[Federal Register Volume 63, Number 2 (Monday, January 5, 1998)]
[Notices]
[Pages 256-259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Memorandum of Understanding (MOU) Between the Minerals Management 
Service and the United States Coast Guard

AGENCY: Minerals Management Service, Interior.

ACTION: Notice.

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SUMMARY: Minerals Management Service (MMS) and the United States Coast 
Guard (USCG) are updating their MOU concerning responsibilities for 
offshore facilities. The update is necessary to add responsibilities 
associated with floating facilities, the Oil Pollution Act (OPA), and 
civil penalties.

DATES: MMS and USCG will consider all comments received by March 6, 
1998. We will begin reviewing comments at that time and may not fully 
consider comments we receive after March 6, 1998.

ADDRESSES: Mail or hand-carry comments to the Department of Interior; 
Minerals Management Service; Mail Stop 4700; 381 Elden Street; Herndon, 
Virginia 20170-4817; Attention: Rules Processing Team.

FOR FURTHER INFORMATION CONTACT: Sharon Buffington, MMS at (703) 787-
1147 or LCDR Stephen Kantz, USCG at (202) 267-0505.

SUPPLEMENTARY INFORMATION: In August, 1989 the MMS and the USCG signed 
an MOU that outlined responsibilities associated with facilities 
located on the Outer Continental Shelf (OCS). The purpose was to 
minimize duplication, and to promote consistent regulation of these 
facilities. The use of floating facilities, and responsibilities 
assigned by OPA created by need to update the MOU. Therefore, the MMS 
and USCG are coordinating an update of the 1989 MOU to add 
responsibilities for:
     Floating facilities;
     OPA; and
     Civil penalities.
    For floating facilities, we plan to use jointly approved third 
party verification agents to conduct the joint reviews specified in 
Table C of the MOU.
    We are working to ensure that the MOU is a workable document that 
we will update whenever necessary. MMS is publishing this request for 
comment on behalf of both MMS and the USCG. Please send comments on the 
MOU (Appendix A) to the address listed in the addresses section of this 
notice.
    Also, please comment on whether you believe that the MMS and USCG 
should exchange other responsibilities to improve efficiency. For 
example, would it be more efficient if MMS assumed the remaining USCG 
responsibilities for fixed facilities? We are considering all options 
to improve customer service under the guidelines of the National 
Performance Review.


[[Page 257]]


    Dated: December 29, 1997.
Carolita U. Kallaur,
Associate Director for Offshore Minerals Management.

Appendix A--Memorandum of Understanding between the Minerals Management 
Service and the United States Coast Guard

I. Purpose

    This Memorandum of Understanding (MOU) defines the 
responsibilities of the Minerals Management Service (MMS) and the 
United States Coast Guard (USCG). The jurisdictional area covered by 
this MOU is the Outer Continental Shelf (OCS) except for oil-spill 
preparedness and response functions that are seaward of the coast 
line. An MOU, dated February 3, 1994, among the Departments of 
Transportation and the Interior, and the Environmental Protection 
Agency established jurisdictional responsibilities for facilities 
located both seaward and landward of the coast line.
    This MOU will minimize duplication and promote consistent 
regulation of facilities in the offshore. This MOU does not apply to 
deepwater ports as licensed by the Secretary of Transportation under 
the Deepwater Port Act of 1974, as amended.

