[Federal Register Volume 64, Number 10 (Friday, January 15, 1999)]
[Notices]
[Pages 2660-2667]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-817]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


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

AGENCY: Minerals Management Service, Interior.

ACTION: Notice.

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

DATES: The effective date of the MOU is December 16, 1998.

FOR FURTHER INFORMATION CONTACT: Greg Gould, MMS at (703) 787-1616 or 
Rajiv Khandpur, USCG at (202) 267-0494.

SUPPLEMENTARY INFORMATION: In August, 1989 the MMS and the USCG signed 
an MOU that outlined responsibilities associated with facilities 
located on the Outer Continental Shelf (OCS). The purpose was to 
minimize duplication, and to promote consistent regulation of these 
facilities. The use of floating facilities and responsibilities 
assigned by OPA created a need to update the MOU. Therefore, on January 
5, 1998, MMS and USCG published an update of the 1989 MOU (63 FR 256) 
for public comment. We analyzed those comments and we revised the MOU 
as shown in Appendix A. We appreciate the excellent comments and 
suggestions that we received.
    We are now implementing the MOU. The following is a sample list of 
actions that we will be considering in the process:
     Review the standards of both agencies for consistency;
     Determine the need for legislative changes to improve 
efficiency and clarify the jurisdiction for floating facilities;
     Determine how to make a smooth transition of duties;
     Determine how the certified verification agent program 
will function;
     Focus on our inspection programs to eliminate duplication;
     Work on safety management including accident 
investigations to promote safe practices;
     Implement the civil penalties process set out in the MOU;
     Continue to work on single point reporting;
     Communicate electronically;
     Improve the process of reporting and collecting incident 
data;
     Share incident data to prevent accidents, particularly 
fatalities;
     In the rare cases when both agencies are conducting a 
review (i.e., Design, fabrication, installation of non-ship-shape 
floating facilities), determine how the process will work; and
     Coordinate more research efforts for safety and oil spill 
prevention and response.
    We will be forming many teams with participants from MMS, USCG, and

[[Page 2661]]

industry to ensure that implementation of the MOU is provides the most 
efficient and effective means to manage offshore oil and gas 
development. We also plan to have meetings/workshops during the MOU 
implementation process. The current requirements for each agency will 
remain in effect until new regulations implementing the MOU are 
promulgated.

    Dated: January 8, 1999.
Carolita Kallaur,
Associate Director for Offshore Minerals Management.

Appendix A--Memorandum of Understanding Between Minerals Management 
Service, U.S. Department of the Interior and United States Coast Guard, 
U.S. Department of Transportation

Ia. Purpose

    This Memorandum of Understanding (MOU) defines the 
responsibilities of the Minerals Management Service (MMS) and the 
United States Coast Guard (USCG) relating to managing the activities 
of MODU's, fixed, and floating systems. It is designed to minimize 
duplication and promote consistent regulation of facilities under 
the jurisdiction of both agencies. This MOU does not apply to 
deepwater ports as licensed by the Secretary of Transportation under 
the Deepwater Port Act of 1974, as amended.

Ib. Scope

    This MOU covers oil and gas activities located in the Outer 
Continental Shelf (OCS). However, oil-spill preparedness is for 
facilities located seaward of the coast line, unless noted 
otherwise. Certificates of financial responsibility are for certain 
facilities located in the OCS and the State waters included in the 
definition of Covered Offshore Facility found at 30 CFR 253.3. An 
MOU, dated February 3, 1994, among the Departments of Transportation 
and the Interior and the Environmental Protection Agency established 
jurisdictional responsibilities for facilities located both seaward 
and landward of the coast line.

