[Federal Register Volume 64, Number 248 (Tuesday, December 28, 1999)]
[Rules and Regulations]
[Pages 72756-72795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-31869]



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Part V





Department of the Interior





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Minerals Management Service



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30 CFR Parts 218, 250, 252, etc.



Postlease Operations Safety; Final Rule

  Federal Register / Vol. 64, No. 248 / Tuesday, December 28, 1999 / 
Rules and Regulations  

[[Page 72756]]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 218, 250, 252, 253, 256 and 282

RIN 1010-AC32


Postlease Operations Safety

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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SUMMARY: This rule: Updates and clarifies requirements related to 
postlease operations and stresses diligence; Allows MMS to grant a 
right-of-use and easement for an Outer Continental Shelf (OCS) leased 
or unleased block to a State lessee; Brings uniformity to the public 
release time for all proprietary geophysical data and information 
gathered under prelease; Clarifies the distinction between granting and 
directing a suspension, and the different consequences of each; 
Requires evacuation statistics for natural occurrences; Sets out 
criteria to disqualify an operator with repeated poor operating 
performance from continuing as designated operator; and Allows 
operators the opportunity to propose alternative regulatory approaches 
if they can demonstrate an equal or higher level of performance.

EFFECTIVE DATE: The rule is effective on January 27, 2000. The 
incorporation by reference of certain publications listed in these 
rules is approved by the Director of the Federal Register as of January 
27, 2000.

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

SUPPLEMENTARY INFORMATION: On February 13, 1998, we published a Notice 
of Proposed Rulemaking (63 FR 7335), titled ``Postlease Operations 
Safety,'' revising the entire 30 CFR part 250, subpart A. The proposed 
rule was subsequently corrected in a notice on March 9, 1998 (63 FR 
11385). We extended the 90-day comment period once (to provide a 
comment period of 120 days that closed on July 17, 1998). We received 
11 responses during the comment period. On March 24, 1998 (during the 
comment period), we held a public meeting to consult on establishing 
criteria for the disqualification provision in the rule. This final 
rule amends the regulations at 30 CFR 218.154; 30 CFR part 250, subpart 
A; 30 CFR 256.1, 256.4, 256.35, and 256.73; and it corrects regulatory 
citations throughout the CFR to reflect the new subpart A sections.

Redesignation of 30 CFR Part 250

    On May 29, 1998, we published a final rule that redesignated 30 CFR 
part 250 and assigned new section numbers to each section in part 250. 
The subpart A proposed rule was published before the redesignation. The 
redesignation rule allowed us to add more sections to the subpart A 
final rule and to break down lengthy sections into shorter and clearer 
sections. In our discussion of comments on the rule, we retained the 
section numbers from the proposed rule when we referred to the comments 
that we received. When we refer to the current regulations, we use the 
redesignated numbers as published in the final rule, published in the 
Federal Register on May 29, 1998 (also in the bound copy of the CFR, 
dated July 1, 1998).

MMS Position on Incorporated Documents

    Incorporation by reference allows Federal agencies to comply with 
the requirements to publish regulations in the Federal Register by 
referring to materials already published elsewhere. The legal effect of 
incorporation by reference is that the material is treated as if it 
were published in the Federal Register. This material, like any other 
properly issued regulation, then has the force and effect of law. We 
hold operators accountable for complying with the documents 
incorporated by reference in our regulations.

Differences Between Proposed and Final Rules Not Directly Related 
to Comments

    In addition to changes we made to the final rule in response to 
comments, we reworded certain complex sections for further clarity. We 
also changed the wording/format of several section titles and headings. 
Although not directly related to public comments on the proposed rule, 
these changes were often triggered by the comments to other sections 
because so many of the sections are interrelated. Following are the 
major changes by section. We emphasize that the wording revisions do 
not change any requirements. In many instances, the changes improve 
MMS's internal work processes to better serve its external customers.
     In the table at Sec. 250.102(b), we added a reference to 
Oil Spill Financial Responsibility coverage.
     We added Sec. 250.103 on issuing Notices to Lessees and 
Operators (NTLs).
     In Sec. 250.105, we modified the definition of exploration 
to clarify that exploration is not just any drilling per se, but are 
those drilling activities conducted in searching for potential 
commercial quantities of oil and gas.
     In Sec. 250.105, we removed the definition of 
``information'' as the definition was too narrow and restrictive. In 
addition to geological and geophysical (G&G) information, we deal with 
many different kinds of information including archaeological, 
biological, engineering, environmental, financial, and technical.
     In Sec. 250.105, we expanded definitions of (1) ``lessee'' 
to include the MMS-approved assignee of the lease or the operating 
rights; (2) ``operator'' to include a designated agent of the 
lessee(s); and (3) ``you'' to include a designated agent of the 
lessee(s) and a pipeline right-of-way holder.
     In Sec. 250.105, for consistency, we used 30 CFR 251 
definitions for terms related to G&G.
     In Sec. 250.105, in defining ``sensitive reservoirs,'' we 
deleted the word ``initially'' and added the words ``for submitting the 
first MER.''
     In Sec. 250.108, we clarified the recordkeeping timeframe 
for crane operator qualifications to 4 years instead of 2 years. This 
clarification ensures that the crane operator has completed the 
appropriate training within the past 4 years. The 4-year timeframe is 
consistent with the currently incorporated Third Edition of API RP 2D, 
which says that operator qualifications are to be maintained at a 
minimum of 4 years through appropriate refresher training.
     In Sec. 250.115, we separated the criteria for determining 
whether a well was an oil well or a gas well.
     In Secs. 250.118 through 250.124, wherever applicable, we 
changed ``reinject'' and ``reinjection'' to ``inject'' and 
``injection'' to denote that the gas is being injected for the first 
time.
     We revised Sec. 250.120 to read: (a) ``If you produce gas 
from an OCS lease and inject it into a reservoir on the lease or unit 
according to paragraph Sec. 250.118(b), you are not required to pay 
royalties until you remove or sell the gas from the reservoir. (b) If 
you store the gas according to paragraph Sec. 250.119(c), you are 
required to pay royalty before injecting it into the storage 
reservoir.'' The reason is that injection of gas for a commercial 
storage project is not for the benefit of the lease; therefore, 
royalties are due before injection. This is consistent with the 
subsurface storage project approved by the Gulf of Mexico (GOM) Region 
for Chandeleur Block 29.
     In Sec. 250.140(a) we replaced ``written approval'' with 
``written decision'' because it is not a foregone

[[Page 72757]]

conclusion that the decision will be an approval.
     In the last sentence of Sec. 250.162, we replaced the 
words ``provide you'' with the word ``recognize.'' The grant of the 
right-of-use or easement by MMS ``provides'' the ``rights.'' The 
lessee, or any subsequent lessee, simply recognizes those rights.
     We deleted proposed Sec. 250.119(l)(5) which would have 
allowed us to grant a Suspension of Production (SOP) for exploratory 
reasons without a commitment to development and production. To give 
meaning to the primary term, we expect lessees to complete exploration 
and delineation to commit to production by the end of the lease term. 
We deleted proposed paragraph Sec. 250.119(l)(6) which would have 
clarified when geophysical work could be used as a basis for an SOP 
approval. We deleted it because the regulatory authority provided in 
Sec. 250.175(b)(1) allows us to grant an SOP when a lessee is committed 
to production and needs to complete geophysical work. In this section, 
we also removed the vague phrase ``good faith efforts.''
     In Sec. 250.180, we inserted a new paragraph (a) to 
provide for reporting requirements for leases in their primary term and 
added clarity and specificity to paragraphs (e), (f), and (i).
     In Sec. 250.190, we added a sentence at the end of 
paragraph (a)(2) to put the responsibility of the contents of a 
computer-generated form on the lessee/operator who generates the form.
     In the table at Sec. 250.196, we added language to clarify 
that part 251 determines the public release of all proprietary 
geophysical data and information acquired under an exploration permit, 
even when the data and information are later submitted to MMS under 
part 250 stipulations. These permit data and information are protected 
under Sec. 251.14 (currently 50 years for data and 25 years for 
information). The proprietary terms of these permit data and 
information would be unaffected by lease expiration or relinquishment.
    The vast majority of seismic data and information submitted by 
lessees was originally acquired under exploration permits. The lessees 
acquired the data and information indirectly on a nonexclusive basis 
under a license agreement among the permittee, the geophysical 
contractor who acquired the data and information under part 251, and 
the lessee, who is a third party to the data and information.
    However, part 250 determines the release of proprietary geophysical 
data and information that were acquired on a lease exclusively by or 
for a lessee, under terms of a lease, and submitted to MMS under part 
250. These data and information are protected for a period of 10 years, 
or until the lease is relinquished or expires, whichever is sooner. 
This would include all seismic data and information acquired 
exclusively by or for the lessee and submitted for unitization 
purposes, or in support of exploration or development and production 
plans.
     In the table at Sec. 250.199(e)(1), we added the following 
reason for collecting information, specifically G&G data and 
information under 30 CFR part 250, subpart A: to support the unproved 
and proved reserve estimation, resource assessment, and fair market 
value determinations.

Comments on the Rule

    We received comments on specific issues from the Trustees for 
Alaska (Trustees), the International Association of Drilling 
Contractors (IADC), Newfield Exploration Company, the State of Florida, 
and the Small Business Administration (SBA). The American Petroleum 
Institute (API) and Offshore Operator's Committee (OOC), representing 
the industry, sent a consolidated comments table and clearly depicted 
their suggested language changes and rationale. The National Ocean 
Industries Association, the Independent Petroleum Association of 
America, and some of the large oil companies sent letters endorsing the 
American Petroleum Institute/Offshore Operator's Committee (API/OOC) 
consolidated comments. We posted all comments on the MMS internet 
homepage. We noted a universal comment on the need for a side-by-side 
comparison of existing regulations and plain language rewrites; we will 
adopt this suggestion for future rules rewritten in plain language. We 
have included in this notice our responses to comments other than those 
included on the table submitted by API/OOC followed by the API/OOC 
comments in tabular form together with our responses. Some of the 
comments in the consolidated API/OOC comments table were reiterated by 
other commenters. Since our response was the same, we have not provided 
in this notice a separate set of comments and responses for those 
comments. We organized our responses to comments other than those 
included in the API/OOC table under the following topics: I. comments 
and responses to miscellaneous issues; II. disqualifying an operator; 
III. granting a right-of-use and easement (with detailed responses to 
the extensive comments we received on the section); and IV. comments 
from SBA.

I. Comments and Responses to Miscellaneous Issues

     Comment: The reference to conservation, which was under 
the Director's authority at current Sec. 250.104, was removed.
    Response: The reference was never removed and appears at 
Sec. 250.101(b): Under this authority, the MMS Director requires that 
all operations conform to sound conservation practice to preserve, 
protect, and develop mineral resources of the OCS to balance orderly 
energy resource development with protection of the human, marine, and 
coastal environments.
     Comment: Retain wording to the effect that the 
implementation of the regulation of operations on the OCS remains 
``subject to the supervisory authority of the Secretary.''
    Response: The Secretary's authority is stated clearly at 
Sec. 250.101: ``The Secretary of the Interior (Secretary) authorized 
the Minerals Management Service (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. * * *'' To clarify that ``this authority'' refers 
to the Secretary's authority, we are changing the words in italics to 
read ``Under the Secretary's authority.''
    Response: We strengthened the language at Sec. 250.106.
     Comment: Include definition for natural resources.
    Response: We included the OCS Lands Act (OCSLA) definition for 
natural resources.
     Comment: Provide definitions for Eastern and Western GOM.
    Response: We put back a definition for Eastern GOM, which was 
deleted in the proposed rule. We also included a definition for the 
Western GOM. In both definitions, we clarify that these areas are not 
to be confused with the planning areas that we use for lease sales.
     Comment: The requirements for cranes at proposed 
Sec. 250.105 should not apply to mobile offshore drilling units (MODU) 
or other vessels.
    Response: We clarified in Sec. 250.108(a) that the requirements for 
cranes apply only to fixed platforms.
     Comment: Proposed change at Sec. 250.106(g)(5) 
(italicized): You may not weld while you drill, complete, workover, or 
conduct wireline operations unless the fluids in the well, (being 
drilled, completed, worked over, or having wireline operations 
conducted), are noncombustible, and

[[Page 72758]]

you have precluded the entry of formation hydrocarbons into the 
wellbore either by mechanical means or by a positive overbalance toward 
the formation. The intent is to limit welding activities on or near 
wells that are being serviced or drilled, not limit welding because 
other wells in the wellbay are live.
    Response: We have made the suggested changes at Sec. 250.113(c)(6).
     Comment: ``You'' as used in proposed Sec. 250.13 is too 
restrictive and should be expanded to include any person an MMS order 
or decision may adversely impact.
    Response: We deleted the reference related to civil penalty appeals 
from subpart A. On August 8, 1997 (62 FR 42668), we published a final 
rule revision to subpart N that provides information related to civil 
penalty appeals. We further shortened Sec. 250.104 on appeals because 
all appeals will be processed at the Department level and not at the 
agency level. We expanded the definition of ``you'' to include an 
operating rights holder, a designated operator of the lessee(s), a 
designated agent of the lessee(s), a pipeline right-of-way holder, or a 
State lessee granted a right-of-use and easement.
     Comment: Should the U.S. Coast Guard (USCG), rather than 
MMS, be the recipient of such reports (Evacuation Statistics at 
proposed Sec. 250.123(b)).
    Response: The requirement at Sec. 250.192 relates to our need to 
know, for national security reasons, the amount of production shut-in.
     Comment: Question duplicative accident reporting to both 
MMS and USCG.
    Response: We deleted the proposed accident reporting table (at 
proposed Sec. 250.120(a)). We retained the requirement in current 
regulations (at Sec. 250.119(a)) under Sec. 250.191 in this final rule. 
We will propose a separate rule to establish a joint MMS-USCG web-based 
system for reporting incidents to either agency. The rule will also 
give more guidance on thresholds for fires and factors that impair 
safety. (See comments and our responses in comment/response table.)

II. Disqualifying an Operator

    Industry asked that we delete this new section. Environmental 
groups supported it. In response to a comment to provide adequate 
notice before disqualifying an operator, we inserted language in the 
rule at Sec. 250.135. A commenter wanted to know what would happen if 
we revoked a company's designation as operator, and it was the sole 
lessee. If an operator is the sole lessee and designated operator of a 
lease, and has been disqualified from operating a facility on that 
lease, then the onus is on the lessee to find a new and acceptable 
designated operator and submit the change for our approval.
    On March 24, 1998, we held a public meeting to consult on 
establishing criteria for the disqualification provision in the 
proposed rule. At the meeting we explained the disqualification 
process. The principal goal of the disqualification process is to 
improve performance and operational safety on the OCS by focusing on 
the designated operators. We analyze performance based on either a 
periodic assessment of specific measures or because of an event or 
performance concern.
    At a minimum, we will analyze every operator's performance 
annually. Compliance history and accidents are the two primary areas of 
measurement we use to determine performance. In addition, we use other 
information gathered during annual performance reviews to determine an 
operator's overall performance. Using this information, we decide 
whether operators are acceptable or unacceptable performers.
    We may also assess operator performance through a safety meeting. 
Several things may trigger a safety meeting--an accident, a bad 
inspection, failing a 30 CFR 250, subpart O training audit, or a civil 
penalty. During the meeting, we will discuss the triggering event with 
the operator and may also review their general performance if the 
situation warrants. We may issue a directed suspension if we perceive 
the triggering event as a continued threat to human safety or the 
environment. The actual event could lead us to determine that the 
operator is unacceptable.
    In general, operators who exhibit unacceptable performance would 
undergo an incremental approach to improving their overall performance. 
At the annual performance review meeting, we would take the opportunity 
to highlight areas of concern regarding an operator's performance. The 
District Supervisor or Regional Supervisor for Field Operations may 
make specific recommendations to the operator for improving the safety 
of its operations.
    It may be necessary for us to issue a directed suspension for a 
given facility because it poses an imminent threat to safety or the 
environment. A directed suspension or chronic poor performance could 
lead us to place an operator on probation. Four things then occur:
    1. We notify the designated operator and all relevant lessees in 
writing that the operator is on probation for a specific period. The 
Regional Director will determine the length of probation.
    2. We prohibit the designated operator from becoming the designated 
operator on leases during its probation.
    3. We require the designated operator to submit a Performance 
Improvement Plan (PIP) to address the performance concerns and detail 
how the operator will bring its inventory of facilities into 
compliance.
    4. We have the discretion to increase the number of performance 
review meetings as necessary.
    Through additional performance analysis, we may determine that an 
operator's overall performance is improving, and the operator could be 
removed from probation. Conversely, an operator's performance could 
remain poor or worsen, and we may take more stringent actions such as:
     A facility-specific disqualification as designated 
operator for a period of time set by the Regional Director;
     A district-specific disqualification as designated 
operator for a period of time set by the Associate Director for 
Offshore Minerals Management (AD/OMM);
     A region-specific disqualification as designated operator 
for a period of time set by the AD/OMM; and
     An OCS-wide disqualification as designated operator for a 
period of time set by the Director of MMS.
    We will not take these disqualification actions without the 
operator having the opportunity for a review by MMS officials. These 
actions require that an operator submit a PIP to us that details its 
efforts to improve the safety of its operations and bring its 
facilities back into regulatory compliance. The primary purpose of this 
rule is to ensure that operators who demonstrate a disregard for safety 
are unable to direct operations on leases on the OCS. We will pursue 
Department of the Interior debarment proceedings if we determine that 
it is appropriate to disqualify an operator from acquiring new leases/
assignments on an OCS-wide basis.
    These adverse actions may take place sequentially or in any order 
that the Director of MMS deems appropriate.

III. Granting a Right-of-Use and Easement

     Comment: Trustees commented that the proposed rule did not 
provide sufficient rationale for the need to expand our authority to 
issue rights-of-use and easement in the OCS to accommodate State 
lessees and questioned the statutory authority for this expansion of 
the regulation. Specifically, Trustees do not believe

