[Federal Register Volume 63, Number 30 (Friday, February 13, 1998)]
[Proposed Rules]
[Pages 7335-7356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3533]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 218, 250, and 256

RIN 1010-AC32


Postlease Operations Safety

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed rule.

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SUMMARY: These proposed revisions update and clarify MMS regulations 
concerning postlease operations. The revised rule provides authority to 
MMS to grant an easement and a right-of-use for an outer Continental 
Shelf (OCS) tract to a State lessee. It also clarifies the distinction 
between granting and directing a suspension, and the different 
consequences of each; sets out criteria to disqualify an operator with 
repeated poor operating performance from acquiring any new 
leaseholdings; and requires written accident reports.

DATES: MMS will consider all comments we receive by May 14, 1998. We 
will begin reviewing comments then and may not fully consider comments 
we receive after May 14, 1998.

ADDRESSES: Mail or hand-carry written comments (3 copies) to the 
Department of the Interior; Minerals Management Service; Mail Stop 
4024; 381 Elden Street; Herndon, Virginia 20170-4817; Attention: Rules 
Processing Team (Comments).

FOR FURTHER INFORMATION CONTACT: Kumkum Ray, Engineering and Operations 
Division, at (703) 787-1600.

SUPPLEMENTARY INFORMATION: The proposed revision of 30 CFR part 250, 
subpart A, is an effort to streamline and organize the various topics 
that apply in a general sense to all the other subparts under 30 CFR 
part 250. These postlease operations regulations would contain 
requirements as well as useful information and reference materials, 
with an emphasis on operations performance. We would include a newer 
edition of a document incorporated by reference (API RP 2A).

Definition of Lessee

    We would include an owner of operating rights in the definition of 
lessee. We would emphasize in Sec. 250.15(d) that, in addition to the 
lessee and operator, all persons who conduct lease activities on behalf 
of the lessee or operator must also comply with our regulations. The 
operator is responsible for the performance of its contractors. MMS 
will hold the operator accountable for the contractors' performance.

Performance standards

    We would revise the regulation addressing crane operations to 
include certain specifications that apply to platforms in the Pacific 
OCS Region. Also, we would include two new sections under Performance 
standards: One on welding procedures and another on electrical 
equipment requirements. These requirements are repeated under Drilling 
(subpart D), Well-Completion (subpart E), and Well-Workover (Subpart 
F). Since the requirements apply to all exploration, development, and 
production operations, they would be listed in subpart A and would be 
removed from the various other subparts.

Disqualifying an operator

    Safety is MMS's top priority for offshore operations. A new 
regulation has been proposed to provide criteria that MMS will 
consider, individually or collectively, in evaluating whether to 
disqualify operators with repeated poor safety performance from 
acquiring additional leases. In some particularly serious cases, this 
could also result in MMS disapproving or revoking a company's status as 
a designated operator. MMS will hold a meeting in Houston, Texas within 
the comment period of the rulemaking, to consult with industry before 
setting up criteria to implement this provision in our rules. We will 
publish the meeting notice in the Federal Register. We recognize that 
the vast majority of operators are conscientious in their operations. 
The intention of this provision is to safeguard you from the few that 
may be in dire non-compliance.

Civil Penalty

    The reference related to civil penalty appeals has been deleted 
from subpart A. On August 8, 1997, MMS published a revision to subpart 
N which provides information related to civil penalty appeals.

Granting a right-of-use and easement

    In our effort to establish and maintain a cooperative relationship 
with coastal States, and lessees of State submerged land oil and gas 
leases adjacent to the OCS, we are proposing to amend our regulations 
currently in Sec. 250.7. (See proposed Sec. 250.18). The proposed rule 
further implements the Secretary of the Interior's authority to 
regulate offshore operations under the OCS Lands Act. The rule would 
provide specific regulatory authority for Regional Directors to grant 
an easement and right-of-use on an OCS tract to the State lessee when 
the lease is near or adjacent to the Federal and State jurisdictional 
boundary. MMS would require an application processing fee, annual 
rental payments, and surety bonds from State lessees.

Suspensions

    We are proposing to reorganize the section on suspensions to flow 
better and to distinguish clearly between granting or directing a 
suspension. A new provision at Sec. 250.19 (l)(5) would authorize 
suspensions as necessary for the diligent development of marginal 
reserves that would otherwise not be developed. The proposed revisions 
to ``effect of suspensions on lease terms'' appear in Sec. 250.19 and 
Sec. 256.73.

Accident reports

    Recent rapid growth in offshore exploration and production 
activities in the Gulf of Mexico has led to an attendant increase in 
accidents and injuries on the OCS related to these activities. Since 
safety is our top priority, MMS sees a strong need to upgrade our 
accident investigation functions to ensure the continued safety of OCS 
operations. The proposed rule adds a new requirement (proposed 
Sec. 250.20(a)) that OCS operators, lessees, or permit holders provide 
the MMS District Supervisor with written reports concerning accidents 
on the OCS. We have provided a table to specify the reports required 
for different types of accidents. MMS will provide more guidance on 
thresholds for fires, and factors that impair safety, through Notices 
to Lessees. Safety concerns also prompted the new requirement in 
proposed paragraph (b) in this section to require evacuation statistics 
during natural occurrences such as earthquakes and hurricanes.

[[Page 7336]]

Lease term extensions

    We are proposing to expand the reporting requirements under 
Sec. 250.23 to require the lessee/operator to report to MMS when lease 
production is initiated, resumes before the end of the 180-day period 
after production ceased, and when leaseholding operations occur during 
the referenced 180-day interval. MMS needs this information in a timely 
manner to efficiently maintain the lessee/operator's lease status.

Format of the proposed rule

    We have written this proposed rule in a plain English format. We 
have tried to set out these requirements in a straightforward and 
uncomplicated manner. The plain English format uses the term ``you'' 
which means the lessee, right-of-way holder, or person acting on behalf 
of a lessee or a right-of-way holder. We emphasize that ``you'' are 
responsible for ensuring that all requirements are met. We encourage 
your comments on our use of the plain English format in this proposed 
rule as well as future rulemaking.

Executive Order (E.O.) 12866

    This rule is not a significant rule under E. O. 12866 and does not 
require a review by the Office of Management and Budget (OMB). The new 
or expanded requirements in the rule are designed to safeguard lives, 
property and the environment. They do not impose extensive burdens. 
Lessees of a State lease located adjacent to the OCS will have to pay a 
non-refundable filing fee if they apply for a right-of-use and 
easement. The economic effects of the rule will be minimal. If there is 
one application from State lessees per year, MMS will receive a total 
of approximately $2,350 in fees and $5,000 in rental.
    There are some additional new or expanded reporting requirements in 
this rule. They do not impose extensive burdens, yet provide necessary 
data that MMS will use to safeguard offshore operations. The estimated 
additional burden for submitting copies of written accident reports is 
1 hour. There are an estimated 142 responses and at the rate of $35 per 
hour it would cost reporters a total of $4, 970 per year. The estimated 
burden for evacuation statistics reports is 1 hour. There are an 
estimated 620 responses and at the rate of $35 per hour it would cost 
reporters a total of $21,700 per year. Since such events are extremely 
unpredictable, we are estimating that these events could occur once 
every three years. The estimated burden on lease production status is 
one-half hour per report on lease production status. There are an 
estimated 1,000 responses and at a rate of $35 per hour it would cost 
reporters $17,500 per year.

Regulatory Flexibility Act

    The proposed changes to 30 CFR part 250, subpart A will not have a 
significant economic effect. In general, a company needs large 
technical and financial resources and experience to safely conduct 
offshore activities. However, many of the leases and operators have 
less than 500 employees and are small businesses. It is likely that a 
State lessee applying for a right-of-use and easement on the OCS may be 
a small business. The costs associated with obtaining the benefit 
(right-of-use and easement) would be minimal. The application fee is 
estimated to be $2,350 per application and the rental is estimated to 
be $5,000. A company is not expected to apply for more than one such 
application per year. There are some additional new or expanded 
reporting requirements in this rule but they do not impose extensive 
burdens. Your comments are important. The Small Business and 
Agriculture Regulatory Enforcement Ombudsman and 10 Regional Fairness 
Boards were established to receive comments from small businesses about 
Federal agency enforcement actions. The Ombudsman will annually 
evaluate the enforcement activities and rate each agency's 
responsiveness to small business. If you wish to comment on the 
enforcement actions of MMS, call toll-free (888) 734-3247.

Paperwork Reduction Act

    We have examined the proposed changes to 30 CFR part 218; 30 CFR 
part 250; subparts E and F; and 30 CFR part 256 under the Paperwork 
Reduction Act of 1995 (PRA). We have determined that no new reporting 
and information collection requirements are included and the currently 
approved collections of information for these sections remain 
unchanged.
    With respect to 30 CFR part 250, subpart D, the proposed changes 
remove sections of the regulations that contain approved collections of 
information subject to the PRA (OMB control number 1010-0053) and 
relocate them to 30 CFR 250, subpart A. MMS will submit an inventory 
correction change to OMB for approval when this rule is published in 
final.
    The proposed changes to 30 CFR 250, subpart A, do contain 
collections of information subject to the PRA, and MMS has submitted 
them to OMB for review and approval under section 3507(d) of the PRA.
    As part of our continuing effort to reduce paperwork and respondent 
burdens, MMS invites the public and other Federal agencies to comment 
on any aspect of the reporting and recordkeeping burden. Submit your 
comments to the Office of Information and Regulatory Affairs; OMB; 
Attention: Desk Officer for the Department of the Interior (OMB control 
number 1010-NEW); 725 17th Street, N.W., Washington, D.C. 20503. Send a 
copy of your comments to the Rules Processing Team, Attn: Comments; 
Mail Stop 4020; Minerals Management Service; 381 Elden Street; Herndon, 
Virginia 20170-4817. You may obtain a copy of the supporting statement 
for the new collection of information by contacting the Bureau's 
Information Collection Clearance Officer at (202) 208-7744.
    The PRA provides that an agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number. OMB is 
required to make a decision concerning the collection of information 
contained in these proposed regulations between 30 to 60 days after 
publication of this document in the Federal Register. Therefore, a 
comment to OMB is best assured of having its full effect if OMB 
receives it by March 16, 1998. This does not affect the deadline for 
the public to comment to MMS on the proposed regulations.
    The title of the collection of information for the main portion of 
this proposed rule is ``Proposed Rulemaking--30 CFR 250, Subpart A, 
General'' (OMB control number 1010-NEW). The current subpart A 
regulations contain approved collections of information (OMB control 
number 1010-0030) which consist of reporting and recordkeeping 
requirements on designations of operator; performance capabilities and 
standards; lease cancellations; suspensions of production or other 
operations; determinations of well producibility; reinjection and 
subsurface storage of gas; reimbursements of postlease geological and 
geophysical data and information reproduction costs; accident 
reporting; access to facilities; and crane inspection, testing, 
maintenance and operator qualifications. MMS uses the information to 
ensure that operations on the OCS are carried out in a manner that is 
safe, pollution free, and do not interfere with the rights of other 
users on the OCS.
    The proposed rule, rewritten in plain English, restructures the 
citations containing the information collection requirements approved 
for the current

[[Page 7337]]

30 CFR 250, subpart A, regulations, but they remain unchanged. It also 
relocates two requirements from other subparts of 30 CFR 250 that also 
remain unchanged.
    The proposed rule contains the following new or expanded 
information collection requirements:
    1. Sections 250.18(c) explains how lessees of a State lease located 
adjacent to the OCS may apply for a right-of-use and easement on the 
OCS, and includes a non-refundable filing fee for such applications. 
MMS will use the information to determine if the right-of-use and 
easement: serves the purpose specified in the grant when conducting 
exploration, development, and production activities or other operations 
on or off the lease; is maintained for such purposes specified; and 
does not unreasonably interfere with the operations of any other 
lessee. We estimate that the average burden for this new application 
process will be 5 hours and a filing fee of approximately $2,350 per 
application.
    2. Section 250.20(a) expands accident reporting to include the 
requirement to submit copies of written follow-up reports in addition 
to oral notifications. MMS will use the information to upgrade the 
accident investigation functions. We estimate that the average burden 
for this new reporting requirement will be an additional 1 hour per 
report.
    3. Section 250.20(b) requires reports on evacuation statistics for 
a natural occurrence (i.e., hurricanes, earthquakes, etc.). MMS will 
use the information to be informed when there could be a major 
disruption in the availability and supply of natural gas and oil due to 
natural occurrences, to advise the Coast Guard of rescue needs, and to 
alert the news media and interested public entities when production is 
shut in and when resumed. We estimate that the average burden for this 
reporting requirement will be 1 hour per report.
    4. Sections 250.23(e), (f), and (g) expand the reporting 
requirements for lease term dependency and operations for respondents 
to report when lease production is initiated, resumes before the end of 
the 180-day period after production ceased, and when leaseholding 
operations occur during the referenced 180-day interval. MMS will use 
this information to efficiently maintain the lessee/operator's lease 
status. We estimate that the average burden for this expanded reporting 
requirement will be one-half hour per report.
    Respondents are approximately 130 Federal OCS oil and gas or 
sulphur lessees and an estimate of one State lessee each year who will 
apply for OCS right-of-use and easement. The frequency of response is 
on occasion or annual. Responses to this collection of information are 
mandatory or are required to obtain or retain a benefit. MMS will 
protect proprietary information in accordance with the Freedom of 
Information Act and 30 CFR 250.18 (renumbered to 30 CFR 250.27 in this 
proposed rule), Data and information to be made available to the 
public.
    MMS estimates the total annual reporting and recordkeeping ``hour'' 
burden for the requirements in this proposed rule to be 10,578 hours. 
This will reflect an increase of 2,150 hours for the new or expanded 
requirements described above when this new collection replaces the 
collection of information approved for the current requirements in 30 
CFR 250, subpart A (1010-0030). MMS estimates the total annual 
reporting and recordkeeping ``cost'' burden of this proposed rule to be 
$2,350 for approximately one application filing fee per year under 
Sec. 250.18(c).
    In calculating the burden, MMS assumed that respondents perform 
some of the requirements and maintain some of the records in the normal 
course of their activities. MMS considers these to be usual and 
customary and did not include them in the burden estimates. You are 
invited to provide information if you disagree with this assumption.
    MMS will summarize written responses to this notice and address 
them in the final rule. All comments will become a matter of public 
record.
    1. MMS specifically solicits comments on the following questions:
    (a) Is the proposed collection of information necessary for MMS to 
properly perform its functions, and will it be useful?
    (b) Are the estimates of the burden hours of the proposed 
collection reasonable?
    (c) Do you have any suggestions that would enhance the quality, 
clarity, or usefulness of the information to be collected?
    (d) Is there a way to minimize the information collection burden on 
those who are to respond, including the use of appropriate automated 
electronic, mechanical, or other forms of information technology?
    2. In addition, the PRA requires agencies to estimate the total 
annual cost burden to respondents or recordkeepers resulting from the 
collection of information. MMS needs your comments on this item. Your 
response should split the cost estimate into two components: (a) Total 
capital and startup cost component, and (b) annual operation, 
maintenance, and purchase of services component. Your estimates should 
consider the costs to generate, maintain, and disclose or provide the 
information. You should describe the methods you use to estimate major 
cost factors, including system and technology acquisition, expected 
useful life of capital equipment, discount rate(s), and the period over 
which you incur costs. Capital and startup costs include, among other 
items, computers and software you purchase to prepare for collecting 
information; monitoring, sampling, drilling, and testing equipment; and 
record storage facilities. Generally, your estimates should not include 
equipment or services purchased: before October 1, 1995; to comply with 
requirements not associated with the information collection; for 
reasons other than to provide information or keep records for the 
Government; or as part of customary and usual business or private 
practices.