II. Definition

    For purposes of this MOU, the following definitions apply:
    Act--The OCS Lands Act (OCSLA) of 1953 (43 U.S.C. 1331 et seq.), 
as amended by the OCSLA amendments of 1978 (Pub. L. 95-372).
    Coast Line--The line of ordinary low water along that portion of 
the coast which is in direct contact with the open sea and the line 
marking the seaward limit of inland waters, as defined by the 
Submerged Lands Act (43 U.S.C. 1301 (c)).
    Mobile Offshore Drilling Unit (MODU)--A vessel capable of 
engaging in drilling operations for exploring or exploiting subsea 
resources of oil, gas, or minerals. An MODU is also classified as a 
facility when engaged in drilling or downhole operations.
    OCS--The submerged lands which are subject to the Act.
    OSC Activity--Any activity in the OCS associated with 
exploration, development, production, transporting, or processing of 
OCS mineral resources including but not limited to oil and gas.
    OCS Facility--Any artificial island, and installation or other 
device permanently or temporarily attached to the sea bed, erected 
for the purpose of exploring for, developing, or producing resources 
from the OCS. This term does not include ships or vessels on the 
waters above the OCS used for construction or conveyance in support 
of OCS activities, or in uses of these waters unrelated to OCS 
activities. The following are types of OCS facilities:
    1. Fixed OCS Facility--A bottom founded OCS facility permanently 
attached to the seabed or subsoil of the OCS, including platforms, 
guyed towers, articulated gravity platforms, and other structures. 
This definition also includes gravel and ice islands and caisson 
retained islands engaged in OCS activities used for drilling, 
production, or both.
    2. Floating OCS Facility--A buoyant OCS facility securely and 
substantially moored so that it cannot be moved without a special 
effort. This term includes tension leg platforms, spars, and 
permanently moored semisubmersibles or shipshape hulls but does not 
include MODUs solely engaged in drilling activities.
    3. OCS Terminal--Any facility or vessel located on the OCS which 
is designated for use as a port or terminal for transferring OCS 
mineral resources or hydrocarbons from other sources to or from a 
vessel. This includes OCS facilities and their associated pipelines 
licensed by the Secretary of Transportation under the Deepwater Port 
Act of 1974.
    OPA--The Oil Pollution Act of 1990 (Pub. L. 101-380).
    Person--A natural person, an association, a State, a political 
subdivision of a State, or a private, public, or municipal 
corporation.
    Production Facility--Any OCS facility designated by the lessee 
of an OCS lease for the purpose of producing, transporting, 
processing, or supporting the production of the mineral resources. 
This definition also includes gravel and caisson retained islands 
engaged in any OCS activities even though they may be used for 
purposes other than producing, transporting, processing, or 
supporting the production of OCS mineral resources.
    Regional Director (RD)--The MMS officer delegated the 
responsibility and authority for a region within MMS. The USCG 
referrals for violations occurring in a particular MMS Region would 
be made to that MMS Region's RD.
    Regional Supervisor (RS)--The MMS officer (or the authorized 
representative) in charge of operations with a region.
    Vessel--Every description of watercraft or other artificial 
contrivance used, or capable of being used, as a means of 
transportation on the water. This term does not include atmospheric 
or pressure vessels used for containing liquids or gases.
    Violation--Failure to comply with the OCSLA, with any 
regulations, or the terms or provisions of leases, licenses, 
permits, or rights-of-way issued under the OCSLA.

III. Responsibilities.

    The responsibilities in section III are organized as follows:
     Table A lists MODUs;
     Table B lists fixed facilities; and
     Table C lists floating systems.

------------------------------------------------------------------------
                                                    MMS          USCG   
------------------------------------------------------------------------
A. MODUs:                                                               
    1. Design and construction................  ...........            1
    2. Structural integrity & modification &                            
     repair requirements......................  ...........            2
    3. Stability & buoyancy in transit and                              
     operation................................  ...........            3
    4. General arrangement....................  ...........            4
    5. Cranes, booms, elevators, handling                               
     equipment (includes BOP handling)........  ...........            5
    6. Electrical system design and equipment                           
     & classified area designations...........  ...........            6
    7. Permanently installed boilers, pressure                          
     vessels, piping, & machinery not covered                           
     by MMS...................................  ...........            7
    8. Mooring systems design, rating, &                                
     compatibility--not site-specific.........  ...........            8
    9. Helicopter deck installations,                                   
     including refueling facilities and                                 
     operations...............................  ...........            9
    10. Pollution prevention systems (33 CFR                            
     151-156).................................  ...........           10
    11. Firefighting for systems under USCG                             
     authority................................  ...........           11
    12. Structural inspection.................  ...........           12
    13. Safe welding and burning procedures on                          
     structural members.......................  ...........           13
    14. Transferring materials and personnel                            
     by crane or other--on or off facility....  ...........           14
    15. Well-control equipment--surface and                             
     subsurface...............................           15  ...........
    16. Safety systems required by MMS........           16  ...........
    17. Emergency shutdown systems............           17  ...........
    18. H2S equipment and control, gas                                  
     detection systems, worker protection (not                          
     fire related)............................           18  ...........
    19. Subsea completions....................           19  ...........
    20. Gas detection systems.................           20  ...........
    21. Containment systems for overflow......           21  ...........
    22. Well or production related pressure                             
     vessels and piping.......................           22  ...........
    23. Pollution prevention and equipment                              
     (not vessel transfers)...................  ...........           23
    24. Administrates a shut down of a                                  
     facility.................................           24  ...........