[[Page 72759]]

that we have the legal authority to allow the placement of exploratory 
or production drill rigs or authorize other related uses in areas where 
we have not authorized OCS leasing, or where there are no active 
leases. (``As written, the proposed regulatory change might arguably 
allow exploration and related activities even in areas currently 
covered by OCS leasing moratoria, contrary to the expressed intent of 
Congress and recent Presidential actions.'')
    Response: This rule simply clarifies our authority; the rule does 
not expand our authority. Between May 10, 1954, and December 13, 1979, 
Sec. 250.18 specifically authorized the Regional Supervisor to grant a 
Federal or State lessee a ``right-of-use and easement'' on leased or 
unleased lands ``for the conduct of operations on any other lease, 
State or Federal.'' On October 26, 1979, the U.S. Geological Survey 
(USGS) published a final rule (44 FR 61889) revising 30 CFR part 250 to 
implement the statutory changes of the OCSLA Amendments of September 
18, 1978, and for other purposes. Instead of continuing its authority 
to grant rights-of-use and easement to State lessees, it stated that 
``State lessees wishing to obtain a right-of-way across the OCS must 
apply for a grant from the Bureau of Land Management (BLM).'' In 
October of 1979, USGS exercised the Secretary's authority to grant 
rights-of-use and the authority to grant easements while BLM exercised 
the Secretary's authority to grant pipeline rights-of-way. BLM had 
convinced the USGS that it should stop granting rights-of-use and 
easement for lessee-owned pipelines that extended from the OCS to 
shore. The change in the 1979 rulemaking recognized the agreement 
between the USGS and BLM that the USGS would no longer grant a right-
of-use and easement for lessees to construct and operate a pipeline 
from the OCS to shore.
    Neither the OCSLA, nor the 1978 amendments, makes a distinction 
that permits the Secretary to grant a State lessee a right-of-way but 
not a right-of-use and easement. Furthermore, there is little reason 
for a State lessee to apply for a right-of-way across the OCS. The 
right-of-way provisions of section 5 seem to require that the right-of-
way be granted for the transportation of oil and gas produced from 
areas leased under the OCSLA. MMS has always had the authority to grant 
rights-of-use and easements, but it was inadvertently dropped from the 
regulations in 1979. We are simply reinserting it specifically in the 
regulations.
    We may grant a right-of-use or easement to authorize the grantee to 
construct and maintain one or more platforms, fixed structures, or 
artificial islands on areas of the OCS; to drill a directional well or 
wells to be bottomed under the lease area; to produce and rework the 
well or wells; and to handle, treat, and store the production from the 
well or wells. Normally, we grant a right-of-use and easement to permit 
a lessee to conduct leasehold-type activities at a more advantageous 
location off the leasehold. There has to be an existing Federal or 
State lease that entitles the lessee to conduct oil and gas activities 
before a right-of-use and easement could even be considered. This 
regulation change does not allow us to authorize the initiation of 
exploration or production drilling or related activities into areas 
where the driller does not already have active lease and rights to 
drill. In addition, MMS would not issue authority to conduct operations 
that are not consistent with the policy of the Department and the 
President.
     Comment: Trustees also expressed concern that the proposed 
new language on rights-of-use and easement appears to arbitrarily 
broaden the rights of lessees without justifying the need for such a 
change. They felt that we had not identified where and for what purpose 
the regulations were being modified. Trustees specifically asked ``* * 
* does it cover gravel mining, placement of gravel mining, placement of 
gravel islands, disposal of dredge spoils, oil and natural gas pipeline 
construction and operation, processing platforms, seawater treatment 
plants, underground injection well sites, placement of exploratory 
drill ships or concrete island drilling structures?''
    Response: The rule does not broaden the rights of lessees. Lessees 
must apply for a right-of-use and easement and show the need for 
conducting lease-related activities off the leasehold. We will continue 
to grant rights-of-use and easement to provide authority to conduct 
those leasehold-type activities that must be conducted off the leased 
areas; i.e., activities that would normally be approved under the 
authority of a lease (Federal OCS or State submerged lands) such as the 
ones listed in the comment.
     Comment: Trustees expressed concern that the new language 
in the regulations on right-of-use and easement may further reduce the 
environmental standards and opportunities for public involvement in 
controversial oil drilling projects. They gave the example of ARCO's 
Warthog well that was drilled from Federal OCS leases into State leases 
off the coast of the Arctic National Wildlife Refuge.
    Response: The Warthog exploration program was conducted from an OCS 
lease and received a complete technical and environmental review 
through the exploration plan review process established under 30 CFR 
250.204. The Warthog program did not involve a right-of-use and 
easement. The new rule will not circumvent the lease sale, Exploration 
Plan (EP) and Development and Production Plan (DPP) review process to 
allow production from facilities located on unleased OCS areas without 
the benefit of public, National Environmental Policy Act (NEPA), and 
Coastal Zone Management Act (CZMA) consistency review.
    The rule prescribes that any drilling under a right-of-use and 
easement must comply with the requirements of our regulations which, in 
turn, implement NEPA, CZMA, and the OCSLA requirements for public 
review; thus EP/DPP, NEPA, and CZMA consistency review and technical 
standards continue to apply. Consideration for a right-of-use and 
easement on unleased OCS lands, to conduct activity into adjoining 
State lands, will still require that a State lease would be in place 
and the issuance of that State lease would have included a public 
review/or equivalent process. The State lessee must also obtain State 
authorization for activities under a right-of-use and easement into or 
under the State lease before any exploration or development activity 
could begin.
    The regulation will call for MMS officials to vigilantly ensure 
that the operations on Federal and State leases are conducted in an 
equitable way. We may have to verify that officials of the regulatory 
agency for the adjacent coastal State will permit wells to be drilled 
from State lands to reservoirs underlying Federal OCS leases that are 
located near or adjacent to the Federal and State boundary.
    The regulation requires payment of fees and includes special 
bonding provisions to ensure that wells drilled from Federal OCS lands 
to explore for or develop and produce oil and gas from State leases are 
properly plugged and abandoned, that platforms and other facilities are 
removed, and that the seafloor is cleared of obstructions to other uses 
of the ocean.
     Comment: Trustees also suggested that, ``The failure to 
better define `right-of-use' in the regulations may be the nub of this 
problem.''
    Response: The definition of ``right-of-use'' provided in the rule 
simply refers a reader to the regulations and is broadly defined since 
the regulations are clear on the use of this term. We have also 
provided a definition for the term ``easement.''

[[Page 72760]]

IV. Comments from SBA

    SBA commented on the Regulatory Flexibility Act (RFA) section in 
the proposed rule preamble and pointed out that it was devoid of 
specific data on firm size and receipts. They also pointed out that 
although we discussed the economic effects of the rule (factual 
statement), a more thorough analysis was needed. In response to those 
comments, we have rewritten the RFA portion of the preamble.

Table of MMS Responses to American Petroleum Institute/Offshore 
Operator's Committee (API/OOC) Comments to 30 CFR Part 250, Subpart 
A

    In the table, under the comments column, we show words in 
``brackets'' that were in bold/strikeout in the original comments. We 
show in ``italics'' words that were underscored in bold type. We have 
provided the new citations in the MMS response column.

----------------------------------------------------------------------------------------------------------------
                 Section                     API/OOC comments        API/OOC rationale         MMS response
----------------------------------------------------------------------------------------------------------------
218.154(a)(1)...........................  (1) Directs the         The MMS proposal would  We simplified the
                                           suspension of [both]    require lessees to      wording to make clear
                                           operations [and] or     pay rental or minimum   that rentals and
                                           production; or          royalty if an SOO is    minimum royalties are
                                                                   granted on a lease      due when a suspension
                                                                   when there is no        is granted, or when
                                                                   production but there    directed due to the
                                                                   is a producible well.   lessee's failure to
                                                                   This is contrary to     comply with
                                                                   existing practice in    applicable law,
                                                                   which there is a        regulation, order, or
                                                                   distinction and         provision of a lease
                                                                   obligation to pay       or permit.
                                                                   based on ``who''
                                                                   directed or requested
                                                                   the suspension. It is
                                                                   entirely possible to
                                                                   have an MMS-directed
                                                                   suspension on the
                                                                   lease with a
                                                                   producible well in
                                                                   its history but no
                                                                   production. In such
                                                                   case, lessees should
                                                                   be relieved of the
                                                                   responsibility to pay.
218.154(a)(2)...........................  (2) Directs the         Safety and              See comment to Sec.
                                           suspension of           environmental           218.154(a)(1).
                                           operations on a lease   requirements have
                                           on which there is no    been excluded on a
                                           producible well under   lease with no
                                           the provisions of 30    producible well. It
                                           CFR 250.19(j)(1),       is entirely possible
                                           (j)(2), (j)(3),         that such a
                                           (j)(4) or (k)(2).       requirement could be
                                                                   imposed by an agency
                                                                   with authority over
                                                                   such area near the
                                                                   end of a lease term.
                                                                   In such an instance a
                                                                   drilling rig might
                                                                   need to be re-
                                                                   outfitted. This could
                                                                   require a
                                                                   mobilization to a
                                                                   shore location (such
                                                                   as a shipyard) to
                                                                   add, for example,
                                                                   zero-discharge
                                                                   required equipment.
                                                                   Lessees should not be
                                                                   required to pay under
                                                                   these circumstances.
                                                                   This would be a
                                                                   departure from
                                                                   current practice
                                                                   since the suspension
                                                                   would be granted at
                                                                   the direction of the
                                                                   agency.
250.2...................................  Best available and      The Regional Director   We changed the
                                           safest technology       and the Regional        authority from
                                           (BAST) means the best   Staff customarily       Secretary to the MMS
                                           available and safest    analyze what            Director (Sec.
                                           technologies which      equipment is best       250.105 and Sec.
                                           the [Secretary]         suited to protect       250.107(d)).
                                           Regional Director or    safety, health, and
                                           his designee            the environment. The
                                           determines to be        Regional Offices
                                           economically feasible   consult with
                                           wherever failure of     Headquarters Staff
                                           equipment would have    when necessary in
                                           a significant effect    cases that require
                                           on safety, health, or   additional input.
                                           the environment.
                                          Competitive reservoir   Clarification.........  We made the suggested
                                           means a reservoir in                            changes (Sec.
                                           which there are one                             250.105)
                                           or more producible or
                                           producing 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.

[[Page 72761]]

 
                                          Conservation means      The term conservation   We deleted the
                                           preservation,           as proposed is too      definition since it
                                           [economy], and          vague. Generally        is not defined in the
                                           avoidance of waste of   speaking, it is the     OCSLA or our
                                           economically viable     preservation and        regulations. The
                                           hydrocarbons. [It is    prevention of waste     OCSLA gives us the
                                           especially important    of economically         authority to issue
                                           in the petroleum        viable hydrocarbons,    regulations and rules
                                           industry, since oil     which is intended.      in the interest of
                                           and gas are                                     conservation. The DOI
                                           irreplaceable.].                                needs the broad
                                                                                           authority to allow
                                                                                           for flexibility in
                                                                                           regulating the
                                                                                           Federal offshore
                                                                                           program (Sec.
                                                                                           250.105).
                                          Development means       Clarification.........  We made the suggested
                                           those activities                                changes (Sec.
                                           which take place                                250.105).
                                           following discovery
                                           of minerals in paying
                                           quantities, including
                                           but not limited to
                                           geophysical activity,
                                           drilling, platform
                                           construction, and
                                           operation of all
                                           directly related
                                           onshore support
                                           facilities, and which
                                           are for the purpose
                                           of ultimately
                                           producing the
                                           minerals discovered.
                                          Easement means an       The proposed            We made the suggested
                                           authorization to use    definition is a new     change with respect
                                           a portion of an OCS     one. OCS tract is now   to the term
                                           lease block which is    an archaic term. The    ``tract.'' We
                                           non-possessory and      use of the phrase       disagree with the
                                           non-exclusive. [for a   ``non-possessory and    suggested wording
                                           non-possessory, non-    non-exclusive           changes and have not
                                           exclusive interest in   interest'' is           made them (Sec.
                                           a portion of an OCS     misleading since the    250.105).
                                           tract, whether leased   basic nature of
                                           or unleased, which      easement is right-of-
                                           specifies the rights    use as opposed to
                                           of the holder to use    interest which
                                           the area embraced in    appears to focus more
                                           the easement in a       on a possessory right.
                                           manner consistent
                                           with] The easement
                                           may be granted on
                                           leased or unleased
                                           blocks and the rights
                                           of the holder to use
                                           shall be specified
                                           and limited to the
                                           terms and conditions
                                           of the granting
                                           authority.
                                          Facility, as used in    The word onshore must   We deleted the
                                           Sec. 250.11             be a typo, otherwise,   reference to
                                           concerning              this new definition     ``onshore'' and
                                           inspections, means      would improperly        inserted (per
                                           any installation        expand MMS's            comments from IADC) a
                                           permanently or          jurisdiction in the     reference to MODUs.
                                           temporarily attached    area of inspection to   We also revised the
                                           to the seabed on the    onshore facilities.     definition of
                                           OCS (that includes      This would allow the    facility as used in
                                           manmade islands, and    MMS to inspect gas      Sec.  250.303 to
                                           bottom-sitting          plants that process     clarify that ``during
                                           structures)[and any     OCS gas, coastal        production, multiple
                                           onshore installation]   facilities that         installations or
                                           used for oil, gas, or   separate oil/gas/       devices are a single
                                           sulphur drilling,       water, and other        facility if the
                                           production, or          similar facilities      installations or
                                           related activities.     for which the MMS       devices are at a
                                           It also includes        does not have           single site'' (Sec.
                                           facilities for          jurisdiction. Also      250.105).
                                           product measurement     the MMS does not have
                                           and royalty             jurisdiction over the
                                           verification (e.g.,     State Agencies that
                                           LACT units, gas         already perform these
                                           meters) of OCS          functions. The
                                           production located on   recommended change
                                           installations not on    clarifies that
                                           the OCS. Any group of   facilities are on the
                                           OCS installations       OCS.
                                           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.
                                          Lessee means a person   Clarification.........  We made the suggested
                                           who has entered into                            changes and expanded
                                           a lease, [or who is                             the definition (Sec.
                                           the MMS-approved                                250.105).
                                           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
                                           and the MMS-approved
                                           assignee of that
                                           lease.

[[Page 72762]]

 
                                          [Of] Archaeological     The words ``capable     We did not make the
                                           interest means that     of'' are unclear when   suggested changes
                                           it directly leads to    used in the context     except to delete the
                                           [capable of]            of this definition      word ``of'' to be
                                           providing scientific    and can be              consistent with 30
                                           or humanistic           misinterpreted. The     CFR part 251. We
                                           understanding of past   proposed words          defined the terms
                                           human behavior.         provide clarification.  ``Archaeological
                                                                                           resource, Of
                                                                                           archaeological
                                                                                           interest, Material
                                                                                           remains, and
                                                                                           Significant
                                                                                           archaeological
                                                                                           resource'' in a final
                                                                                           rule published on 10/
                                                                                           21/94 (59 FR 53091).
                                                                                           The National Trust
                                                                                           for Historic
                                                                                           Preservation and the
                                                                                           Office of the
                                                                                           Department Consulting
                                                                                           Archaeologist both
                                                                                           commented that we
                                                                                           define the term
                                                                                           ``archaeological
                                                                                           resource'' to be
                                                                                           consistent with the
                                                                                           definition provided
                                                                                           in the implementing
                                                                                           regulations for the
                                                                                           Archaeological
                                                                                           Resources Protection
                                                                                           Act of 1979 (16
                                                                                           U.S.C. 470, aa-mm, 43
                                                                                           CFR 7.3) (Sec.
                                                                                           250.105).
                                          Operating rights means  By including borehole   We made the suggested
                                           any interest held in    in this definition,     changes (Sec.
                                           a lease with right to   the proposed language   250.105).
                                           explore for, develop,   is too specific.
                                           and produce leased      There are more cases
                                           substances. Any         when operating rights
                                           assignment or           are assigned or
                                           transfer of operating   transferred to a
                                           rights may specify      stratigraphic depth
                                           the depth [of the       or other point,
                                           borehole down] to       without a borehole
                                           which the operating     descriptor.
                                           rights extend.
                                          Producing in paying     Two separate sets of    We deleted this
                                           quantities means        tests have been         definition (Sec.
                                           [that] a well is        specified which will    250.105).
                                           producing in paying     lead to ambiguity.
                                           quantities when it      The proposed
                                           meets the criteria      definition suggests
                                           set out in Section      an economic test.
                                           250.9 [able to          Section 250.9
                                           produce oil, gas, or    suggests specific
                                           both in a cost-         tests which in most
                                           effective manner.       cases lead to
                                           This means that the     economic production.
                                           production quantities   However, there is no
                                           must yield a greater    guarantee that the
                                           return than the total   two definitions will
                                           costs, including well-  always be equal and
                                           completion costs, of    overlap. This may
                                           producing the           lead over time to
                                           hydrocarbons at the     great confusion in
                                           wellhead].              administering minimum
                                                                   royalty payment and
                                                                   in determining lease
                                                                   status for possible
                                                                   suspension.
                                          Production Areas are    Need to add             We made the suggested
                                           those areas where       clarification.          changes (Sec.
                                           flammable petroleum     Definition is from      250.105).
                                           gas and volatile        API RP 500.
                                           liquids are produced,
                                           processed (e.g.
                                           compressed), stored,
                                           transferred (e.g.
                                           pumped), or otherwise
                                           handled prior to
                                           entering the
                                           transportation
                                           process.
                                          Sensitive reservoir     The word ``initially''  We made the suggested
                                           means a reservoir in    in this definition is   changes (Sec.
                                           which high reservoir    ambiguous. The          250.105).
                                           production rates will   classification of a
                                           decrease ultimate       sensitive reservoir
                                           recovery. For the       can be defined in the
                                           submittal of the        first MER and if
                                           first MER               necessary, the MMS
                                           [Initially], all oil    can determine after
                                           reservoirs with an      that point if the
                                           associated gas cap      treatment as a
                                           are classified as       sensitive reservoir
                                           sensitive.              should continue.
                                          Suspension means a      Clarification.........  We made the suggested
                                           [granted or directed                            changes with minor
                                           deferral of the                                 modifications (Sec.
                                           requirement] deferral                           250.105).
                                           granted at the
                                           request of the lessee
                                           or directed by the
                                           MMS of the
                                           requirement to
                                           produce (Suspension
                                           of Production (SOP))
                                           or to conduct
                                           leaseholding
                                           operations
                                           (Suspension of
                                           Operations (SOO)).
                                          Well bay is the         Clarification.          Since a perimeter is
                                           perimeter of the        Definition was from     just an outer border,
                                           outer most wellheads.   an MMS workshop in      we modified the
                                                                   conjunction with the    suggested definition
                                                                   implementation of       to read: ``Wellbay is
                                                                   regulations in 1988.    the area on a
                                                                                           platform within the
                                                                                           perimeter of the
                                                                                           outermost wellheads'
                                                                                           (Sec.  250.105)

[[Page 72763]]

 
250.3...................................  (b) Prevent loss of     Suggested changes       We inserted ``injury
                                           life.                   include the word        or'' before ``loss of
                                          (c [b]) Prevent          unreasonable when       life.'' We did not
                                           unreasonable damage     considering damage to   add the word
                                           to or waste of any      natural resources,      ``unreasonable' (Sec.
                                           natural resource,       property, or             250.106).
                                           property, or the        environment
                                           environment; and.       recognizing that oil
                                          (d [e]) Cooperate and    and gas developments
                                           consult with affected   can not avoid some
                                           States, local           minimal amount of
                                           governments, other      damages.
                                           interested parties,    Prevent losses of life
                                           and relevant Federal    does not have the
                                           agencies.               unreasonableness test.
250.5...................................  What standards must     There is no technical   We agree and deleted
                                           crane operations        or safety               the paragraph on the
                                           meet?                   justification for       Pacific Region
                                          To ensure the safety     requiring more          requirements. We also
                                           of the facility         stringent               completed the section
                                           operations, you must    requirements in the     so that it is a
                                           meet the requirements   Pacific Region.         performance-based
                                           of paragraph (a) of     Varying regulatory      regulation (Sec.
                                           this section. [If       requirements for        250.108).
                                           your facility is        operating areas
                                           located in the          creates confusion
                                           Pacific OCS Region,     with no measurable
                                           you must also meet      value.
                                           the requirements of
                                           paragraph (b) of this
                                           section.].
                                          [(b)This paragraph
                                           applies if your
                                           facility is located
                                           in the Pacific OCS
                                           Region. You may use .
                                           * * * ].
250.6(a)................................  You must submit a       It should not be        We reworded the
                                           Welding, Burning, and   necessary to keep a     paragraph. It is
                                           Hot Tapping Safe        copy of the plan and    important for the
                                           Practices and           approval letter at      welder on each
                                           Procedures Plan to      all facilities and      facility to be
                                           the District            drilling rigs for       familiar with the
                                           Supervisor before you   their life. A copy in   plan. We changed the
                                           begin drilling or       the field, similar to   wording to be clear
                                           production activities   the requirement for     that the plan is
                                           on a lease. You may     H2S Contingency         needed at the site
                                           not begin welding       Plans, should be        where welding occurs.
                                           activities until the    sufficient.
                                           District Supervisor
                                           has approved your
                                           plan. A copy of the
                                           plan and its approval
                                           letter must be kept
                                           in the field
                                           [available at the
                                           facility for the life
                                           of the facility
                                           (platform or drilling
                                           rig).].
    (b)(4)..............................  [Drawings showing any   Drawings of safe-       We have reworded the
                                           d] Designated safe-     welding areas of all    paragraph and have
                                           welding areas;          facilities covered by   addressed the
                                           drawings showing        the plan should not     commenter's concern.
                                           designated safe-        be required in the
                                           welding areas shall     plan. A drawing
                                           be maintained on the    showing the
                                           facility; and           designated safe-
                                                                   welding area
                                                                   developed by
                                                                   following the
                                                                   procedures identified
                                                                   in the plan should be
                                                                   maintained on the
                                                                   facility and should
                                                                   not be required with
                                                                   the plan. This is
                                                                   consistent with
                                                                   existing regulations.
    (e).................................  Before you weld, you    Clarification.........  We made the suggested
                                           must move any                                   changes (Sec.
                                           equipment containing                            250.113(a)).
                                           hydrocarbons or other
                                           flammable substances
                                           at least 35 feet
                                           horizontally from the
                                           welding area [work
                                           site. * * *].
    (g)(1)..............................  You may not begin       Including welding       We made the suggested
                                           welding until the       supervisor is           changes (Sec.
                                           welding supervisor or   consistent with         250.113(c)).
                                           designated person-in-   250.6(c).
                                           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.
    (g)(4)..............................  You may not weld [in,   Provides clarification  We made the suggested
                                           or] within 10 feet      of shut-in              changes (Sec.
                                           of[,] a well-bay [or    requirements.           250.113(c)).
                                           production area]
                                           unless you have shut
                                           in all producing
                                           wells in that [area]
                                           wellbay. You may not
                                           weld within 10 feet
                                           of a production area,
                                           unless you have shut-
                                           in that production
                                           area.

