modified
operations, you must submit a written request describing the
modifications and receive the Regional Director's oral or written
approval. If circumstances preclude a written request, you must make an
oral request and follow up in writing.
(c) Reports. (1) You must submit status reports on a schedule
specified in the permit and include a daily log of operations.
(2) You must submit a final report of exploration or scientific
research activities under a permit within 30 days after the completion
of acquisition activities under the permit. You may combine the final
report with the last status report and must include each of the
following:
(i) A description of the work performed.
(ii) Charts, maps, plats, and digital navigational data in a format
specified by the Regional Director, showing the areas and blocks in
which any exploration or permitted scientific research activities were
conducted. Identify the lines of geophysical traverses and their
locations including a reference sufficient to identify the data
produced during each activity.
(iii) The dates on which you conducted the actual exploration or
scientific research activities.
(iv) A summary of any:
(A) Hydrocarbon or sulphur occurrences encountered;
(B) Environmental hazards; and
(C) Adverse effects of the exploration or scientific research
activities on the environment, aquatic life, archaeological resources,
or other uses of the area in which the activities were conducted.
(v) Other descriptions of the activities conducted as specified by
the Regional Director.
Sec. 251.9 Temporarily stopping, canceling, or relinquishing
activities approved under a permit.
(a) MMS may temporarily stop exploration or scientific research
activities under a permit when the Regional Director determines that:
(1) Activities pose a threat of serious, irreparable, or immediate
harm. This includes damage to life (including fish and other aquatic
life), property, any mineral deposit (in areas leased or not leased),
to the marine, coastal, or human environment, or to an archaeological
resource;
(2) You failed to comply with any applicable law, regulation,
order, or provision of the permit. This would include MMS' required
submission of reports, well records or logs, and G&G data and
information within the time specified; or
(3) Stopping the activities is in the interest of national security
or defense.
(b) Procedures to temporarily stop activities. (1) The Regional
Director will advise you either orally or in writing. MMS will confirm
an oral notification in writing and deliver all written notifications
by courier or certified or registered mail. You must halt all
activities under a permit as soon as you receive an oral or written
notification.
(2) The Regional Director will advise you when you may start your
permit activities again.
(c) Procedure to cancel or relinquish a permit. The Regional
Director may cancel, or a permittee may relinquish, a permit at any
time.
(1) If MMS cancels your permit, the Regional Director will advise
you by certified or registered mail 30 days before the cancellation
date and will state the reason.
[[Page 67289]]
(2) You may relinquish the permit by advising the Regional Director
by certified or registered mail 30 days in advance.
(3) After MMS cancels your permit or you relinquish it, you are
still responsible for proper abandonment of any drill sites in
accordance with the requirements of Sec. 251.7(b)(8). You must also
comply with all other obligations specified in this part or in the
permit.
Sec. 251.10 Penalties and appeals.
(a) Penalties for noncompliance under a permit issued by MMS. You
are subject to the penalty provisions of: (1) Section 24 of the Act (43
U.S.C. 1350); and (2) The procedures contained in 30 CFR part 250,
subpart N, for noncompliance with: (i) Any provision of the Act; (ii)
Any provision of a G&G or drilling permit; or (iii) Any regulation or
order issued under the Act.
(b) Penalties under other laws and regulations. The penalties
prescribed in this section are in addition to any other penalty imposed
by any other law or regulation.
(c) Procedures to appeal orders or decisions MMS issues. You may
appeal any orders or decisions that MMS issues under the regulations in
this part by referring to 30 CFR part 290. When you file an appeal with
the Director, you must continue to follow all requirements for
compliance with an order or decision other than payment of a civil
penalty.
Sec. 251.11 Submission, inspection, and selection of geological data
and information collected under a permit and processed by permittees or
third parties.
(a) Availability of geological data and information collected under
a permit. (1) You must notify the Regional Director, in writing, when
you complete the initial analysis, processing, or interpretation of any
geological data and information. Initial analysis and processing are
the stages of analysis or processing where the data and information
first become available for in-house interpretation by the permittee, or
become available commercially to third parties via sale, trade, license
agreement, or other means.
(2) The Regional Director may ask if you have further analyzed,
processed, or interpreted any geological data and information. When so
asked, you must respond to MMS in writing within 30 days.