Takings Implication Assessment

    The Department of the Interior (DOI) certifies that this proposed 
rule does not represent a governmental action capable of interference 
with constitutionally protected property rights. Thus, MMS did not need 
to prepare a Takings Implication Assessment pursuant to Executive Order 
(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 State, local, and 
tribal 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.

List of Subjects

30 CFR Part 218

    Continental shelf, Electronic funds transfers, Geothermal energy,

[[Page 7338]]

Government contracts, Indians--lands, Mineral royalties, Oil and gas 
exploration, Public lands--mineral resources, Reporting and 
recordkeeping requirements.

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 256

    Administrative practice and procedures, Continental shelf, 
Environmental Protection, Government contracts, Mineral royalties, Oil 
and gas exploration, Pipelines, Public lands--mineral resources, Public 
lands--rights-of-way, Reporting and recordkeeping requirements, Surety 
bonds.

    Dated: February 6, 1998.
Bob Armstrong,
Assistant Secretary, Land and Minerals Management.

    For the reasons stated in the preamble, Minerals Management Service 
(MMS) proposes to amend 30 CFR parts 218, 250, and 256 as follows:

PART 218--COLLECTION OF ROYALTIES, RENTALS, BONUSES AND OTHER 
MONIES DUE THE FEDERAL GOVERNMENT

    1. The authority citation continues to read as follows:

    Authority: 25 U.S.C. 396 et seq.; 396a et seq.; 2101 et seq.; 30 
U.S.C. 181 et seq.; 351 et seq.; 1001 et seq.; 1701 et seq.; 31 
U.S.C.A. 3335; 43 U.S.C. 1301 et seq.; 1331 et seq.; 1801 et seq.

    2. In Sec. 218.154 paragraphs (a) and (b) are revised to read as 
follows:


Sec. 218.154  Effect of suspensions on royalty and rental.

    (a) MMS will not require a lessee to pay rental or minimum royalty 
for or during a period of suspension if the Regional Supervisor:
    (1) Directs the suspension of both operations and production; or
    (2) Directs the suspension of operations on a lease on which there 
is no producible well under the provisions of 30 CFR 250.19 (j)(1), 
(j)(2), (j)(4) or (k)(2).
    (b) MMS will not relieve the lessee of the obligation to pay 
rental, minimum royalty, or royalty for or during the period of 
suspension if the Regional Supervisor approves a suspension of 
operations or production, or both, requested by a lessee under the 
provisions of 30 CFR 250.19 (j)(3), (j)(5), (k), (l) or (m)(1).
* * * * *

PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

    3. The authority citation for part 250 continues to read as 
follows:

    Authority: 43 U.S.C. 1334 et seq.

    4. 30 CFR Part 250 subpart A is revised to read as follows:

Subpart A--General

Authority and Definition of Terms

Sec.
250.1  Authority and applicability of this part.
250.2  Definitions.

Performance Standards

250.3  Under what standards will the Director regulate lease 
operations?
250.4  What measures must I take to protect health, safety, 
property, and the environment?
250.5  What standards must crane operations meet?
250.6  What must a welding, burning, and hot tapping practices and 
procedures plan contain?
250.7  What requirements apply to electrical equipment?
250.8  When must I use best available and safest technologies 
(BAST)?
250.9  How do I determine well producibility?
250.10  Under what conditions will MMS approve reinjection and 
subsurface gas storage?

Inspection of Operations

250.11  How often does MMS conduct inspections?

Disqualification and Appeals

250.12  Under what conditions will MMS disqualify an operator or 
lessee?
250.13  How can I appeal a decision made under MMS regulations?

Special Types of Approvals

250.14  Under what conditions will MMS give me an oral approval or 
an approval for alternate procedures and/or departures?
250.15  How do I designate an operator and local agent?

Naming and Identifying Platforms and Wells

250.16  How do I name platforms and wells?
250.17  What identification signs must I display?

Right-Of-Use and Easement

250.18  When will MMS grant a right-of-use and easement?

Suspensions

250.19  Under what conditions can operations or production be 
suspended?

Reporting Requirements

250.20  What accident reports and evacuation statistics must I 
submit?
250.21  Reports and investigations of apparent violations.
250.22  What archaeological reports and surveys must I submit?

Lease Term Extensions

250.23  What effect do production, drilling, or well-reworking have 
on the lease term?
250.24  Under what circumstance may MMS cancel my lease, with or 
without compensation?

Information: Submission, Reimbursement For, Availability To Public

250.25  What reporting information and report forms must I submit?
250.26  When will MMS reimburse me for reproduction costs?
250.27  Data and information to be made available to the public.

References

250.28  Documents incorporated by reference.
250.29  Paperwork Reduction Act requirements--information 
collection.

Subpart A--General

Authority and Definition of Terms


Sec. 250.1  Authority and applicability of this part.

    (a) The Secretary of the Interior (Secretary) authorized MMS to 
regulate oil, gas and sulphur exploration, development, and production 
operations on the Outer Continental Shelf (OCS). Under this authority, 
the Director requires that all operations:
    (1) Are conducted in accordance with the Act, the regulations in 
this part, MMS orders, the lease or right-of-way, and other applicable 
laws, regulations, and amendments; and
    (2) Conform to sound conservation practice to preserve, protect, 
and develop mineral resources of the OCS to:
    (i) Make resources available to meet the Nation's energy needs;
    (ii) Balance orderly energy resource development with protection of 
the human, marine, and coastal environments;
    (iii) Ensure the public receives a fair and equitable return on the 
resources of the OCS;
    (iv) Preserve and maintain free enterprise competition; and
    (v) Minimize or eliminate conflicts between the exploration, 
development, and production of oil and natural gas and the recovery of 
other resources.

[[Page 7339]]

    (b) When you conduct operations on the OCS you will be required to 
submit requests, applications, and notices, or provide supplemental 
information, for MMS approval. The table that follows contains general 
references and the corresponding regulatory section for these 
processes. MMS will respond with either written or oral approvals. 
Refer to Sec. 250.14(a) of this part for information on oral approvals.

       Table--Where to Find Information for Conducting Operations       
------------------------------------------------------------------------
          To get information about                     Refer to         
------------------------------------------------------------------------
Exploration Plans (EP).....................  Sec.  250.33.              
Development and Production Plans (DPP).....  Sec.  250.34.              
Applications for Permit to Drill...........  Sec.  250.64.              
Oil and gas well-completion operations.....  Sec.  250.83.              
Oil and gas well-workover operations.......  Sec.  250.103.             
Abandonment of wells.......................  Sec.  250.111.             
Oil and gas production safety systems......  Sec.  250.122.             
Platforms and structures...................  Sec.  250.131.             
Pipelines..................................  Sec.  250.157.             
Pipeline right-of-way......................  Sec.  250.160.             
Flaring....................................  Sec.  250.175.             
Downhole commingling.......................  Sec.  250.176.             
Measurement of gas.........................  Sec.  250.181.             
Unitization................................  Sec.  250.190.             
Training...................................  Sec.  250.211.             
Sulphur operations.........................  Sec.  250.253.             
Off-lease Geological and Geophysical         Part 251.                  
 permits.                                                               
Oil Spill Response Plans...................  Part 254.                  
------------------------------------------------------------------------

Sec. 250.2  Definitions.

    Terms used in this part will have the meanings given in the Act and 
as defined below:
    Act means the OCS Lands Act, as amended (43 U.S.C. 1331 et seq.).
    Affected State means with respect to any program, plan, lease sale, 
or other activity proposed, conducted, or approved pursuant to the 
provisions of the Act, any State:
    (1) The laws of which are declared, pursuant to section 4(a)(2) of 
the Act, to be the law of the United States for the portion of the OCS 
on which such activity is, or is proposed to be, conducted;
    (2) Which is, or is proposed to be, directly connected by 
transportation facilities to any artificial island or installation or 
other device permanently or temporarily attached to the seabed;
    (3) Which is receiving, or in accordance with the proposed activity 
will receive, oil for processing, refining, or transshipment which was 
extracted from the OCS and transported directly to such State by means 
of vessels or by a combination of means including vessels;
    (4) Which is designated by the Secretary of the Interior 
(Secretary) as a State in which there is a substantial probability of 
significant impact on or damage to the coastal, marine, or human 
environment, or a State in which there will be significant changes in 
the social, governmental, or economic infrastructure, resulting from 
the exploration, development, and production of oil and gas anywhere on 
the OCS; or
    (5) In which the Secretary finds that because of such activity 
there is, or will be, a significant risk of serious damage, due to 
factors such as prevailing winds and currents to the marine or coastal 
environment in the event of any oil spill, blowout, or release of oil 
or gas from vessels, pipelines, or other transshipment facilities.
    Air pollutant means any airborne agent or combination of agents for 
which the Environmental Protection Agency (EPA) has established, 
pursuant to section 109 of the Clean Air Act, national primary or 
secondary ambient air quality standards.
    Analyzed geological information means data collected under a permit 
or a lease which have been analyzed. Analysis may include, but is not 
limited to, identification of lithologic and fossil content, core 
analysis, laboratory analysis of physical and chemical properties, well 
logs or charts, results from formation fluid tests, and descriptions of 
hydrocarbon occurrences or hazardous conditions.
    Archaeological resource means any material remains of human life or 
activities that are at least 50 years of age and that are of 
archaeological interest.
    Attainment area means, for any air pollutant, an area which is 
shown by monitored data or which is calculated by air quality modeling 
(or other methods determined by the Administrator of EPA to be 
reliable) not to exceed any primary or secondary ambient air quality 
standards established by EPA.
    Best available control technology (BACT) means an emission 
limitation based on the maximum degree of reduction for each air 
pollutant subject to regulation, taking into account energy, 
environmental and economic impacts, and other costs. The Regional 
Director will verify the BACT on a case-by-case basis and it may 
include reductions achieved through the application of processes, 
systems, and techniques for the control of each air pollutant.
    Best available and safest technology (BAST) means the best 
available and safest technologies which the Secretary determines to be 
economically feasible wherever failure of equipment would have a 
significant effect on safety, health, or the environment.
    Coastal environment means the physical, atmospheric, and biological 
components, conditions, and factors which 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 shorelands of the several coastal States. The coastal 
zone includes islands, transition and intertidal areas, salt marshes, 
wetlands, and beaches. The coastal zone extends seaward to the outer 
limit of the U.S. territorial sea and extends inland from the 
shorelines to the extent necessary to control shorelands, the uses of 
which have a direct and significant impact on the coastal waters, and 
the inward boundaries of which may be identified by the several coastal 
States, pursuant to the authority in section 305(b)(1) of the Coastal 
Zone Management Act (CZMA) of 1972.
    Competitive reservoir means a reservoir in which there are one or 
more well completions on each of two or more leases or portions of 
leases, with different lease operating interests, from which the 
lessees plan future production.
    Conservation means preservation, economy, and avoidance of waste. 
It is especially important in the petroleum industry, since oil and gas 
are irreplaceable.
    Correlative rights when used with respect to lessees of adjacent 
tracts, means the right of each lessee to be afforded an equal 
opportunity to explore for, develop, and produce, without waste, 
minerals from a common source.
    Data means facts and statistics, measurements, or samples which 
have not been analyzed or processed.
    Departures means approvals granted by the appropriate MMS 
representative for operating requirements/procedures other than those 
specified in the regulations found in this part. These requirements/
procedures may be necessary to control a well; properly develop a 
lease; conserve natural resources, or protect life, property, or the 
marine, coastal, or human environment.
    Development means those activities which take place following 
discovery of minerals in paying quantities, including geophysical 
activity, drilling, platform construction, and operation of all

[[Page 7340]]

onshore support facilities, and which are for the purpose of ultimately 
producing the minerals discovered.
    Director means the Director of the MMS of the U.S. Department of 
the Interior.
    District Supervisor means the MMS officer with authority and 
responsibility for a district within an MMS Region.
    Easement means an authorization for a non-possessory, non-exclusive 
interest in a portion of an OCS tract, whether leased or unleased, 
which specifies the rights of the holder to use the area embraced in 
the easement in a manner consistent with the terms and conditions of 
the granting authority.
    Emission offsets means emission reductions obtained from 
facilities, either onshore or offshore, other than the facility or 
facilities covered by the proposed Exploration Plan or Development and 
Production Plan.
    Enhanced recovery operations means pressure maintenance operations, 
secondary and tertiary recovery, cycling, and similar recovery 
operations which alter the natural forces in a reservoir to increase 
the ultimate recovery of oil or gas.
    Existing facility, as used in Sec. 250.45, means an OCS facility 
described in an Exploration Plan or a Development and Production Plan 
approved before June 2, 1980.
    Exploration means the commercial search for oil, gas, and sulphur. 
Activities classified as exploration include but are not limited to:
    (1) Geophysical and geological (G&G) 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, including the drilling in which a discovery of 
oil or natural gas in paying quantities or sulphur is made. This 
includes drilling of any additional well needed to delineate any 
reservoir and any drilling to enable the lessee to determine whether to 
proceed with development and production.
    Facility, as used in Sec. 250.11 concerning inspections, means any 
installation permanently or temporarily attached to the seabed (that 
includes manmade islands, and bottom-sitting structures) and any 
onshore installation used for oil, gas, or sulphur drilling, 
production, or related activities. Any group of installations that is 
interconnected with walkways, or any group of installations that 
includes a central or primary installation with processing equipment 
and one or more satellite or secondary installations, is a single 
facility unless the Regional Supervisor determines that the complexity 
of the individual installations justifies their classification as 
separate facilities.
    Facility, as used in Sec. 250.45 concerning air quality, means any 
installation or device permanently or temporarily attached to the 
seabed which is used for exploration, development, and production 
activities for oil, gas, or sulphur and which emits or has the 
potential to emit any air pollutant from one or more sources. All 
equipment directly associated with the installation or device is part 
of a single facility if the equipment is dependent on, or affects the 
processes of, the installation or device. During production, multiple 
installations or devices are a single facility if the installations or 
devices are directly related to the production of oil or gas at a 
single site. Any vessel used to transfer production from an offshore 
facility is part of the facility while physically attached to it.
    Facility, as used in Sec. 250.67(b) concerning hydrogen sulfide 
(H2S), means a vessel, a structure, or an artificial island 
used for drilling, well-completion, well-workover, and/or production 
operations.
    Gas reservoir means a reservoir that contains hydrocarbons 
predominantly in a gaseous (single-phase) state.
    Gas-well completion means a well completed in a gas reservoir or in 
the gas-cap of an oil reservoir with an associated gas-cap.
    Governor means the Governor of a State, or the person or entity 
designated by, or pursuant to, State law to exercise the powers granted 
to such Governor pursuant to the Act.
    H2S absent means:
    (1) Drilling, logging, coring, testing, or producing operations 
have confirmed the absence of H2S in concentrations that 
could potentially result in atmospheric concentrations of 20 ppm or 
more of H2S; or
    (2) Drilling in the surrounding areas and correlation of geological 
and seismic data with equivalent stratigraphic units have confirmed an 
absence of H2S throughout the area to be drilled.
    H2S present means drilling, logging, coring, testing, or 
producing operations have confirmed the presence of H2S in 
concentrations and volumes that could potentially result in atmospheric 
concentrations of 20 ppm or more of H2S.
    H2S unknown means the designation of a zone or geologic 
formation where neither the presence nor absence of H2S has 
been confirmed.
    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.
    Information when used without an adjective means G&G data that have 
been analyzed, processed, or interpreted.
    Interpreted geological information means geological information, 
often in the form of schematic cross sections, 3-dimensional 
representations, and maps, developed by determining the geological 
significance of data and analyzed geological information.
    Interpreted geophysical information means geophysical information, 
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. The term also means 
the area covered by that authorization, whichever is required by the 
context.
    Lease term pipelines means those pipelines owned and operated by a 
lessee or operator that are completely contained within the boundaries 
of a single lease, unitized leases, or contiguous (not cornering) 
leases of that lessee or operator.
    Lessee means a person who has entered into, or who 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 for that lease.
    Major Federal action means any action or proposal by the Secretary 
which is subject to the provisions of section 102(2)(C) of the National 
Environmental Policy Act of 1969, 42 U.S.C. (2)(C) (i.e., an action 
which will have a significant impact on the quality of the human 
environment requiring preparation of an Environmental Impact Statement 
pursuant to section 102(2)(C) of the National Environmental Policy 
Act).
    Marine environment means the physical, atmospheric, and biological 
components, conditions, and factors which interactively determine the 
productivity, state, condition, and quality of the marine ecosystem, 
including the waters of the high seas, the contiguous zone, 
transitional and intertidal areas, salt marshes, and wetlands within 
the coastal zone and on the OCS.