[[Page 72764]]

 
    (g)(5)..............................  You may not weld while  Clarification.........  We made the suggested
                                           you drill, complete,                            changes and added the
                                           workover, or conduct                            words ``either by
                                           wireline operations                             mechanical means or''
                                           unless the fluids in                            (Sec.  250.113(c)(6))
                                           the well are                                    .
                                           noncombustible and
                                           you have precluded
                                           the entry of
                                           formation
                                           hydrocarbons into the
                                           wellbore by a
                                           positive overbalance
                                           toward the formation.
                                           This does not apply
                                           to welding in an
                                           approved safe-welding
                                           area.
250.7...................................  What requirements       Recognizes the latest   We are proposing a
                                           apply to electrical     edition of API RP500    rule to incorporate
                                           equipment? The          APIRP 505 as an         by reference API RP
                                           requirements in this    alternative.            505, first edition.
                                           section apply to all    Distribution systems    We made most of the
                                           electrical equipment    are just one of many    suggested change to
                                           on all platforms,       parts of the            (b) and (d) (Sec.
                                           artificial islands,     electrical system and   250.114).
                                           fixed structures, and   do not need to be
                                           their facilities.       separately identified.
                                          (a) You must classify   ......................
                                           all areas in
                                           accordance with
                                           either API RP 500,
                                           Recommended Practice
                                           for Classification of
                                           Locations for
                                           Electrical
                                           Installations at
                                           Petroleum Facilities
                                           Classified as Class
                                           I, Division 1 and
                                           Division 2, or API RP
                                           505, Recommended
                                           Practice for
                                           Classification of
                                           Locations for
                                           Electrical
                                           Installations at
                                           Petroleum Facilities
                                           Classified as Class
                                           I, Zone 0, Zone 1 and
                                           Zone 2.
                                          (b)You must use         ......................
                                           trained and
                                           experienced personnel
                                           to maintain your
                                           electrical systems.
                                           They must have
                                           expertise in area
                                           classification,
                                           [distribution
                                           systems,] and the
                                           performance
                                           characteristics and
                                           operation of
                                           electrical equipment,
                                           as well as [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) On each engine
                                           that has electric
                                           ignition system,
                                           [Y]you must use an
                                           [low tension]
                                           ignition system [on
                                           each engine that has
                                           electric ignition.
                                           You must.] that is
                                           designed and
                                           maintained [the
                                           ignition system] to
                                           minimize the release
                                           of electrical energy.
250.8...................................  (b) Whenever            Adds flexibility        We made the suggested
                                           practicable, y[Y]ou     consistent with         changes and further
                                           must use BAST on        existing regulations.   clarified the
                                           existing operations                             language (Sec.
                                           to avoid failure of                             250.107(c)).
                                           equipment that would
                                           have a significant
                                           effect on safety,
                                           health, or the
                                           environment if the
                                           Director determines
                                           that:

[[Page 72765]]

 
250.9...................................  To determine whether a  This is consistent      We made the suggested
                                           well is capable of      with the present        change of alternative
                                           producing in paying     regulation found in     determination of well
                                           quantities, submit a    Section 250.11(b).      producibility to
                                           written request to      The intent is to        apply to the GOM
                                           the District            provide an              region. We rewrote
                                           Supervisor. You must    alternative             this section for
                                           then meet the           mechanism, not to       clarity with no new
                                           criteria in             require additional      requirements. Another
                                           paragraphs (a) and      requirements. If a      change is that the
                                           (b) of this section.    well test is            written request for
                                           Once a lease has a      unavailable, the        determining well
                                           well that MMS           operator can submit     producibility must be
                                           determines is capable   data; it is not         submitted to the
                                           of producing in         necessary to have       Regional Supervisor.
                                           paying quantities, no   both a well test and    The District
                                           further determination   data. The present       Supervisor will
                                           of well producibility   regulation states       continue to carry the
                                           will be made on the     ``In the Gulf of        function of
                                           lease. A                Mexico OCS Region,      witnessing tests
                                           determination of well   the following shall     (Sec.  250.116).
                                           producibility invokes   also be considered
                                           minimum royalty         collectively as
                                           status on the lease     reliable evidence
                                           as provided in 30 CFR   that a well is
                                           202.53. If your well    capable of producing
                                           is located in the       oil and gas in paying
                                           Gulf of Mexico (GOM),   quantities.''
                                           you [must also] may
                                           alternatively meet
                                           the requirements of
                                           paragraph (c) of this
                                           section.
250.9(c)(1).............................  [The producible         The reason for the      We did not delete the
                                           section must not        deletion is that all    sentence that ensures
                                           include any interval    reservoir rocks are     that several thin
                                           which appears to be     to some extent water    sands with a water
                                           water saturated.]       saturated. This would   contact are not
                                                                   disqualify all          grouped into a
                                                                   reservoir rocks.        producible interval
                                                                                           (Sec.  250.116(c)).
250.9(c)(1)(iii)........................  A minimum true          This would clarify      We made the correction
                                           resistivity ratio of    this definition which   (Sec.  250.116(d)(1))
                                           the producible          has been incorrect in   .
                                           section to the          the existing
                                           nearest clean or        regulations.
                                           water-bearing sand of
                                           at least 5:1.
250.9(c)(4).............................  A wireline formation    This language which     We did not make the
                                           test and/or mud-        was left out in the     suggested changes. We
                                           logging analysis        rewrite is very         do not agree with the
                                           which indicates that    critical and should     suggestion. We
                                           the section is          be included. It is      deleted the language
                                           capable of producing    not unusual for         in the proposed rule
                                           oil or gas or           wildcat/exploratory     because the wording
                                           evidence that an        wells to have hole-     was very vague. We
                                           attempt was made to     problems when pay is    use several ways to
                                           obtain such tests.      exposed.                qualify a well using
                                                                                           standard practices.
                                                                                           Keeping this wording
                                                                                           would dilute the
                                                                                           qualification process
                                                                                           and make it a rubber
                                                                                           stamp exercise (Sec.
                                                                                           250.116 (b)(3)).
250.11..................................  (1) MMS conducts a      Operating properly      We made the suggested
                                           scheduled onsite        needs further           change. Also, in Sec.
                                           inspection of each      definition to            250.130(b), we
                                           offshore facility       preclude differing      removed the words
                                           that is subject to      interpretations. The    ``at least once a
                                           environmental or        current language in     year'' as this limits
                                           safety regulations      Subpart A clarifies     the scope of
                                           under the Act at        that operating          scheduling and added
                                           least once a year.      properly means in       the words ``according
                                           The inspection          accordance with the     to the
                                           determines whether      requirements of this    requirements.'' In
                                           environmental           part. This current      Sec.  250.132(a) we
                                           protection and safety   language should be      removed the words
                                           equipment designed to   maintained.             ``at all reasonable
                                           prevent or ameliorate                           times'' as the phrase
                                           blowouts, fires,                                is subjective and not
                                           spillages, or other                             necessary (Sec.
                                           major accidents has                             250.130).
                                           been installed and is
                                           operating properly in
                                           accordance with the
                                           requirements of this
                                           part.
250.12..................................  Delete this section...  The MMS proposed        We disagree with the
                                                                   language is             opinion that the
                                                                   inconsistent with the   language is
                                                                   OCS Lands Act and       inconsistent with the
                                                                   should be deleted. If   OCSLA. We explained
                                                                   MMS plans to include    the disqualification
                                                                   this section in the     process in the
                                                                   final rulemaking,       preamble of this
                                                                   then it should          rule. In response to
                                                                   include the criteria    the comment, we added
                                                                   for determining         the sentence ``MMS
                                                                   disqualification as     will provide adequate
                                                                   well as the specific    notice and
                                                                   procedures which        opportunity for a
                                                                   includes prior notice   review by MMS
                                                                   and opportunity for a   officials before
                                                                   hearing.                imposing a
                                                                                           disqualification
                                                                                           procedure'' (Secs.
                                                                                           250.135 and 250.136).
250.14(c)...............................  Approval for            Clarification.........  We made the suggested
                                           departures. If                                  changes (Sec.
                                           certain aspects of                              250.142).
                                           your operations
                                           deviate from
                                           [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.

[[Page 72766]]

 
250.15(a)...............................  You must provide the    The existing            We did not make the
                                           Regional Supervisor     regulation in 250.8     suggested change.
                                           an executed             allows the designated   With the move towards
                                           Designation of          operator to begin       performance based
                                           Operator form unless    operations on the       regulations, we are
                                           you are the only        lease after the         responsible for
                                           lessee and are the      Regional Supervisor     ensuring that
                                           only person             ``receives'' the        designated operators
                                           conducting lease        designation of          are acceptable (Sec.
                                           operations. When        operator. The revised   250.143).
                                           there is more than      version contained in
                                           one lessee then the     250.15(a) does not
                                           Regional Supervisor     allow operations to
                                           must receive [and       begin until after the
                                           approve] the            Regional Supervisor
                                           Designation of          has ``received and
                                           Operator form from      approved'' the
                                           each lessee before      designation. Thus,
                                           the designated          the new version
                                           operator may commence   appears to have
                                           operations on the       imposed an additional
                                           leasehold.              requirement on
                                                                   lessees. In addition,
                                                                   the MMS may typically
                                                                   be delayed in
                                                                   processing these
                                                                   approvals and would
                                                                   delay changes which
                                                                   should take place as
                                                                   soon as the operators
                                                                   are ready.
250.15(a)(2)............................  When you are no longer  It is recommended that  We made the suggested
                                           the designated          this requirement not    change (Sec.
                                           operator, you must      be included in this     250.146).
                                           immediately provide     section and be placed
                                           in writing the          in the Royalty
                                           termination of your     Management Program
                                           Designation of          part of the MMS
                                           Operator to the         regulations, since
                                           Regional Supervisor.    the royalty payment
                                           If you are also a       staff of operators do
                                           designated royalty      not look at this 30
                                           payor and will not      CFR 250 which is an
                                           continue to be in the   operational
                                           future, you must also   regulation.
                                           notify the Royalty
                                           Management Program of
                                           the termination of
                                           your Designation of
                                           Operator.
250.15(d)...............................  Whenever the            As written, this        We did not make the
                                           regulations in 30 CFR   section overstates      suggested changes as
                                           parts 250 to 282        the obligations of      paragraphs (a), (b),
                                           require the lessee to   the co-lessee.          and (c) are needed to
                                           meet a requirement or   Subpart (b) of the      clarify the various
                                           perform an action,      same section already    conditions when
                                           all persons who         makes the co-lessee     responsibility needs
                                           conduct lease           responsible for         to be spelled out
                                           activities on behalf    fulfilling the          (Sec.  250.146).
                                           of the lessee or        obligation of the
                                           operator must also      lessee in case of
                                           comply with the         failure by the
                                           regulations. [the       operator. The
                                           lessee, operator (if    recommended language
                                           one has been            adds clarification
                                           designated), and the    that is consistent
                                           person actually         with the intent of
                                           performing the          the preamble.
                                           activity to which the
                                           requirement applies
                                           are jointly and
                                           severally responsible
                                           for compliance with
                                           the regulation.].
250.16..................................  Naming and Identifying  The word ``platform''   We made the suggested
                                           [Platforms]             implies a multiple      changes. For detailed
                                           Facilities and Wells    legged fixed            descriptions on
                                           (does not include       structure. With the     naming and numbering
                                           MODUS).                 use of caissons,        wells for reporting,
                                            How do I name          spars, TLP's and        operators should
                                           [platforms]             FPS's a more            refer to the Notice
                                           facilities and wells?   appropriate term        to Lessees (NTL) No.
                                                                   would be                97-2N (issued on 8/1/
                                                                   ``facilities.'' An      97) ``Well Naming and
                                                                   alternative to this     Numbering Standards''
                                                                   recommended change      and to any later
                                                                   would be to include     revisions of this
                                                                   an applicable           NTL. We will issue
                                                                   definition of           another NTL to
                                                                   platform. This          provide more
                                                                   section should not      instructions for the
                                                                   apply to MODUs that     well naming and
                                                                   may be considered a     numbering to be used
                                                                   facility when           for reports and
                                                                   attached to the sea     digital data (Secs.
                                                                   floor.                  250.150 through
                                                                                           250.153).
250.16(a)...............................  In the Gulf of Mexico   The word ``platform''   We made the suggested
                                           Region: (1) Assign      was changed to          changes (Sec.
                                           each [platform]         ``facility'' for        250.150)
                                           facility a letter       consistency (see
                                           designation except      above rational [sic])
                                           for those types of      for the recommended
                                           facilities identified   change). Furthermore,
                                           in paragraph            the statement
                                           (a)(3)(i) of this       ``except for those
                                           section. For example,   type facilities
                                           A, B, CA, or CB.        identified in
                                                                   paragraph (a)(3)(i)
                                                                   of this section'' was
                                                                   added in the
                                                                   recommended changes
                                                                   because Sec.
                                                                   250.16(a)(3)(I)[i]
                                                                   allows a numeric
                                                                   representation of
                                                                   single well caissons
                                                                   without production
                                                                   facilities.

[[Page 72767]]

 
250.16(a)(i)............................  After a [platform]      The word ``platform''   We made the suggested
                                           facility is             was changed to          changes (Sec.
                                           installed, rename       ``facility'' for        250.150(a)(1)).
                                           each pre-drilled well   consistency (see
                                           that was assigned       above rational [sic])
                                           only a number and was   for the recommended
                                           temporarily suspended   change). The word
                                           at the mudline or at    ``template'' would
                                           the surface. [drilled   only account for
                                           through a template      those wells drilled
                                           and was assigned a      through a drilling
                                           number.] Use a letter   template, when in
                                           and number              fact, most pre-
                                           designation. The        drilled wells are
                                           letter used should be   suspended at mudline
                                           the same as that of     as casing stubs, or
                                           the production          suspended as a
                                           facility and number     caisson at the
                                           used should             surface, while
                                           correspond to the       awaiting platform
                                           order which the well    installation. The
                                           was completed, not      recommend change
                                           necessarily the         would account for all
                                           number assigned when    pre-drilled wells.
                                           it was drilled. For     The wells drilled,
                                           example, the first      for completion as
                                           well completed for      producers, are not
                                           production on           necessarily the first
                                           Facility A would be     wells drilled on a
                                           renamed Well A-1, the   lease and would have
                                           second would be Well    an assigned number
                                           A-2, and so on [For     higher than one (1).
                                           example, rename Well    Therefore, to account
                                           No. 1: A-1, B-1, or C-  for this, we
                                           1]; and.                recommended that the
                                                                   well be assigned the
                                                                   sequential number
                                                                   given in the order it
                                                                   was completed for
                                                                   production, after the
                                                                   facility is
                                                                   installed, starting
                                                                   with the number one
                                                                   (1).
250.16(a)(ii)...........................  When you have more      See comments for        We made the suggested
                                           than one [platform in   250.16(a)(iii).         changes (Sec.
                                           a field (excluding                              250.150(a)(2)).
                                           complexes), include
                                           the designations for
                                           the field and use a
                                           different letter
                                           designation for each
                                           platform.] facility
                                           on a block, each
                                           facility installed,
                                           and not bridge-
                                           connected to another
                                           facility, should be
                                           named using a
                                           different letter in
                                           sequential order. For
                                           example, [EC 221-A,
                                           EC 222-B, EC 223-C]
                                           EC222A, EC222B,
                                           EC222C.
250.16(a)(iii)..........................  ADD: (iii) When you     The proposed draft      We made the suggested
                                           have more than one      only addresses more     changes (Sec.
                                           facility on multiple    than one facility on    250.150(a)(3)).
                                           blocks in a local       multiple blocks or in
                                           area that are being     a field. However, the
                                           co-developed, each      recommended change
                                           facility installed,     accounts for multiple
                                           and not connected       facilities on a
                                           with a walkway to       single block. We
                                           another facility,       recommend that a
                                           should be named using   separate paragraph be
                                           a different letter in   added to address this
                                           sequential order with   scenario. The word
                                           the block number        ``field'' and the
                                           corresponding to the    word ``complexes''
                                           block on which the      have very broad
                                           platform is located.    definitions.
                                           For example, EC 221     Therefore, we
                                           A, EC 222 B and EC      recommend the
                                           223 C.                  language change or an
                                                                   accurate definition
                                                                   of these terms as
                                                                   they apply to this
                                                                   section be added to
                                                                   this subpart.
250.16(a)(3)(i).........................  For single well         Clarification.........  We made the suggested
                                           caissons that are not                           change (Sec.
                                           attached to a                                   250.150(c)(1)).
                                           [platform] facility
                                           with a walkway, use
                                           the well designation.
                                           For example, Well No.
                                           1;
250.16(a)(3)(ii)........................  For single well         Clarification.........  We made the suggested
                                           caissons that are                               change (Sec.
                                           attached to a                                   250.150(c)(2)).
                                           [platform] facility
                                           with a walkway, use
                                           the same designation
                                           as the platform. For
                                           example, rename Well
                                           No. 10 as A-10; and
250.16(a)(3)(iii).......................  For single well         The intention of this   We made the suggested
                                           caissons with           paragraph is to use     changes (Sec.
                                           production equipment    the letter              250.150(c)(3)).
                                           use a letter            designation for those
                                           designation for the     caissons with
                                           facility name and a     substantial
                                           letter plus number      processing equipment.
                                           designation for the     Furthermore, this
                                           well. For example,      requirement should
                                           the Well No. 1          not only outline the
                                           caisson would be        requirement for well
                                           designated as           naming but also the
                                           Facility A, and the     facility name. As
                                           well would be Well      proposed, the caisson
                                           [as] A-1.               would be named Well A-
                                                                   1, not Facility A.

[[Page 72768]]

 
250.16(d)...............................  ADDITION: All           Due to the enormous     We made the suggested
                                           facilities installed    administrative and      changes and added
                                           and wells drilled       economic burden that    ``unless required by
                                           prior to the            would be placed on      the Regional
                                           effective date of       the industry and the    Director'' to the end
                                           this revision do not    MMS, existing           of the sentence. This
                                           need to be renamed if   structures should be    gives the Regional
                                           they do not meet the    allowed to retain       Director the
                                           naming criteria         their current names,    discretion to require
                                           outlined in this        if they do meet the     renaming in case of a
                                           section.                requirements outlined   well numbering
                                                                   herein.                 problem (Sec.
                                                                                           250.153).
250.17(a)...............................  You must identify all   Clarification.........  We made the suggested
                                           facilities                                      change (Sec.
                                           [platforms,                                     250.154).
                                           structures],
                                           artificial islands,
                                           and mobile drilling
                                           units with a sign.
250.17(a)(2)............................  (2) When helicopter     Weight capacity is not  We responded to this
                                           landing facilities      necessary for           suggestion by adding
                                           are present, you must   platform                the words ``unless
                                           display an additional   identification and      noted on the top of
                                           identification sign     would not be visible    the helipad'' after
                                           that is visible from    on the signs. Weight    the words ``and must
                                           the air. The sign       capacity is             also display the
                                           must use at least 12-   customarily noted on    weight capacity of
                                           inch letters and        the top of the          the helipad (Sec.
                                           figures[, and must      helipad.                250.154(a)(2))
                                           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.
250.17(a)(3)(ii)........................  In the GOM OCS Region,  This requirement        We made the suggested
                                           list the area           applies to both         change (Sec.
                                           designation or          mobile drilling units   250.154(a)(3)(ii)).
                                           abbreviation and the    and all facilities.
                                           block number of the
                                           [platform] facility
                                           location as depicted
                                           on OCS Official
                                           Protraction Diagrams
                                           or leasing maps;
250.17(b)(2)............................  For wells with          We recommend the        We made the suggested
                                           multiple completions,   inclusion of downhole   changes (Sec.
                                           downhole splitter       splitter wells and      250.154(c)(3)(ii)).
                                           wells, and              multilateral wells
                                           multilateral wells,     which are unique
                                           identify each           completions
                                           completion in           identified by the MMS
                                           addition to the well    in NTL 97-2N.
                                           name and lease number   Furthermore, we
                                           individually on the     believe the lease and
                                           well flowline at the    well name need to be
                                           wellhead; and           identified in
                                                                   addition to the
                                                                   completion code on
                                                                   the flowline of each
                                                                   completion.
250.17(b)(3)............................  For subsea [wellheads]  The recommended change  We made the suggested
                                           wells which flow        lends clarity to        changes (Sec.
                                           individually into       situations where        250.154(b)(3)).
                                           separate pipelines,     numerous subsea wells
                                           affix the required      flow into a single
                                           sign on the pipeline    pipeline.
                                           or surface flowline     Furthermore, we
                                           that [connects to the   believe it is not
                                           pipeline] is            practical to
                                           dedicated to that       separately identify
                                           subsea well at a        each subsea well
                                           convenient location     flowing into a single
                                           on the receiving        pipeline.
                                           platform. For
                                           multiple subsea wells
                                           which flow into a
                                           common pipeline or
                                           pipelines, no sign is
                                           required.
250.17(c)...............................  Each identifying sign   Redundant.............  We deleted this
                                           [must be visible to                             section.
                                           approaching traffic
                                           and] maintained in a
                                           legible condition.
250.18(a)(1)(ii)........................  Used for conducting     Limiting the right-of-  We made the suggested
                                           exploration,            way and easement to     change. It is noted
                                           development, and        an owned lease is too   that the comment uses
                                           production activities   limiting. In deep       the term ``right-of-
                                           or other operations     water subsea            way'' (as in pipeline
                                           [on your lease].        projects, development   right-of-way) whereas
                                                                   may dictate that        the section referred
                                                                   several leases flow     to (Sec.  250.18)
                                                                   to a single platform.   related to granting a
                                                                   Under these             ``right-of-use and
                                                                   circumstances, the      easement.''
                                                                   right-of-way may
                                                                   continue and be
                                                                   needed even after the
                                                                   platform owner has
                                                                   ceased production.
250.19(i)...............................  MMS must receive the    The way that this       We did not make the
                                           request before the      subsection was          suggested change
                                           lease term ends         reworded, this          since a suspension
                                           unless the lease is     existing provision      would not be needed
                                           held by operations.     was omitted. It is      if the lease were
                                                                   possible to have a      held by operations.
                                                                   lease that is about     We further clarified
                                                                   to expire held by       the sections
                                                                   operations (such as     (``Suspensions''
                                                                   drilling) which         sections).
                                                                   automatically extends
                                                                   the term of the lease
                                                                   until that period
                                                                   ends.