(b) Submission, inspection, and selection of geological data and
information. The Regional Director may request the permittee or third
party to submit the analyzed, processed, and interpreted geologic data
and information for inspection and/or permanent retention by MMS. The
data and information must be submitted within 30 days after such
request.
(c) Requirements for submission of geological data and information
collected under a permit. Unless the Regional Director specifies
otherwise, geological data and information must include:
(1) An accurate and complete record of all geological (including
geochemical) data and information describing each operation of
analysis, processing, and interpretation;
(2) Paleontological reports identifying microscopic fossils by
depth, including the reference datum to which paleontological sample
depths are related and, if the Regional Director requests, washed
samples that you maintain for paleontological determinations;
(3) Copies of well logs or charts in a digital format, if
available;
(4) Results and data obtained from formation fluid tests;
(5) Analyses of core or bottom samples and/or a representative cut
or split of the core or bottom sample;
(6) Detailed descriptions of any hydrocarbons or hazardous
conditions encountered during operations, including near losses of well
control, abnormal geopressures, and losses of circulation; and
(7) Other geological data and information that the Regional
Director may specify.
(d) Obligations when geological data and information collected
under permit are obtained by a third party. A third party may obtain
geological data and information from a permittee, or from another third
party, by sale, trade, license agreement, or other means. If this
happens:
(1) The third party recipient of the data and information assumes
the obligations under this section, except for the notification
provisions of paragraph (a)(1), and is subject to the penalty
provisions of 30 CFR part 250, subpart N; and
(2) A permittee or third party that sells, trades, licenses, or
otherwise provides data and information to a third party must advise
the recipient, in writing, that accepting these obligations is a
condition precedent of the sale, trade, license, or other agreement;
and
(3) Except for license agreements, a permittee or third party that
sells, trades, or otherwise provides data and information to a third
party must advise the Regional Director, in writing and within 30 days,
of the sale, trade, or other agreement, including the identity of the
recipient of the data and information; or
(4) For license agreements a permittee or third party that licenses
data and information to a third party must, within 30 days of a request
by the Regional Director, advise the Regional Director, in writing, of
the license agreement, including the identity of the recipient of the
data and information.
Sec. 251.12 Submission, inspection, and selection of geophysical data
and information collected under a permit and processed by permittees or
third parties.
(a) Availability of geophysical data and information collected
under a permit. (1) You must notify the Regional Director, in writing,
when you complete the initial processing and interpretation of any
geophysical data and information. Initial processing is the stage of
processing where the data and information become available for in-house
interpretation by the permittee, or become available commercially to
third parties via sale, trade, license agreement, or other means.
(2) The Regional Director may ask if you have further processed or
interpreted any geophysical data and information. When so asked, you
must respond to MMS in writing within 30 days.
(b) Submission, inspection and selection of geophysical data and
information collected under a permit. The Regional Director may request
that the permittee or third party submit geophysical data and
information before making a final selection for retention. MMS
representatives may inspect and select the data and information on your
premises, or the Regional Director can request delivery of the data and
information to the appropriate MMS regional office for review.
(1) You must submit the geophysical data and information within 30
days of receiving the request, unless the Regional Director extends the
delivery time.
(2) At any time before final selection, the Regional Director may
return any or all geophysical data and information following review.
You will be notified in writing of all or portions of those data the
Regional Director decides to retain.
(c) Requirements for submission of geophysical data and information
collected under a permit. Unless the Regional Director specifies
otherwise, you must include:
(1) An accurate and complete record of each geophysical survey
conducted under the permit, including digital navigational data and
final location maps;
[[Page 67290]]
(2) All seismic data collected under a permit presented in a format
and of a quality suitable for processing;
(3) Processed geophysical information derived from seismic data
with extraneous signals and interference removed, presented in a
quality format suitable for interpretive evaluation, reflecting state-
of-the-art processing techniques; and
(4) Other geophysical data, processed geophysical information, and
interpreted geophysical information including, but not limited to,
shallow and deep subbottom profiles, bathymetry, sidescan sonar,
gravity and magnetic surveys, and special studies such as refraction
and velocity surveys.