[[Page 7341]]

    Marine remains means physical evidence of human habitation, 
occupation, use, or activity, including the site, location, or context 
in which such evidence is situated.
    Maximum production rate (MPR) means the approved maximum daily rate 
at which oil or gas may be produced from a specified oil-well or gas-
well completion.
    Minerals includes 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. 1331.
    Nonattainment area means, for any air pollutant, an area which is 
shown by monitored data or which is calculated by air quality modeling 
(or other methods determined by the Administrator of EPA to be 
reliable) to exceed any primary or secondary ambient air quality 
standard established by EPA.
    Nonsensitive reservoir means a reservoir in which ultimate recovery 
is not decreased by high reservoir production rates.
    Of 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 measurement, 
controlled collection, analysis, interpretation, and explanation.
    Oil reservoir means a reservoir that contains hydrocarbons 
predominantly in a liquid (single-phase) state.
    Oil reservoir with an associated gas cap means a reservoir that 
contains hydrocarbons in both a liquid and gaseous (two-phase) state.
    Oil-well completion means a well completed in an oil reservoir or 
in the oil accumulation of an oil reservoir with an associated gas cap.
    Operating rights means any interest held in a lease with right to 
explore for, develop, and produce leased substances. Any assignment or 
transfer of operating rights may specify the depth of the borehole down 
to which the operating rights extend.
    Operator means the person the lessee(s) designates as having 
control or management of operations on the leased area or a portion 
thereof.
    Outer Continental Shelf (OCS) means all submerged lands lying 
seaward and outside of 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.
    Person includes, in addition to a natural person, an association, a 
State, a political subdivision of a State, or a private, public, or 
municipal corporation.
    Pipelines are the piping, risers, and appurtenances installed for 
the purpose of transporting oil, gas, sulphur, and produced waters.
    Processed geological information means data collected under a 
permit or a lease which have been processed. Processing involves 
changing the form of data 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 operations may 
include varying identified parameters for the detailed study of a 
specific problem area.
    Producing in paying quantities means that a well is able to produce 
oil, gas, or both in a cost-effective manner. This means that the 
production quantities must yield a greater return than the total costs, 
including well-completion costs, of producing the hydrocarbons at the 
wellhead.
    Production means those activities which take place after the 
successful completion of any means for the removal of minerals, 
including such removal, field operations, transfer of minerals to 
shore, operation monitoring, maintenance, and work-over operations.
    Projected emissions means emissions, either controlled or 
uncontrolled, from a source or sources.
    Regional Director means the MMS officer with responsibility and 
authority for a Region within MMS.
    Regional Supervisor means the MMS officer with responsibility and 
authority for operations or other designated program functions within 
an MMS Region.
    Right-of-use means any authorization to use OCS lands issued under 
this part.
    Right-of-way pipelines are those pipelines which: (1) Are contained 
within the boundaries of a single lease or unitized leases but are not 
owned and operated by a lessee or operator of that lease or unit, (2) 
are contained within the boundaries of contiguous (not cornering) 
leases which do not have a common lessee or operator, (3) are contained 
within the boundaries of contiguous (not cornering) leases which have a 
common lessee or operator but are not owned and operated by that common 
lessee or operator, or (4) are contained within a block(s) which is 
unleased.
    Routine operations, for the purposes of subpart F, means any of the 
following operations conducted on a well with the tree installed:
    (1) Cutting paraffin;
    (2) Removing and setting pump-through-type tubing plugs, gas-lift 
valves, and subsurface safety valves which can be removed by wireline 
operations;
    (3) Bailing sand;
    (4) Pressure surveys;
    (5) Swabbing;
    (6) Scale or corrosion treatment;
    (7) Caliper and gauge surveys;
    (8) Corrosion inhibitor treatment;
    (9) Removing or replacing subsurface pumps;
    (10) Through-tubing logging (diagnostics);
    (11) Wireline fishing;
    (12) Setting and retrieving other subsurface flow-control devices; 
and
    (13) Acid treatments.
    Sensitive reservoir means a reservoir in which high reservoir 
production rates will decrease ultimate recovery. Initially, all oil 
reservoirs with an associated gas cap are classified as sensitive.
    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.
    Suspension means a granted or directed deferral of the requirement 
to produce (Suspension of Production (SOP)) or to conduct leaseholding 
operations (Suspension of Operations (SOO)).
    Waste of oil, gas, or sulphur means:
    (1) The physical waste of oil, gas, or sulphur;
    (2) The inefficient, excessive, or improper use, or the unnecessary 
dissipation, of reservoir energy;
    (3) The locating, spacing, drilling, equipping, operating, or 
producing of any oil, gas, or sulphur well(s) in a manner which causes 
or tends to cause a reduction in the quantity of oil, gas, or sulphur 
ultimately recoverable under prudent and proper operations or which 
causes or tends to cause unnecessary or excessive surface loss or 
destruction of oil or gas; or
    (4) The inefficient storage of oil.
    Well-completion operations means the work conducted to establish 
production from a well after the production-casing string has been set, 
cemented, and pressure-tested.
    Well-control fluid means drilling mud, completion fluid, or 
workover fluid as appropriate to the particular operation being 
conducted.

[[Page 7342]]

    Workover operations means the work conducted on wells after the 
initial well-completion operation for the purpose of maintaining or 
restoring the productivity of a well.
    You means the Lessee, right-of-way holder, or person acting on 
behalf of a lessee or a right-of-way holder.

Performance Standards


Sec. 250.3  Under what standards will the Director regulate lease 
operations?

    The Director will regulate all operations under a lease, right-of-
use and easement, or right-of-way to:
    (a) Promote orderly exploration, development, and production of 
mineral resources;
    (b) Prevent damage to or waste of any natural resource, life, 
property, or the environment; and
    (c) Cooperate and consult with affected States, local governments, 
other interested parties, and relevant Federal agencies.


Sec. 250.4  What measures must I take to protect health, safety, 
property, and the environment?

    (a) You must protect health, safety, property, and the environment 
by:
    (1) Performing all operations in a safe and workmanlike manner; and
    (2) Maintaining all equipment in a safe condition.
    (b) You must immediately take all necessary precautions to control, 
remove, or otherwise correct any hazardous oil and gas accumulation or 
other health, safety, or fire hazard.


Sec. 250.5  What standards must crane operations meet?

    To ensure the safety of facility operations, you must meet the 
requirements of paragraph (a) of this section. If your facility is 
located in the Pacific OCS Region, you must also meet the requirements 
of paragraph (b) of this section.
    (a) In all cases, you must:
    (1) Operate and maintain cranes installed on fixed platforms 
according to the American Petroleum Institute (API) Recommended 
Practice (RP) for Operation and Maintenance of Offshore Cranes (API RP 
2D), and
    (2) Keep records of inspection, testing and maintenance, and crane 
operator qualifications according to the provisions of API RP 2D at 
your field office nearest the OCS facility for a period of 2 years.
    (b) This paragraph applies if your facility is located in the 
Pacific OCS region. You may use other power-operated load-handling 
equipment (such as air hoists or jib cranes) that has lower capacities 
and is generally used for smaller loads than pedestal-mounted revolving 
cranes. In this case, you must use such equipment according to specific 
sections of API RP 2D as follows:
    (1) Subsection 3.2 for Handling the Load;
    (2) Section 4 for Inspection, Testing and Maintenance (with the 
exception of 4.2.3, Load Test and 4.5, Crane Rerating); and
    (3) Section 5 for Wire Rope and Sling Inspection, Requirement and 
Maintenance.


Sec. 250.6  What must a welding, burning, and hot tapping practices and 
procedures plan contain?

    In this section, welding and burning include arc or fuel-gas 
welding and arc or fuel-gas (acetylene or other gas) cutting. The term 
welding includes welding, burning, and hot tapping activities.
    (a) You must submit a Welding, Burning, and Hot Tapping Safe 
Practices and Procedures Plan to the District Supervisor before you 
begin drilling or production activities on a lease. You may not begin 
welding activities until the District Supervisor has approved your 
plan. A copy of the plan and its approval letter must be available at 
the facility for the life of the facility (platform or drilling rig).
    (b) Your plan must include the following:
    (1) Standards or requirements for qualifying personnel who conduct 
welding activities;
    (2) Methods to ensure that only qualified personnel will conduct 
welding activities;
    (3) Practices and procedures for safe welding. Practices and 
procedures must address:
    (i) Welding in designated safe areas;
    (ii) Welding in undesignated areas, including well bays;
    (iii) Fire watches; and
    (iv) Maintenance of welding equipment.
    (4) Drawings showing any designated safe-welding areas; and
    (5) Methods, practices and procedures to preclude spark producing 
activities (i.e., grinding, abrasive blasting/cutting and arc-welding) 
from becoming a source of ignition in hazardous locations.
    (c) A welding supervisor or a designated person in charge must be 
thoroughly familiar with your welding plan. This person must ensure 
that each welder is properly qualified according to the welding plan. 
This person also must inspect all welding equipment before welding.
    (d) Your welding equipment must meet the following requirements:
    (1) All engine-driven welding equipment must be equipped with spark 
arrestors and drip pans;
    (2) Welding leads must be completely insulated and in good 
condition;
    (3) Hoses must be leak free and equipped with proper fittings, 
gauges, and regulators; and
    (4) Oxygen and fuel gas bottles must be secured in a safe place.
    (e) Before you weld, you must move any equipment containing 
hydrocarbons or other flammable substances at least 35 feet 
horizontally from the work site. You must move similar equipment 
located on lower decks at least 35 feet from the point of impact where 
slag, sparks, or other burning materials could fall. If moving this 
equipment is impractical, you must protect that equipment with flame-
proofed covers, shield it with metal or fire-resistant guards or 
curtains, or render the flammable substances inert.
    (f) While you weld, you must monitor all water-discharge-point 
sources from hydrocarbon-handling vessels. If a discharge of flammable 
fluids occurs, you must stop welding.
    (g) If you cannot weld in an approved safe-welding area, you must 
meet the following requirements:
    (1) You may not begin welding until the designated person-in-charge 
has authorized in writing that it is safe to proceed with the welding 
activity. Before beginning welding, the designated person-in-charge and 
the welder(s) must inspect the work area and areas below the work area 
for potential fire and explosion hazards.
    (2) During welding, the person-in-charge must designate one or more 
persons as a fire watch. These persons must have no other duties while 
actual welding is in progress. The fire watch must have usable 
firefighting equipment. The fire watch must remain on duty for 30 
minutes after welding activities end. If welding occurs in an area not 
equipped with a gas detector, the fire watch also must maintain a 
continuous surveillance during the welding and burning operation, with 
a portable gas detector.
    (3) You may not weld piping, containers, tanks, or other vessels 
that have contained a flammable substance unless you have rendered the 
contents inert and the designated person-in-charge has determined it is 
safe to weld. This does not apply to approved hot taps.
    (4) You may not weld in, or within 10 feet of, a well-bay or 
production area unless you have shut in all producing wells in that 
area.
    (5) You may not weld while you drill, complete, workover, or 
conduct

[[Page 7343]]

wireline operations unless the fluids in the well are noncombustible 
and you have precluded the entry of formation hydrocarbons into the 
wellbore. This does not apply to welding in an approved safe-welding 
area.


Sec. 250.7  What requirements apply to electrical equipment?

    The requirements in this section apply to all electrical equipment 
on all platforms, artificial islands, fixed structures, and their 
facilities.
    (a) You must classify all areas in accordance with API RP 500, 
Recommended Practice for Classification of Locations for Electrical 
Installations at Petroleum Facilities.
    (b) You must use trained and experienced personnel to maintain your 
electrical systems. They must have expertise in area classification, 
distribution system, performance characteristics and operation of 
electrical equipment, and associated hazards.
    (c) You must install all electrical systems in accordance with API 
RP 14F, Recommended Practice for Design and Installation of Electrical 
Systems for Offshore Production Platforms. You do not have to comply 
with Sections 7.4, Emergency Lighting, and 9.4, Aids to Navigation 
Equipment.
    (d) You must use a low-tension ignition system on each engine that 
has electric ignition. You must design and maintain the ignition system 
to minimize the release of electrical energy.


Sec. 250.8  When must I use best available and safest technologies 
(BAST)?

    (a) You must use BAST on all new exploration, development, and 
production operations.
    (b) You must use BAST on existing operations to avoid failure of 
equipment that would have a significant effect on safety, health, or 
the environment if the Director determines that:
    (1) Using BAST is economically feasible; and
    (2) The benefits of using BAST outweigh the costs.
    (c) If you comply with the requirements of this part, MMS will 
consider you to be using BAST.
    (d) MMS will analyze specific equipment and procedures or systems 
not covered by standards, codes, or practices to determine if their 
failure would have a significant effect on safety, health, or the 
environment. If MMS identifies significant effects on safety, health, 
and the environment, the Regional Supervisor may direct you to submit 
on a case-by-case basis the following analysis:
    (1) Information necessary to indicate the use of BAST;
    (2) Alternatives you are considering to the specific equipment or 
procedures;
    (3) The rationale as to why you chose one safe alternative 
technology instead of another; and
    (4) A discussion of the costs involved in the use of alternate 
technologies and the incremental benefits to be gained.


Sec. 250.9  How do I determine well producibility?

    To determine whether a well is capable of producing in paying 
quantities, submit a written request to the District Supervisor. You 
must then meet the criteria in paragraphs (a) and (b) of this section. 
Once a lease has a well that MMS determines is capable of producing in 
paying quantities, no further determination of well producibility will 
be made on the lease. A determination of well producibility invokes 
minimum royalty status on the lease as provided in 30 CFR 202.53. If 
your well is located in the Gulf of Mexico (GOM), you must also meet 
the requirements of paragraph (c) of this section.
    (a) You must give the District Supervisor a reasonable opportunity 
to witness each test that you conduct under paragraph (b) of this 
section. In lieu of witnessing a test, MMS will accept test data with 
your affidavit, or third-party test data, but you must receive the 
District Supervisor's approval for this arrangement before the test.
    (b) You must conduct:
    (1) A production test for oil wells that lasts at least 2 hours 
after flow stabilizes; and
    (2) Either:
    (i) A deliverability test for gas wells that lasts at least 2 hours 
after flow stabilizes, or
    (ii) A four-point back pressure test.
    (c) As evidence that a well in the GOM is capable of producing oil 
or gas in paying quantities, the GOM OCS Region will also consider the 
collective results of the following log, core analyses, and test 
criteria:
    (1) Resistivity or induction electric log of the well showing a 
minimum of 15 feet of producible sand in one section. The producible 
section must not include any interval which appears to be water 
saturated. All of the sections you count as producible must exhibit:
    (i) Electrical spontaneous potential exceeding 20-negative 
millivolts beyond the shale base line; or
    (ii) Gamma ray log deflection of at least 70 percent of the maximum 
gamma ray deflection in the nearest clean water-bearing sand--if mud 
conditions prevent a 20-negative millivolt reading beyond the shale 
base line; and
    (iii) A minimum true resistivity ratio of the producible section to 
the nearest clean water-bearing sand of at least 5:1.
    (2) A log indicating sufficient porosity in the producible section.
    (3) Sidewall cores and core analyses which indicate that the 
section is capable of producing oil or gas or evidence that an attempt 
was made to obtain such cores.
    (4) A wireline formation test and/or mud-logging analysis which 
indicates that the section is capable of producing oil or gas.