II. Definitions

    For purposes of this MOU, the following definitions apply:
    Act--The OCS Lands Act (OCSLA)--43 U.S.C. 1331 et seq.
    Coast Line--The line of ordinary low water along that portion of 
the coast that is in direct contact with the open sea and the line 
marking the seaward limit of inland waters, as defined by the 
Submerged Lands Act (43 U.S.C. 1301 (c)).
    Outer Continental Shelf--The submerged lands that are subject to 
the Act.
    OCS Activity--Any activity in the OCS associated with 
exploration, development, production, transporting, or processing of 
OCS mineral resources including but not limited to oil and gas.
    OCS Facility--Any artificial island, installation, pipeline, or 
other device permanently or temporarily attached to the seabed, 
erected for the purpose of exploring for, developing, producing, and 
transporting resources from the OCS. This term does not include 
ships or vessels for transporting produced hydrocarbons. The 
following are types of OCS facilities:
    1. Fixed OCS Facility--A bottom-founded OCS facility permanently 
attached to the seabed or subsoil of the OCS, including platforms, 
guyed towers, articulated gravity platforms, and other structures. 
This definition also includes gravel and ice islands and caisson-
retained islands engaged in OCS activities used for drilling, 
production, or both.
    2. Floating OCS Facility--A buoyant OCS facility securely and 
substantially moored so that it cannot be moved without a special 
effort. This term includes tension leg platforms, spars, 
semisubmersibles and shipshape hulls.
    3. Mobile Offshore Drilling Units (MODU's)--Vessels capable of 
engaging in drilling operations for exploring or exploiting subsea 
oil, gas, or mineral resources.
    OPA--The Oil Pollution Act of 1990 (Pub. L. 101-380).
    Regional Director (RD)--The MMS officer delegated the 
responsibility and authority for a region within MMS. The USCG 
referrals for violations occurring in a particular MMS Region would 
be made to that MMS Region's RD.
    Regional Supervisor (RS)--The MMS officer (or the authorized 
representative) in charge of operations within a Region.
    Vessel--Every description of watercraft or other artificial 
contrivance used, or capable of being used, as a means of 
transportation on the water. This term does not include atmospheric 
or pressure vessels used for containing liquids or gases.
    Violation--Failure to comply with the OCSLA, any regulations, or 
the terms or provisions of leases, licenses, permits, or rights-of-
way issued under the OCSLA.

III. Responsibilities

    The following table lists the lead agency for system 
responsibilities associated with MODU's and fixed and floating OCS 
facilities. Other agency roles are identified where applicable. The 
lead agency is responsible for coordinating with the other agency as 
appropriate. The attachments to the table list the typical equipment 
that is included in the system.
    The MMS and USCG will work together to develop the standards 
necessary to implement this MOU. Where the agencies have overlapping 
responsibilities, they will work together to minimize duplication.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             Lead agency
     Item              System             Sub-system     ---------------------------------------------------          Other agency role/comments
                                                               MODU            Fixed           Floating
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.............  Design & Operating
                 Overview/Plan.
1.a...........  ...................  Deepwater Operating  N/A             MMS             MMS                Where required.
                                      Plan.
1.b...........  ...................  Design Basis         USCG            N/A             USCG
                                      Document.
1.c...........  ...................  Design,              N/A             MMS             MMS                Section applies to MMS's Certified
                                      fabrication, and                                                        Verification Agent (CVA) Program.
                                      installation
                                      verification plans.
2.............  Structural
                 Integrity.
2.a...........  ...................  Structural           USCG            MMS             MMS & USCG         USCG responsibilities for fabrication,
                                      integrity,                                                              installation, and inspection of floating
                                      modifications for                                                       units are found in 33 CFR Subchapter N.
                                      construction and                                                        MMS responsibilities are found in 30 CFR
                                      repair                                                                  Subpart I. USCG and MMS will each review
                                      requirements.                                                           the design of the turret and turret/hull
                                                                                                              interface structure for ship-shape
                                                                                                              floating facilities. All other aspects of
                                                                                                              the design and fabrication of all ship-
                                                                                                              shape floating facilities will receive
                                                                                                              only USCG review. All design, fabrication,
                                                                                                              and installation activities of all non-
                                                                                                              ship-shape floating facilities will be
                                                                                                              reviewed by both agencies.

[[Page 2662]]