(d) Obligations when geophysical data and information collected
under a permit are obtained by a third party. A third party may obtain
geophysical data, processed geophysical information, or interpreted
geophysical information from a permittee, or from another third party,
by sale, trade, license agreement, or other means. If this happens:
(1) The third party recipient of the data and information assumes
the obligations under this section, except for the notification
provisions of paragraph (a)(1), and is subject to the penalty
provisions of 30 CFR part 250, subpart N; and
(2) A permittee or third party that sells, trades, licenses, or
otherwise provides data and information to a third party must advise
the recipient, in writing, that accepting these obligations is a
condition precedent of the sale, trade, license, or other agreement;
and
(3) Except for license agreements, a permittee or third party that
sells, trades, or otherwise provides data and information to a third
party must advise the Regional Director, in writing and within 30 days,
of the sale, trade, or other agreement, including the identity of the
recipient of the data and information; or
(4) For license agreements, a permittee or third party that
licenses data and information to a third party must, within 30 days of
a request by the Regional Director, advise the Regional Director, in
writing, of the license agreement, including the identity of the
recipient of the data and information.
Sec. 251.13 Reimbursement for the costs of reproducing data and
information and certain processing costs.
(a) MMS will reimburse you or a third party for reasonable costs of
reproducing data and information that the Regional Director requests
if:
(1) You deliver G&G data and information to MMS for the Regional
Director to inspect or select and retain (according to Secs. 251.11 or
251.12 );
(2) MMS receives your request for reimbursement and the Regional
Director determines that the requested reimbursement is proper; and
(3) The cost is at your lowest rate (or a third party's) or at the
lowest commercial rate established in the area, whichever is less.
(b) MMS will reimburse you or the third party for the reasonable
costs of processing geophysical information (which does not include
cost of data acquisition):
(1) If, at the request of the Regional Director, you processed the
geophysical data or information in a form or manner other than that
used in the normal conduct of business; or
(2) If you collected the information under a permit that MMS issued
to you before October 1, 1985, and the Regional Director requests and
retains the information.
(c) When you request reimbursement, you must identify reproduction
and processing costs separately from acquisition costs.
(d) MMS will not reimburse you or a third party for data
acquisition costs or for the costs of analyzing or processing
geological information or interpreting geological or geophysical
information.
Sec. 251.14 Protecting and disclosing data and information submitted
to MMS under a permit.
(a) Disclosure of data and information to the public by MMS. (1) In
making data and information available to the public, the Regional
Director will follow the applicable requirements of:
(i) The Freedom of Information Act (5 U.S.C. 552);
(ii) The implementing regulations at 43 CFR part 2;
(iii) The Act; and
(iv) The regulations at 30 CFR parts 250 and 252.
(2) Except as specified in this section or in 30 CFR parts 250 and
252, if the Regional Director determines any data or information is
exempt from public disclosure under paragraph (a) of this section, MMS
will not provide the data and information to any State or to the
executive of any local government or to the public, unless you and all
third parties agree to the disclosure.
(3) MMS will keep confidential the identity of third party
recipients of data and information collected under a permit. MMS will
not release the identity unless you and the third parties agree to the
disclosure.
(4) When you detect any significant hydrocarbon occurrences or
environmental hazards on unleased lands during drilling operations, the
Regional Director will immediately issue a public announcement. The
announcement must further the national interest, but without unduly
damaging your competitive position.
(b) Timetable for release of G&G data and information that MMS
acquires. MMS will release data and information that you or a third
party submits and MMS retains, in accordance with paragraphs (b)(1) and
(b)(2) of this section.
(1) If the data and information are not related to a deep
stratigraphic test, MMS will release them to the public in accordance
with the following table:
------------------------------------------------------------------------
If you or a third party submit and MMS The Regional Director will
retains disclose them to the public
------------------------------------------------------------------------
Geological data and information........... 10 years after issuing the
permit.
Geophysical data.......................... 50 years after you or a
third party submit the
data.
Geophysical information................... 25 years after you or a
third party submit the
information.
------------------------------------------------------------------------
(2) If the data and information are related to a deep stratigraphic
test, MMS will release them to the public at the earlier of the
following times:
(i) Twenty-five years after you complete the test; or
(ii) If a lease sale is held after you complete a test well, 60
calendar days after MMS issues the first lease, any portion of which is
located within 50 geographic miles (92.7 kilometers) of the test.