[[Page 72769]]

 
250.19(j)(1)............................  (6) When needed to      In recent times,        We did not make the
                                           comply with a           Presidential decrees    suggested change
                                           Presidential decree     have required           since a Presidential
                                           or directive.           cessation of activity   decree or directive
                                                                   on the West Coast,      would be implemented
                                                                   portions of Offshore    via a policy
                                                                   Florida, and the East   statement from the
                                                                   Coast. When the         Director
                                                                   Executive Department    (''Suspensions''
                                                                   requires this, it       sections).
                                                                   should be included as
                                                                   a cause for an MMS-
                                                                   directed suspension
                                                                   which extends the
                                                                   lease term.
250.19(j)(2)............................  When activities pose a  This requirement to     We did not make this
                                           threat of serious,      perform an on-site      change. This is not a
                                           irreparable, or         specific study should   new requirement, and
                                           immediate harm. This    be founded on           we are retaining this
                                           would include damage    something other than    authority so that we
                                           to life (including      the discretionary       can require a study
                                           fish and other          authority of the MMS    when it is necessary
                                           aquatic life),          to grant a              (``Suspensions''
                                           property, any mineral   suspension. The cost    sections).
                                           deposit, or the         of on-site surveys
                                           marine, coastal, or     can be quite high,
                                           human environment.      often benefit the
                                           [MMS may require you    entire area as
                                           to do a site-specific   opposed to an
                                           study (see Sec.         individual lease, and
                                           250.19(o)(1));]         MMS has demonstrated
                                                                   no statutory
                                                                   authority to impose
                                                                   such excess costs as
                                                                   a condition of
                                                                   exercising leaseholds
                                                                   rights granted under
                                                                   the lease.
250.19(l)...............................  The Regional            This change is          We did not add the
                                           Supervisor may grant    necessary in order to   words ``and/or an
                                           or direct an SOP and/   correctly mirror        SOO'' because SOOs do
                                           or an SOO when: the     current 30 CFR 250.10   not apply to this set
                                           suspension is in the    which provides for      of regulations. We
                                           national interest;      not only suspension     deleted the phrase
                                           [you have exercised     of production but a     ``you have exercised
                                           diligence in pursuing   suspension of           diligence in pursuing
                                           production]; the        operations as well.     production.'' Since
                                           lease was drilled and   The requirement to      diligence is not
                                           a well was determined   exercise diligence in   easily defined, we
                                           to be producible in     production appears to   place more emphasis
                                           accordance with 30      already have been met   on the lessee's
                                           CFR 250.9 or 250.253;   by the requirement to   commitment to
                                           and it is necessary     have the producible     production and a
                                           because the             well present. No        sound activity
                                           suspension will meet    criteria have been      schedule when
                                           one of the following    identified to           analyzing SOP
                                           criteria:               determine diligence     requests
                                                                   in production. Once     (''Suspensions''
                                                                   the lease is in a       sections).
                                                                   producible status, by
                                                                   declaration of a
                                                                   producible well, this
                                                                   criteria seems to
                                                                   have already been met.
250.19(l)(3)............................  It will allow you a     In today's gas          We did not make the
                                           reasonable amount of    environment, the        change as
                                           time to enter a sales   transportation          transportation is
                                           or transportation       contract is as          covered
                                           contract for oil,       important as a sales    (``Suspensions''
                                           gas, or sulphur. You    contract; therefore     sections).
                                           must show that you      the regulatory
                                           are making a good       language should
                                           faith effort to enter   include both.
                                           into the contract(s);
250.19(o)(1)............................  [Conduct a site-        This requirement to     We did not make this
                                           specific study(s);].    perform an on-site      change. This is not a
                                                                   specific study should   new requirement, and
                                                                   be founded on           we are retaining this
                                                                   something other than    authority so that we
                                                                   the discretionary       can require a study
                                                                   authority of the MMS    when it is necessary
                                                                   to grant a              (``Suspensions''
                                                                   suspension. The cost    sections).
                                                                   of on-site surveys
                                                                   can be quite high,
                                                                   often benefit the
                                                                   entire area as
                                                                   opposed to an
                                                                   individual lease, and
                                                                   MMS has demonstrated
                                                                   no statutory
                                                                   authority to impose
                                                                   such excess costs as
                                                                   a condition of
                                                                   exercising leaseholds
                                                                   rights granted under
                                                                   the lease.

[[Page 72770]]

 
250.20..................................  Except for              Definitions of          We deleted the
                                           requirements to         accidents are           accident reporting
                                           report oil spills,      inconsistent with       table at proposed
                                           delete all other        those used in SEMP      Sec.  250.120(a). We
                                           reporting               (NTL 98 -6N) and        will propose a
                                           requirements and        those required by the   separate rule to
                                           incorporate             USCG for similar        establish a joint MMS-
                                           recommendations of      incidents. These        USCG web-based
                                           the USCG NOSAC          proposed regulations    reporting system for
                                           Incident Reporting      in many cases           incidents that have
                                           Subcommittee            duplicate reporting     to be reported to
                                           established on April    requirements of the     either agency. We
                                           22, 1998 consisting     United States Coast     retained the current
                                           of MMS, USCG and        Guard. At a meeting     requirement at Sec.
                                           industry personnel.     of NOSAC (National      250.119(a) (Sec.
                                                                   Offshore Advisory       250.191).
                                                                   Committee) in
                                                                   Washington on April
                                                                   22, 1998, a
                                                                   Subcommittee was
                                                                   established to review
                                                                   and recommend changes
                                                                   to improve the
                                                                   process of defining
                                                                   and reporting
                                                                   incidents to the MMS
                                                                   and the USCG. This
                                                                   effort was endorsed
                                                                   by Carolita Kallaur,
                                                                   Associate Director
                                                                   for Offshore Minerals
                                                                   Management.
                                                                   Recommendations will
                                                                   be completed by
                                                                   October 1998.
                                                                   Significant
                                                                   administrative burden
                                                                   would be added to all
                                                                   operators if this
                                                                   proposed regulation
                                                                   was implemented. This
                                                                   would be the most
                                                                   expedient method to
                                                                   resolve this issue
                                                                   and avoid OMB and
                                                                   other intervention in
                                                                   adding this
                                                                   administrative burden
                                                                   to operators and
                                                                   contractors.
250.20(a)...............................  Industry has expressed  To avoid uncertainty,   We will propose a
                                           concerns to the MMS     the rule should         separate rule on
                                           that ``fires'' needs    include the             incident reporting
                                           to be better defined    definition,             (see response to
                                           since industry has      especially when the     previous comment).
                                           confusion on what       MMS is planning to      The rule will give
                                           needs to be reported.   use fires as one of     more guidance on
                                           We recommend that the   the criteria included   thresholds for fires
                                           MMS include a           with the                and factors that
                                           description or          disqualification        impair safety.
                                           definition for what a   procedures found in
                                           fire is and what        this proposed rule in
                                           types of fires they     Section 250.12. The
                                           expect to receive in    preamble states that
                                           the reports.            more guidance will be
                                                                   given in an NTL. We
                                                                   prefer that the
                                                                   language be included
                                                                   in a rule.
                                          The MMS should include  The MMS should respect  We will propose a
                                           language that allows    the confidentiality     separate rule on
                                           the Operator to         and sensitivity of      incident reporting
                                           submit this             information marked      (see response to
                                           information marked      ``Confidential'' as     previous comment) and
                                           ``Confidential'' and    they do with other      consider the comment
                                           the MMS to maintain     information they        in that rulemaking.
                                           it in such a way        receive from
                                           without divulging the   operators.
                                           details that may be
                                           involved in legal
                                           action.
250.20(a)(1)............................  We recommend that this  It would be impossible  We made the suggested
                                           subsection qualify      for a pipeline right-   changes (Sec.
                                           that the operation      of-way owner to be      250.191(b)).
                                           must be related to      aware of any
                                           the exercise of the     accidents which might
                                           easement, right-of-     happen to occur
                                           way, or other permit.   within the pipeline
                                                                   right-of-way corridor
                                                                   which did not
                                                                   directly influence or
                                                                   impact the exercise
                                                                   of the right-of-way
                                                                   itself.
250.20(a)(2)............................  We recommend that the   The cited portions of   We made the suggested
                                           final rule qualify      the OCS Lands Act       changes (Sec.
                                           the investigative       specify that either     250.191(c)).
                                           authority so that it    the Secretary or the
                                           is not exercised by     U.S. Coast Guard may
                                           both the Department     institute
                                           of Transportation's     investigations but
                                           United States Coast     not both. This
                                           Guard and the           limitation must be
                                           Department of [the]     contained in the
                                           Interior's MMS.         regulations in order
                                                                   for them to be lawful.

[[Page 72771]]

 
250.20(a)(2)............................  We recommend that the   This provision          We did not make the
                                           striking of the         violates the            suggested changes.
                                           provision which only    provisions of Section   However, since
                                           allows panel members    22(f) of the OCS        commenters have
                                           and panel experts to    Lands Act which         objection to the
                                           address questions to    requires that the       proposed wording, we
                                           the person giving       production of           used the wording
                                           testimony.              documents and the       exactly as it is in
                                                                   handling of testimony   our current
                                                                   and witnesses be        regulations (Sec.
                                                                   analogous to the        250.191(c)).
                                                                   Federal Rules of
                                                                   Civil Procedure. The
                                                                   Federal Rules Of
                                                                   Civil Procedure give
                                                                   the party at risk for
                                                                   citation the
                                                                   opportunity to
                                                                   participate in
                                                                   questioning of
                                                                   witnesses in the
                                                                   course of any hearing.
250.20(b)...............................  The MMS should clarify  The MMS should clarify  We listed evacuation
                                           that they want to get   what they need since    statistics needs as
                                           personnel evacuation    the word                the following:
                                           numbers only, to        ``statistics'' is not   facilities and rigs
                                           avoid uncertainty.      defined. In addition,   evacuated and the
                                           Also, the MMS should    the MMS needs to        amount of production
                                           add the words ``as      understand the          shut-in for oil and
                                           conditions allow''      critical nature and     gas. We inserted ``as
                                           immediately after       plans that require      conditions allow''
                                           (b)(2) after ``11       full operator           (Sec.  250.192).
                                           AM'' in this sentence.  attention for safe
                                                                   evacuation of
                                                                   personnel, ensuring
                                                                   the operations are
                                                                   safely and
                                                                   environmentally shut-
                                                                   in, housing the
                                                                   evacuated personnel,
                                                                   and ensuring the
                                                                   safety of office
                                                                   management/staff.
                                                                   This process must
                                                                   have higher priority
                                                                   than reporting
                                                                   ``statistics'' by 11
                                                                   AM during the period
                                                                   of shut-in and
                                                                   evacuation. MMS
                                                                   offices are also
                                                                   evacuated when
                                                                   natural events such
                                                                   as hurricanes
                                                                   approach populated
                                                                   areas, so the
                                                                   ``statistics'' would
                                                                   probably not be
                                                                   accessible.
250.21..................................  Any person may report   This will prevent the   We have not made the
                                           to MMS an apparent      MMS from being forced   changes because MMS
                                           violation or failure    to investigate          procedures will
                                           to comply with any      frivolous or baseless   determine the
                                           provision of the Act,   allegations which are   validity (Sec.
                                           any provision of a      apparent on their       250.193).
                                           lease, license, or      face.
                                           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, after
                                           making a
                                           determination of the
                                           validity, MMS will
                                           investigate in
                                           accordance with its
                                           procedures.

[[Page 72772]]

 
250.23(a)...............................  Your lease expires at   Ordinary oil and gas    We deleted the word
                                           the end of its          principles extend a     continuous from this
                                           primary term unless     lease provided a        section (Sec.
                                           you are producing in    continuous              250.180).
                                           paying quantities or    exploratory drilling
                                           conducting drilling     program is in
                                           or well-reworking       operation. The
                                           operations on your      present wording does
                                           lease (see 30 CFR       not appear to include
                                           part 256). The          this fact, but
                                           objective of the        instead focuses
                                           drilling or well-       solely on production
                                           reworking operations    or the re-institution
                                           must be to establish    of production itself.
                                           continuous production   A lessee could
                                           on the lease. For       maintain a lease by a
                                           purposes of this        continual and
                                           section, the term       diligent exploratory
                                           operations means        program through
                                           [continuous]            continuous drilling
                                           production, drilling,   activity. This
                                           or well-reworking.      concept is missing in
                                                                   the proposed rule. In
                                                                   addition, the last
                                                                   sentence as is will
                                                                   cause confusion and
                                                                   it contradicts the
                                                                   remainder of Section
                                                                   250.23. It is
                                                                   possible during
                                                                   drilling or well-
                                                                   reworking to start
                                                                   and stop operations
                                                                   within the 180-day
                                                                   clock, such as to get
                                                                   different equipment,
                                                                   personnel, other
                                                                   operations on the
                                                                   platform, etc. As
                                                                   long as the word
                                                                   ``continuous'' is
                                                                   there, it can be
                                                                   interpreted as being
                                                                   on-going and not
                                                                   allowing for start
                                                                   and stops. This is
                                                                   unrealistic with
                                                                   regard to how
                                                                   offshore operations
                                                                   take place.
250.25..................................  When will MMS           Since the               We made Sec.  250.195
                                           reimburse me for        reimbursement           parallel to 30 CFR
                                           reproduction,           provision is for        part 251. This
                                           processing, and other   other areas than        section only refers
                                           costs?                  reproduction, it will   to reimbursements for
                                                                   be easier for the       G&G data and
                                                                   operator to find this   information.
                                                                   section.
250.27(b) Table.........................  When your lease         Ten years is not        We have not made the
                                           terminates or [10] 15   enough in the case of   suggested change. To
                                           years after the date    deepwater leases        change the release
                                           you submit the data     (deep water leases      time for these data
                                           whichever is earlier.   have a 10 year          would make releasing
                                          [10] 15 years after      primary term) where     data and information
                                           the date you submit     an exploratory well     more complicated and
                                           it.                     is drilled, an SOP      make it extremely
                                                                   obtained pending        difficult to track
                                                                   development. Same as    properly. Following
                                                                   above. In addition,     our current
                                                                   there could exist       regulations, we have
                                                                   open acreage next to    already released deep-
                                                                   a lease that has not    water data. The
                                                                   been fully developed    suggested change
                                                                   since operations in     would not enhance our
                                                                   deep water tend to be   ability to get fair
                                                                   more complex.           market value for
                                                                                           leases (Sec.
                                                                                           250.196).
                                          MMS will disclose       Operator should have    We did not make this
                                           information not         the opportunity to      change. This change
                                           collected on MMS        review the current      would mean that we
                                           forms in accordance     situation and decide    would have to go to
                                           with the following      whether or not          the lessee before we
                                           table: if--The          release of the data     transfer proprietary
                                           director determines     would jeopardize its    data and information
                                           that data and           competitive position.   (paleo reports, etc.)
                                           information are                                 to anyone doing work
                                           needed for specific                             on our behalf. This
                                           scientific or                                   is not a good idea.
                                           research purposes for                           It limits our ability
                                           the Government MMS                              and rights to do
                                           will release--                                  research and detailed
                                           Geophysical data,                               studies (Sec.
                                           geological data,                                250.196).
                                           interpreted G&G
                                           information,
                                           processed and
                                           reprocessed
                                           geophysical
                                           information, analyzed
                                           geological
                                           information. At this
                                           time--Anytime
                                           Additional
                                           provisions--MMS will
                                           release data and
                                           information with the
                                           review and consent of
                                           the lessee only if
                                           release would further
                                           the national interest
                                           without unduly
                                           damaging the
                                           competitive position
                                           of the lessee.

[[Page 72773]]

 
                                          [2] 10 years after you  Two years is not        We have not made the
                                           submit it or 60 days    enough in the case of   suggested change. To
                                           after a lease sale if   deepwater leases        change the release
                                           any portion of an       (deep water leases      time for these data
                                           offered block is        have a 10 year          would make releasing
                                           within 50 miles of a    primary term) where     data/information more
                                           well, whichever is      an exploratory well     complicated and make
                                           later.                  is drilled, an SOP      it extremely
                                                                   obtained pending        difficult to track
                                                                   development. Same as    properly. Following
                                                                   above. In addition,     our current
                                                                   there could exist       regulations, we have
                                                                   open acreage next to    already released deep-
                                                                   a lease that has not    water data.
                                                                   been fully developed    Additionally, the
                                                                   since operations in     suggested change
                                                                   deep water tend to be   would not enhance our
                                                                   more complex.           ability to get fair
                                                                                           market value for
                                                                                           leases (Sec.
                                                                                           250.196).
256.73(a)...............................  (a) [Normally,] a A     The existing Section    We have deleted the
                                           suspension extends      256.73(a) clearly       word ``normally'' and
                                           the term of a lease.    states the primary      rewritten the entire
                                           The extension is        term of the lease       section for clarity.
                                           equal to the length     will be extended if
                                           of time the             the lessee is granted
                                           suspension is in        an SOO or SOP
                                           effect. The             pursuant to 30 CFR
                                           suspension will not     250.10(a), (b)(2)
                                           extend the lease term   through (b)(7), or
                                           when the Regional       (c). This very clear
                                           Supervisor directs a    and concise provision
                                           suspension because      has been rewritten to
                                           of:                     state that a
                                                                   suspension
                                                                   ``normally'' extends
                                                                   the term of a lease.
                                                                   Since the term
                                                                   ``normally'' is not
                                                                   defined, the net
                                                                   result of this change
                                                                   is a provision that
                                                                   is less specific.
----------------------------------------------------------------------------------------------------------------

API/OOC Comments and MMS Responses on Documents Incorporated By 
Reference

    In addition to the comments in the preceding table, API/OOC 
provided numerous suggestions to update the documents incorporated by 
reference in proposed Sec. 250.28. Some have already been updated; this 
final rule will make the recommended changes to most of the others; and 
we will consider the remaining few for future rulemaking.
    The following is a list of the documents incorporated by reference 
that we updated in the table in Sec. 250.198(e):

API MPMS, Chapter 2, Section 2B
API MPMS, Chapter 3, Section 1B
API MPMS, Chapter 4, Section 7
API MPMS, Chapter 6
API MPMS, Chapter 6, Section 6
API MPMS, Chapter 7, Section 3
API MPMS, Chapter 10, Section 4; also available as ANSI/ASTM D 96
API MPMS, Chapter 11
API MPMS, Chapter 11.1; also available as ANSI/ASTM D1250
API MPMS, Chapter 14, Section 3, Part 1; also available as ANSI/API 
2530, Part 1
API MPMS, Chapter 14, Section 3, Part 2; also available as ANSI/API 
2530, Part 2
API MPMS, Chapter 14, Section 6
API RP 2A
API RP 2A, Supplement 1
API Spec Q1
API Standard 2545 incorporated as MPMS, Chapters 3.1A and 3.1B
API Standard 2551
API Standard 2552
API Standard 2555

    The following is a list of documents incorporated by reference that 
we have already addressed through other rulemakings published on July 
9, 1998 (63 FR 37066) and May 12, 1998 (63 FR 26365):

API MPMS, Chapter 14, Section 8
API MPMS, Chapter 20
API MPMS, Chapter 21
API RP 14C
API Spec 14D

    We are considering, or will consider, the following for future 
changes in documents incorporated by reference:

API MPMS, Chapter 14, Section 1
API RP 500 (proposed rule published 3/19/99, 64 FR 13535)
API RP 505 (proposed rule published 3/19/99, 64 FR 13535)
API 510 (currently under review)
API Specification 6D, Supplement 2
API Specification 14A, Supplement 1

Procedural Matters

Takings Implication Assessment Executive Order (E.O.) 12630

    MMS certifies that this rule does not represent a governmental 
action capable of interference with constitutionally protected property 
rights.

Federalism (E.O. 13132)

    According to E.O. 13132, this rule does not have Federalism 
implications. This rule:
    (a) Does not substantially and directly affect the relationship 
between the Federal and State governments;
    (b) Does not impose costs on States or localities;
    (c) Does not preempt State law.