 
2.b...........  ...................  Design               USCG            MMS             MMS                Establishes in-place design environmental
                                      environmental                                                           criteria.
                                      conditions.
                                                          ..............  ..............  USCG               Establishes design environmental criteria
                                                                                                              for intact and damage stability.
2.c...........  ...................  Risers (drilling,    MMS             MMS             MMS                Some pipeline risers may be subject to the
                                      production, and                                                         Research and Special Programs
                                      pipeline).                                                              Administration's (RSPA) jurisdiction.
3.............  Floating Stability.  ...................  USCG            N/A             USCG               USCG reviews and approves stability and
                                                                                                              sends copies to MMS.
4.............  Station Keeping.
4.a...........  ...................  Foundations........  USCG            MMS             MMS
4.b...........  ...................  Mooring and          USCG            MMS             USCG & MMS         USCG is not responsible for site specific
                                      tethering systems.                                                      mooring analyses.
4.c...........  ...................  Dynamic positioning  USCG            N/A             USCG
5.............  Drilling,            ...................  MMS             MMS             MMS                See Attachment A for description of
                 Completion, Well                                                                             Drilling, Completion, Well Servicing &
                 Servicing &                                                                                  Workover Systems.
                 Workover.
6.............  Production.........  ...................  MMS*            MMS             MMS                See Attachment B for description of
                                                                                                              Production Systems. * Production equipment
                                                                                                              is not normally installed on a MODU.
                                                                                                              However, such equipment may be installed
                                                                                                              for a finite time and designed for
                                                                                                              removal. In such cases, MMS is the lead
                                                                                                              agency.
7.............  Pipeline Operations  ...................  MMS             MMS             MMS                Note: Certain pipelines are subject to MMS
                 and Components.                                                                              MOU(s) with RSPA.
8.............  Lightering           ...................  USCG            USCG            USCG
                 Equipment &
                 Procedures.
9.............  Utility Systems
9.a...........  ...................  Boilers, pressure    USCG            MMS             USCG               Listed equipment/systems not supporting
                                      vessels, waste                                                          drilling or production.
                                      heat recovery
                                      (from any engine
                                      exhaust), water
                                      heaters and other
                                      piping or
                                      machinery.
                                                          ..............  ..............  MMS                Listed equipment/systems supporting
                                                                                                              drilling or production.
9.b...........  ...................  High pressure        USCG            MMS             USCG               Listed system components and piping not
                                      (H.P.) washdown.                                                        supporting drilling or production.
                                                          ..............  ..............  MMS                Listed system components and piping
                                                                                                              supporting drilling or production.
9.c...........  ...................  Seawater supply....  USCG            MMS             USCG
9.d...........  ...................  Compressed air.....  USCG            MMS             USCG               Listed system components and piping not
                                                                                                              supporting drilling or production.
                                                          ..............  ..............  MMS                Listed system components and piping
                                                                                                              supporting drilling or production.
9.e...........  ...................  Potable wash and     USCG            USCG            USCG
                                      sanitary water.
9.f...........  ...................  Sewage unit &        USCG            USCG            USCG
                                      piping.
9.g...........  ...................  Diesel fuel........  USCG            MMS             USCG
9.h...........  ...................  Bilge & ballast,     USCG            N/A             USCG
                                      including pumps
                                      and related
                                      control systems.
9.i...........  ...................  Fuel gas from well.  MMS             MMS             MMS                For MODU's and floating facilities, when
                                                                                                              powering drilling and production systems.
                                                          USCG            ..............  USCG               For MODU's and floating facilities, when
                                                                                                              powering emergency and ship-service
                                                                                                              systems.

[[Page 2663]]