(c) Procedure that MMS follows to disclose acquired data and
information to a contractor for reproduction, processing, and
interpretation.
(1) When practical, the Regional Director will advise the person
who submitted data and information under Secs. 251.11 or 251.12 of the
intent to disclose the data or information to an independent contractor
or agent.
(2) The person so notified will have at least 5 working days to
comment on the action.
(3) When the Regional Director advises the person who submitted the
data and information, all other owners of the data or information will
be considered to have been so notified.
(4) Before disclosure, the contractor or agent must sign a written
commitment not to sell, trade, license, or disclose data or information
to anyone without the Regional Director's consent.
(d) Sharing data and information with coastal States. (1) When MMS
solicits nominations for leasing lands located within 3 geographic
miles (5.6
[[Page 67291]]
kilometers) of the seaward boundary of any coastal State, the Regional
Director, in accordance with 30 CFR 252.7 (a)(4) and (b) and
subsections 8(g) and 26(e) of the Act (43 U.S.C. 1337(g) and 1352(e)),
will provide the Governor with:
(i) All information on the geographical, geological, and ecological
characteristics of the areas and regions MMS proposes to offer for
lease;
(ii) An estimate of the oil and gas reserves in the areas proposed
for leasing; and
(iii) An identification of any field, geological structure, or trap
on the OCS within 3 geographic miles (5.6 kilometers) of the seaward
boundary of the State.
(2) After receiving nominations for leasing an area of the OCS
within 3 geographic miles of the seaward boundary of any coastal State,
MMS will carry out a tentative area identification according to 30 CFR
part 256, subparts D and E. At that time, the Regional Director will
consult with the Governor to determine whether any tracts further
considered for leasing may contain any oil or gas reservoirs that
underlie both the OCS and lands subject to the jurisdiction of the
State.
(3) Before a sale, if a Governor requests, the Regional Director,
in accordance with 30 CFR 252.7(a)(4) and (b) and sections 8(g) and
26(e) of the Act (43 U.S.C. 1337(g) and 1352(e)), will share with the
Governor information that identifies potential and/or proven common
hydrocarbon bearing areas within 3 geographic miles of the seaward
boundary of that State.
(4) Information received and knowledge gained by a State official
under paragraph (d) of this section is subject to applicable
confidentiality requirements of:
(i) The Act; and
(ii) The regulations at 30 CFR parts 250, 251, and 252.
Sec. 251.15 Authority for information collection.
(a) The Office of Management and Budget has approved the
information collection requirements in this part under 44 U.S.C. 3501
et seq. and assigned OMB control number 1010-0048. The title of this
information collection is ``30 CFR Part 251, Geological and Geophysical
(G&G) Explorations of the OCS.''
(b) We may not conduct or sponsor, and you are not required to
respond to, a collection of information unless it displays a currently
valid OMB control number.
(c) We use the information collected under this part to:
(1) Evaluate permit applications and monitor scientific research
activities for environmental and safety reasons.
(2) Determine that explorations do not harm resources, result in
pollution, create hazardous or unsafe conditions, or interfere with
other users in the area.
(3) Approve reimbursement of certain expenses.
(4) Monitor the progress and activities carried out under an OCS
G&G permit.
(5) Inspect and select G&G data and information collected under an
OCS G&G permit.
(d) Respondents are Federal OCS permittees and Notice filers.
Responses are mandatory or are required to obtain or retain a benefit.
We will protect information considered proprietary under applicable law
and under regulations at Sec. 251.14 and part 250 of this chapter.
(e) Send comments regarding any aspect of the collection of
information under this part, including suggestions for reducing the
burden, to the Information Collection Clearance Officer, Minerals
Management Service, Mail Stop 4230, 1849 C Street, N.W., Washington,
D.C. 20240; and to the Office of Information and Regulatory Affairs,
Office of Management and Budget, Attention: Desk Officer for the
Department of the Interior (1010-0048), 725 17th Street, N.W.,
Washington, D.C. 20503.
[FR Doc. 97-33530 Filed 12-23-97; 8:45 am]
BILLING CODE 4310-MR-P