Sec. 250.10  Under what conditions will MMS approve reinjection and 
subsurface gas storage?

    (a) The Regional Supervisor may authorize you to reinject gas on 
the OCS to promote conservation of natural resources and to prevent 
waste. To receive MMS approval for reinjection, you must:
    (1) Show that the reinjection will not result in undue interference 
with operations under existing leases; and
    (2) Submit a written application to the Regional Supervisor for 
reinjection of gas.
    (b) The Regional Supervisor will approve gas reinjection 
applications that:
    (1) Enhance recovery projects;
    (2) Prevent flaring of casinghead gas; or
    (3) Implement other conservation measures approved by the Regional 
Supervisor.
    (c) The Regional Supervisor may authorize subsurface storage of gas 
on the OCS for later commercial benefit. To receive MMS approval you 
must:
    (1) Show that the subsurface storage of gas will not result in 
undue interference with operations under existing leases; and
    (2) Sign a storage agreement which includes the required payment 
amount of a storage fee or rental.
    (d) MMS may approve reinjection or storage of gas for locations on- 
or off-lease.
    (1) If you produce gas from an OCS lease and store it in a 
reservoir on the lease or unit, you are not required to pay royalty 
until you remove or sell the gas from the storage reservoir.
    (2) If you produce gas from an OCS lease and treat it at an off-
lease or off-unit location, you must pay royalties when the gas is 
first produced.
    (3) A reservoir on- or off-lease may contain both reinjected or 
stored gas and gas original to the reservoir. In this case, when you 
produce gas from the reservoir you must use an MMS-

[[Page 7344]]

 approved formula to determine the amounts of injected or stored gas 
and gas original to the reservoir.
    (e) Using a lease area for subsurface storage of gas, does not 
affect the continuance or expiration of the lease.
    (f) You may not store gas on unleased lands unless the Regional 
Supervisor has approved a right-of-use and easement for that purpose, 
under Sec. 250.18.
    (g) To receive the Regional Supervisor's approval of your request 
to reinject gas into the cap rock of a salt dome containing a sulphur 
deposit, you must show that the injection:
    (1) Is necessary to recover oil and gas contained in the cap rock; 
and
    (2) Will not significantly increase potential hazards to present or 
future sulphur mining operations.

Inspection of Operations


Sec. 250.11  How often does MMS conduct inspections?

    (a) To ensure that you are conducting operations in accordance with 
the Act, the regulations in this part, the lease or right-of-way, and 
other applicable laws and regulations, MMS will inspect your OCS 
facilities, including those facilities under jurisdiction of other 
Federal agencies that MMS inspects by agreement.
    (1) MMS conducts a scheduled onsite inspection of each offshore 
facility that is subject to environmental or safety regulations under 
the Act at least once a year. The inspection determines whether 
environmental protection and safety equipment designed to prevent or 
ameliorate blowouts, fires, spillages, or other major accidents has 
been installed and is operating properly.
    (2) MMS may also conduct periodic onsite inspection of any of your 
facilities without advance notice.
    (b) When MMS conducts an inspection, you must provide:
    (1) Access to all platforms, artificial islands, and other 
installations located on your leases or associated with your lease, 
right of easement, or right of way; and
    (2) The use of helicopter landing sites and refueling facilities 
for helicopters used by MMS for regulating offshore operations.
    (c) You must make available at all reasonable times for MMS 
inspection:
    (1) The area covered under a lease, easement, right-of-way, or 
permit;
    (2) All improvements, structures, and fixtures on these areas; and
    (3) All records of design, construction, operation, maintenance, 
repairs, or investigations on or related to the area.
    (d) Upon request, MMS will reimburse you for food, quarters, and 
transportation that you provide for MMS representatives while they 
inspect lease facilities and operations. You must send MMS your 
reimbursement request within 90 days of the inspection.

Disqualification and Appeals


Sec. 250.12  Under what conditions will MMS disqualify an operator or 
lessee?

    MMS may disqualify an operator or lessee from acquiring any new 
leaseholdings or lease assignments, or disapprove or revoke your 
designation as operator, if your operating performance is unacceptable. 
In making this determination, MMS will consider, individually or 
collectively:
    (a) Accidents and their nature;
    (b) Pollution events, environmental damages and their nature;
    (c) Incidents of non-compliance;
    (d) Civil penalties;
    (e) Failure to adhere to OCS lease obligations; or
    (f) Any other relevant factors.


Sec. 250.13  How can I appeal a decision made under MMS regulations?

    You may appeal orders or decisions issued under MMS regulations in 
subchapter B (parts 250 to 282) in accordance with part 290 of this 
title. When you appeal to the Director, you must continue to follow all 
requirements for compliance with the order or decision you appealed, 
unless the Secretary of the Interior (Secretary) or the Secretary's 
designee grants a stay of the request.

Special Types of Approvals


Sec. 250.14  Under what conditions will MMS give me an oral approval or 
an approval for alternate procedures and/or a departure?

    (a) Oral approvals. When you apply for MMS approval of any 
activity, MMS normally gives you a written approval. However, you may 
receive oral approval from MMS under certain circumstances:
    (1) MMS may give you oral approval to an oral request. You must 
confirm the oral request by submitting a written request to MMS within 
72 hours of the oral approval. Oral approvals for gas flaring do not 
require a written follow-up request.
    (2) MMS may give you oral approval to a written application when 
quick action is necessary. MMS will follow up its oral approval to your 
written application by forwarding a written approval to you and will 
include any conditions placed on the oral approval.
    (3) Requests to, and approvals from, MMS for gas flaring are always 
oral. You are not required to submit a written request to follow-up 
your oral request. However, when you stop the approved flaring, you 
must promptly submit a written letter summarizing the location, dates 
and hours, and volumes of liquid hydrocarbons produced and gas flared 
associated with the approved flaring in accordance with 30 CFR part 
250, subpart K.
    (b) Approval for alternate procedures. You may use alternate 
procedures or equipment as follows:
    (1) You may use new or alternate procedures or equipment, not 
covered in this part, if they provide a level of protection to the 
environment and ensure a measure of safety that is equal to or 
surpasses the current MMS requirements.
    (2) Before using the new or alternate technique or equipment, you 
must have written approval from the District or Regional Supervisor, as 
appropriate.
    (3) To receive MMS approval, you must either submit information or 
give an oral presentation to the District or Regional Supervisor, as 
appropriate, describing the site-specific application(s), performance 
characteristics, and safety features of the proposed procedure. The 
District or Regional Supervisor will respond to each proposal in 
writing.
    (c) Approval for departures. If certain aspects of your proposed 
procedure or equipment deviate from or are not covered by MMS 
regulations, MMS may prescribe or approve exceptions from the operating 
requirements of this part.


Sec. 250.15  How do I designate an operator and local agent?

    (a) You must provide the Regional Supervisor an executed 
Designation of Operator form unless you are the only lessee and are the 
only person conducting lease operations. When there is more than one 
lessee then the Regional Supervisor must receive and approve the 
Designation of Operator form from each lessee before the designated 
operator may commence operations on the leasehold.
    (1) This designation is authority for the designated operator to 
act on your behalf and to fulfill your obligations under the Act, the 
lease, and the regulations in this part.
    (2) When you are no longer the designated operator, you must 
immediately provide in writing the termination of your Designation of 
Operator to the Regional Supervisor. If you are also a designated 
royalty payor and will not continue to be in the future, you must also 
notify the Royalty Management Program of the termination of your 
Designation of Operator.
    (3) When a Designation of Operator terminates, the Regional 
Supervisor must approve a new designated operator

[[Page 7345]]

under this paragraph before operator may continue.
    (4) If your Designation of Operator is terminated, or a controversy 
develops between you and your designated operator, you and your 
designated operator must protect the lessor's interests.
    (5) You, or your designated operator, must immediately provide the 
Regional Supervisor a written notification of any change of address.
    (b) When you are not the sole lessee, you and your co-lessee(s) are 
jointly and severally responsible for fulfilling your obligations under 
the provisions of this subchapter, unless otherwise provided in the 
regulations in this subchapter. Should your designated operator fail to 
fulfill any of your obligations under this subchapter, the Regional 
Supervisor may require you or any or all of your co-lessee(s) to 
fulfill those obligations or other operational obligations under the 
Act, the lease, or the regulations in this subchapter.
    (c) You or your designated operator may designate for the Regional 
Supervisor's approval, or the Regional Director may require you to 
designate, a local agent empowered to: receive notices, submit 
requests, applications, notices, or supplemental information; or 
fulfill your obligations under the Act, the lease, or the regulations 
in this part.
    (d) Whenever the regulations in 30 CFR parts 250 to 282 require the 
lessee to meet a requirement or perform an action, the lessee, operator 
(if one has been designated), and the person actually performing the 
activity to which the requirement applies are jointly and severally 
responsible for compliance with the regulation.

Naming and Identifying Platforms and Wells


Sec. 250.16  How do I name platforms and wells?

    (a) In the Gulf of Mexico Region: (1) Assign each platform a letter 
designation. For example, A, B, CA, or CB.
    (i) After a platform is installed, rename each well that was 
drilled through a template and was assigned a number. Use a letter and 
number designation. For example, rename Well No. 1: A-1, B-1, or C-1; 
and
    (ii) When you have more than one platform in a field (excluding 
complexes), include the designations for the field and use a different 
letter designation for each platform. For example, EC 221-A, EC 222-B, 
EC 223-C.
    (2) In naming multiple well caissons, you must assign a letter 
designation.
    (3) In naming single well caissons, you must use certain criteria 
as follows:
    (i) For single well caissons that are not attached to a platform 
with a walkway, use the well designation. For example, Well No. 1;
    (ii) For single well caissons that are attached to a platform with 
a walkway, use the same designation as the platform. For example, 
rename Well No.10 as A-10; and
    (iii) For single well caissons with production equipment, use a 
letter designation. For example, Well No. 1 as A-1.
    (b) In the Pacific Region, platforms are assigned a name 
designation.
    (c) In the Alaska Region, platforms will be named and identified in 
accordance with the Regional Director's directions.


Sec. 250.17  What identification signs must I display?

    (a) You must identify all platforms, structures, artificial 
islands, and mobile drilling units with a sign.
    (1) You must display an identification sign that can be viewed from 
the waterline on at least one side of the platform. The sign must use 
at least 3-inch letters and figures.
    (2) When helicopter landing facilities are present, you must 
display an additional identification sign that is visible from the air. 
The sign must use at least 12-inch letters and figures, and must also 
display the weight capacity of the helipad. If this sign is visible to 
both helicopter and boat traffic, then the sign in paragraph (a)(1) of 
this section is not required.
    (3) Your identification sign must:
    (i) List the name of the lessee or designated operator;
    (ii) In the GOM OCS Region, list the area designation or 
abbreviation and the block number of the platform location as depicted 
on OCS Official Protraction Diagrams or leasing maps;
    (iii) In the Pacific OCS Region, list the lease number on which the 
facility is located; and
    (iv) List the name of the platform, structure, artificial island, 
or mobile drilling unit.
    (b) You must identify singly completed wells and multiple 
completions as follows:
    (1) For each singly completed well, list the lease number and well 
number on the wellhead or on a sign affixed to the wellhead;
    (2) For wells with multiple completions, identify each completion 
individually at the wellhead; and
    (3) For subsea wellheads, affix the required sign on the flowline 
that connects to the pipeline that connects to the subsea well at a 
convenient location on the receiving platform.
    (c) Each identifying sign must be visible to approaching traffic 
and maintained in a legible condition.

Right-of-Use and Easement


Sec. 250.18  When will MMS grant a right-of-use and easement?

    (a) Granting a right-of-use and easement. In addition to the rights 
and privileges granted to you under a lease issued or maintained under 
the Act, MMS may grant you a right-of-use and easement on the OCS if 
you meet these requirements:
    (1) You must need the right-of-use and easement to construct and 
maintain off the lease platforms, artificial islands, and installations 
and other devices that are:
    (i) Permanently or temporarily attached to the seabed; and
    (ii) Used for conducting exploration, development, and production 
activities or other operations on your lease;
    (2) You must exercise the right-of-use and easement in accordance 
with the provisions of this part;
    (3) If you apply for a right-of-use and easement on a leased area, 
you must notify the lessee and give her/him an opportunity to comment 
on your application; and
    (4) You must receive MMS approval for all platforms, artificial 
islands, and installations and other devices permanently or temporarily 
attached to the seabed.
    (b) Continuation of the right beyond lease termination.
    If your right-of-use and easement is on a lease, you may continue 
to exercise the right-of-use after the lease on which it is situated 
terminates. You must only use the right-of-use and easement for the 
purpose that the grant specifies. All future lessees of that portion of 
the OCS on which your right-of-use and easement is situated must 
continue to provide you the right-of-use and easement for the purpose 
that the grant specifies.
    (c) Granting a right-of-use and easement to adjacent State lessee. 
MMS may grant a lessee of a State lease located adjacent to the OCS a 
right-of-use and easement on the OCS. MMS will require you to pay an 
application fee (see (c)(4)(i)) to reimburse us for our costs of 
processing your application. The Independent Offices Appropriations Act 
(31 U.S.C. 9701), Office of Management and Budget (OMB) Circular A-25, 
and the Omnibus Appropriations Bill (Pub. L. 104-133, 110 Stat. 1321, 
April 26, 1996) require us to collect these fees. MMS will

[[Page 7346]]

specify the fee and rental payment amounts (under paragraph (c)(3)) of 
this section in notices to State lessees.
    (1) MMS will only grant a right-of-use and easement under this 
paragraph to enable a State lessee to conduct and maintain a device 
that is permanently or temporarily attached to the seabed (i.e., a 
platform, artificial island, or installation). The lessee must use the 
device to explore for, develop, and produce oil and gas from the 
adjacent State lease and for other operations that are related to these 
activities.
    (2) A right-of-use and easement granted under this section is 
subject to the regulations of this part and any terms and conditions 
that the Regional Director prescribes.
    (3) For the whole or fraction of the first calendar year, and 
annually after that, you must pay to MMS, in advance, an annual rental 
payment in an amount MMS will establish in accordance with the statutes 
and OMB Circular A-25, referenced in paragraph (c) of this section.
    (4) When you apply for a right-of-use and easement, you must pay:
    (i) A non-refundable filing fee; and
    (ii) The first year's rental according to paragraph (c)(3) of this 
section.
    (5) With your application, you must describe the proposed use 
giving:
    (i) Details of the proposed uses and activities including access 
needs and special rights-of-use that you may need;
    (ii) A description of all facilities for which you are seeking 
authorization;
    (iii) A map or plat describing primary and alternate project 
locations; and
    (iv) A schedule for constructing any new facilities, drilling or 
completing any wells, anticipated production rates, and productive life 
of existing production facilities.
    (6) Before MMS issues you a right-of-use and easement on the OCS, 
you must furnish the Regional Director a surety bond in the amount of 
$500,000. The Regional Director may require additional security from 
you (i.e., security over and above the prescribed $500,000) to cover 
additional costs and liabilities for regulatory compliance. This 
additional surety:
    (i) Must be in the form of a supplemental bond or bonds meeting the 
requirements of Sec. 256.54 or an increase in the amount of coverage of 
an existing surety bond; and
    (ii) Covers additional costs and liabilities for regulatory 
compliance, including well abandonment, platform and structure removal, 
and site clearance from the seafloor of the right-of-use and easement.

Suspensions


Sec. 250.19  Under what conditions can operations or production be 
suspended?