 
10............  Elevators for        ...................  USCG            USCG            USCG
                 Personnel.
11............  Aircraft Landing     Decks, fuel          USCG            MMS             USCG
                 and Refueling.       handling, and
                                      storage.
12............  Fire Protection      ...................  ..............  ..............  .................
12.a..........  ...................  Fire protection,     USCG            USCG            USCG               See Attachment C for description of Fire
                                      detection, and                                                          Protection, Detection, and Extinguishing.
                                      extinguishing.                                                          Excludes MMS-regulated safety systems.
2.b...........  ...................  Structural fire      USCG            USCG            USCG
                                      protection for
                                      accommodations.
13............  Safety Systems.....  ...................  ..............  ..............  .................  Includes interfaces between fire protection
                                                                                                              systems and MMS regulated safety systems.
13.a..........  ...................  Emergency shut-down  MMS             MMS             MMS                For MMS required systems. Excludes ``remote
                                      systems.                                                                stopping devices'' required for USCG-
                                                                                                              regulated systems.
13.b..........  ...................  Gas detection......  MMS             MMS             MMS
13.c..........  ...................  Drilling,            MMS             MMS             MMS
                                      production, well-
                                      control safety,
                                      and shutdown
                                      systems.
13.d..........  ...................  General alarm......  USCG            USCG            USCG               Includes public address system when
                                                                                                              integrated with general alarm system.
14............  Electrical Design &  ...................  ..............  ..............  .................
                 Equipment.
14.a..........  ...................  Production.........  MMS*            MMS             MMS                See Attachment B for definition of
                                                                                                              Production Systems. *Same comment as item
                                                                                                              #6.
14.b..........  ...................  Drilling systems...  USCG            MMS             USCG               See Attachment A for definition of Drilling
                                                                                                              Systems.
                                                          ..............  ..............  MMS *              *MMS is the lead agency for drilling
                                                                                                              equipment installed for a finite time and
                                                                                                              designed for removal.
14.c..........  ...................  Emergency lighting   USCG            USCG            USCG
                                      power generation
                                      and distribution.
14.d..........  ...................  Hazardous areas      USCG            MMS             MMS and USCG       MMS and USCG will work on common, logical
                                      classification.                                                         standards to minimize duplication of
                                                                                                              effort for industry.
15............  Aids to Navigation.  ...................  USCG            USCG            USCG
16............  Communications       ...................  USCG            USCG            USCG
17............  Pollution            ...................  ..............  ..............  .................  ...........................................
                 Prevention.
17.a..........  ...................  Pollution not        USCG            USCG            USCG               Garbage and plastics per the International
                                      associated with                                                         Convention for the Prevention of Pollution
                                      vessel transfers.                                                       from Ships MARPOL 73/78.
                                                          MMS             MMS             MMS                Other Pollution.
17.b..........  ...................  Petroleum and other  USCG            USCG            USCG               ...........................................
                                      product transfers
                                      to and from a
                                      vessel (includes
                                      lightering of
                                      produced
                                      hydrocarbons).
18............  Cranes and Material  ...................  ..............  ..............  .................  ...........................................
                 Handling
                 Equipment.

[[Page 2664]]

 
18.a..........  ...................  Crane design,        USCG            MMS             USCG               ...........................................
                                      certification, and
                                      operations.
18.b..........  ...................  Other Material       USCG            MMS             USCG               ...........................................
                                      Handling Equip.
19............  Ventilation          ...................  ..............  ..............  .................  ...........................................
19.a..........  ...................  Accommodations and   USCG            USCG            USCG               ...........................................
                                      machinery spaces.
19.b..........  ...................  Areas other than     USCG            MMS             MMS                ...........................................
                                      accommodations or
                                      machinery spaces.
20............  Life Saving          ...................  USCG            USCG            USCG               ...........................................
                 Equipment.
21............  Workplace Safety
                 and Health.
21.a..........  ...................  Personnel            USCG            USCG            USCG               ...........................................
                                      protection
                                      equipment.
21.b..........  ...................  Hazardous material   USCG            USCG            USCG               ...........................................
                                      storage & handling
                                      (other than
                                      produced
                                      hydrocarbons).
22............  Living Quarters and  ...................  USCG            USCG            USCG               Includes permanent and temporary units
                 Accommodation                                                                                design & arrangement.
                 Spaces.
23............  General
                 Arrangements.
23.a..........  ...................  Access/egress &      USCG            USCG            USCG               ...........................................
                                      means of escape.
23.b..........  ...................  Safety plan, fire    USCG            USCG            USCG               ...........................................
                                      control or fire
                                      equipment, and
                                      lifesaving
                                      equipment plans.
24............  Miscellaneous        ...................  ..............  ..............  .................  Supplements list of above mentioned
                 Systems and                                                                                  systems.
                 Operational
                 Requirements.
24.a..........  ...................  Structural           USCG            MMS             USCG               USCG will copy MMS on approvals and
                                      inspection                                                              compliance records. MMS recommends that
                                      requirements.                                                           USCG at least meet the requirements of the
                                                                                                              American Petroleum Institute's Recommended
                                                                                                              Practice 2A (API-RP2A)--Planning,
                                                                                                              Designing, and Constructing Fixed Offshore
                                                                                                              Platforms Working Stress Design.
24.b..........  ...................  Personnel            USCG            USCG            USCG               ...........................................
                                      requirements for
                                      marine and
                                      lifesaving
                                      operations.
24.c..........  ...................  Emergency            USCG            USCG            USCG               ...........................................
                                      evacuation plans.
24.d..........  ...................  Drills--fire,        USCG            USCG            USCG               ...........................................
                                      abandon, and
                                      lifeboat.