Regulatory Planning and Review (E.O. 12866)

    This document is not a significant rule and is not subject to 
review by the Office of Management and Budget (OMB) under E.O. 12866.
    (1) This rule will not have an effect of $100 million or more on 
the economy. It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities. The new or expanded requirements in the rule are designed 
to safeguard lives, property, and the environment. They do not impose 
extensive burdens. The economic effects of the rule will be minimal.
    The revised regulations will allow lessees of a State lease located 
adjacent to the OCS to apply for a right-of-use and easement. Although 
MMS has always had the authority to grant rights-of-use and easements, 
it was inadvertently dropped from the regulations in 1979, and we are 
simply reinserting it specifically in the regulations. We anticipate 
very few situations occurring when a State lessee would need to take 
advantage of this provision in the regulations. Therefore, we estimate 
possibly one application from a State lessee annually. If a State 
lessee applies for a right-of-use and easement, they will be required 
to pay a $2,350 application fee and $500 in annual rental. The fee and 
rental are the same as those required for pipeline right-of-way grants 
in our current

[[Page 72774]]

regulations. We used this as the cost basis because of the similarity 
in complexity between approving current pipeline right-of-way grants 
and the new right-of-use and easement applications allowed under this 
regulation.
    The total reporting and recordkeeping burdens on all entities 
affected are minimal (less than $400,000 per year).
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. The 
proposed rule had a new accident reporting table that raised a question 
of duplicative accident reporting to both MMS and USCG. We have deleted 
the table from the final rule. We will propose a separate rule to 
establish a joint MMS-USCG web-based system for reporting accidents/
incidents to either agency.
    (3) This rule does not alter the budgetary effects or entitlements, 
grants, user fees, or loan programs or the rights or obligations of 
their recipients. This rule will only have a minimal effect with 
respect to user fees. State lessees will have to pay a small fee and 
hold a bond for the benefit of receiving the right-of-use and easement 
in the OCS.
    (4) This rule does not raise novel legal or policy issues. The new 
or expanded requirements in the rule are based on the longstanding 
legal authority of the OCSLA and other laws. As previously stated, the 
rule emphasizes MMS's commitment towards ensuring safe operations.

Civil Justice Reform (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.

National Environmental Policy Act

    DOI has 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.

Paperwork Reduction Act of 1995 (PRA)

    We examined the proposed and final rule under the PRA. We 
determined that the approved information collection requirements remain 
unchanged for 30 CFR part 218; 30 CFR part 250, subparts E and F; and 
30 CFR part 256.
    With respect to 30 CFR part 250, subpart D, the rule removes 
sections that contain approved collections of information and relocates 
them to 30 CFR part 250, subpart A. We will submit an inventory 
correction to OMB to update the approved 30 CFR part 250, subpart D 
information collection requirements (OMB control number 1010-0053).
    Because of the changes in 30 CFR part 250, subpart A, as part of 
the proposed rulemaking process, we submitted the information 
collection requirements (including form MMS-132) to OMB for approval. 
The final rule made very few changes in the collection of information, 
but we resubmitted the revisions to OMB for approval under section 
3507(d) of the PRA. OMB has approved the collection of information 
under OMB control number 1010-0114. The title of this collection of 
information is ``30 CFR 250, Subpart A--General.'' 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.
    The minor differences in the information collection requirements in 
the proposed rulemaking from those approved for the final rule are:
     Eliminated the requirement to submit information on the 
use of BAST-requests would be considered under new or alternative 
procedures.
     Clarified the recordkeeping retention requirements for 
crane operator qualifications to be consistent with the standards in 
the document incorporated by reference for this activity.
     Eliminated the ``proposed'' accident reporting 
requirements and retained the ``current'' subpart A accident reporting 
and estimated burden.
    In responding to comments, we have concluded that the procedures 
leading to disqualification of an operator could result in respondents 
submitting a performance improvement plan to avoid disqualification. 
Although this is part of our internal enforcement process and not 
specifically identified in the regulations, the ICR approved for the 
final rule includes the burden for this contingency.
    We use the collection of information required by this rule to 
ensure that operations on the OCS are carried out in a manner that is 
safe, pollution-free, does not interfere with the rights of other users 
on the OCS, and balances the protection and development of OCS 
resources. The frequency of submission varies according to requirement 
but is generally ``on occasion.'' Responses are mandatory.
    We estimate there are approximately 131 respondents to this 
collection of information--130 Federal OCS lessees and operators and 
one State lessee.
    Reporting and Recordkeeping ``Hour'' Burden: The approved annual 
burden of this collection of information is 7,231 reporting hours and 
3,485 recordkeeping hours, for a total of 10,716 burden hours. Based on 
$35 per hour, we estimate the total hour burden cost to respondents to 
be $375,060.
    Reporting and Recordkeeping ``Non-Hour Cost'' Burden: The approved 
paperwork non-hour cost burden remained unchanged in the final rule. We 
still anticipate that only one State lessee per year might apply for a 
right-of-use and easement. The respondent is required to pay a cost 
recovery application fee of $2,350.

Regulatory Flexibility Act

    The changes proposed in 30 CFR part 250, subpart A, will not have a 
significant economic effect on offshore lessees and operators, 
including those that are classified as small businesses. The Small 
Business Administration (SBA) defines a small business as having:
     Annual revenues of $5 million or less for exploration 
service and field service companies.
     Fewer than 500 employees for drilling companies and for 
companies that extract oil, gas, or natural gas liquids.
    The Small Business Administration's Office of Advocacy in 
commenting on this rule referred to Standard Industrial Classification 
(SIC) 1381, Drilling Oil and Gas Wells. Under this SIC code, MMS 
estimates that there is a total of 1,380 firms that drill oil and gas 
wells onshore and offshore. Of these, approximately 130 companies are 
offshore lessees/operators, based on current estimates. According to 
SBA estimates, 39 companies qualify as large firms, leaving 91 
companies qualified as small firms with fewer than 500 employees.
    The primary economic effect of the revised subpart A on small 
businesses is the cost associated with information collection 
activities. The rule is a plain language rewrite of 30 CFR 250, subpart 
A, and contains virtually all of the same reporting and recordkeeping 
requirements and attendant costs as the existing regulations. The 
changes in reporting requirements will not significantly increase the 
information collection hour burden on respondents--large or small. 
Based on the average number of lessees being 130, we estimate a 
combined annual burden of 10,716 hours for all entities. Using a 
standard average hourly cost of $35.00 to determine the paperwork 
burden, the total hourly cost burden is $375,060. This reflects an 
increase in the paperwork burden from the current regulation of 2,288 
hours, for a cost burden increase of $80,080 or $616 per

[[Page 72775]]

entity (large or small) from the current regulation.
    There is also a reporting cost burden associated with one of the 
new benefits to State lessees that requires a fee of $2,350, but only 
if a State lessee/operator chooses to apply for a right-of-use and 
easement. If a State lessee applies for a right-of-use and easement, 
they will be required to pay a $2,350 application fee and $500 in 
annual rental. We do not anticipate more than one application for a 
right-of-use and easement from a State lessee annually.
    Based on these calculations, this rule has no significant economic 
impact on the small entities.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small business 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.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This rule is not a major rule under 5 U.S.C. 804(2), SBREFA. This 
rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more. The proposed rule will not cause any significant costs to 
lessees or operators. The primary purpose of this rule is to 
restructure it for better reorganization and to simplify regulatory 
language. The restructuring and plain language revisions will not 
result in any economic effects to small or large entities. The only 
costs will be for the purchase of the new documents incorporated by 
reference and minor revisions to some operating procedures. The minor 
revisions to operating procedures may result in some minor costs or may 
actually result in minor costs savings.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions. The new costs associated with this 
rule are minimal. State lessees will have to pay a fee and rental to 
obtain the benefits of a right-of-use and easement in the Federal OCS.
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises. The 
regulation will not have any adverse effects on competition or other 
business/commercial aspects of the regulated industry. It contains a 
few new requirements that are not burdensome and that ensure that 
operations in the OCS remain safe and environmentally sound.

Unfunded Mandates Reform Act of 1995

    DOI has determined and certifies under 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.

List of Subjects

30 CFR Part 218

    Continental shelf, Electronic funds transfers, Geothermal energy, 
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, Surety bonds.

30 CFR Part 252

    Continental shelf, Freedom of information, Intergovernmental 
relations.

30 CFR Part 253

    Continental shelf, Environmental protection, Insurance, Oil and gas 
exploration, Oil pollution, Penalties, Pipelines, Public lands--mineral 
resources, Public lands--rights-of-way, Reporting and recordkeeping 
requirements, Surety bonds.

30 CFR Part 256

    Administrative practice and procedure, 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.

30 CFR Part 282

    Continental shelf, Prospecting, Public lands--mineral resources, 
Reporting and recordkeeping requirements, Surety bonds.

    Dated: November 5, 1999.
Sylvia V. Baca,
Acting Assistant Secretary, Land and Minerals Management.

    For the reasons stated in the preamble, the Minerals Management 
Service (MMS) amends 30 CFR parts 218, 250, 252, 253, 256 and 282 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 relieve the lessee of the obligation to pay rental 
or minimum royalty for or during the suspension if the Regional 
Supervisor:
    (1) Grants a suspension of operations or production, or both, at 
the request of the lessee; or
    (2) Directs a suspension of operations or production, or both, 
under 30 CFR 250.173(a).
    (b) MMS will not require a lessee to pay rental or minimum royalty 
for or during the suspension if the Regional Supervisor directs a 
suspension of operations or production, or both, except as provided in 
(a)(2) of this section.
* * * * *

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. 1331 et seq.

    4. Subpart A is revised to read as follows:

Subpart A--General

Authority and Definition of Terms

Sec.
250.101  Authority and applicability.
250.102   What does this part do?
250.103   Where can I find more information about the requirements 
in this part?
250.104  How may I appeal a decision made under MMS regulations?
250.105  Definitions.

[[Page 72776]]

Performance Standards

250.106  What standards will the Director use to regulate lease 
operations?
250.107  What must I do to protect health, safety, property, and the 
environment?
250.108  What requirements must I follow for cranes and other 
material-handling equipment?
250.109  What documents must I prepare and maintain related to 
welding?
250.110  What must I include in my welding plan?
250.111  Who oversees operations under my welding plan?
250.112  What standards must my welding equipment meet?
250.113  What procedures must I follow when welding?
250.114  How must I install and operate electrical equipment?
250.115  How do I determine well producibility?
250.116  How do I determine producibility if my well is in the Gulf 
of Mexico?
250.117  How does a determination of well producibility affect 
royalty status?
250.118  Will MMS approve gas injection?
250.119  Will MMS approve subsurface gas storage?
250.120  How does injecting, storing, or treating gas affect my 
royalty payments?
250.121  What happens when the reservoir contains both original gas 
in place and injected gas?
250.122  What effect does subsurface storage have on the lease term?
250.123  Will MMS allow gas storage on unleased lands?
250.124  Will MMS approve gas injection into the cap rock containing 
a sulphur deposit?

Inspection of Operations

250.130  Why does MMS conduct inspections?
250.131  Will MMS notify me before conducting an inspection?
250.132  What must I do when MMS conducts an inspection?
250.133  Will MMS reimburse me for my expenses related to 
inspections?

Disqualification

250.135  What will MMS do if my operating performance is 
unacceptable?
250.136  How will MMS determine if my operating performance is 
unacceptable?

Special Types of Approvals

250.140  When will I receive an oral approval?
250.141  May I ever use alternate procedures or equipment?
250.142  How do I receive approval to use alternate procedures or 
equipment for departures?
250.143  How do I designate an operator?
250.144  How do I designate a new operator when a designation of 
operator terminates?
250.145  How do I designate an agent or a local agent?
250.146  Who is responsible for fulfilling leasehold obligations?

Naming and Identifying Facilities and Wells (Does Not Include MODUs)

250.150  How do I name facilities and wells in the Gulf of Mexico 
Region?
250.151  How do I name facilities in the Pacific Region?
250.152  How do I name facilities in the Alaska Region?
250.153  Do I have to rename an existing facility or well?
250.154  What identification signs must I display?

Right-of-Use and Easement

250.160  When will MMS grant me a right-of-use and easement, and 
what requirements must I meet?
250.161  What else must I submit with my application?
250.162  May I continue my right-of-use and easement after the 
termination of any lease on which it is situated?
250.163  If I have a State lease, will MMS grant me a right-of-use 
and easement?
250.164  If I have a State lease, what conditions apply for a right-
of-use and easement?
250.165  If I have a State lease, what fees do I have to pay for a 
right-of-use and easement?
250.166  If I have a State lease, what surety bond must I have for a 
right-of-use and easement?

Suspensions

250.168  May operations or production be suspended?
250.169  What effect does suspension have on my lease?
250.170  How long does a suspension last?
250.171  How do I request a suspension?
250.172  When may the Regional Supervisor grant or direct an SOO or 
SOP?
250.173  When may the Regional Supervisor direct an SOO or SOP?
250.174  When may the Regional Supervisor grant or direct an SOP?
250.175  When may the Regional Supervisor grant an SOO?
250.176  Does a suspension affect my royalty payment?
250.177  What additional requirements may the Regional Supervisor 
order for a suspension?

Primary Lease Requirements, Lease Term Extensions, and Lease 
Cancellations

250.180  What am I required to do to keep my lease term in effect?
250.181  When may the Secretary cancel my lease and when am I 
compensated for cancellation?
250.182  When may the Secretary cancel a lease at the exploration 
stage?
250.183  When may MMS or the Secretary extend or cancel a lease at 
the development and production stage?
250.184  What is the amount of compensation for lease cancellation?
250.185  When is there no compensation for a lease cancellation?

Information and Reporting Requirements

250.190  What reporting information and report forms must I submit?
250.191  What accident reports must I submit?
250.192  What evacuation statistics must I submit?
250.193  Reports and investigations of apparent violations.
250.194  What archaeological reports and surveys must I submit?
250.195  Reimbursements for reproduction and processing costs.
250.196  Data and information to be made available to the public.

References

250.198  Documents incorporated by reference.
250.199  Paperwork Reduction Act statements--information collection.

Subpart A--General

Authority and Definition of Terms


Sec. 250.101  Authority and applicability.

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


Sec. 250.102  What does this part do?

    (a) 30 CFR part 250 contains the regulations of the MMS Offshore 
program that govern oil, gas, and sulphur exploration, development, and 
production operations on the OCS. When you conduct operations on the 
OCS, you must submit requests, applications, and notices, or provide 
supplemental information for MMS approval.

[[Page 72777]]

    (b) The following table of general references shows where to look 
for information about these processes.

       Table--Where To Find Information for Conducting Operations
------------------------------------------------------------------------
            For information about                       Refer to
------------------------------------------------------------------------
 (1) Abandoning wells........................  Sec.  250.701.
 (2) Applications for Permit to Drill........  Sec.  250.414.
 (3) Development and Production Plans (DPP)..  Sec.  250.204.
 (4) Downhole commingling....................  Sec.  250.1106.
 (5) Exploration Plans (EP)..................  Sec.  250.203.
 (6) Flaring.................................  Sec.  250.1105.
 (7) Gas measurement.........................  Sec.  250.1203.
 (8) Off-lease geological and geophysical      30 CFR 251.
 permits.
 (9) Oil spill financial responsibility        30 CFR 253.
 coverage.
(10) Oil and gas production safety systems...  Sec.  250.802.
(11) Oil spill response plans................  30 CFR 254.
(12) Oil and gas well-completion operations..  Sec.  250.513.
(13) Oil and gas well-workover operations....  Sec.  250.613.
(14) Platforms and structures................  Sec.  250.901.
(15) Pipelines...............................  Sec.  250.1009.
(16) Pipeline right-of-way...................  Sec.  250.1010.
(17) Sulphur operations......................  Sec.  250.1604.
(18) Training................................  Sec.  250.1500.
(19) Unitization.............................  Sec.  250.1300.
------------------------------------------------------------------------

Sec. 250.103  Where can I find more information about the requirements 
in this part?

    MMS may issue Notices to Lessees and Operators (NTLs) that clarify, 
supplement, or provide more detail about certain requirements. NTLs may 
also outline what you must provide as required information in your 
various submissions to MMS.


Sec. 250.104  How may I appeal a decision made under MMS regulations?

    To appeal orders or decisions issued under MMS regulations in 30 
CFR parts 250 to 282, follow the procedures in 30 CFR part 290.


Sec. 250.105  Definitions.

    Terms used in this part will have the meanings given in the Act and 
as defined in this section:
    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 under the provisions 
of the Act, any State:
    (1) The laws of which are declared, under 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 according to the proposed activity, will 
receive oil for processing, refining, or transshipment that 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 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, under 
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 that have been analyzed. Analysis may include, but is not 
limited to, identification of lithologic and fossil content, core 
analysis, laboratory analyses of physical and chemical properties, well 
logs or charts, results from formation fluid tests, and descriptions of 
hydrocarbon occurrences or hazardous conditions.
    Archaeological interest means capable of providing scientific or 
humanistic understanding of past human behavior, cultural adaptation, 
and related topics through the application of scientific or scholarly 
techniques, such as controlled observation, contextual measurement, 
controlled collection, analysis, interpretation, and explanation.
    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 that is shown 
by monitored data or that 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 and safest technology (BAST) means the best 
available and safest technologies that the Director determines to be 
economically feasible wherever failure of equipment would have a 
significant effect on safety, health, or the environment.
    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

[[Page 72778]]

techniques for the control of each air pollutant.
    Coastal environment means the physical, atmospheric, and biological 
components, conditions, and factors that interactively determine the 
productivity, state, condition, and quality of the terrestrial 
ecosystem from the shoreline inward to the boundaries of the coastal 
zone.
    Coastal zone means the coastal waters (including the lands therein 
and thereunder) and the adjacent shorelands (including the waters 
therein and thereunder) strongly influenced by each other and in 
proximity to the 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, under 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 producible or producing 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.
    Correlative rights when used with respect to lessees of adjacent 
leases, 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 that have 
not been analyzed, processed, or interpreted.
    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 that take place following 
discovery of minerals in paying quantities, including but not limited 
to geophysical activity, drilling, platform construction, and operation 
of all directly related onshore support facilities, and which are for 
the purpose of producing the minerals discovered.
    Director means the Director of MMS of the U.S. Department of the 
Interior, or an official authorized to act on the Director's behalf.
    District Supervisor means the MMS officer with authority and 
responsibility for operations or other designated program functions for 
a district within an MMS Region.
    Easement means an authorization for a nonpossessory, nonexclusive 
interest in a portion of the OCS, 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.
    Eastern Gulf of Mexico means all OCS areas of the Gulf of Mexico 
the Director decides are adjacent to the State of Florida. The Eastern 
Gulf of Mexico is not the same as the Eastern Planning Area, an area 
established for OCS lease sales.
    Emission offsets means emission reductions obtained from 
facilities, either onshore or offshore, other than the facility or 
facilities covered by the proposed Exploration Plan (EP) or Development 
and Production Plan (DPP).
    Enhanced recovery operations means pressure maintenance operations, 
secondary and tertiary recovery, cycling, and similar recovery 
operations that alter the natural forces in a reservoir to increase the 
ultimate recovery of oil or gas.
    Existing facility, as used in Sec. 250.303, 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, or sulphur. 
Activities classified as exploration include but are not limited to:
    (1) Geophysical and geological (G&G) surveys using magnetic, 
gravity, seismic reflection, seismic refraction, gas sniffers, coring, 
or other systems to detect or imply the presence of oil, gas, or 
sulphur; and
    (2) Any drilling conducted for the purpose of searching for 
commercial quantities of oil, gas, and sulphur, including the drilling 
of any additional well needed to delineate any reservoir to enable the 
lessee to decide whether to proceed with development and production.
    Facility means:
    (1) As used in Sec. 250.130, any installation permanently or 
temporarily attached to the seabed on the OCS (including manmade 
islands and bottom-sitting structures). It includes mobile offshore 
drilling units (MODUs) or other vessels engaged in drilling or downhole 
operations, used for oil, gas, or sulphur drilling, production, or 
related activities. It also includes facilities for product measurement 
and royalty determination (e.g., Lease Automatic Custody Transfer 
units, gas meters) of OCS production on installations not on the OCS. 
Any group of OCS installations 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. The Regional Supervisor may decide 
that the complexity of the individual installations justifies their 
classification as separate facilities.
    (2) As used in Sec. 250.303, means any installation or device 
permanently or temporarily attached to the seabed. It includes mobile 
offshore drilling units (MODUs), even while operating in the ``tender 
assist'' mode (i.e. with skid-off drilling units) or other vessels 
engaged in drilling or downhole operations. They are used for 
exploration, development, and production activities for oil, gas, or 
sulphur and emit or have the potential to emit any air pollutant from 
one or more sources. During production, multiple installations or 
devices are a single facility if the installations or devices are at a 
single site. Any vessel used to transfer production from an offshore 
facility is part of the facility while it is physically attached to the 
facility.
    (3) As used in Sec. 250.417(b), 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 associated gas-cap of an oil reservoir.
    Governor means the Governor of a State, or the person or entity 
designated by, or under, State law to exercise the powers granted to 
such Governor under 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

[[Page 72779]]