[[Page 258]]

                                                                        
B. Fixed facilities:                                                    
    1. Fire protection--structural (quarters,                           
     bulkheads, decks, escape routes, testing                           
     & material classification; fire                                    
     detection, control & extinguishing                                 
     systems; equipment & helicopter deck &                             
     refueling facilities. Fire fighting for                            
     structural systems not in #2 below.......  ...........            1
    2. Fire protection systems (deluge &                                
     sprinkler in well bay areas, detectors,                            
     and fire loop in wellhead production area                          
     and quarters)............................            2  ...........
    3. Dehydration equipment and gas                                    
     compressor units used in production......            3  ...........
    4. Occupational health and workplace                                
     safety...................................  ...........            4
    5. Evacuation procedures and escape routes  ...........            5
    6. Lifesaving systems and equipment.......  ...........            6
    7. Ventilation system requirements........  ...........            7
    8. General alarms.........................  ...........            8
    9. Personnel protection equipment (not                              
     H2S).....................................  ...........            9
    10. Living quarters.......................  ...........           10
    11. Communications........................  ...........           11
    12. Navigation & obstruction lights an                              
     sound signals............................  ...........           12
    13. Review design, fabrication, and                                 
     installation.............................           13  ...........
    14. Verify site specific considerations...           14  ...........
    15. Well-control equipment--surface and                             
     subsurface...............................           15  ...........
    16. Safety systems........................           16  ...........
    17. Emergency shutdown system.............           17  ...........
    18. Wellhead, flowline, pipeline, & well                            
     test equipment includes safety valves &                            
     pressure sensors.........................           18  ...........
    19. H2S equipment and control, gas                                  
     detection systems, worker protection (not                          
     fire-related)............................           19  ...........
    20. Piping systems (production and                                  
     related) includes incoming and departing.           20  ...........
    21. Pumps used to transfer liquids within                           
     the production systems & into pipes......           21  ...........
    22. Odorant treatment of gas piped into                             
     enclosures...............................           22  ...........
    23. Subsea completions....................           23  ...........
    24. Gas-detection systems (drilling,                                
     production, gas-transmission or                                    
     equipment)...............................           24  ...........
    25. Sale and metering equipment for                                 
     production of oil, gas & sulphur.........           25  ...........
    26. Containment systems for overflow from                           
     drilling and production equipment........           26  ...........
    27. Vessels (pressure, atmospheric, &                               
     fired) and piping-drilling and production           27  ...........
    28. Well-head and platform removal........           28  ...........
    29. Drilling, workover, completion, well-                           
     servicing (includes well-control)........           29  ...........
    30. Pollution prevention and equipment                              
     (not vessel transfers)...................           30  ...........
    31. Safe welding, burning and hot tapping.           31  ...........
    32. Pipeline operations--associated with                            
     the facility.............................           32  ...........
    33. Emergency egress procedures (includes                           
     lifesaving & emergency equipment)........  ...........           33
    34. Explosive, radioactive & flammable                              
     (not hydrocarbon) material handling,                               
     transferring & stowage (& other HAZMATS).  ...........           34
    35. Petroleum and other product transfer                            
     (to & from a vessel).....................  ...........           35
    36. Vehicle and vessel operations.........  ...........           36
    37. Diving operations and equipment.......  ...........           37
    38. Administrates a shut down of a                                  
     facility.................................           38  ...........
    39. Investigation lead for collisions,                              
     deaths, injuries.........................  ...........           39
    40. Structural integrity, modification,                             
     and repair requirements..................           40  ...........
    41. Electrical system design and equipment           41  ...........
    42. Engine exhaust insulation and spark                             
     arrestors................................           42  ...........
    43. Material handling equipment (including                          
     cranes and booms)........................           43  ...........
------------------------------------------------------------------------