[[Page 2665]]

 
24.e..........  ...................  Inspection and       MMS             MMS             MMS                Includes hydrogen sulfide gas (H2S).
                                      testing of all
                                      production and
                                      drilling equipment.
24.f..........  ...................  Inspection and       USCG            USCG            USCG               ...........................................
                                      testing of marine
                                      and lifesaving
                                      equipment.
24.g..........  ...................  Well-head &          MMS             MMS             MMS                ...........................................
                                      platform removal
                                      (decommissioning).
24.h..........  ...................  Safe welding,        MMS             MMS             MMS                ...........................................
                                      burning and hot
                                      tapping.
24.i..........  ...................  Diving operations &  USCG            USCG            USCG               ...........................................
                                      equipment.
24.j..........  ...................  H2S contingency      MMS             MMS             MMS                Includes H2S personnel protection
                                      plan (including                                                         equipment.
                                      equipment,
                                      control, and
                                      detection systems).
25............  Investigation--Lead  ...................  ..............  ..............  .................  Agencies to consolidate/standardize and
                 Responsibility:                                                                              eliminate duplication in reporting and
                                                                                                              data-collection requirements (see section
                                                                                                              VIII of this MOU).
25.a..........  ...................  Oil Pollution        MMS             MMS             MMS                Addresses oil pollution reportable under
                                      reportable under                                                        OSCLA.
                                      the Outer
                                      Continental Shelf
                                      Lands Act (OSCLA).
25.b..........  ...................  Oil Pollution under  USCG            USCG            USCG               Conduct preliminary assessments and follow-
                                      the Clean Water                                                         on actions in accordance with the National
                                      Act (CWA impact).                                                       Contingency Plan and investigation into
                                                                                                              violation of CWA.
25.c..........  ...................  Incidents involving  USCG            USCG            USCG               ...........................................
                                      systems under USCG
                                      jurisdiction.
25.d..........  ...................  Incidents involving  MMS             MMS             MMS                ...........................................
                                      systems under
                                      MMS's jurisdiction.
26............  Administer Shutdown  ...................  MMS             MMS             MMS                See Section V, Para C.2 of this MOU for the
                 or Resumption of                                                                             Federal On Scene Coordinator (FOSC)
                 Operation of a                                                                               responsibility for spill response.
                 Facility.
27............  Safety Analysis....  Safety analysis of   USCG            MMS             MMS                For MODU's see the requirements of 46 CFR
                                      industrial systems.                                                     58.60-11 and 58.60-13.
--------------------------------------------------------------------------------------------------------------------------------------------------------

Attachment A--Drilling, Completion, Well Servicing and Workover Systems

    System requirements for operating the following equipment and 
systems:

--Drilling, production, and workover risers
--Blowout prevention equipment and control systems
--Drilling system and related relief valves, vent system, pressure 
vessels and piping, pumps, water systems, safety systems, cementing 
systems, and circulating systems
--Riser and guideline tensioning systems
--Motion compensation systems
--Instruments and controls
--Atmospheric vessels and piping
--Fitness of the Drilling Unit
--Lifting and hoisting equipment associated with the derrick
--Cementing systems
--Circulating systems, including:
    pipes and pumps for mud;
    shale shakers; desanders;

[[Page 2666]]

    degassers.
--Structures including derrick and sub-structure
--Bulk material storage and handling systems
--Other pressurized systems designed for industrial operations

Attachment B--Production Systems

    Includes but not limited to the following equipment:

--Hydraulic systems
--Connections between production and workover (industrial) systems
--Production safety systems including subsurface and surface well 
control
--Relief valves, relief headers, vent and flare systems
--Production wells and wellhead
--Well-handling equipment (contract drilling rig)
--Instrumentation, controls, and measurement (including oil and 
gas)s
--Gas compression
--Process system and related pumps
--Odorization for gas piped into enclosures
--Process system and related pressure vessels and piping
--Process system and related heat exchangers, including waste heat 
recovery units
--Chemical injection and treatment systems

Attachment C--Fire Protection, Detection and Extinguishing

    Includes the following equipment:

--Deluge systems in the wellbay area
--Firewater pumps, piping, hose reel and monitor equipment
--Foam extinguishing equipment
--Fixed gaseous extinguishing equipment [carbon dioxide(CO2) and 
halon alternatives]
--Fixed watermist extinguishing equipment
--Portable and semi-portable extinguishers
--Fire and smoke detection (excludes interfaces to MMS regulated 
safety systems)

IV. Civil Penalties

    The USCG reports violations of OCSLA statutes or regulations 
that may result in civil penalty action to MMS. The USCG will 
investigate and document OCSLA based violation cases according to 
the procedures in 33 CFR 140.40 with the following clarification:
    1. The cognizant Officer-in-Charge, Marine Inspection (OCMI) 
makes the determination whether a violation ``constitutes or 
constituted a threat of serious, irreparable, or immediate harm.'' 
If the OCMI determines:
    a. That it does, then the OCMI will refer the case to MMS and 
recommend that a civil penalty be assessed.
    b. That it does not, then the OCMI will establish a reasonable 
time for the violator to fix the problem. The OCMI may do this in 
consultation with MMS, particularly on matters in which MMS has 
expertise or knowledge of industry practice. If the violator does 
not correct the problem, or does not file an appeal with the 
appropriate USCG official in the allotted time, the OCMI will refer 
the case to MMS, pursuant to 43 U.S.C. 1348(a).
    When referring a case to MMS, the OCMI will forward the 
following information:
    i. The case file, which consists of a summary of the 
investigation and a USCG determination of the regulations violated.
    ii. A description of the seriousness of violation and any 
incidents actually associated with the violation.
    iii. If requested, additional information concerning the merits 
of a civil penalty action. All physical evidence remains with the 
USCG, but available to MMS upon request.
    2. If the violator files an appeal of a USCG's enforcement 
action the USCG will not forward the case to MMS until the appeal 
has been resolved.
    3. Upon receipt of the violation report, the MMS Regional Civil 
Penalty Coordinator will appoint a Reviewing Officer (RO) who will 
process the report in accordance with the MMS OCS Criminal/Civil 
Penalties Program Guidebook.
    4. Notification of the MMS RO's decision regarding the civil 
penalty assessment, collection, compromise, or dismissal shall be 
provided to the OCMI originating the violation report.

V. Oil Pollution Responsibilities

A. Certificates of Financial Responsibility (COFR)

    1. The MMS issues certifications of oil-spill financial 
responsibility for certain facilities located in the OCS and State 
waters included in the definition of Covered Offshore Facility found 
at 30 CFR 253.3. The COFR ensures that responsible parties can pay 
for cleanup and damages from facility oil spills.
    2. The MMS will provide COFR-related information to the USCG 
upon request. Upon request from the USCG, MMS will provide available 
information for any covered OCS facility (COF) in certain OCS and 
the State waters included in the definition of Covered Offshore 
Facility found at 30 CFR 253.3 that are involved in an oil pollution 
incident including:
    (1) Copies of the lease, permit, or right of use and easement 
for the area in which the COF is located;
    (2) Contacts for claims;
    (3) Agents for service of process;
    (4) Amounts guaranteed; and
    (5) List of all responsible parties.
    3. The USCG issues COFR for vessels and floating OCS facilities 
which store oil. This COFR is in addition to the MMS COFR and 
addresses the operator's financial responsibility for the clean up 
and damages from oil discharges resulting from non-well-related 
sources and produced oil stored onboard the floating OCS facility.

B. Oil Spill Preparedness and Response Planning

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

C. Spill Response

    1. All spills are required to be reported to the National 
Response Center (NRC). The NRC provides notification to the 
appropriate agencies and State offices. Additionally, OCS facility 
owners or operators are required to report spills of one barrel or 
more to the MMS RS.
    2. The FOSC will direct and monitor Federal, State, and private 
actions, consult with responsible parties, and determine the removal 
action. The MMS RS will direct measures to abate sources of 
pollution from an OCS facility. However, if a discharge poses a 
serious threat to public health, welfare, or the environment, in 
accordance with Public Law 101-380 (OPA) Sec. 4201, the FOSC may 
mitigate or prevent the substantial threat of a discharge and notify 
the MMS RS as soon as possible. The MMS will authorize the return of 
an OCS facility to operation in coordination with the FOSC.