    (a) You may request approval of a suspension, or the Regional 
Supervisor may direct a suspension (Directed Suspension), for all or 
any part of a lease. Depending on the nature of the suspended activity, 
suspensions are labeled either Suspensions of Operations (SOO) or 
Suspensions of Production (SOP).
    (b) A suspension may extend the term of a lease (see 30 CFR 
250.23). The extension is equal to the length of time the suspension is 
in effect, except as provided in paragraph (c).
    (c) A Directed Suspension does not extend the term of a lease when 
the Regional Supervisor direct a suspension because of:
    (1) Gross negligence; or
    (2) A willful violation of a provision of the lease or governing 
statutes and regulations.
    (d) MMS may issue suspensions for a period of up to 5 years. The 
Regional Supervisor will set the length of the suspension based on the 
conditions of the individual case involved. MMS may grant consecutive 
suspensions.
    (e) SOO's end automatically when the suspended operation commences.
    (f) SOP's end automatically when production begins.
    (g) A Directed Suspension normally terminates as specified in the 
letter directing the suspension.
    (h) MMS may terminate any suspension when the Regional Supervisor 
determines the circumstances that justified the suspension no longer 
exist or that other lease conditions warrant termination. The Regional 
Supervisor will notify you of the reasons for termination and the 
effective date.
    (i) You must submit your request for a suspension to the Regional 
Supervisor before the 180th day after you stop operations (see 30 CFR 
250.23). MMS must receive the request before the lease term ends. The 
request must include:
    (1) The justification for the suspension including the length of 
suspended period requested; and
    (2) A schedule of work leading to the commencement or restoration 
of the suspended activity.
    (j) The Regional Supervisor may grant or direct a suspension under 
any of the following circumstances:
    (1) When necessary to comply with judicial or Congressional decrees 
prohibiting any activity or the permitting of those activities. The 
effective date of the suspension will be the effective date required by 
the action of the court or Congress;
    (2) When activities pose a threat of serious, irreparable, or 
immediate harm. This would include damage to life (including fish and 
other aquatic life), property, any mineral deposit, or the marine, 
coastal, or human environment. MMS may require you to do a site-
specific study (see Sec. 250.19 (o)(1));
    (3) When necessary for the installation of safety or environmental 
protection equipment;
    (4) When necessary to carry out the requirements of the National 
Environmental Policy Act or to conduct an environmental analysis; or
    (5) When necessary to allow for inordinate delays encountered in 
obtaining required permits or consents, including administrative or 
judicial challenges or appeals.
    (k) The Regional Supervisor may direct a suspension when:
    (1) You failed to comply with an applicable law, regulation, order, 
or provision of a lease or permit; or
    (2) The suspension is in the interest of national security or 
defense.
    (l) The Regional Supervisor may grant or direct an SOP when: the 
suspension is in the national interest; you have exercised diligence in 
pursuing production; the lease was drilled and a well was determined to 
be producible in accordance with 30 CFR 250.9 or 250.253; and it is 
necessary because the suspension will meet one of the following 
criteria:
    (1) It will facilitate the proper development of a lease, including 
allowing you reasonable time to construct and install production 
facilities;
    (2) It will allow you time to obtain adequate transportation 
facilities;
    (3) It will allow you a reasonable amount of time to enter a sales 
contract for oil, gas, or sulphur. You must show that you are making a 
good faith effort to enter into the contract(s);
    (4) It will avoid premature abandonment of a producing well(s);
    (5) It will allow you to develop marginal reserves that would 
otherwise not be developed. You must provide a schedule of work 
commitments, with specific measurable milestones, which would lead to 
development; or
    (6) It will allow you reasonable time to acquire, properly process/
reprocess, and evaluate geophysical data or information. You must 
demonstrate a commitment to developing the lease, and the evaluation 
program must be designed to efficiently select a location for 
additional development wells, assist in siting development facilities, 
or locate an additional well needed to properly size production 
facilities.

[[Page 7347]]

    (m) The Regional Supervisor may grant an SOO when necessary to 
allow you reasonable time to commence drilling or other operations when 
your good-faith efforts are prevented by reasons beyond your control, 
such as unexpected weather, unavoidable accidents, or drilling rig 
delays.
    (n) A directed suspension may affect the payment of rental or 
royalties for the lease as provided in Sec. 218.154.
    (o) If MMS grants or directs a suspension under paragraph (j)(2) of 
this section, the Regional Supervisor may require you to:
    (1) Conduct a site-specific study(s);
    (2) Submit a revised EP (including any required mitigating 
measures);
    (3) Submit a revised DPP (including any required mitigating 
measures); or
    (4) Submit a revised Development Operations Coordination Document 
according to Sec. 250.34.
    (p) The Regional Supervisor must approve or prescribe the scope for 
any site-specific study that you perform under Sec. 250.19 (o)(1).
    (1) The study must evaluate the cause of the hazard, the potential 
damage, and the available mitigation measures.
    (2) You must pay for the study unless you request, and the Regional 
Supervisor agrees to arrange, payment by another party.
    (3) You must furnish copies and results of the study to the 
Regional Supervisor.
    (4) MMS will make the results available to other interested parties 
and to the public.
    (5) The Regional Supervisor will use the results of the study and 
any other information that becomes available:
    (i) To decide if the suspension can be lifted.
    (ii) To determine any actions that you must take to mitigate or 
avoid any damage to the environment, life, or property.

Reporting Requirements


Sec. 250.20  What accident reports and evacuation statistics must I 
submit?

    (a) Accident reports. You must report accidents in accordance with 
the accident reporting table in this section. Copies of written company 
reports may be submitted to fulfill these requirements.

                        Table--Accident Reporting                       
------------------------------------------------------------------------
            Type of accident                  Reporting requirement     
------------------------------------------------------------------------
Major accidents, including fires, are    1. In the case of death or     
 those which cause (1) any death or       fire, orally notify the       
 serious injury resulting in              District Supervisor           
 substantial impairment of any bodily     immediately. Otherwise, orally
 unit or function, or (2) property or     notify the District Supervisor
 equipment damage costing more than       within 24 hours.              
 $25,000..                                                              
                                         2. Follow up with a preliminary
                                          written report within 10 days.
                                         3. Submit a final written      
                                          report in 45 days.            
                                         4. In all written reports,     
                                          differentiate, to the extent  
                                          practicable, between factual  
                                          and conjectural or            
                                          interpretive information.     
Reportable accidents include (1) all     1. Notify the District         
 other fires, (2) injuries requiring      Supervisor within 72 hours.   
 more than first aid treatment and                                      
 which prevent the performance of                                       
 normal work duties, or (3) property or                                 
 equipment damage costing less than                                     
 $25,000 and which impairs safety                                       
 systems.                                                               
                                         2. Follow up with a written    
                                          report within 10 days. To the 
                                          extent practicable,           
                                          differentiate between factual 
                                          and conjectural or            
                                          interpretive information.     
All explosions and blowouts connected    1. Orally notify the District  
 with any activities or operations on a   Supervisor immediately.       
 lease.                                                                 
                                         2. Follow up with a written    
                                          report within 10 days. To the 
                                          extent practicable,           
                                          differentiate between factual 
                                          and conjectural or            
                                          interpretive information.     
Oil spills.............................  Report all spills of oil in    
                                          accordance with 30 CFR part   
                                          254.                          
------------------------------------------------------------------------

    (1) If you hold an easement, right-of-way, or other permit, you 
must comply with paragraph (a) of this section by notifying and 
reporting to the Regional Supervisor any accidents occurring on the 
area covered by the easement, right-of-way, or other permit.
    (2) Investigations that MMS conducts under the authority of 
sections 22(d) (1) and (2) of the Act 43 U.S.C. 1348 d(1) and (2), are 
fact-finding proceedings with no adverse parties. The purpose of the 
investigation is to prepare a public report that determines the cause 
or causes of the accident. The investigations may involve panel 
meetings conducted by a chairperson appointed by MMS. The following 
requirements must be met for any panel meetings involving persons 
giving testimony:
    (i) A person giving testimony may have legal and/or other 
representative(s) present to provide advice or counsel while the person 
is giving testimony. The chairperson may require a verbatim transcript 
to be made of all oral testimony. The chairperson also may accept a 
sworn written statement in lieu of oral testimony.
    (ii) Only panel members, panel legal advisors, and panel experts 
may address questions to any person giving testimony.
    (iii) The chairperson may issue subpoenas to persons to appear and 
provide testimony at a panel meeting. A subpoena may not require a 
person to attend a panel meeting held at a location more than 100 miles 
from where a subpoena is served.
    (iv) Any person giving testimony is entitled to request 
compensation for mileage and fees for service within 90 days after the 
panel meeting. The compensated expenses must be similar to mileage and 
fees for service that are permitted to be compensated by U. S. District 
Courts.
    (b) Evacuation statistics for natural occurrences. You must submit 
evacuation statistics to the Regional Supervisor for a natural 
occurrence such as an earthquake or hurricane. MMS will notify local 
and national authorities and the public, as appropriate. You must:
    (1) Submit the statistics by telefax or E-mail as soon as possible 
when evacuation occurs;
    (2) Submit statistics on a daily basis no later than 11 a.m. during 
the period of shut-in and evacuation;
    (3) Inform MMS when you resume production; and
    (4) Submit statistics either by MMS district or the total figures 
for your operations in the Region.

[[Page 7348]]

Sec. 250.21  Reports and investigations of apparent violations.

    Any person may report to MMS an apparent violation or failure to 
comply with any provision of the Act, any provision of a lease, 
license, or permit issued under the Act, or any provision of any 
regulation or order issued under the Act. When MMS receives a report of 
an apparent violation, or when an MMS employee detects an apparent 
violation, MMS will investigate in accordance with its procedures.


Sec. 250.22  What archaeological reports and surveys must I submit?

    (a) If it is likely that an archaeological resource exists in the 
lease area, the Regional Director will notify you in writing. You must 
include an archaeological report in the EP or DPP.
    (1) If the archaeological report suggests that an archaeological 
resource may be present, you must either:
    (i) Locate the site of any operation so as not to adversely affect 
the area where the archaeological resource may be; or
    (ii) Establish to the satisfaction of the Regional Director that an 
archaeological resource does not exist or will not be adversely 
affected by operations. This requires further archaeological 
investigation, conducted by an archaeologist and a geophysicist, using 
survey equipment and techniques the Regional Director considers 
appropriate. You must submit the investigation report to the Regional 
Director for review.
    (2) If the Regional Director determines that an archaeological 
resource is likely to be present in the lease area and may be adversely 
affected by operations, the Regional Director will notify you 
immediately. You must not take any action that may adversely affect the 
archaeological resource until the Regional Director has told you how to 
protect the resource.
    (b) If you discover any archaeological resource while conducting 
operations in the lease area, you must immediately halt operations 
within the area of the discovery and report the discovery to the 
Regional Director. If investigations determine that the resource is 
significant, the Regional Director will tell you how to protect it.

Lease Term Extensions


Sec. 250.23  What effect do production, drilling, or well-reworking 
have on the lease term?

    (a) Your lease expires at the end of its primary term unless you 
are producing in paying quantities or conducting drilling or well-
reworking operations on your lease (see 30 CFR part 256). The objective 
of the drilling or well-reworking operations must be to establish 
continuous production on the lease. For purposes of this section, the 
term operations means continuous production, drilling, or well-
reworking.
    (b)(1) If you stop conducting operations during the last 180 days 
of your primary lease term, your lease will expire at the end of the 
primary lease term unless by the 180th day after you stop operations 
you either resume operations, or MMS receives your request for an SOO 
or an SOP that the Regional Supervisor later grants under Sec. 250.19. 
If the Regional Supervisor denies your request for an SOO or an SOP and 
you do not resume operations within 180 days after you stop operations, 
your lease expires at the end of the primary lease term.
    (2) If you extend your lease term under paragraph (b)(1), you must 
pay rental for each year or part of the year during which your lease 
continues in force beyond the end of the primary lease term.
    (c) If you stop conducting operations on a lease that has continued 
beyond its primary term, then your lease will expire unless you resume 
operations or receive an SOO or an SOP from the Regional Supervisor 
under Sec. 250.19 before the end of the 180th day after you stop 
operations
    (d) You may ask the Regional Supervisor to allow you more than 180 
days to resume operations on a lease continued beyond its primary term 
when operating conditions warrant. The request must be in writing and 
explain the operating conditions that warrant a longer period. In 
allowing additional time, the Regional Supervisor must determine that 
the longer period is in the national interest and that it conserves 
resources, prevents waste, or protects correlative rights.
    (e) You must immediately notify MMS either orally or by fax or E-
mail when you begin operations and follow up with a written report 
under paragraph (f) of this section.
    (f) You must submit a report to the District Supervisor when lease 
production is initiated, lease production ceases, when production 
resumes before the end of the 180-day period after production ceased, 
and when any operations occur during the referenced 180-day interval.
    (1) The report must contain:
    (i) The lease number;
    (ii) The well number(s) involved; and
    (iii) The pertinent dates and a description of the operation.
    (2) You must submit the report within 30 days after production 
either commences, resumes, or ceases, as appropriate, or 30 days after 
the leaseholding operation is completed.
    (g) You must immediately report to the District Supervisor if 
production does not resume before the end of the 180-day period.


Sec. 250.24  Under what circumstances may MMS cancel my lease with or 
without compensation?

    If the Secretary cancels your lease under this part or under part 
256, you are entitled to compensation under paragraph (d) of this 
section. Paragraph (e) of this section gives conditions under which you 
will receive no compensation.
    (a) Conditions for canceling a lease with compensation. The 
Secretary may cancel a lease after notice and opportunity for a hearing 
when:
    (1) Continued activity on the lease, would probably cause harm or 
damage to life (including fish and other aquatic life), property, other 
mineral deposits (in areas leased or not leased), or the marine, 
coastal, or human environment;
    (2) The threat of harm or damage will not disappear or decrease to 
an acceptable extent within a reasonable period of time;
    (3) The advantages of cancellation outweigh the advantages of 
continuing the lease in force; and
    (4) A suspension has been in effect for at least 5 years, or you 
request termination of the suspension and lease cancellation.
    (b) Canceling a lease at the exploration stage. MMS may not approve 
an EP under subpart B of this part if the Regional Supervisor 
determines that the proposed activities may cause serious harm or 
damage to life (including fish and other aquatic life), property, any 
mineral deposits, the national security or defense, or to the marine, 
coastal, or human environment. When you cannot modify the EP to avoid 
such conditions and the EP is subsequently disapproved under the 
regulations in subpart B of this part, the Secretary may cancel the 
lease if:
    (1) The primary lease term has not expired and exploration has been 
prohibited for 5 years following the disapproval; or
    (2) You request cancellation at an earlier time.
    (c) Extending or canceling a lease at development and production 
stage. (1) MMS may extend your lease if you submit a DPP and the 
Regional Supervisor disapproves the plan in accordance with the 
regulations in subpart B of this part. Following the disapproval:
    (i) MMS will allow you to hold the lease for 5 years maximum;

[[Page 7349]]

    (ii) At any time within 5 years after the disapproval, you may 
reapply for approval of the same or a modified plan; and
    (iii) The Regional Supervisor will approve, disapprove, or require 
modification of the plan under Sec. 250.34(l).
    (2) If the Regional Supervisor has not approved a DPP or required 
you to submit a DPP for approval or modification, the Secretary will 
cancel the lease:
    (i) When the 5-year period described in paragraph (c)(1) of this 
section expires; or
    (ii) If you request cancellation at an earlier time.
    (d) Amount of compensation for lease cancellation. When the 
Secretary cancels a lease under paragraphs (a), (b), or (c) of this 
section, you are entitled to receive compensation under 43 U.S.C. 1334 
(a)(2)(c). You must show the Director that the amount of compensation 
claimed is the lesser of paragraph (d)(1) or (d)(2) of this section:
    (1) The fair value of the cancelled rights as of the date of 
cancellation, taking into account both:
    (i) Anticipated revenues from the lease; and
    (ii) Costs reasonably anticipated on the lease, including:
    (A) Costs of compliance with all applicable regulations and 
operating orders; and
    (B) Liability for cleanup costs or damages, or both, in the case of 
an oil spill.
    (2) The excess, if any, over your revenues from the lease (plus 
interest thereon from the date of receipt to date of reimbursement) of:
    (i) All consideration paid for the lease; and
    (ii) All your direct expenditures:
    (A) After the issue date of the lease; and
    (B) For exploration or development, or both, under the lease plus 
interest on the consideration under paragraph (d)(2)(i) of this section 
and expenditures under paragraph (d)(2)(ii) from date of payment to 
date of reimbursement.
    (3) Compensation for leases issued before September 18, 1978 will 
be equal to the amount specified in paragraph (d)(1).
    (e) Canceling a lease without compensation. You will not receive 
compensation from MMS for lease cancellation if:
    (1) MMS disapproves a DPP because you do not receive concurrence by 
the State under section 307(c)(3)(B)(i) or (ii) of the CZMA, and the 
Secretary of Commerce does not make the finding authorized by section 
307(c)(3)(B)(iii) of the CZMA;
    (2) You do not submit a DPP in accordance with Sec. 250.34 or do 
not comply with the approved DPP;
    (3) As the lessee of a nonproducing lease, you fail to comply with 
the Act, the lease, or the regulations issued under the Act, and the 
default continues for a period of 30 days after MMS mails you a notice 
by overnight mail;
    (4) The Regional Supervisor disapproves a DPP because you fail to 
demonstrate compliance with the requirements of applicable Federal law; 
or
    (5) The Secretary forfeits or cancels a producing lease under 
section (d) of the Act, 43 U.S.C. 1334(d).