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 that 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.
    Interpreted geological information means geological knowledge, 
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 knowledge, 
often in the form of schematic cross sections, 3-dimensional 
representations, and maps, developed by determining the geological 
significance of geophysical data and analyzed geophysical information.
    Lease means an agreement that is issued under section 8 or 
maintained under section 6 of the Act and that authorizes exploration 
for, and development and production of, minerals. The term also means 
the area covered by that authorization, whichever the context requires.
    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, unit, or contiguous (not cornering) leases of that 
lessee or operator.
    Lessee means a person who has entered into a lease with the United 
States to explore for, develop, and produce the leased minerals. The 
term lessee also includes the MMS-approved assignee of the lease, and 
the owner or the MMS-approved assignee of operating rights for the 
lease.
    Major Federal action means any action or proposal by the Secretary 
that 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 
that will have a significant impact on the quality of the human 
environment requiring preparation of an environmental impact statement 
under section 102(2)(C) of the National Environmental Policy Act).
    Marine environment means the physical, atmospheric, and biological 
components, conditions, and factors that interactively determine the 
productivity, state, condition, and quality of the marine ecosystem. 
These include 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.
    Material remains means physical evidence of human habitation, 
occupation, use, or activity, including the site, location, or context 
in which such evidence is situated.
    Maximum efficient rate (MER) means the maximum sustainable daily 
oil or gas withdrawal rate from a reservoir that will permit economic 
development and depletion of that reservoir without detriment to 
ultimate recovery.
    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 that are authorized by an 
Act of Congress to be produced.
    Natural resources includes, without limiting the generality 
thereof, oil, gas, and all other minerals, and fish, shrimp, oysters, 
clams, crabs, lobsters, sponges, kelp, and other marine animal and 
plant life but does not include water power or the use of water for the 
production of power.
    Nonattainment area means, for any air pollutant, an area that is 
shown by monitored data or that 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.
    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 the right 
to explore for, develop, and produce leased substances.
    Operator means the person the lessee(s) designates as having 
control or management of operations on the leased area or a portion 
thereof. An operator may be a lessee, the MMS-approved designated agent 
of the lessee(s), or the holder of operating rights under an MMS-
approved operating rights assignment.
    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) whose 
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 
(including partnerships and trusts), a State, a political subdivision 
of a State, or a private, public, or municipal corporation.
    Pipelines are the piping, risers, and appurtenances installed for 
transporting oil, gas, sulphur, and produced waters.
    Processed geological or geophysical information means data 
collected under a permit or a lease that have been processed or 
reprocessed. 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 is the additional processing other than ordinary 
processing used in the general course of evaluation. Reprocessing 
operations may include varying identified parameters for the detailed 
study of a specific problem area.
    Production means those activities that 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 workover operations.
    Production areas are those areas where flammable petroleum gas, 
volatile liquids or sulphur are produced, processed (e.g., compressed), 
stored, transferred (e.g., pumped), or otherwise handled before 
entering the transportation process.
    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 issued under this part to use 
OCS lands.
    Right-of-way pipelines are those pipelines that are contained 
within:

[[Page 72780]]

    (1) The boundaries of a single lease or unit, but are not owned and 
operated by a lessee or operator of that lease or unit;
    (2) The boundaries of contiguous (not cornering) leases that do not 
have a common lessee or operator;
    (3) The boundaries of contiguous (not cornering) leases that have a 
common lessee or operator but are not owned and operated by that common 
lessee or operator; or
    (4) An unleased block(s).
    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 that 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. For submitting the 
first MER, 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, or its 
successor.
    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 that causes 
or tends to cause a reduction in the quantity of oil, gas, or sulphur 
ultimately recoverable under prudent and proper operations or that 
causes or tends to cause unnecessary or excessive surface loss or 
destruction of oil or gas; or
    (4) The inefficient storage of oil.
    Welding means all activities connected with welding, including hot 
tapping and burning.
    Wellbay is the area on a facility within the perimeter of the 
outermost wellheads.
    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.
    Western Gulf of Mexico means all OCS areas of the Gulf of Mexico 
except those the Director decides are adjacent to the State of Florida. 
The Western Gulf of Mexico is not the same as the Western Planning 
Area, an area established for OCS lease sales.
    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 a lessee, the owner or holder of operating rights, a 
designated agent of the lessee(s), a pipeline right-of-way holder, or a 
State lessee granted a right-of-use and easement.

Performance Standards


Sec. 250.106  What standards will the Director use to 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 injury or loss of life;
    (c) Prevent damage to or waste of any natural resource, property, 
or the environment; and
    (d) Cooperate and consult with affected States, local governments, 
other interested parties, and relevant Federal agencies.


Sec. 250.107  What must I do 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 control, remove, or otherwise correct any 
hazardous oil and gas accumulation or other health, safety, or fire 
hazard.
    (c) You must use the best available and safest technology (BAST) 
whenever practical on all exploration, development, and production 
operations. In general, we consider your compliance with MMS 
regulations to be the use of BAST.
    (d) The Director may require additional measures to ensure the use 
of BAST:
    (1) To avoid the failure of equipment that would have a significant 
effect on safety, health, or the environment;
    (2) If it is economically feasible; and
    (3) If the benefits outweigh the costs.


Sec. 250.108  What requirements must I follow for cranes and other 
material-handling equipment?

    (a) If you operate a crane installed on fixed platforms you must:
    (1) Follow the American Petroleum Institute (API) Recommended 
Practice (RP) for Operation and Maintenance of Offshore Cranes (API RP 
2D);
    (2) Keep inspection, testing, and maintenance records at the OCS 
facility for at least 2 years; and
    (3) Keep crane operator qualifications at the facility for at least 
4 years.
    (b) You must operate and maintain all other material-handling 
equipment in a manner that ensures safe operations and prevents 
pollution.


Sec. 250.109  What documents must I prepare and maintain related to 
welding?

    (a) You must submit a Welding Plan to the District Supervisor 
before you begin drilling or production activities on a lease. You may 
not begin welding until the District Supervisor has approved your plan.
    (b) You must keep the following at the site where welding occurs:
    (1) A copy of the plan and its approval letter; and
    (2) Drawings showing the designated safe-welding areas.


Sec. 250.110  What must I include in my welding plan?

    You must include all of the following in the Welding Plan that you 
prepare under Sec. 250.109:
    (a) Standards or requirements for welders;
    (b) How you will ensure that only qualified personnel weld;
    (c) Practices and procedures for safe welding that address:
    (1) Welding in designated safe areas;
    (2) Welding in undesignated areas, including wellbay;
    (3) Fire watches;
    (4) Maintenance of welding equipment; and
    (5) Plans showing all designated safe-welding areas.
    (d) How you will prevent spark-producing activities (i.e., 
grinding, abrasive blasting/cutting and arc-welding) in hazardous 
locations.

[[Page 72781]]

Sec. 250.111  Who oversees operations under my welding plan?

    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.


Sec. 250.112  What standards must my welding equipment meet?

    Your welding equipment must meet the following requirements:
    (a) All engine-driven welding equipment must be equipped with spark 
arrestors and drip pans;
    (b) Welding leads must be completely insulated and in good 
condition;
    (c) Hoses must be leak-free and equipped with proper fittings, 
gauges, and regulators; and
    (d) Oxygen and fuel gas bottles must be secured in a safe place.


Sec. 250.113  What procedures must I follow when welding?

    (a) Before you weld, you must move any equipment containing 
hydrocarbons or other flammable substances at least 35 feet 
horizontally from the welding area. You must move similar equipment 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.
    (b) 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.
    (c) If you cannot weld in one of the designated safe-welding areas 
that you listed in your safe welding plan, you must meet the following 
requirements:
    (1) You may not begin welding until:
    (i) The welding supervisor or designated person in charge advises 
in writing that it is safe to weld.
    (ii) You and the designated person in charge inspect the work area 
and areas below it for potential fire and explosion hazards.
    (2) During welding, the person in charge must designate one or more 
persons as a fire watch. The fire watch must:
    (i) Have no other duties while actual welding is in progress;
    (ii) Have usable firefighting equipment;
    (iii) Remain on duty for 30 minutes after welding activities end; 
and
    (iv) Maintain a continuous surveillance with a portable gas 
detector during the welding and burning operation if welding occurs in 
an area not equipped with a 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 within 10 feet of a wellbay unless you have 
shut in all producing wells in that wellbay.
    (5) You may not weld within 10 feet of a production area, unless 
you have shut in that production area.
    (6) You may not weld while you drill, complete, workover, or 
conduct wireline operations unless:
    (i) The fluids in the well (being drilled, completed, worked over, 
or having wireline operations conducted) are noncombustible; and
    (ii) You have precluded the entry of formation hydrocarbons into 
the wellbore by either mechanical means or a positive overbalance 
toward the formation.


Sec. 250.114  How must I install and operate 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 according to API RP 500, 
Recommended Practice for Classification of Locations for Electrical 
Installations at Petroleum Facilities classified as Class I, Division 1 
and Division 2.
    (b) Employees who maintain your electrical systems must have 
expertise in area classification and the performance, operation and 
hazards of electrical equipment.
    (c) You must install all electrical systems according to 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) On each engine that has an electric ignition system, you must 
use an ignition system designed and maintained to reduce the release of 
electrical energy.


Sec. 250.115  How do I determine well producibility?

    You must follow the procedures in this section to determine well 
producibility if your well is not in the GOM. If your well is in the 
GOM you must follow the procedures in either this section or in 
Sec. 250.116 of this subpart.
    (a) You must write to the Regional Supervisor asking for permission 
to determine producibility.
    (b) You must either:
    (1) Allow the District Supervisor to witness each test that you 
conduct under this section; or
    (2) Receive the District Supervisor's prior approval so that you 
can submit either test data with your affidavit or third party test 
data.
    (c) If the well is an oil well, you must conduct a production test 
that lasts at least 2 hours after flow stabilizes.
    (d) If the well is a gas well, you must conduct a deliverability 
test that lasts at least 2 hours after flow stabilizes, or a four-point 
back pressure test.


Sec. 250.116  How do I determine producibility if my well is in the 
Gulf of Mexico?

    If your well is in the GOM, you must follow either the procedures 
in Sec. 250.115 of this subpart or the procedures in this section to 
determine producibility.
    (a) You must write to the Regional Supervisor asking for permission 
to determine producibility.
    (b) You must provide or make available to the Regional Supervisor, 
as requested, the following log, core, analyses, and test criteria that 
MMS will consider collectively:
    (1) A log showing sufficient porosity in the producible section.
    (2) Sidewall cores and core analyses that show that the section is 
capable of producing oil or gas.
    (3) Wireline formation test and/or mud-logging analyses that show 
that the section is capable of producing oil or gas.
    (4) A resistivity or induction electric log of the well showing a 
minimum of 15 feet (true vertical thickness except for horizontal 
wells) of producible sand in one section.
    (c) No section that you count as producible under paragraph (b)(4) 
of this section may include any interval that appears to be water 
saturated.
    (d) Each section you count as producible under paragraph (b)(4) of 
this section must exhibit:
    (1) A minimum true resistivity ratio of the producible section to 
the nearest clean or water-bearing sand of at least 5:1; and
    (2) One of the following:
    (i) Electrical spontaneous potential exceeding 20-negative 
millivolts beyond the shale baseline; or
    (ii) Gamma ray log deflection of at least 70 percent of the maximum 
gamma ray deflection in the nearest clean

[[Page 72782]]

water-bearing sand--if mud conditions prevent a 20-negative millivolt 
reading beyond the shale baseline.


Sec. 250.117  How does a determination of well producibility affect 
royalty status?

    A determination of well producibility invokes minimum royalty 
status on the lease as provided in 30 CFR 202.53.


Sec. 250.118  Will MMS approve gas injection?

    The Regional Supervisor may authorize you to inject gas on the OCS, 
on and off-lease, to promote conservation of natural resources and to 
prevent waste.
    (a) To receive MMS approval for injection, you must:
    (1) Show that the injection will not result in undue interference 
with operations under existing leases; and
    (2) Submit a written application to the Regional Supervisor for 
injection of gas.
    (b) The Regional Supervisor will approve gas injection applications 
that:
    (1) Enhance recovery;
    (2) Prevent flaring of casinghead gas; or
    (3) Implement other conservation measures approved by the Regional 
Supervisor.


Sec. 250.119  Will MMS approve subsurface gas storage?

    The Regional Supervisor may authorize subsurface storage of gas on 
the OCS, on and off-lease, for later commercial benefit. To receive MMS 
approval you must:
    (a) Show that the subsurface storage of gas will not result in 
undue interference with operations under existing leases; and
    (b) Sign a storage agreement that includes the required payment of 
a storage fee or rental.


Sec. 250.120  How does injecting, storing, or treating gas affect my 
royalty payments?

    (a) If you produce gas from an OCS lease and inject it into a 
reservoir on the lease or unit for the purposes cited in 
Sec. 250.118(b), you are not required to pay royalties until you remove 
or sell the gas from the reservoir.
    (b) If you produce gas from an OCS lease and store it according to 
Sec. 250.119, you must pay royalty before injecting it into the storage 
reservoir.
    (c) 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.


Sec. 250.121  What happens when the reservoir contains both original 
gas in place and injected gas?

    If the reservoir contains both original gas in place and injected 
gas, when you produce gas from the reservoir you must use an MMS-
approved formula to determine the amounts of injected or stored gas and 
gas original to the reservoir.


Sec. 250.122  What effect does subsurface storage have on the lease 
term?

    If you use a lease area for subsurface storage of gas, it does not 
affect the continuance or expiration of the lease.


Sec. 250.123  Will MMS allow gas storage on unleased lands?

    You may not store gas on unleased lands unless the Regional 
Supervisor approves a right-of-use and easement for that purpose, under 
Secs. 250.160 through 250.166 of this subpart.


Sec. 250.124  Will MMS approve gas injection into the cap rock 
containing a sulphur deposit?

    To receive the Regional Supervisor's approval to inject gas into 
the cap rock of a salt dome containing a sulphur deposit, you must show 
that the injection:
    (a) Is necessary to recover oil and gas contained in the cap rock; 
and
    (b) Will not significantly increase potential hazards to present or 
future sulphur mining operations.

Inspection of Operations


Sec. 250.130  Why does MMS conduct inspections?

    MMS will inspect OCS facilities and any vessels engaged in drilling 
or other downhole operations. These include facilities under 
jurisdiction of other Federal agencies that we inspect by agreement. We 
conduct these inspections:
    (a) To verify that you are conducting operations according to the 
Act, the regulations, the lease, right-of-way, the approved Exploration 
Plan or Development and Production Plans; or right-of-use and easement, 
and other applicable laws and regulations; and
    (b) To determine whether equipment designed to prevent or 
ameliorate blowouts, fires, spillages, or other major accidents has 
been installed and is operating properly according to the requirements 
of this part.


Sec. 250.131  Will MMS notify me before conducting an inspection?

    MMS conducts both scheduled and unscheduled inspections.


Sec. 250.132  What must I do when MMS conducts an inspection?

    (a) When MMS conducts an inspection, you must provide:
    (1) Access to all platforms, artificial islands, and other 
installations on your leases or associated with your lease, right-of-
use and easement, or right-of-way; and
    (2) Helicopter landing sites and refueling facilities for any 
helicopters we use to regulate offshore operations.
    (b) You must make the following available for us to inspect:
    (1) The area covered under a lease, right-of-use and 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.


Sec. 250.133  Will MMS reimburse me for my expenses related to 
inspections?

    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 us your 
reimbursement request within 90 days of the inspection.

Disqualification


Sec. 250.135  What will MMS do if my operating performance is 
unacceptable?

    If your operating performance is unacceptable, MMS may disapprove 
or revoke your designation as operator on a single facility or multiple 
facilities. We will give you adequate notice and opportunity for a 
review by MMS officials before imposing a disqualification.


Sec. 250.136  How will MMS determine if my operating performance is 
unacceptable?

    In determining if your operating performance is unacceptable, MMS 
will consider, individually or collectively:
    (a) Accidents and their nature;
    (b) Pollution events, environmental damages and their nature;
    (c) Incidents of noncompliance;
    (d) Civil penalties;
    (e) Failure to adhere to OCS lease obligations; or
    (f) Any other relevant factors.

Special Types of Approvals


Sec. 250.140  When will I receive an oral approval?

    When you apply for MMS approval of any activity, we normally give 
you a written decision. The following table shows circumstances under 
which we may give an oral approval.

[[Page 72783]]



----------------------------------------------------------------------------------------------------------------
                When you                             We may                               And
----------------------------------------------------------------------------------------------------------------
(a) Request approval orally.............  Give you an oral approval.   You must then confirm the oral request by
                                                                        sending us a written request within 72
                                                                        hours.
(b) Request approval in writing.........  Give you an oral approval    We will send you a written approval
                                           if quick action is needed.   afterward. It will include any
                                                                        conditions that we place on the oral
                                                                        approval.
(c) Request approval orally for gas       Give you an oral approval.   You don't have to follow up with a
 flaring.                                                               written request unless the Regional
                                                                        Supervisor requires it. When you stop
                                                                        the approved flaring, you must promptly
                                                                        send a letter summarizing the location,
                                                                        dates and hours, and volumes of liquid
                                                                        hydrocarbons produced and gas flared by
                                                                        the approved flaring. (See 30 CFR 250,
                                                                        subpart K.)
----------------------------------------------------------------------------------------------------------------

Sec. 250.141  May I ever use alternate procedures or equipment?

    You may use alternate procedures or equipment after receiving 
approval as described in this section.
    (a) Any alternate procedures or equipment that you propose to use 
must provide a level of safety and environmental protection that equals 
or surpasses current MMS requirements.
    (b) You must receive the District or Regional Supervisor's written 
approval before you can use alternate procedures or equipment.
    (c) To receive approval, you must either submit information or give 
an oral presentation to the appropriate Supervisor. Your presentation 
must describe the site-specific application(s), performance 
characteristics, and safety features of the proposed procedure or 
equipment.


Sec. 250.142  How do I receive approval to use alternate procedures or 
equipment for departures?

    We may approve departures to the operating requirements. You may 
apply for a departure by writing to the Regional Supervisor.


Sec. 250.143  How do I designate an operator?

    (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, each lessee must submit the Designation of Operator form and 
the Regional Supervisor must approve the designation before the 
designated operator may begin operations on the leasehold.
    (b) 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.
    (c) You, or your designated operator, must immediately provide the 
Regional Supervisor a written notification of any change of address.


Sec. 250.144  How do I designate a new operator when a designation of 
operator terminates?

    (a) When a Designation of Operator terminates, the Regional 
Supervisor must approve a new designated operator before you may 
continue operations. Each lessee must submit a new executed Designation 
of Operator form.
    (b) 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.


Sec. 250.145  How do I designate an agent or a local agent?

    (a) You or your designated operator may designate for the Regional 
Supervisor's approval, or the Regional Director may require you to 
designate an agent empowered to fulfill your obligations under the Act, 
the lease, or the regulations in this part.
    (b) You or your designated operator may designate for the Regional 
Supervisor's approval a local agent empowered to receive notices and 
submit requests, applications, notices, or supplemental information.


Sec. 250.146  Who is responsible for fulfilling leasehold obligations?

    (a) 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 30 CFR parts 250 through 282, unless otherwise 
provided in these regulations.
    (b) If your designated operator fails to fulfill any of your 
obligations under 30 CFR parts 250 through 282, the Regional Supervisor 
may require you or any or all of your co-lessees to fulfill those 
obligations or other operational obligations under the Act, the lease, 
or the regulations.
    (c) Whenever the regulations in 30 CFR parts 250 through 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 complying with the regulation.

Naming and Identifying Facilities and Wells (Does Not Include 
MODUs)


Sec. 250.150  How do I name facilities and wells in the Gulf of Mexico 
Region?

    (a) Assign each facility a letter designation except for those 
types of facilities identified in paragraph (c)(1) of this section. For 
example, A, B, CA, or CB.
    (1) After a facility is installed, rename each predrilled well that 
was assigned only a number and was suspended temporarily at the mudline 
or at the surface. Use a letter and number designation. The letter used 
must be the same as that of the production facility, and the number 
used must correspond to the order in which the well was completed, not 
necessarily the number assigned when it was drilled. For example, the 
first well completed for production on Facility A would be renamed Well 
A-1, the second would be Well A-2, and so on; and
    (2) When you have more than one facility on a block, each facility 
installed, and not bridge-connected to another facility, must be named 
using a different letter in sequential order. For example, EC 222A, EC 
222B, EC 222C.
    (3) When you have more than one facility on multiple blocks in a 
local area being co-developed, each facility installed and not 
connected with a walkway to another facility should be named using a 
different letter in sequential order with the block number 
corresponding to the block on which the platform is located. For 
example, EC 221A, EC 222B and EC 223C.
    (b) In naming multiple well caissons, you must assign a letter 
designation.
    (c) In naming single well caissons, you must use certain criteria 
as follows:
    (1) For single well caissons not attached to a facility with a 
walkway, use the well designation. For example, Well No. 1;
    (2) For single well caissons attached to a facility with a walkway, 
use the same designation as the facility. For example, rename Well 
No.10 as A-10; and
    (3) For single well caissons with production equipment, use a 
letter designation for the facility name and a

[[Page 72784]]

letter plus number designation for the well. For example, the Well No. 
1 caisson would be designated as Facility A, and the well would be Well 
A-1.