C. Floating OCS Systems

    Table C lists the responsibilities for floating OCS systems:

------------------------------------------------------------------------
               MMS                     MMS/USCG              USCG       
------------------------------------------------------------------------
Production equipment (including   Design of turret                      
 risers & turret).                 hull interface &                     
                                   fabrication of                       
                                   turret & turret                      
                                   hull interface.                      
Fire detection--production &      System interfaces   Fire Protection & 
 drilling areas.                   for non-            Response For All 
Fire extinguishing--well bay gas   independent fire    Other Areas      
 &/or H2S detection in all areas.  detection and      Fire Detection--  
                                   fire                Remainder of     
                                   extinguishing       Vessel/Facility. 
                                   systems.                             
Site specific considerations      TLP tendons &       ..................
 (including geotechnics.           mooring systems                      
                                   of other floating                    
                                   production                           
                                   systems.                             
TLP foundations.................  Hull structure for  Hull structure-   
                                   TLP, SPAR, &        shipshape FPS    
                                   hybrid.             Accommodations-  
                                                       all types        
                                                       Structural fire  
                                                       protection for   
                                                       all types.       
                                  Hazardous areas &                     
                                   general                              
                                   arrangement.                         
                                  Design              Stability for all 
                                   Environmental       types.           
                                   Conditions (DEC)                     
                                   Station keeping--                    
                                   DP vessels.                          
                                  Design operating    ..................
                                   conditions.                          
                                  Non-production                        
                                   machinery/                           
                                   electrical                           
                                   systems..                            
                                                      Lifesaving        
                                                       equipment [MODU  
                                                       or tankship      
                                                       requirements].   
                                                      Helicopter        
                                                       facilities (MODU 
                                                       regulations).    
------------------------------------------------------------------------
TLP--Tension leg platform.      DP--Dynamically Positioned.             


[[Page 259]]

IV. Civil Penalties

    A. The USCG reports violations of OCSLA statutes or regulations 
which may result in civil penalty action to MMS by using the 
Compliance Review Form, MMS-129. The USCG will investigate and 
document OCSLA based violation cases according to the procedures in 
33 CFR 140.40 with the following clarification:
    1. The cognizant Officer in Charge, Marine Inspection (OCMI) 
provides the violator written notice of the violation and 
establishes a reasonable time for the violator to correct the 
violation. However, a violation that constitutes a threat of 
serious, irreparable, or immediate harm does not need a time for 
correction before the OCMI proceeds with a civil penalty 
recommendation. For violations which do not constitute a threat of 
serious, irreparable, or immediate harm, the OCMI may consult the 
MMS RD to establish reasonable corrective times, particularly on 
matters in which MMS has expertise or knowledge of industry 
practice.
    2. If the appropriate time to file an appeal has past, and the 
violator has not filed an appeal with the appropriate USCG official, 
pursuant to 43 USC 1248(a), the OCMI provides the MMS Regional Civil 
Penalty Coordinator with the following information:
    I. The case file, which consists of a summary of the 
investigation and a USCG determination of the regulations violated.
    ii. A description of the seriousness of violation and any 
incidents actually associated with the violation.
    iii. If requested, additional information concerning the merits 
of a civil penalty action. All physical evidence remains with the 
USCG, but available to MMS upon request.
    3. If the violator files an appeal, the USCG will forward the 
case to MMS after the USCG Hearing Officer issues a final decision 
on the appeal.
    4. Upon receipt of the violation report, the MMS Regional Civil 
Penalty Coordinator will appoint a Reviewing Officer (RO) who will 
process the report in accordance with the MMS OCS Criminal/Civil 
Penalties Program Guidebook.
    5. Notification of the MMS RO's decision regarding the civil 
penalty assessment, collection, compromise, or dismissal shall be 
provided to the OCMI originating the violation report.

V. Pollution responsibilities

A. Certificates of Financial Responsibility (COFR)

    1. The MMS issues Certificates of Financial Responsibility 
(COFR) for all facilities seaward of the coast line. The MMS COFR 
ensures that lessees possess adequate oil spill financial 
responsibility for the clean up and damages from oil discharges 
resulting from oil exploration and production facilities and the 
associated pipelines.
    2. The USCG issues COFR for vessels and floating OCS facilities 
which store oil. This COFR is in addition to the MMS COFR and 
addresses the operators financial responsibility for the clean up 
and damages from oil discharges resulting from non-well related 
sources and produced oil store on board the floating OCS facility.