Information: Submission, Reimbursement For, And Availability to Public


Sec. 250.25  What reporting information and report forms must I submit?

    (a) You must submit required information as MMS prescribes.
    (1) You may obtain copies of forms from, and submit completed forms 
to, the Regional or District Supervisor.
    (2) Instead of paper copies of forms available from the Regional or 
District Supervisor, you may use your own computer generated forms 
which are equal in size to MMS's forms. The data on your form must be 
arranged in a format identical to the MMS form.
    (3) You may submit digital data when the Region/District is 
equipped to accept it.
    (b) You must include, for public information, one copy of any 
reports submitted on forms as MMS prescribes.
    (1) You must mark it Public Information.
    (2) You must include all required information except information 
exempt from public disclosure under Sec. 250.27 or otherwise exempt 
from public disclosure under law or regulation.


Sec. 250.26  When will MMS reimburse me for reproduction costs?

    (a) MMS will reimburse you for reasonable costs of reproduction 
when you submit geological data, geophysical data, analyzed geological 
information, processed geological and geophysical information, 
reprocessed geological and geophysical information, and interpreted 
geological and geophysical information for the Regional Director to 
review or select (and whether or not retained) in accordance with this 
part if:
    (1) MMS receives your request for reimbursement within 90 days from 
the date of delivery and the Regional Supervisor determines that the 
requested reimbursement is proper; and
    (2) The cost is at your lowest rate or at the lowest commercial 
rate established in the area, whichever is less.
    (b) MMS will reimburse you for the reasonable processing costs of 
geological or geophysical information if:
    (1) You processed--at the request of the Regional Supervisor--the 
geological or geophysical information, in a form or manner other than 
normally used in conducting business; or
    (2) You collected the information under a permit that MMS issued 
you before October 1, 1985, and the Regional Supervisor requests the 
information.
    (c) When you request reimbursement, you must identify reproduction 
and processing costs separately from acquisition costs.
    (d) MMS will not reimburse you for data acquisition costs or for 
the costs of analyzing or processing geological information or 
interpreting geological or geophysical information.


Sec. 250.27  Data and information to be made available to the public.

    MMS will protect data and information you submit under this part, 
except as described in this section. The tables in paragraphs (a) and 
(b) of this section describe what data and information will be made 
available to the public without the consent of the lessee and under 
what circumstances and in what time period.
    (a) MMS will disclose information collected on MMS forms in 
accordance with the following table:

----------------------------------------------------------------------------------------------------------------
                                     In the following                                                           
   Data that you submit on form            items           Will be released                   And               
----------------------------------------------------------------------------------------------------------------
MMS-123, Application for Permit    All entries except    At any time........  The data and information in items 
 to Drill.                          items 17, 24, and                          17, 24, and 25 will be released  
                                    25.                                        according to paragraph (b) of    
                                                                               this section or when the well    
                                                                               goes on production, whichever is 
                                                                               earlier.                         

[[Page 7350]]

                                                                                                                
MMS-124, Sundry Notices and        All entries except    At any time........  The data and information in item  
 Reports on Wells.                  item 36.                                   36 will be released according to 
                                                                               paragraph (b) of this section or 
                                                                               when the well goes on production,
                                                                               whichever is earlier.            
MMS-125, Well Summary Report.....  All entries except    At any time........  The data and information in the   
                                    items 17, 24, 34,                          excepted items will be released  
                                    37, and 46 through                         according to paragraph (b) of    
                                    87.                                        this section or when the well    
                                                                               goes on production, whichever is 
                                                                               earlier. However, items 78 and 85
                                                                               will not be released when the    
                                                                               well goes on production unless   
                                                                               the period of time in paragraph  
                                                                               (b) of this section has expired. 
MMS-126, Well Potential Test       All entries except    When the well goes   The data and information in item  
 Report and Request for Maximum     item 101.             on production.       101 will be released 2 years     
 Production Rate (MPR).                                                        after you submit it.             
MMS-127, Request for Reservoir     All entries except    At any time........  The data and information in items 
 Maximum Efficient Rate (MER).      items 124 through                          124 through 168 will be released 
                                    168.                                       according to the time periods in 
                                                                               paragraph (b) of this section.   
MMS-128, Semiannual Well Test      All entries.........  At any time........  ..................................
 Report.                                                                                                        
----------------------------------------------------------------------------------------------------------------

    (b) MMS will disclose information not collected on MMS forms in 
accordance with the following table:

----------------------------------------------------------------------------------------------------------------
              If                   MMS will release          At this time             Additional provisions     
----------------------------------------------------------------------------------------------------------------
The Director determines that    Geophysical data......  Any time..............  Data and information will be    
 data and information are       Geological data                                  shown only to persons with an  
 needed to unitize operations    Reprocessed G&G                                 interest.                      
 on two or more leases, to       information.                                                                   
 ensure proper plans of         Interpreted geological                                                          
 development for competitive     & geophysical                                                                  
 reservoirs, or to promote       information.                                                                   
 operational safety or protect  Processed geophysical                                                           
 the environment.                information.                                                                   
                                Analyzed geological                                                             
                                 information.                                                                   
The Director determines that    Geophysical data......  Any time..............  MMS will release data and       
 data and information are       Geological data.......                           information only if release    
 needed for specific            Reprocessed G&G                                  would further the national     
 scientific or research          information.                                    interest without unduly        
 purposes for the Government.   Interpreted geological                           damaging the competitive       
                                 & geophysical                                   position of the lessee.        
                                 information.                                                                   
                                Processed geophysical                                                           
                                 information.                                                                   
                                Analyzed geological                                                             
                                 information.                                                                   
Data or information is          Geophysical data......  60 days after you       MMS will release the data and   
 collected with high-           Geological data.......   submit the data or      information earlier than 60    
 resolution systems (e.g.,      Processed geological &   information, if the     days if the Regional Supervisor
 bathymetry, side-scan sonar,    geophysical             Regional Supervisor     determines it is needed by     
 subbottom profiler, and         information.            deems it necessary.     affected States to make        
 magnetometer) to comply with   Interpreted G&G                                  decisions under subpart B of   
 safety or environmental         information.                                    this part. The Regional        
 protection requirements.                                                        Supervisor will reconsider     
                                                                                 earlier release if you satisfy 
                                                                                 him/her that it would unduly   
                                                                                 damage your competitive        
                                                                                 position.                      
----------------------------------------------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------
              If                   MMS will release          At this time             Additional provisions     
----------------------------------------------------------------------------------------------------------------
Your lease is no longer in      Geophysical data......  When your lease         This release time applies only  
 effect.                        Processed geophysical    terminates or 10        if the provisions in this table
                                 information.            years after the date    governing high resolution      
                                Reprocessed G&G          you submit the data,    systems and the provisions in  
                                 information.            whichever is earlier.   Sec.  252.7 do not apply.      
                                Interpreted G&G                                                                 
                                 information.                                                                   
Your lease is no longer in      Geological data.......  When your lease         This release time applies only  
 effect.                        Analyzed geological      terminates.             if the provisions in this table
                                 information.                                    governing high resolution      
                                                                                 systems and the provisions in  
                                                                                 Sec.  252.7 do not apply.      
Your lease is still in effect.  Geophysical data......  2 years after you       These release times apply only  
                                Processed geophysical    submit it or 60 days    if the provisions in this table
                                 information.            after a lease sale if   governing high resolution      
                                Reprocessed G&G          any portion of an       systems and the provisions in  
                                 information.            offered block is        Sec.  252.7 do not apply. If   
                                Interpreted G&G          within 50 miles of a    the primary term specified in  
                                 information.            well, whichever is      the lease is extended under    
                                                         later.                  Sec.  252.10, the extension    
                                                                                 applies to this provision.     

[[Page 7351]]

                                                                                                                
Data is released to the owner   Directional survey      If the lessee from      ................................
 of an adjacent lease under      data.                   whose lease the                                        
 subpart D of part 250.                                  directional survey                                     
                                                         was taken consents..                                   
Data and information are        Any data or             At any time...........  ................................
 obtained from beneath           information obtained.                                                          
 unleased land as a result of                                                                                   
 a well deviation that has not                                                                                  
 been approved by the Regional                                                                                  
 or District Supervisor.                                                                                        
----------------------------------------------------------------------------------------------------------------

References


Sec. 250.28  Documents incorporated by reference.

    (a) MMS is incorporating by reference the documents listed in the 
table in paragraph (e) of this section. The Director of the Federal 
Register has approved this incorporation by reference in accordance 
with 5 U.S.C. 552(a) and 1 CFR part 51.
    (1) MMS will publish any changes to these documents in the Federal 
Register.
    (2) The rule change will become effective without prior opportunity 
to comment when MMS determines that the revisions to a document result 
in safety improvements or represent new industry standard technology, 
and do not impose undue costs on the affected parties.
    (b) MMS incorporated each document or specific portion by reference 
in the sections noted. The entire document is incorporated by 
reference, unless the text of the corresponding sections in this part 
calls for compliance with specific portions of the listed documents. In 
each instance, the applicable document is the specific edition or 
specific edition and supplement or addendum cited in this section.
    (c) In accordance with Sec. 250.14, you may comply with a later 
edition of a specific document incorporated by reference, provided:
    (1) You demonstrate that compliance with the later edition provides 
a degree of protection, safety, or performance equal to or better than 
that which would be achieved by compliance with the listed edition; and
    (2) You obtain the prior written approval for alternative 
compliance from the authorized MMS official.
    (d) You may inspect these documents at the Minerals Management 
Service, 381 Elden Street, Room 3313, Herndon, Virginia; or at the 
Office of the Federal Register, 800 North Capitol Street, N.W., Suite 
700, Washington, D.C. You may obtain the documents from the publishing 
organizations at the addresses given in the following table:

----------------------------------------------------------------------------------------------------------------
                  For                                                    Write to                               
----------------------------------------------------------------------------------------------------------------
ACI Standards..........................  American Concrete Institute, P.O. Box 19150, Detroit, MI 48219.        
AISC Standards.........................  American Institute of Steel Construction, Inc., P.O. Box 4588, Chicago,
                                          IL 60680.                                                             
ANSI/ASME Codes........................  American National Standards Institute, Attention Sales Department, 1430
                                          Broadway, New York, NY 10018; and/or American Society of Mechanical   
                                          Engineers, United Engineering Center, 345 East 47th Street, New York, 
                                          NY 10017.                                                             
API Recommended Practices, Specs,        American Petroleum Institute, 1220 L Street, N.W., Washington, D.C.    
 Standards, Manual of Petroleum           20005.                                                                
 Measurement Standards (MPMS) chapters.                                                                         
ASTM Standards.........................  American Society for Testing and Materials, 1916 Race Street,          
                                          Philadelphia, PA 19103.                                               
AWS Codes..............................  American Welding Society, 550 N.W., LeJeune Road, P.O. Box 351040,     
                                          Miami, FL 33135.                                                      
NACE Standards.........................  National Association of Corrosion Engineers, P.O. Box 218340, Houston, 
                                          TX 77218.                                                             
----------------------------------------------------------------------------------------------------------------

    (e) This paragraph lists documents incorporated by reference. In 
order to easily reference text of the corresponding sections with the 
list of documents incorporated by reference, the list is in 
alphanumerical order by organization and document.

------------------------------------------------------------------------
                                               Incorporated by reference
              Title of documents                           at           
------------------------------------------------------------------------
ACI Standard 318-95, Building Code             Sec.  250.138(b)(4)(i),  
 Requirements for Reinforced Concrete, plus     (b)(6)(i), (b)(7),      
 Commentary on Building Code Requirements for   (b)(8)(i), (b)(9),      
 Reinforced Concrete (ACI 318R-95).             (b)(10), (c)(3),        
                                                (d)(1)(v), (d)(5),      
                                                (d)(6), (d)(7), (d)(8), 
                                                (d)(9), (e)(1)(i),      
                                                (e)(2)(i).              
ACI Standard 357-R-84, Guide for the Design    Sec.  250.130(g); Sec.   
 and Construction of Fixed Offshore Concrete    250.138(c)(2), (c)(3).  
 Structures, 1984.                                                      
AISC Standard, Specification for Structural    Sec.  250.137(b)(1)(ii), 
 Steel for Buildings, Allowable Stress Design   (c)(4)(ii), (c)(4)(vii).
 and Plastic Design, June 1, 1989, with                                 
 Commentary.                                                            
ANSI/ASME Boiler and Pressure Vessel Code,     Sec.  250.123(b)(1),     
 Section I, Power Boilers including             (b)(1)(i); Sec.         
 Appendices, 1995 Edition.                      250.292(b)(1),          
                                                (b)(1)(i).              
ANSI/ASME Boiler and Pressure Vessel Code,     Sec.  250.123(b)(1),     
 Section IV, Heating Boilers including          (b)(1)(i); Sec.         
 Nonmandatory Appendices A, B, C, D, E, F, H,   250.292(b)(1),          
 I, and J, and the Guide to Manufacturers       (b)(1)(i).              
 Data Report Forms, 1995 Edition.                                       
ANSI/ASME Boiler and Pressure Vessel Code,     Sec.  250.123(b)(1),     
 Section VIII, Pressure Vessels, Divisions 1    (b)(1)(i); Sec.         
 and 2, including Nonmandatory Appendices,      250.292(b)(1),          
 1995 Edition.                                  (b)(1)(i).              
ANSI/ASME B 16.5-1988 (including Errata) and   Sec.  250.152(b)(2).     
 B 16.5a-1992 Addenda, Pipe Flanges and                                 
 Flanged Fittings.                                                      
ANSI/ASME B 31.8-1995, Gas Transmission and    Sec.  250.152(a).        
 Distribution Piping Systems.                                           

[[Page 7352]]