Sec. 250.151  How do I name facilities in the Pacific Region?

    The operator assigns a name to the facility.


Sec. 250.152  How do I name facilities in the Alaska Region?

    Facilities will be named and identified according to the Regional 
Director's directions.


Sec. 250.153  Do I have to rename an existing facility or well?

    You do not have to rename facilities installed and wells drilled 
before January 27, 2000, unless the Regional Director requires it.


Sec. 250.154  What identification signs must I display?

    (a) You must identify all facilities, artificial islands, and 
mobile offshore drilling units with a sign maintained in a legible 
condition.
    (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 unless noted on the top 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 facility 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 offshore 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, downhole splitter wells, 
and multilateral wells, identify each completion in addition to the 
well name and lease number individually on the well flowline at the 
wellhead; and
    (3) For subsea wells that flow individually into separate 
pipelines, affix the required sign on the pipeline or surface flowline 
dedicated to that subsea well at a convenient location on the receiving 
platform. For multiple subsea wells that flow into a common pipeline or 
pipelines, no sign is required.

Right-of-use and Easement


Sec. 250.160  When will MMS grant me a right-of-use and easement, and 
what requirements must I meet?

    MMS may grant you a right-of-use and easement on leased and 
unleased lands on the OCS, if you meet these requirements:
    (a) You must need the right-of-use and easement to construct and 
maintain platforms, artificial islands, and installations and other 
devices at an OCS site other than an OCS lease you own, that are:
    (1) Permanently or temporarily attached to the seabed; and
    (2) Used for conducting exploration, development, and production 
activities or other operations on or off lease; or
    (3) Used for other purposes approved by MMS.
    (b) You must exercise the right-of-use and easement according to 
the regulations of this part;
    (c) You must meet the requirements at 30 CFR 256.35 (Qualification 
of lessees); establish a regional Company File as required by MMS; and 
must meet bonding requirements;
    (d) 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
    (e) You must receive MMS approval for all platforms, artificial 
islands, and installations and other devices permanently or temporarily 
attached to the seabed.


Sec. 250.161  What else must I submit with my application?

    With your application, you must describe the proposed use giving:
    (a) Details of the proposed uses and activities including access 
needs and special rights of use that you may need;
    (b) A description of all facilities for which you are seeking 
authorization;
    (c) A map or plat describing primary and alternate project 
locations; and
    (d) A schedule for constructing any new facilities, drilling or 
completing any wells, anticipated production rates, and productive life 
of existing production facilities.


Sec. 250.162  May I continue my right-of-use and easement after the 
termination of any lease on which it is situated?

    If your right-of-use and easement is on a lease, you may continue 
to exercise the right-of-use and easement 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 recognize the right-of-use and easement for the 
purpose that the grant specifies.


Sec. 250.163  If I have a State lease, will MMS grant me a right-of-use 
and easement?

    (a) MMS may grant a lessee of a State lease located adjacent to or 
accessible from the OCS a right-of-use and easement on the OCS.
    (b) 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 or accessible State lease and for other operations related to 
these activities.


Sec. 250.164  If I have a State lease, what conditions apply for a 
right-of-use and easement?

    (a) A right-of-use and easement granted under the heading of 
``Right-of-use and easement'' in this subpart is subject to MMS 
regulations, 30 CFR parts 250 through 282, and any terms and conditions 
that the Regional Director prescribes.
    (b) 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.


Sec. 250.165  If I have a State lease, what fees do I have to pay for a 
right-of-use and easement?

    When you apply for a right-of-use and easement, you must pay:
    (a) A nonrefundable filing fee as specified in Sec. 250.1010(a); 
and (b) The first year's rental as specified in Sec. 250.1009(c)(2).


Sec. 250.166  If I have a State lease, what surety bond must I have for 
a right-of-use and easement?

    (a) Before MMS issues you a right-of-use and easement on the OCS, 
you must furnish the Regional Director a surety bond for $500,000.
    (b) The Regional Director may require additional security from you 
(i.e., security above the prescribed $500,000) to cover additional 
costs and liabilities

[[Page 72785]]

for regulatory compliance. This additional surety:
    (1) Must be in the form of a supplemental bond or bonds meeting the 
requirements of Sec. 256.54 (General requirements for bonds) or an 
increase in the coverage of an existing surety bond.
    (2) 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. 250.168  May 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 or unit area.
    (b) Depending on the nature of the suspended activity, suspensions 
are labeled either Suspensions of Operations (SOO) or Suspensions of 
Production (SOP).


Sec. 250.169  What effect does suspension have on my lease?

    (a) A suspension may extend the term of a lease (see 
Sec. 250.180(b)). The extension is equal to the length of time the 
suspension is in effect, except as provided in paragraph (b) of this 
section.
    (b) A Directed Suspension does not extend the term of a lease 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 statutes and regulations.


Sec. 250.170  How long does a suspension last?

    (a) MMS may issue suspensions for up to 5 years per suspension. The 
Regional Supervisor will set the length of the suspension based on the 
conditions of the individual case involved. MMS may grant consecutive 
suspension periods.
    (b) An SOO ends automatically when the suspended operation 
commences.
    (c) An SOP ends automatically when production begins.
    (d) A Directed Suspension normally ends as specified in the letter 
directing the suspension.
    (e) 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.


Sec. 250.171  How do I request a suspension?

    You must submit your request for a suspension to the Regional 
Supervisor, and MMS must receive the request before the end of the 
lease term (i.e., end of primary term, end of the 180-day period 
following the last leaseholding operation, and end of a current 
suspension).
    (a) The justification for the suspension including the length of 
suspension requested;
    (b) A reasonable schedule of work leading to the commencement or 
restoration of the suspended activity;
    (c) A statement that a well has been drilled on the lease and 
determined to be producible according to Secs. 250.115, 250.116, or 
250.1603 (SOP only); and
    (d) A commitment to production (SOP only).


Sec. 250.172  When may the Regional Supervisor grant or direct an SOO 
or SOP?

    The Regional Supervisor may grant or direct an SOO or SOP under any 
of the following circumstances:
    (a) When necessary to comply with judicial decrees prohibiting any 
activities or the permitting of those activities. The effective date of 
the suspension will be the effective date required by the action of the 
court;
    (b) When activities pose a threat of serious, irreparable, or 
immediate harm or damage. This would include a threat 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. 250.177(a).)
    (c) When necessary for the installation of safety or environmental 
protection equipment;
    (d) When necessary to carry out the requirements of NEPA or to 
conduct an environmental analysis; or
    (e) When necessary to allow for inordinate delays encountered in 
obtaining required permits or consents, including administrative or 
judicial challenges or appeals.


Sec. 250.173  When may the Regional Supervisor direct an SOO or SOP?

    The Regional Supervisor may direct a suspension when:
    (a) You failed to comply with an applicable law, regulation, order, 
or provision of a lease or permit; or
    (b) The suspension is in the interest of national security or 
defense.


Sec. 250.174  When may the Regional Supervisor grant or direct an SOP?

    The Regional Supervisor may grant or direct an SOP when the 
suspension is in the national interest, and it is necessary because the 
suspension will meet one of the following criteria:
    (a) It will allow you to properly develop a lease, including time 
to construct and install production facilities;
    (b) It will allow you time to obtain adequate transportation 
facilities;
    (c) It will allow you time to enter a sales contract for oil, gas, 
or sulphur. You must show that you are making an effort to enter into 
the contract(s); or
    (d) It will avoid continued operations that would result in 
premature abandonment of a producing well(s).


Sec. 250.175  When may the Regional Supervisor grant an SOO?

    The Regional Supervisor may grant an SOO when necessary to allow 
you time to begin drilling or other operations when you are prevented 
by reasons beyond your control, such as unexpected weather, unavoidable 
accidents, or drilling rig delays.


Sec. 250.176  Does a suspension affect my royalty payment?

    A directed suspension may affect the payment of rental or royalties 
for the lease as provided in Sec. 218.154.


Sec. 250.177  What additional requirements may the Regional Supervisor 
order for a suspension?

    If MMS grants or directs a suspension under paragraph 
Sec. 250.172(b), the Regional Supervisor may require you to:
    (a) Conduct a site-specific study.
    (1) The Regional Supervisor must approve or prescribe the scope for 
any site-specific study that you perform.
    (2) The study must evaluate the cause of the hazard, the potential 
damage, and the available mitigation measures.
    (3) You must pay for the study unless you request, and the Regional 
Supervisor agrees to arrange, payment by another party.
    (4) You must furnish copies and results of the study to the 
Regional Supervisor.
    (5) MMS will make the results available to other interested parties 
and to the public.
    (6) 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; and
    (ii) To determine any actions that you must take to mitigate or 
avoid any damage to the environment, life, or property.
    (b) Submit a revised Exploration Plan (including any required 
mitigating measures);
    (c) Submit a revised Development and Production Plan (including any 
required mitigating measures); or

[[Page 72786]]

    (d) Submit a revised Development Operations Coordination Document 
according to 30 CFR Part 250, subpart B.

Primary Lease Requirements, Lease Term Extensions, and Lease 
Cancellations


Sec. 250.180  What am I required to do to keep my lease term in effect?

    (a) If your lease is in its primary term:
    (1) You must submit a report to the District Supervisor according 
to paragraphs (h) and (i) of this section whenever production begins 
initially, whenever production ceases during the last 180 days of the 
primary term, and whenever production resumes during the last 180 days 
of the primary term.
    (2) Your lease expires at the end of its primary term unless you 
are conducting operations on your lease (see 30 CFR part 256). For 
purposes of this section, the term operations means, drilling, well-
reworking, or production in paying quantities. The objective of the 
drilling or well-reworking must be to establish production in paying 
quantities on the lease.
    (b) If you stop conducting operations during the last 180 days of 
your primary lease term, your lease will expire unless you either 
resume operations or receive an SOO or an SOP from the Regional 
Supervisor under Secs. 250.172, 250.173, 250.174, or 250.175 before the 
end of the 180th day after you stop operations.
    (c) If you extend your lease term under paragraph (b) of this 
section, you must pay rental or minimum royalty, as appropriate, for 
each year or part of the year during which your lease continues in 
force beyond the end of the primary lease term.
    (d) If you stop conducting operations on a lease that has continued 
beyond its primary term, your lease will expire unless you resume 
operations or receive an SOO or an SOP from the Regional Supervisor 
under Sec. 250.172, 250.173, 250.174, or 250.175 before the end of the 
180th day after you stop operations.
    (e) 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 it conserves 
resources, prevents waste, or protects correlative rights.
    (f) When you begin conducting operations on a lease that has 
continued beyond its primary term, you must immediately notify the 
District Supervisor either orally or by fax or e-mail and follow up 
with a written report according to paragraph (g) of this section.
    (g) If your lease is continued beyond its primary term, you must 
submit a report to the District Supervisor under paragraphs (h) and (i) 
of this section whenever production begins initially, whenever 
production ceases, whenever production resumes before the end of the 
180-day period after having ceased, or whenever drilling or well-
reworking operations begin before the end of the 180-day period.
    (h) The reports required by paragraphs (a) and (g) of this section 
must contain:
    (1) Name of lessee or operator;
    (2) The well number, lease number, area, and block;
    (3) As appropriate, the unit agreement name and number; and
    (4) A description of the operation and pertinent dates.
    (i) You must submit the reports required by paragraphs (a) and (g) 
of this section within the following timeframes:
    (1) Initialization of production--within 5 days of initial 
production.
    (2) Cessation of production--within 15 days after the first full 
month of zero production.
    (3) Resumption of production--within 5 days of resuming production 
after ceasing production under paragraph (i)(2) of this section.
    (4) Drilling or well reworking operations--within 5 days of 
beginning and completing the leaseholding operations.
    (j) For leases continued beyond the primary term, you must 
immediately report to the District Supervisor if operations do not 
begin before the end of the 180-day period.


Sec. 250.181  When may the Secretary cancel my lease and when am I 
compensated for cancellation?

    If the Secretary cancels your lease under this part or under 30 CFR 
part 256, you are entitled to compensation under Sec. 250.184. Section 
250.185 states conditions under which you will receive no compensation. 
The Secretary may cancel a lease after notice and opportunity for a 
hearing when:
    (a) Continued activity on the lease would probably cause harm or 
damage to life (including fish and other aquatic life), property, any 
mineral deposits (in areas leased or not leased), or the marine, 
coastal, or human environment;
    (b) The threat of harm or damage will not disappear or decrease to 
an acceptable extent within a reasonable period of time;
    (c) The advantages of cancellation outweigh the advantages of 
continuing the lease in force; and (d) A suspension has been in effect 
for at least 5 years or you request termination of the suspension and 
lease cancellation.


Sec. 250.182  When may the Secretary cancel a lease at the exploration 
stage?

    MMS may not approve an exploration plan (EP) under 30 CFR part 250, 
subpart B, 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, 
and that the proposed activity cannot be modified to avoid the 
condition(s). The Secretary may cancel the lease if:
    (a) The primary lease term has not expired (or if the lease term 
has been extended) and exploration has been prohibited for 5 years 
following the disapproval; or
    (b) You request cancellation at an earlier time.


Sec. 250.183  When may MMS or the Secretary extend or cancel a lease at 
the development and production stage?

    (a) MMS may extend your lease if you submit a DPP and the Regional 
Supervisor disapproves the plan according to the regulations in 30 CFR 
part 250, subpart B. Following the disapproval:
    (1) MMS will allow you to hold the lease for 5 years, or less time 
at your request;
    (2) Any time within 5 years after the disapproval, you may reapply 
for approval of the same or a modified plan; and
    (3) The Regional Supervisor will approve, disapprove, or require 
modification of the plan under 30 CFR part 250, subpart B.
    (b) 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:
    (1) When the 5-year period in paragraph (a)(1) of this section 
expires; or
    (2) If you request cancellation at an earlier time.


Sec. 250.184  What is the amount of compensation for lease 
cancellation?

    When the Secretary cancels a lease under Secs. 250.181, 250.182 or 
250.183 of this subpart, 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 (a) or (b) of this 
section:

[[Page 72787]]

    (a) The fair value of the cancelled rights as of the date of 
cancellation, taking into account both:
    (1) Anticipated revenues from the lease; and
    (2) Costs reasonably anticipated on the lease, including:
    (i) Costs of compliance with all applicable regulations and 
operating orders; and
    (ii) Liability for cleanup costs or damages, or both, in the case 
of an oil spill.
    (b) The excess, if any, over your revenues from the lease (plus 
interest thereon from the date of receipt to date of reimbursement) of:
    (1) All consideration paid for the lease (plus interest from the 
date of payment to the date of reimbursement); and
    (2) All your direct expenditures (plus interest from the date of 
payment to the date of reimbursement):
    (i) After the issue date of the lease; and
    (ii) For exploration or development, or both.
    (c) Compensation for leases issued before September 18, 1978, will 
be equal to the amount specified in paragraph (a) of this section.


Sec. 250.185  When is there no compensation for a lease cancellation?

    You will not receive compensation from MMS for lease cancellation 
if:
    (a) 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;
    (b) You do not submit a DPP under 30 CFR part 250, subpart B or do 
not comply with the approved DPP;
    (c) 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 30 days after MMS mails you a notice by overnight 
mail;
    (d) The Regional Supervisor disapproves a DPP because you fail to 
comply with the requirements of applicable Federal law; or
    (e) The Secretary forfeits and cancels a producing lease under 
section 5(d) of the Act (43 U.S.C. 1334(d)).

Information and Reporting Requirements


Sec. 250.190  What reporting information and report forms must I 
submit?

    (a) You must submit information and reports as MMS requires.
    (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 that 
are equal in size to MMS's forms. You must arrange the data on your 
form identical to the MMS form. If you generate your own form and it 
omits terms and conditions contained on the official MMS form, we will 
consider it to contain the omitted terms and conditions.
    (3) You may submit digital data when the Region/District is 
equipped to accept it.
    (b) When MMS specifies, you must include, for public information, 
an additional copy of such reports.
    (1) You must mark it Public Information.
    (2) You must include all required information, except information 
exempt from public disclosure under Sec. 250.196 or otherwise exempt 
from public disclosure under law or regulation.


Sec. 250.191  What accident reports must I submit?

    (a) You must notify the District Supervisor of all serious 
accidents, any death or serious injury, and all fires, explosions, and 
blowouts connected with any activities or operations on the lease. You 
must report all spills of oil or other liquid pollutants according to 
30 CFR part 254.
    (b) If you hold an easement, right-of-way, or other permit, and 
your operation is related to the exercise of the easement, right-of-
way, or other permit, you must comply with paragraph (a) by notifying 
and reporting to the Regional Supervisor any accidents occurring on the 
area covered by the easement, right-of-way, or other permit.
    (c) Any investigation that the Secretary or the U.S. Coast Guard 
(USCG) conducts under the authority of sections 22(d)(1) and (2) of the 
Act (43 U.S.C. 1348 d(1) and (2)), is a fact-finding proceeding with no 
civil or criminal issues and no adverse parties. The purpose of the 
investigation is to prepare a public report that determines the cause 
or causes of the accident. The investigation 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:
    (1) 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.
    (2) Only panel members, panel's legal advisors, and any experts the 
panel deems necessary may address questions to any person giving 
testimony.
    (3) The chairperson may issue subpoenas to persons to appear and 
provide testimony and/or documents 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.
    (4) Any person giving testimony may 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 the U.S. 
District Courts allow.


Sec. 250.192  What evacuation statistics must I submit?

    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. 
Statistics include facilities and rigs evacuated and amount of 
production shut-in for gas and oil. You must:
    (a) Submit the statistics by fax or e-mail as soon as possible when 
evacuation occurs;
    (b) Submit statistics on a daily basis by 11:00 a.m., as conditions 
allow, during the period of shut-in and evacuation;
    (c) Inform MMS when you resume production; and
    (d) Submit statistics either by MMS district or the total figures 
for your operations in the Region.


Sec. 250.193  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 after making an initial determination of the validity, MMS 
will investigate according to MMS procedures.


Sec. 250.194  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. If the 
archaeological report suggests that an archaeological resource may be 
present, you must either:

[[Page 72788]]

    (1) Locate the site of any operation so as not to adversely affect 
the area where the archaeological resource may be; or
    (2) 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.
    (b) 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.
    (c) 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.


Sec. 250.195  Reimbursements for reproduction and processing costs.

    (a) MMS will reimburse you for costs of reproducing data and 
information that the Regional Director requests if:
    (1) You deliver geophysical and geological (G&G) data and 
information to MMS for the Regional Director to inspect or select and 
retain;
    (2) MMS receives your request for reimbursement and the Regional 
Director determines that the requested reimbursement is proper; and
    (3) The cost is at your lowest rate or at the lowest commercial 
rate established in the area, whichever is less.
    (b) MMS will reimburse you for the costs of processing geophysical 
information (that does not include cost of data acquisition):
    (1) If, at the request of the Regional Director, you processed the 
geophysical data or information in a form or manner other than that 
used in the normal conduct of business; or
    (2) If you collected the information under a permit that MMS issued 
to you before October 1, 1985, and the Regional Director requests and 
retains the information.
    (c) When you request reimbursement, you must identify reproduction 
and processing costs separately from acquisition costs.
    (d) MMS will not reimburse you for data acquisition costs or for 
the costs of analyzing or processing geological information or 
interpreting geological or geophysical information.


Sec. 250.196  Data and information to be made available to the public.

    MMS will protect data and information you submit under this part, 
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 data and information you submit on MMS forms 
according to the following table:

----------------------------------------------------------------------------------------------------------------
   Data and information that you
           submit on form            In the following items     Will be released                 And
----------------------------------------------------------------------------------------------------------------
(1) MMS-123, Application for Permit  All entries except      At any time...........  The data and information in
 to Drill.                            items 17, 24, and 25.                           items 17, 24, and 25 will
                                                                                      be released according to
                                                                                      the table in paragraph (b)
                                                                                      of this section or when
                                                                                      the well goes on
                                                                                      production, whichever is
                                                                                      earlier.
(2) MMS-124, Sundry Notices and      All entries except      At any time...........  The data and information in
 Reports on Wells.                    item 36.                                        item 36 will be released
                                                                                      according to the table in
                                                                                      paragraph (b) or when the
                                                                                      well goes on production,
                                                                                      whichever is earlier.
(3) MMS-125, Well Summary Report...  All entries except      At any time...........  The data and information in
                                      items 17, 24, 34, 37,                           the excepted items will be
                                      and 46 through 87.                              released according to the
                                                                                      table in paragraph (b) of
                                                                                      this section or when the
                                                                                      well goes on production,
                                                                                      whichever is earlier.
                                                                                      However, items 78 through
                                                                                      87 will not be released
                                                                                      when the well goes on
                                                                                      production unless the
                                                                                      period of time in the
                                                                                      table in paragraph (b) has
                                                                                      expired
(4) MMS-126, Well Potential Test     All entries except      When the well goes on   The data and information in
 Report.                              item 101.               production.             item 101 will be released
                                                                                      2 years after you submit
                                                                                      it.
(5) MMS-127, Request for Reservoir   All entries except      At any time...........  The data and information in
 Maximum Efficient Rate (MER).        items 124 through 168.                          items 124 through 168 will
                                                                                      be released according to
                                                                                      the time periods in the
                                                                                      table in paragraph (b) of
                                                                                      this section.
(6) MMS-128, Semiannual Well Test    All entries...........  At any time...........
 Report.
----------------------------------------------------------------------------------------------------------------

    (b) MMS will disclose lease data and information that you submit, 
but that are not usually submitted on MMS forms, according to the 
following table:

----------------------------------------------------------------------------------------------------------------
                 If                     MMS will release          At this time            Special provisions
----------------------------------------------------------------------------------------------------------------
(1) The Director determines that     Geophysical data,       At any time...........  Data and information will
 data and information are needed to   Geological data,                                be shown only to persons
 unitize operations on two or more    Interpreted (G&G)                               with an interest in the
 leases, to determine whether a       information,                                    issue.
 reservoir is competitive to ensure   Processed G&G
 proper plans of development for      information, Analyzed
 competitive reservoirs, or to        geological
 promote operational safety or        information.
 protect the environment.