B. Oil Spill Preparedness and Response Planning

    1. The MMS, for all facilities seaward of the coast line, 
requires that responsible parties maintain approved Oil Spill 
Response Plan (OSRP) consistent with the area contingency plan 
(ACP); ensures that response personnel receive training; and that 
response equipment is inspected. The MMS may require unannounced oil 
spill response drills. The MMS RS will notify the Federal On Scene 
Coordinator (FOSC) of drills to coordinate participation, and avoid 
conflict or duplication.
    2. The USCG Captain of the Port serves as the pre-designated 
FOSC in accordance with the national Contingency Plan. The cognizant 
FOCS will also jointly approve OSRPs for floating OCS facilities 
which store oil. Participation in MMS drills will be at the 
discretion of the FOSC. The FOSC will advise the MMS RS of spill 
response drills and activities occurring offshore.

C. Spill Response

    1. All spills are required to be reported to the NRC. The NRC 
provides notification to the appropriate agencies and state offices. 
Additionally, offshore facility owners or operators are required to 
report spills over one barrel to the MMS RS.
    2. The FOSC will direct and monitor federal, state, and private 
actions, consult with affected trustees, and determine removal 
completion. The MMS RS will direct measures to abate sources of 
pollution from an offshore facility.

VI. Exchanging Services and Personnel

    To the extent its own operations and resources permit, each 
Agency will provide the other Agency with assistance, technical 
advice, and support, including transportation, if requested. 
Exchange of services and personnel is non-reimbursable (except for 
pollution removal funding authorizations for incident specific fund 
access). The assistance may extend to areas beyond the OCS where one 
Agency's expertise will benefit the other Agency in applying and 
enforcing its safety regulations.

VII. Other Cooperative Functions

    A. Both agencies will exchange data and study results, 
participate in research and development projects and exchange early 
drafts of rulemaking notices to avoid duplicative or conflicting 
requirements.
    B. Both Agencies will review current standards, regulations, and 
directives and will propose revisions to them necessary in keeping 
with the provision of this MOU.
    C. Both Agencies will review reporting and data collection 
requirements imposed on operators of OCS facilities and, where 
feasible, eliminate or minimize duplicate reporting and data 
collection requirements.

VIII. Implementing this MOU

    A. Each Agency will review its internal procedures, and where 
appropriate, will revise them to accommodate the provisions of this 
MOU. Each Agency will also designate in writing one senior official 
who will be responsible for coordinating and implementing the 
provisions of this MOU.
    B. Each agency will designate regional officials to be 
responsible for coordinating and implementing the provisions of this 
MOU in their respective regions.
    C. The USCG--MMS MOU concerning regulation of activities and 
facilities in the OSC, dated August 29, 1990, is canceled on the 
effective date of this agreement.
    D. The MOU between the Department of the Interior and the 
Department of Transportation regarding responsibilities under the 
National Oil and Hazardous Substances Pollution Contingency Plan, 
dated August 16, 1971, is canceled on the effective date of this 
agreement.
    E. If new technology (or new uses of current technology) require 
a change to this MOU, the MMS regional office and appropriate USCG 
district will work together to solve the situation. The MMS regional 
office and the USCG district will notify their respective 
headquarters office of the change. If the MMS regional office and 
the USCG district office can't solve the situation, it will be 
elevated to MMS and USCG headquarters. The new policy will become 
part of a revised MOU the next time the MOU is revised.

IX. Savings Provision

    Nothing in this MOU alters, amends, or affects in any way the 
statutory authority of MMS or the USCG.

X. Effective Date

    This MOS is effective upon signature. Both parties may amend it 
by mutual agreement and either agency may terminate it with a 30-day 
written notice.

    Signed at Washington, D.C. this

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Commandant, U.S. Coast Guard, Department of Transportation.

----------------------------------------------------------------------
Director, Minerals Management Service, Department of the Interior.
[FR Doc. 98-9 Filed 1-2-98; 8:45 am]
BILLING CODE 4310-MR-M