                                                                        
ANSI/ASME SPPE-1-1994 and SPPE-1d-1996         Sec.  250.126(a)(2)(i).  
 ADDENDA, Quality Assurance and Certification                           
 of Safety and Pollution Prevention Equipment                           
 Used in Offshore Oil and Gas Operations.                               
ANSI Z88.2--1992, American National Standard   Sec.  250.67(g)(4)(iv),  
 for Respiratory Protection.                    (j)(13)(ii).            
API RP 2A, Recommended Practice for Planning,  Sec.  250.130(g); Sec.   
 Designing and Constructing Fixed Offshore      250.142(a).             
 Platforms Working Stress Design, Nineteenth                            
 Edition, August 1, 1991, API Stock No. 811-                            
 00200.                                                                 
API RP 2A, Recommended Practice for Planning,  Sec.  250.130(g); Sec.   
 Designing and Constructing Fixed Offshore      250.142(a).             
 Platforms-Working Stress Design:(RP 2A-WSD)                            
 Twentieth Edition, July 1, 1993, API Stock                             
 No. 811-00200.                                                         
API RP 2A, Recommended Practice for Planning,  Sec.  250.130(g); Sec.   
 Designing and Constructing Fixed Offshore      250.142(a).             
 Platforms-Working Stress Design:(RP 2A-WSD)                            
 Twentieth Edition, July 1, 1993, Supplement                            
 1, December 1996, Effective Date, February                             
 1, 1997, API Stock No. 811-00200.                                      
API RP 2D, Recommended Practice for Operation  Sec.  250.20(c); Sec.    
 and Maintenance of Offshore Cranes, Third      250.260(g).             
 Edition, June 1, 1995, API Stock No. G02D03.                           
API RP 14B, Recommended Practice for Design,   Sec.  250.121(e)(4); Sec.
 Installation, Repair and Operation of           250.124(a)(1)(i); Sec. 
 Subsurface Safety Valve Systems, Fourth        250.126(d).             
 Edition, July 1, 1994, with Errata dated                               
 June 1996, API Stock No. Sec.  250.130(g);                             
 Sec.  250.142(a) G14B04.                                               
API RP 14C, Recommended Practice for           Sec.  250.122(b), (e)(2);
 Analysis, Design, Installation and Testing     Sec.  250.123(a),       
 of Basic Surface Safety Systems for Offshore   (b)(2)(i), (b)(4),      
 Production Platforms, Fourth Edition,          (b)(5)(i), (b)(7),      
 September 1, 1986, API Stock No. 811-07180.    (b)(9)(v), (c)(2); Sec. 
                                                250.124(a), (a)(5); Sec.
                                                 250.152(d); Sec.       
                                                250.154(b)(9); Sec.     
                                                250.291(c), (d)(2); Sec.
                                                 250.292(b)(2),         
                                                (b)(4)(v); Sec.         
                                                250.293(a).             
API RP 14E, Recommended Practice for Design    Sec.  250.122(e)(3); Sec.
 and Installation of Offshore Production         250.291(b)(2), (d)(3). 
 Platform Piping Systems, Fifth Edition,                                
 October 1, 1991, API Stock No. G07185.                                 
API RP 14F, Recommended Practice for Design    Sec.  250.53(c); Sec.    
 and Installation of Electrical Systems for     250.123(b)(9)(v); Sec.  
 Offshore Production Platforms, Third           250.292(b)(4)(v).       
 Edition, September 1, 1991, API Stock No.                              
 G07190.                                                                
API RP 14G, Recommended Practice for Fire      Sec.  250.123(b)(8),     
 Prevention and Control on Open Type Offshore   (b)(9)(v); Sec.         
 Production Platforms, Third Edition,           250.292(b)(3),          
 December 1, 1993, API Stock No. G07194.        (b)(4)(v).              
API RP 14H, Recommended Practice for           Sec.  250.122(d); Sec.   
 Installation, Maintenance and Repair of        250.126(d).             
 Surface Safety Valves and Underwater Safety                            
 Valves Offshore, Fourth Edition, July 1,                               
 1994, API Stock No. G14H04.                                            
API RP 500, Recommended Practice for           Sec.  250.53(b); Sec.    
 Classification of Locations for Electrical     250.122(e)(4)(i); Sec.  
 Installations at Petroleum Facilities, First   250.123(b)(9)(i); Sec.  
 Edition, June 1, 1991, API Stock No. G06005.   250.291(b)(3);          
                                                (d)(4)(i); Sec.         
                                                250.292(b)(4)(i).       
API RP 2556, Recommended Practice for          Sec.  250.180(f)(2)(i)(C)
 Correcting Gauge Tables for Incrustation,      .                       
 Second Edition, August 1993, API Stock No.                             
 H25560.                                                                
API Spec Q1, Specification for Quality         Sec.  250.126(a)(2)(ii). 
 Programs, Fifth Edition, December 1994, API                            
 Stock No. 811-00001.                                                   
API Spec 6A, Specification for Wellhead and    Sec.  250.126(a)(3) Sec. 
 Christmas Tree Equipment, Seventeenth          250.152 (b)(1), (b)(2). 
 Edition, February 1, 1996, API Stock No.                               
 G06A17.                                                                
API Spec 6AV1, Specification for Verification  Sec.  250.126(a)(3).     
 Test of Wellhead Surface Safety Valves and                             
 Underwater Safety Valves for Offshore                                  
 Service, First Edition, February 1, 1996,                              
 API Stock No. G06AV1.                                                  
API Spec 6D, Specification for Pipeline        Sec.  250.152(b)(1).     
 Valves (Gate, Plug, Ball, and Check Valves),                           
 Twenty-first Edition, March 31, 1994, API                              
 Stock No. G03200.                                                      
API Spec 14A, Specification for Subsurface     Sec.  250.126(a)(3).     
 Safety Valve Equipment, Ninth Edition, July                            
 1, 1994, API Stock No. G14A09.                                         
API Spec 14D, Specification for Wellhead       Sec.  250.126(a)(3).     
 Surface Safety Valves and Underwater Safety                            
 Valves for Offshore Service, Ninth Edition,                            
 June 1, 1994, with Errata dated August 1,                              
 1994, API Stock No. G07183.                                            
API Standard 2545, Method of Gaging Petroleum  Sec.  250.180            
 and Petroleum Products, October 1965,          (f)(2)(ii)(C).          
 reaffirmed October 1992; also available as                             
 ANSI/American Society of Testing Materials                             
 (ASTM) D 1085-65, API Stock No. H25450.                                
API Standard 2551, Standard Method for         Sec.  250.180(f)(2)(i)(C)
 Measurement and Calibration of Horizontal      .                       
 Tanks, First Edition, 1965, reaffirmed                                 
 October 1992; also available as ANSI/ASTM D                            
 1410-65, reapproved 1984, API Stock No.                                
 H25510.                                                                
API Standard 2552, Measurement and             Sec.  250.180(f)(2)(i)(C)
 Calibration of Spheres and Spheroids, First    .                       
 Edition, 1966, reaffirmed October 1992; also                           
 available as ANSI/ASTM D 1408-65, reapproved                           
 1984, API Stock No. H25520.                                            
API Standard 2555, Method for Liquid           Sec.  250.180(f)(2)(i)(C)
 Calibration of Tanks, September 1966,          .                       
 reaffirmed October 1992; also available as                             
 ANSI/ASTM D 1406-65, reapproved 1984, API                              
 Stock No. H25550.                                                      
MPMS, Chapter 2, Tank Calibration, Section     Sec.  250.180            
 2A, Measurement and Calibration of Upright     (f)(2)(i)(A).           
 Cylindrical Tanks by the Manual Strapping                              
 Method, First Edition, February 1995, API                              
 Stock No. H022A1.                                                      
MPMS, Chapter 2, Section 2B, Calibration of    Sec.  250.180            
 Upright Cylindrical Tanks Using the Optical    (f)(2)(i)(B).           
 Reference Line Method, First Edition, March                            
 1989; also available as ANSI/ASTM D4738-88,                            
 API Stock No. H30023.                                                  
MPMS, Chapter 3, Tank Gauging, Section 1A,     Sec.  250.180            
 Standard Practice for the Manual Gauging of    (f)(2)(ii)(A).          
 Petroleum and Petroleum Products, First                                
 Edition, December 1994, API Stock No. H031A1.                          
MPMS, Chapter 3, Section 1B, Standard          Sec.  250.180            
 Practice for Level Measurement of Liquid       (f)(2)(ii)(B).          
 Hydrocarbons in Stationary Tanks by                                    
 Automatic Tank Gauging, First Edition, April                           
 1992, API Stock No. H30060.                                            

[[Page 7353]]

                                                                        
MPMS, Chapter 4, Proving Systems, Section 1,   Sec.  250.180(c)(6)(i),  
 Introduction, First Edition, July 1988,        (d)(3)(iv).             
 reaffirmed October 1993, API Stock No.                                 
 H30081.                                                                
MPMS, Chapter 4, Section 2, Conventional Pipe  Sec.  250.180(c)(6)(i),  
 Provers, First Edition, October 1988,          (d)(3)(iv).             
 reaffirmed October 1993, API Stock No.                                 
 H30082.                                                                
MPMS, Chapter 4, Section 3, Small Volume       Sec.  250.180(c)(6)(i),  
 Provers, First Edition, July 1988,             (d)(3)(iv).             
 reaffirmed October 1993, API Stock No.                                 
 H30083.                                                                
MPMS, Chapter 4, Section 4, Tank Provers,      Sec.  250.180(c)(6)(i),  
 First Edition, October 1988, reaffirmed        (d)(3)(iv).             
 October 1993, API Stock No. H30084.                                    
MPMS, Chapter 4, Section 5, Master-Meter       Sec.  250.180(c)(6)(i),  
 Provers, First Edition, October 1988,          (d)(3)(iv).             
 reaffirmed October 1993, API Stock No.                                 
 H30085.                                                                
MPMS, Chapter 4, Section 6, Pulse              Sec.  250.180(c)(6)(i)   
 Interpolation, First Edition, July 1988,       and (d)(3)(iv).         
 reaffirmed October 1993, API Stock No.                                 
 H30086.                                                                
MPMS, Chapter 4, Section 7, Field-Standard     Sec.  250.180(c)(6)(i),  
 Test Measures, First Edition, October 1988,    (d)(3)(iv).             
 API Stock No. H30087.                                                  
MPMS, Chapter 5, Metering, Section 1, General  Sec.  250.180(c)(6)(ii). 
 Considerations for Measurement by Meters,                              
 Third Edition, September 1995, API Stock No.                           
 H05013.                                                                
MPMS, Chapter 5, Section 2, Measurement of     Sec.  250.180(c)(6)(ii). 
 Liquid Hydrocarbons by Displacement Meters,                            
 Second Edition, November 1987, reaffirmed                              
 October 1992, API Stock No. H30102.                                    
MPMS, Chapter 5, Section 3, Measurement of     Sec.  250.180(c)(6)(ii). 
 Liquid Hydrocarbons by Turbine Meters, Third                           
 Edition, September 1995, API Stock No.                                 
 H05033.                                                                
MPMS, Chapter 5, Section 4, Accessory          Sec.  250.180(c)(6)(ii). 
 Equipment for Liquid Meters, Third Edition,                            
 September 1995, with Errata, March 1996, API                           
 Stock No. H05043.                                                      
MPMS, Chapter 5, Section 5, Fidelity and       Sec.  250.180(c)(6)(ii). 
 Security of Flow Measurement Pulsed-Data                               
 Transmission Systems, First Edition, June                              
 1982, reaffirmed October 1992, API Stock No.                           
 H30105.                                                                
MPMS, Chapter 6, Metering Assemblies, Section  Sec.  250.180(c)(6)(iii)(
 1, Lease Automatic Custody Transfer (LACT)     A).                     
 Systems, Second Edition, May 1991, API Stock                           
 No. H30121.                                                            
MPMS, Chapter 6, Section 6, Pipeline Metering  Sec.  250.180(c)(6)(iii)(
 Systems, Second Edition, May 1991, API Stock   B)                      
 No. H30126.                                                            
MPMS, Chapter 6, Section 7, Metering Viscous   Sec.  250.180(c)(6)(iii)(
 Hydrocarbons, Second Edition, May 1991, API    C).                     
 Stock No. H30127.                                                      
MPMS, Chapter 7, Temperature Determination,    Sec.  250.180            
 Section 2, Dynamic Temperature                 (c)(6)(iv)(A),          
 Determination, Second Edition, March 1995,     (f)(2)(iii)(A).         
 API Stock No. H07022.                                                  
MPMS, Chapter 7, Section 3, Static             Sec.  250.180            
 Temperature Determination Using Portable       (c)(6)(iv)(B),          
 Electronic Thermometers, First Edition, July   (f)(2)(iii)(B)          
 1985, reaffirmed March 1990, API Stock No.                             
 H30143.                                                                
MPMS, Chapter 8, Sampling, Section 1,          Sec.  250.180 (c)(6)(v), 
 Standard Practice for Manual Sampling of       (f)(2)(iv).             
 Petroleum and Petroleum Products, Third                                
 Edition, October 1995; also available as                               
 ANSI/ASTM D 4057-88, API Stock No. H30161.                             
MPMS, Chapter 8, Section 2, Standard Practice  Sec.  250.180 (c)(6)(v), 
 for Automatic Sampling of Liquid Petroleum     (f)(2)(iv).             
 and Petroleum Products, Second Edition,                                
 October 1995; also available as ANSI/ASTM D                            
 4177, API Stock No. H30162.                                            
MPMS, Chapter 9, Density Determination,        Sec.  250.180(c)(6)(vi)(A
 Section 1, Hydrometer Test Method for          ), (f)(2)(v)(A).        
 Density, Relative Density (Specific                                    
 Gravity), or API Gravity of Crude Petroleum                            
 and Liquid Petroleum Products, First                                   
 Edition, June 1981, reaffirmed October 1992;                           
 also available as ANSI/ASTM D 1298, API                                
 Stock No. H30181.                                                      
MPMS, Chapter 9, Section 2, Pressure           Sec.  250.180(c)(6)(vi)(B
 Hydrometer Test Method for Density or          ), (f)(2)(v)(B).        
 Relative Density, First Edition, April 1982,                           
 reaffirmed October 1992, API Stock No.                                 
 H30182.                                                                
MPMS, Chapter 10, Sediment and Water, Section  Sec.  250.180(c)(6)(vii)(
 1, Determination of Sediment in Crude Oils     A), (f)(2)(vi)(A).      
 and Fuel Oils by the Extraction Method,                                
 First Edition, April 1981, reaffirmed                                  
 December 1993; also available as ANSI/ASTM D                           
 473, API Stock No. H30201.                                             
MPMS, Chapter 10, Section 2, Determination of  Sec.  250.180(c)(6)(vii)(
 Water in Crude Oil by Distillation Method,     B), (f)(2)(vi)(B).      
 First Edition, April 1981, reaffirmed                                  
 December 1993; also available as ANSI/ASTM D                           
 4006, API Stock No. H30202.                                            
MPMS, Chapter 10, Section 3, Determination of  Sec.  250.180(c)(6)(vii)(
 Water and Sediment in Crude Oil by the         C), (f)(2)(vi)(C).      
 Centrifuge Method (Laboratory Procedure),                              
 First Edition, April 1981, reaffirmed                                  
 December 1993; also available as ANSI/ASTM D                           
 4007, API Stock No. H30203.                                            
MPMS, Chapter 10, Section 4, Determination of  Sec.  250.180(c)(6)(vii)(
 Sediment and Water in Crude Oil by the         D), (f)(2)(vi)(D).      
 Centrifuge Method (Field Procedure), Second                            
 Edition, May 1988; also available as ANSI/                             
 ASTM D 96, API Stock No. H30204.                                       
MPMS, Chapter 11.1, Volume Correction          Sec.  250.180(c)(6)(viii)
 Factors, Volume 1, Table 5A--Generalized       (A), (d)(3)(v)(B),      
 Crude Oils and JP-4 Correction of Observed     (f)(2)(vii).            
 API Gravity to API Gravity at 60  deg.F, and                           
 Table 6A--Generalized Crude Oils and JP-4                              
 Correction of Observed API Gravity to API                              
 Gravity at 60  deg.F, First Edition, August                            
 1980, reaffirmed October 1993; also                                    
 available as ANSI/ASTM D 1250, API Stock No.                           
 H27000.                                                                
MPMS, Chapter 11.2.1, Compressibility Factors  Sec.  250.180(c)(6)(viii)
 for Hydrocarbons: 0-90 deg. API Gravity        (B).                    
 Range, First Edition, August 1984,                                     
 reaffirmed May 1996, API Stock No. H27300.                             
MPMS, Chapter 11.2.2, Compressibility Factors  Sec.  250.180(c)(6)(viii)
 for Hydrocarbons: 0.350-0.637 Relative         (C).                    
 Density (60 deg.F/60 deg.F) and -50 deg.F to                           
 140 deg.F Metering Temperature, Second                                 
 Edition, October 1986, reaffirmed October                              
 1992; also available as Gas Processors                                 
 Association (GPA) 8286-86, API Stock No.                               
 H27307.                                                                
MPMS, Chapter 11, Physical Properties Data,    Sec.  250.180(c)(6)(viii)
 Addendum to Section 2.2, Compressibility       (D).                    
 Factors for Hydrocarbons, Correlation of                               
 Vapor Pressure for Commercial Natural Gas                              
 Liquids, First Edition, December 1994; also                            
 available as GPA TP-15, API Stock No. H27308.                          
MPMS, Chapter 11.2.3, Water Calibration of     Sec.  250.180 (d)(3)(iv).
 Volumetric Provers, First Edition, August                              
 1984, reaffirmed, May 1996, API Stock No.                              
 H27310.                                                                