VI. Exchanging Services and Personnel

    To the extent its own operations and resources permit, each 
agency will provide the other agency with assistance, technical 
advice, and support, including transportation, if requested in 
accordance with 43 U.S.C. 1348. Exchange of services and personnel 
is non-reimbursable (except for pollution removal funding 
authorizations for incident specific fund access). The assistance 
may extend to areas beyond the OCS where one Agency's expertise will 
benefit the other agency in applying and enforcing its safety 
regulations.

VII. Other Cooperative Functions

    1. Both agencies will exchange data and study results, 
participate in research and development projects, and exchange early 
drafts of rulemaking notices to avoid duplicative or conflicting 
requirements.
    2. Both agencies will review current standards, regulations, and 
directives and will propose revisions to them as necessary in 
keeping with the provisions of this MOU.
    3. Both agencies will review reporting and data collection 
requirements imposed on operators of OCS facilities and, where 
feasible, eliminate or minimize duplicate reporting and data 
collection requirements.
    4. Each agency will conduct scheduled and unannounced 
inspections to ensure compliance with its own requirements. If the 
inspector notices deficiencies that fall within the responsibility 
of the other agency, the deficiency will be reported to the other 
agency for action. However, if the deficiency may cause serious or 
irreparable harm to persons, property, or the environment, the 
inspector may take the necessary preventative action. The 
preventative action will then be reported to the other agency.

[[Page 2667]]

VIII. Accident Investigations

    The MMS or the USCG is responsible for conducting investigations 
and preparing a public report for each major fire, oil spillage, 
serious injury, and fatality associated with OCS activities. To 
avoid duplication of effort and to simplify administration, the 
responsibility for investigating and preparing a public report for 
these incidents rests with the agency that is listed in Section III 
as being responsible for the system associated with the incident. In 
addition, the MMS investigates blowouts and the USCG investigates 
collisions.
    For those incidents for which both agencies have an 
investigative interest in the system associated with the incident, 
one agency will assume lead investigative responsibility with 
supporting participation by the other agency. The lead agency in a 
joint investigative effort shall investigate and prepare, approve, 
and release the report in accordance with the normal procedures of 
that agency, subject to the following terms and conditions:
    1. The lead agency shall be determined through mutual agreement. 
If mutual agreement is not reached, each agency may decide to 
conduct its own investigation.
    2. The specific details of a supporting agency's participation 
in a joint investigation shall be determined on a case-by-case basis 
through mutual agreement.
    3. Prior to the public release of a joint agency report, the 
supporting agency will be afforded an opportunity to comment on the 
report. If the supporting agency's conclusions and/or 
recommendations differ with those of the lead agency, either both 
conclusions and/or recommendations will be included in the lead 
agency's report in a mutually acceptable manner, or a joint report 
will not be issued, and each agency may issue separate reports.

IX. Implementing this MOU

    1. Each agency will review its internal procedures and, where 
appropriate, will revise them to accommodate the provisions of this 
MOU. Each agency will also designate in writing one senior official 
who will be responsible for coordinating and implementing the 
provisions of this MOU.
    2. Each agency will designate regional officials to be 
responsible for coordinating and implementing the provisions of this 
MOU in their respective regions.
    3. The USCG--MMS MOU concerning regulation of activities and 
facilities in the OCS, dated August 29, 1989 is canceled on the 
effective date of this agreement.
    4. If new technology (or new uses of current technology) require 
a change to this MOU, the MMS regional office and appropriate USCG 
district will work together to reach an agreement. The MMS regional 
office and the USCG district will notify their respective 
Headquarters office of any change. If the MMS regional office and 
the USCG district office can't reach an agreement, it will be 
elevated to MMS and USCG Headquarters. The new policy will become 
part of a revised MOU the next time the MOU is revised.

X. Savings Provision

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

XI. Effective Date

    This MOU is effective upon signature.

XII. Termination

    Both parties may amend this MOU by mutual agreement and either 
agency may terminate it with a 30-day written notice.

    Signed at Washington, DC, December 16, 1998.
James M. Loy,
Commandant, U.S. Coast Guard, Department of Transportation.

Cynthia Quarterman,
Director, Minerals Management Service, Department of Interior.
[FR Doc. 99-817 Filed 1-14-99; 8:45 am]
BILLING CODE 4310-MR-P