[[Page 7354]]

                                                                        
MPMS, Chapter 12, Calculation of Petroleum     Sec.  250.180 (c)(6)(ix),
 Quantities, Section 2, Calculation of          (d)(3)(v)(A),           
 Petroleum Quantities Using Dynamic             (d)(3)(v)(C).           
 Measurement Methods and Volumetric                                     
 Correction Factors, Including Parts 1 and 2,                           
 Second Edition, May 1995; also available as                            
 ANSI/API MPMS 12.2-1981, API Stock No.                                 
 H30302.                                                                
MPMS, Chapter 14, Natural Gas Fluids           Sec.  250.181(c)(1).     
 Measurement, Section 3, Concentric Square-                             
 Edged Orifice Meters, Part 1, General                                  
 Equations and Uncertainty Guidelines, Third                            
 Edition, September 1990; also available as                             
 ANSI/API 2530, Part 1, 1991, API Stock No.                             
 H30350.                                                                
MPMS, Chapter 14, Section 3, Part 2,           Sec.  250.181(c)(1).     
 Specification and Installation Requirements,                           
 Third Edition, February 1991; also available                           
 as ANSI/API 2530, Part 2, 1991, API Stock                              
 No. H30351.                                                            
MPMS, Chapter 14, Section 3, Part 3, Natural   Sec.  250.181(c)(1).     
 Gas Applications, Third Edition, August                                
 1992; also available as ANSI/API 2530, Part                            
 3, API Stock No. H30353.                                               
MPMS, Chapter 14, Section 5, Calculation of    Sec.  250.181(c)(1).     
 Gross Heating Value, Relative Density, and                             
 Compressibility Factor for Natural Gas                                 
 Mixtures From Compositional Analysis,                                  
 Revised, 1996; also available as ANSI/API                              
 MPMS 14.5-1981, order from Gas Processors                              
 Association, 6526 East 60th Street, Tulsa,                             
 Oklahoma 74145.                                                        
MPMS, Chapter 14, Section 6, Continuous        Sec.  250.181(c)(1).     
 Density Measurement, Second Edition, April                             
 1991, API Stock No. H30346.                                            
MPMS, Chapter 14, Section 8, Liquefied         Sec.  250.181(c)(1).     
 Petroleum Gas Measurement, First Edition,                              
 February 1983, reaffirmed May 1996, API                                
 Stock No. H30348.                                                      
ASTM Standard C33-93, Standard Specification   Sec.  250.138(b)(4)(i).  
 for Concrete Aggregates including                                      
 Nonmandatory Appendix.                                                 
ASTM Standard C94-96, Standard Specification   Sec.  250.138(e)(2)(i).  
 for Ready-Mixed Concrete.                                              
ASTM Standard C150-95a, Standard               Sec.  250.138(b)(2)(i).  
 Specification for Portland Cement.                                     
ASTM Standard C330-89, Standard Specification  Sec.  250.138(b)(4)(i).  
 for Lightweight Aggregates for Structural                              
 Concrete.                                                              
ASTM Standard C595-94, Standard Specification  Sec.  250.138(b)(2)(i).  
 for Blended Hydraulic Cements.                                         
D1.1-96, Structural Welding Code--Steel,       Sec.  250.137(b)(1)(i).  
 1996, including Commentary.                                            
DI.4-79, Structural Welding Code--Reinforcing  Sec.  250.138(e)(3)(ii). 
 Steel, 1979.                                                           
NACE Standard MR-01-75-96, Sulfide Stress      Sec.  250.67(p)(2).      
 Cracking Resistant Metallic Materials for                              
 Oil Field Equipment, January 1996.                                     
NACE Standard RP 0176-94, Standard             Sec.  250.137(d).        
 Recommended Practice, Corrosion Control of                             
 Steel Fixed Offshore Platforms Associated                              
 with Petroleum Production.                                             
------------------------------------------------------------------------

Sec. 250.29  Paperwork Reduction Act requirements--information 
collection.

    (a) OMB has approved the information collection requirements in 
part 250 under 44 U.S.C. 3501 et seq. The table in paragraph (e) of 
this section lists the subpart in the rule requiring the information 
and its title, provides the OMB control number, and summarizes the 
reasons for collecting the information and how MMS uses the 
information. The associated MMS forms required by this part are listed 
at the end of this table with the relevant information.
    (b) Respondents are OCS oil, gas, and sulphur lessees and 
operators. The requirement to respond to the information collections in 
this part are mandatory under the OCS Lands Act (43 U.S.C. 1331 et 
seq.) and the OCS Lands Act Amendments of 1978 (43 U.S.C. 1801 et 
seq.). Some responses are also required to obtain or retain a benefit. 
Proprietary information will be protected under Sec. 250.27, Data and 
information to be made available to the public; parts 251 and 252 of 
this Chapter; and the Freedom of Information Act (5 U.S.C. 552) and its 
implementing regulations at 43 CFR part 2.
    (c) The Paperwork Reduction Act of 1995 requires us to inform the 
public that an agency 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.
    (d) Send comments regarding any aspect of the collections 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-XXXX), Washington, D.C. 20503.
    (e) MMS is collecting this information for the reasons given in the 
following table:

----------------------------------------------------------------------------------------------------------------
 30 CFR 250 subpart/title (OMB control                                                                          
                  No.)                               Reasons for collecting information and how used            
----------------------------------------------------------------------------------------------------------------
Subpart A General (1010-0030)..........  To inform MMS of actions taken to comply with general operational      
                                          requirements on the OCS. To ensure that operations on the OCS meet    
                                          statutory and regulatory requirements, are safe and protect the       
                                          environment, and result in diligent exploration, development, and     
                                          production on OCS leases.                                             
Subpart B Exploration and Development    To inform MMS, States, and the public of planned exploration,          
 and Production Plans (1010-0049).        development, and production operations on the OCS. To ensure that     
                                          operations on the OCS are planned to comply with statutory and        
                                          regulatory requirements, will be safe and protect the human, marine,  
                                          and coastal environment, and will result in diligent exploration,     
                                          development and production of leases.                                 
Subpart C Pollution Prevention and       To inform MMS of measures to be taken to prevent water and air         
 Control (1010-0057).                     pollution. To ensure that appropriate measures are taken to prevent   
                                          water and air pollution.                                              
Subpart D Oil and Gas Drilling           To inform MMS of the equipment and procedures to be used in drilling   
 Operations (1010-0053).                  operations on the OCS. To ensure that drilling operations are safe and
                                          protect the human, marine, and coastal environment.                   
Subpart E Oil and Gas Well-Completion    To inform MMS of the equipment and procedures to be used in well-      
 Operations (1010-0067).                  completion operations on the OCS. To ensure that well-completion      
                                          operations are safe and protect the human, marine, and coastal        
                                          environment.                                                          

[[Page 7355]]

                                                                                                                
Subpart F Oil and Gas Well-Workover      To inform MMS of the equipment and procedures to be used during well-  
 Operations (1010-0043).                  workover operations on the OCS. To ensure that well-workover          
                                          operations are safe and protect the human, marine, and coastal        
                                          environment.                                                          
Subpart G Abandonment of Wells (1010-    To inform MMS of procedures to be used during the temporary and        
 0079).                                   permanent abandonment of wells. To ensure that wells are abandoned in 
                                          a manner that is safe and minimizes conflicts with other uses of the  
                                          OCS.                                                                  
Subpart H Oil and Gas Production Safety  To inform MMS of the equipment and procedures to be used during        
 Systems (1010-0059).                     production operations on the OCS. To ensure that production operations
                                          are safe and protect the human, marine, and coastal environment.      
Subpart I Platforms and Structures       To inform MMS with information regarding the design, fabrication, and  
 (1010-0058).                             installation of platforms on the OCS. To ensure the structural        
                                          integrity of platforms installed on the OCS.                          
Subpart J Pipelines and Pipeline Rights- To provide MMS with information regarding the design, installation, and
 of-Way (1010-0050).                      operation of pipelines on the OCS. To ensure that pipeline operations 
                                          are safe and protect the human, marine, and coastal environment.      
Subpart K Oil and Gas Production Rates   To inform MMS of production rates for hydrocarbons produced on the OCS.
 (1010-0041).                             To ensure that produced hydrocarbons, including those that are        
                                          commingled, are measured accurately at secure locations for the       
                                          purpose of determining royalty payments.                              
Subpart L Oil and Gas Production         To inform MMS of the measurement of production, commingling of         
 Measurement, Surface Commingling, and    hydrocarbons, and site security plans. To ensure that produced        
 Security (1010-0051).                    hydrocarbons are measured and commingled to provide for accurate      
                                          royalty payments and security is maintained.                          
Subpart M Unitization (1010-0068)......  To inform MMS of the unitization of leases. To ensure that unitization 
                                          prevents waste, conserves natural resources, and protects correlative 
                                          rights.                                                               
Subpart N Remedies and Penalties (Not    The requirements in Subpart N are exempt from the Paperwork Reduction  
 applicable).                             Act of 1995 in accordance with 5 CFR 1320.4.                          
Subpart O Training (1010-0078).........  To inform MMS of training program curricula, course schedules, and     
                                          attendance. To ensure that training programs are technically accurate 
                                          and sufficient to meet safety and environmental requirements, and that
                                          workers are properly trained to operate on the OCS.                   
Subpart P Sulphur Operations (1010-      To inform MMS of sulphur exploration and development operations on the 
 0086).                                   OCS. To ensure that OCS sulphur operations are safe; protect the      
                                          human, marine, and coastal environment; and will result in diligent   
                                          exploration, development, and production of sulphur leases.           
Form MMS-123, Application for Permit to  To inform MMS of the procedures and equipment to be used in drilling   
 Drill Subpart D, E, P (1010-0044).       operations. To ensure that drilling and well-completion are safe and  
                                          protect the environment, use adequate equipment, conform with         
                                          provisions of the lease, and the public is informed.                  
Form MMS-124, Sundry Notices & Reports   To inform MMS of well-completion and well-workover operations, changes 
 on Wells Subpart D, E, F, G, P (1010-    to any ongoing well operations, and well abandonment operations. To   
 0045).                                   ensure that MMS has up-to-date and accurate informa tion on OCS       
                                          drilling and other lease operations; operations are safe and protect  
                                          the human, marine, and coastal environment; abandoned sites are       
                                          cleared of obstructions; and the public is informed.                  
Form MMS-125, Well Summary Report        To inform MMS of the results of well-completion or well-workover       
 Subpart D, E, F, P (1010-0046).          operations or changes in well status or condition. To ensure that MMS 
                                          has up-to-date and accurate information on the status and condition of
                                          wells.                                                                
Form MMS-126, Well Potential Test                                                                               
 Report & Request for Maximum                                                                                   
 Production Rate (MPR).                                                                                         
Subpart K (1010-0039)..................  To inform MMS of the production potential of an oil or gas well and to 
                                          verify a requested production rate. To ensure that production results 
                                          in ultimate full recovery of hydrocarbons and energy resources are    
                                          produced at a prudent rate.                                           
Form MMS-127, Request for Reservoir      To inform MMS of data concerning oil and gas well-completion in a rate-
 Maximum Efficiency Rate (MER) Subpart    sensitive reservoir and to verify requested efficiency rate. To ensure
 K (1010-0018).                           that reservoirs are classified correctly and the requested production 
                                          rate will not waste oil or gas.                                       
Form MMS-128, Semi annual Well Test      To inform MMS of the status and capacity of gas wells and verify       
 Report Subpart K (1010-0017).            production capacity. To ensure that depletion of reservoirs results in
                                          greatest ultimate recovery of hydrocarbons.                           
Form MMS-132, Evacuation Statistics      To inform MMS in the event of a major disruption in the availability   
 Subpart A (used in the GOM Region)       and supply of natural gas and oil due to natural occurrences/         
 (1010-0030).                             hurricanes. To advise the U.S. Coast Guard of rescue needs, and to    
                                          alert the news media and interested public entities when production is
                                          shut in and when resumed.                                             
----------------------------------------------------------------------------------------------------------------

    5. Sections 250.52, 250.53, 250.77, 250.78, 250.97 and 250.98 are 
removed and reserved.

PART 256--LEASING OF SULPHUR OR OIL AND GAS IN THE OUTER 
CONTINENTAL SHELF

    6. The authority citation for part 256 is revised to read as 
follows:

    Authority: 43 U.S.C. 1331 et seq., 42 U.S.C. 6213.

    7. Section 256.1, is revised to read as follows:

Sec. 256.1  Purpose.

    The purpose of the regulations in this part is to establish the 
procedures under which the Secretary of the Interior (Secretary) will 
exercise the authority to administer a leasing program for oil, gas and 
sulphur. The procedures under which the Secretary will exercise the 
authority to administer a program to grant rights-of-way, rights-of-
use, and easements are addressed in other parts of this chapter.
    8. Section 256.4, Authority, is revised to read as follows:


Sec. 256.4  Authority.

    The outer Continental Shelf Lands Act (OCSLA) (43 U.S.C. 1331 et 
seq.) authorizes the Secretary of the Interior to issue, on a 
competitive basis, leases for oil and gas, and sulphur, in submerged 
lands of the outer Continental Shelf (OCS). The Act authorizes the 
Secretary to grant rights-of-way, rights-of-use, and easements through 
the submerged lands of the OCS. The Energy Policy and Conservation Act 
of 1975 (42 U.S.C. 6213), prohibits joint bidding by major oil and gas 
producers.

[[Page 7356]]

    9. Section 256.35, Qualifications of lessees, is amended by adding 
paragraph (c) as follows:


Sec. 256.35  Qualification of lessees.

* * * * *
    (c) MMS may disqualify you from acquiring any new leaseholdings or 
lease assignments if your operating performance is unacceptable 
according to 30 CFR 250.12.
    10. Section 256.73 is revised to read as follows:


Sec. 256.73  Effect of suspensions on lease term.

    (a) Normally, a suspension extends the term of a lease. The 
extension is equal to the length of time the suspension is in effect. 
The suspension will not extend the lease term when the Regional 
Supervisor directs a suspension because of:
    (1) Gross negligence; or
    (2) A willful violation of a provision of the lease or governing 
regulations.
    (b) MMS issues suspensions for a period of up to 5 years. The 
Regional Supervisor will set the length of the suspension based on the 
conditions of the individual case involved. MMS may grant consecutive 
suspensions. For more information on suspension of operations or 
production refer to 30 CFR 250.19.
[FR Doc. 98-3533 Filed 2-12-98; 8:45 am]
BILLING CODE 4310-MR-P