[[Page 72789]]

 
(2) The Director determines that     Geophysical data,       At any time...........  MMS will release data and
 data and information are needed      Geological data                                 information only if
 for specific scientific or           Interpreted G&G                                 release would further the
 research purposes for the            information,                                    national interest without
 Government.                          Processed G&G                                   unduly damaging the
                                      information, Analyzed                           competitive position of
                                      geological                                      the lessee.
                                      information.
(3) Data or information is           Geophysical data,       60 days after MMS       MMS will release the data
 collected with high-resolution       Geological data,        receives the data or    and information earlier
 systems (e.g., bathymetry, side-     Interpreted G&G         information, if the     than 60 days if the
 scan sonar, subbottom profiler,      information,            Regional Supervisor     Regional Supervisor
 and magnetometer) to comply with     Processed geological    deems it necessary.     determines it is needed by
 safety or environmental protection   information, Analyzed                           affected States to make
 requirements.                        geological                                      decisions under subpart B.
                                      information.                                    The Regional Supervisor
                                                                                      will reconsider earlier
                                                                                      release if you satisfy him/
                                                                                      her that it would unduly
                                                                                      damage your competitive
                                                                                      position.
(4) Your lease is no longer in       Geophysical data,       When your lease         This release time applies
 effect.                              Geological data,        terminates.             only if the provisions in
                                      Processed G&G                                   this table governing high-
                                      information                                     resolution systems and the
                                      Interpreted G&G                                 provisions in Sec.  252.7
                                      information, Analyzed                           do not apply. The release
                                      geological                                      time applies to the
                                      information.                                    geophysical data and
                                                                                      information only if
                                                                                      acquired postlease for a
                                                                                      lessee's exclusive use.
(5) Your lease is still in effect..  Geophysical data        10 years after you      This release time applies
                                      Processed geophysical   submit the data and     only if the provisions in
                                      information,            information.            this table governing high-
                                      Interpreted G&G                                 resolution systems and the
                                      information.                                    provisions in Sec.  252.7
                                                                                      do not apply. This release
                                                                                      time applies to the
                                                                                      geophysical data and
                                                                                      information only if
                                                                                      acquired postlease for a
                                                                                      lessee's exclusive use.
(6) Your lease is still in effect    Geological data,        2 years after the       These release times apply
 and within the primary term          Analyzed geological     required submittal      only if the provisions in
 specified in the lease.              information.            date or 60 days after   this table governing high-
                                                              a lease sale if any     resolution systems and the
                                                              portion of an offered   provisions in Sec.  252.7
                                                              lease is within 50      do not apply. If the
                                                              miles of a well,        primary term specified in
                                                              whichever is later.     the lease is extended
                                                                                      under the heading of
                                                                                      ``Suspensions'' in this
                                                                                      subpart, the extension
                                                                                      applies to this provision.
(7) Your lease is in effect and      Geological data,        2 years after the       None.
 beyond the primary term specified    Analyzed geological     required submittal
 in the lease.                        information.            date.
(8) Data is released to the owner    Directional survey      If the lessee from      None.
 of an adjacent lease under subpart   data.                   whose lease the
 D of part 250.                                               directional survey
                                                              was taken consents.
(9) Data and information are         Any data or             At any time...........  None.
 obtained from beneath unleased       information obtained.
 land as a result of a well
 deviation that has not been
 approved by the Regional or
 District Supervisor.
(10) Data and information acquired   Geophysical data,       Geophysical data: 50    None.
 by a permit under part 251 is        Processed geophysical   years, Geophysical
 submitted by a lessee under part     information,            information: 25 years
 250.                                 Interpreted             after you submit it.
                                      geophysical
                                      information.
----------------------------------------------------------------------------------------------------------------

References


Sec. 250.198  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 according to 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) MMS may make the rule amending the document effective without 
prior opportunity for public comment when MMS determines:
    (i) 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; and
    (ii) MMS meets the requirements for making a rule immediately 
effective under 5 U.S.C. 553.
    (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) Under Secs. 250.141 and 250.142, you may comply with a later 
edition of a specific document incorporated by reference, provided:
    (1) You show that complying with the later edition provides a 
degree of protection, safety, or performance equal to or better than 
would be achieved by compliance with the listed edition; and

[[Page 72790]]

    (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, NW, Suite 
700, Washington, DC. 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,        American Petroleum Institute, 1220 L
 Specs, Standards, Manual of       Street, NW, Washington, DC 20005-
 Petroleum Measurement Standards   4070.
 (MPMS) chapters.
ASTM Standards..................  American Society for Testing and
                                   Materials, 100 Barr Harbor Drive,
                                   West Conshohocken, PA 19428-2959.
AWS Codes.......................  American Welding Society, 550 NW,
                                   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. 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
               Title of documents                      reference at
------------------------------------------------------------------------
ACI Standard 318-95, Building Code Requirements   Sec.  250.908(b)(4)(i)
 for Reinforced Concrete, plus Commentary on       , (b)(6)(i), (b)(7),
 Building Code Requirements for Reinforced         (b)(8)(i), (b)(9),
 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 357R-84, Guide for the Design and    Sec.  250.900(g); Sec.
 Construction of Fixed Offshore Concrete            250.908(c)(2),
 Structures, 1984.                                 (c)(3).
AISC Standard Specification for Structural Steel  Sec.  250.907(b)(1)(ii
 Buildings, Allowable Stress Design and Plastic    ), (c)(4)(ii),
 Design, June 1, 1989, with Commentary.            (c)(4)(vii).
ANSI/ASME Boiler and Pressure Vessel Code,        Sec.  250.803(b)(1),
 Section I, Power Boilers, including Appendices,   (b)(1)(i); Sec.
 1995 Edition.                                     250.1629(b)(1),
                                                   (b)(1)(i).
ANSI/ASME Boiler and Pressure Vessel Code,        Sec.  250.803(b)(1),
 Section IV, Heating Boilers including             (b)(1)(i); Sec.
 Nonmandatory Appendices A, B, C, D, E, F, H, I,   250.1629(b)(1),
 and J, and the Guide to Manufacturers Data        (b)(1)(i).
 Report Forms, 1995 Edition.
ANSI/ASME Boiler and Pressure Vessel Code,        Sec.  250.803(b)(1),
 Section VIII, Pressure Vessels, Divisions 1 and   (b)(1)(i); Sec.
 2, including Nonmandatory Appendices, 1995        250.1629(b)(1),
 Edition.                                          (b)(1)(i).
ANSI/ASME B 16.5-1988 (including Errata) and B    Sec.  250.1002(b)(2).
 16.5a-1992 Addenda, Pipe Flanges and Flanged
 Fittings.
ANSI/ASME B 31.8-1995, Gas Transmission and       Sec.  250.1002(a).
 Distribution Piping Systems.
ANSI/ASME SPPE-1-1994 and SPPE-1d-1996 ADDENDA,   Sec.  250.806(a)(2)(i)
 Quality Assurance and Certification of Safety     .
 and Pollution Prevention Equipment Used in
 Offshore Oil and Gas Operations.
ANSI Z88.2-1992, American National Standard for   Sec.  250.417(g)(4)(iv
 Respiratory Protection.                           ), (j)(13)(ii).
API MPMS, Chapter 1, Vocabulary, Second Edition,  Sec.  250.1201.
 July 1994, API Stock No., H01002..
API MPMS, Chapter 2, Tank Calibration, Section    Sec.  250.1202(1)(4).
 2A, Measurement and Calibration of Upright
 Cylindrical Tanks by the Manual Strapping
 Method, First Edition, February 1995, API Stock
 No. H022A1.
API MPMS, Chapter 2, Section 2B, Calibration of   Sec.  250.1202(1)(4).
 Upright Cylindrical Tanks Using the Optical
 Reference Line Method, First Edition, March
 1989, reaffirmed May 1997, API Stock No. H30023.
API MPMS, Chapter 3, Tank Gauging, Section 1A,    Sec.  250.1202(1)(4).
 Standard Practice for the Manual Gauging of
 Petroleum and Petroleum Products, First
 Edition, December 1994, API Stock No. H031A1.
API MPMS, Chapter 3, Section 1B, Standard         Sec.  250.1202(1)(4).
 Practice for Level Measurement of Liquid
 Hydrocarbons in Stationary Tanks by Automatic
 Tank Gauging, First Edition, April 1992,
 reaffirmed January 1997, API Stock No. H30060.
API MPMS, Chapter 4, Proving Systems, Section 1,  Sec.  250.1202(a)(3),
 Introduction, First Edition, July 1988,           (f)(1).
 reaffirmed October 1993, API Stock No. H30081.
API MPMS, Chapter 4, Section 2, Conventional      Sec.  250.1202(a)(3),
 Pipe Provers, First Edition, October 1988,        (f)(1).
 reaffirmed October 1993, API Stock No. H30082.
API MPMS, Chapter 4, Section 3, Small Volume      Sec.  250.1202(a)(3),
 Provers, First Edition, July 1988, reaffirmed     (f)(1).
 October 1993, API Stock No. H30083.
API MPMS, Chapter 4, Section 4, Tank Provers,     Sec.  250.1202(a)(3),
 First Edition, October 1988, reaffirmed October   (f)(1).
 1993, API Stock No. H30084.
API MPMS, Chapter 4, Section 5, Master-Meter      Sec.  250.1202(a)(3),
 Provers, First Edition, October 1988,             (f)(1).
 reaffirmed October 1993, API Stock No. H30085.
API MPMS, Chapter 4, Section 6, Pulse             Sec.  250.1202(a)(3),
 Interpolation, First Edition, July 1988,          (f)(1).
 reaffirmed October 1993, API Stock No. H30086.
API MPMS, Chapter 4, Section 7, Field-Standard    Sec.  250.1202(a)(3),
 Test Measures, First Edition, October 1988,       (f)(1).
 reaffirmed March 1993, API Stock No. H30087.

[[Page 72791]]

 
API MPMS, Chapter 5, Metering, Section 1,         Sec.  250.1202(a)(3).
 General Considerations for Measurement by
 Meters, Third Edition, September 1995, API
 Stock No. H05013.
API MPMS, Chapter 5, Section 2, Measurement of    Sec.  250.1202(a)(3).
 Liquid Hydrocarbons by Displacement Meters,
 Second Edition, November 1987, reaffirmed
 October 1992, API Stock No. H30102.
API MPMS, Chapter 5, Section 3, Measurement of    Sec.  250.1202(a)(3).
 Liquid Hydrocarbons by Turbine Meters, Third
 Edition, September 1995, API Stock No. H05033.
API MPMS, Chapter 5, Section 4, Accessory         Sec.  250.1202(a)(3).
 Equipment for Liquid Meters, Third Edition,
 September 1995, with Errata, March 1996, API
 Stock No. H05043.
API MPMS, Chapter 5, Section 5, Fidelity and      Sec.  250.1202(a)(3).
 Security of Flow Measurement Pulsed-Data
 Transmission Systems, First Edition, June 1982,
 reaffirmed October 1992, API Stock No. H30105.
API MPMS, Chapter 6, Metering Assemblies,         Sec.  250.1202(a)(3).
 Section 1, Lease Automatic Custody Transfer
 (LACT) Systems, Second Edition, May 1991,
 reaffirmed July 1996, API Stock No. H30121.
API MPMS, Chapter 6, Section 6, Pipeline          Sec.  250.1202(a)(3).
 Metering Systems, Second Edition, May 1991,
 reaffirmed July 1996, API Stock No. H30126.
API MPMS, Chapter 6, Section 7, Metering Viscous  Sec.  250.1202(a)(3).
 Hydrocarbons, Second Edition, May 1991, API
 Stock No. H30127.
API MPMS, Chapter 7, Temperature Determination,   Sec.  250.1202(a)(3),
 Section 2, Dynamic Temperature Determination,     (l)(4).
 Second Edition, March 1995, API Stock No.
 H07022.
API MPMS, Chapter 7, Section 3, Static            Sec.  250.1202(a)(3),
 Temperature Determination Using Portable          (l)(4).
 Electronic Thermometers, First Edition, July
 1985, reaffirmed May 1996, API Stock No. H30143.
API MPMS, Chapter 8, Sampling, Section 1,         Sec.  250.1202(b)(4)(i
 Standard Practice for Manual Sampling of          ), (l)(4).
 Petroleum and Petroleum Products, Third
 Edition, October 1995; also available as ANSI/
 ASTM D 4057-88, API Stock No. H30161.
API MPMS, Chapter 8, Section 2, Standard          Sec.  250.1202(a)(3),
 Practice for Automatic Sampling of Liquid         (l)(4).
 Petroleum and Petroleum Products, Second
 Edition, October 1995; also available as ANSI/
 ASTM D 4177, API Stock No. H30162.
API MPMS, Chapter 9, Density Determination,       Sec.  250.1202(a)(3),
 Section 1, Hydrometer Test Method for Density,    (l)(4).
 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.
API MPMS, Chapter 9, Section 2, Pressure          Sec.  250.1202(a)(3),
 Hydrometer Test Method for Density or Relative    (l)(4).
 Density, First Edition, April 1982, reaffirmed
 October 1992, API Stock No. H30182.
API MPMS, Chapter 10, Sediment and Water,         Sec.  250.1202(a)(3),
 Section 1, Determination of Sediment in Crude     (l)(4).
 Oils 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.
API MPMS, Chapter 10, Section 2, Determination    Sec.  250.1202(a)(3),
 of Water in Crude Oil by Distillation Method,     (l)(4).
 First Edition, April 1981, reaffirmed December
 1993; also available as ANSI/ASTM D 4006, API
 Stock No. H30202.
API MPMS, Chapter 10, Section 3, Determination    Sec.  250.1202(a)(3),
 of Water and Sediment in Crude Oil by the         (l)(4).
 Centrifuge Method (Laboratory Procedure), First
 Edition, April 1981, reaffirmed December 1993;
 also available as ANSI/ASTM D 4007, API Stock
 No. H30203.
API MPMS, Chapter 10, Section 4, Determination    Sec.  250.1202(a)(3),
 of Sediment and Water in Crude Oil by the         (l)(4).
 Centrifuge Method (Field Procedure), Second
 Edition, May 1988, reaffirmed May 1998; also
 available as ANSI/ASTM D 96, API Stock No.
 H30204.
API MPMS, Chapter 11.1, Volume Correction         Sec.  250.1202(a)(3),
 Factors, Volume 1, Table 5A--Generalized Crude    (g)(3), (l)(4).
 Oils and JP-4 Correction of Observed 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
 March 1997; also available as ANSI/ASTM D 1250,
 API Stock No. H27000.
API MPMS, Chapter 11.2.1, Compressibility         Sec.  250.1202(a)(3),
 Factors for Hydrocarbons: 0-90 deg. API Gravity   (g)(4).
 Range, First Edition, August 1984, reaffirmed
 May 1996, API Stock No. H27300.
API MPMS, Chapter 11.2.2, Compressibility         Sec.  250.1202(a)(3),
 Factors for Hydrocarbons: 0.350-0.637 Relative    (g)(4).
 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.
API MPMS, Chapter 11, Physical Properties Data,   Sec.  250.1202(a)(3).
 Addendum to Section 2.2, Compressibility
 Factors for Hydrocarbons, Correlation of Vapor
 Pressure for Commercial Natural Gas Liquids,
 First Edition, December 1994, reaffirmed March
 1997; also available as GPA TP-15, API Stock
 No. H27308.
API MPMS, Chapter 11.2.3, Water Calibration of    Sec.  250.1202(f)(1).
 Volumetric Provers, First Edition, August 1984,
 reaffirmed, May 1996, API Stock No. H27310.
API MPMS, Chapter 12, Calculation of Petroleum    Sec.  250.1202(a)(3),
 Quantities, Section 2, Calculation of Petroleum   (g)(1), (g)(2).
 Quantities Using Dynamic 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.
API MPMS, Chapter 14, Natural Gas Fluids          Sec.  250.1203(b)(2).
 Measurement, Section 3, Concentric Square-Edged
 Orifice Meters, Part 1, General Equations and
 Uncertainty Guidelines, Third Edition,
 September 1990, reaffirmed August 1995; also
 available as ANSI/API 2530, Part 1, 1991, API
 Stock No. H30350.
API MPMS, Chapter 14, Section 3, Part 2,          Sec.  250.1203(b)(2)).
 Specification and Installation Requirements,
 Third Edition, February 1991, reaffirmed May
 1996; also available as ANSI/API 2530, Part 2,
 1991, reaffirmed May 1996; API Stock No. H30351.
API MPMS, Chapter 14, Section 3, Part 3, Natural  Sec.  250.1203(b)(2).
 Gas Applications, Third Edition, August 1992,
 also available as ANSI/API 2530, Part 3, API
 Stock No. H30353.
API MPMS, Chapter 14, Section 5, Calculation of   Sec.  250.1203(b)(2).
 Gross Heating Value, Relative Density, and
 Compressibility Factor for Natural Gas Mixtures
 From Compositional Analysis, Revised, 1996;
 also available as ANSI/API MPMS 24.5-1981,
 order from Gas Processors Association, 6526
 East 60th Street, Tulsa, Oklahoma 74145.Sec.
 250.1203(b)(2).API MPMS, Chapter 14, Section 6,
 Continuous Density Measurement, Second Edition,
 April 1991, reaffirmed May 1998, API Stock No.
 H30346.

[[Page 72792]]

 
API MPMS, Chapter 14, Section 8, Liquefied        Sec.  250.1203(b)(2).
 Petroleum Gas Measurement, Second Edition, July
 1997; reaffirmed May 1996, API Stock No. H14082.
API MPMS, Chapter 20, Section 1, Allocation       Sec.  250.1202(k)(1).
 Measurement, First Edition, September 1993, API
 Stock No. H30730.
API MPMS, Chapter 21, Section 1, Electronic Gas   Sec.  250.1203(b)(4).
 Measurement, First Edition, September 1993, API
 Stock No. H30730.
API RP 2A, Recommended Practice for Planning,     Sec.  250.900(g); Sec.
 Designing and Constructing Fixed Offshore          250.912(a).
 Platforms Working Stress Design, Nineteenth
 Edition, August 1, 1991, API Stock No. 811-
 00200.
API RP 2A-WSD, Recommended Practice for           Sec.  250.900(g); Sec.
 Planning, Designing and Constructing Fixed         250.912(a).
 Offshore Platforms-Working Stress Design;
 Twentieth Edition, July 1, 1993, API Stock No.
 G00200.
API RP 2A-WSD, Recommended Practice for           Sec.  250.900(g); Sec.
 Planning, Designing and Constructing Fixed         250.912(a).
 Offshore Platforms-Working Stress Design;
 Twentieth Edition, July 1, 1993, Supplement 1,
 December 1996, Effective Date, February 1,
 1997, API Stock No. G00205.
API RP 2D, Recommended Practice for Operation     Sec.  250.120(c); Sec.
 and Maintenance of Offshore Cranes, Third          250.1605(g).
 Edition, June 1, 1995, API Stock No. G02D03.
API RP 14B, Recommended Practice for Design,      Sec.  250.801(e)(4);
 Installation, Repair and Operation of             Sec.  250.804(a)(1)(i
 Subsurface Safety Valve Systems, Fourth           ).
 Edition, July 1, 1994, with Errata dated June
 1996, API Stock No. G14B04.
API RP 14C, Recommended Practice for Analysis,    Sec.  250.802(b),
 Design, Installation and Testing of Basic         (e)(2); Sec.
 Surface Safety Systems for Offshore Production    250.803(a),
 Platforms, Sixth Edition, March 1998, API Stock   (b)(2)(i), (b)(4),
 No. G14C06.                                       (b)(5)(i), (b)(7),
                                                   (b)(9)(v), (c)(2);
                                                   Sec.  250.804(a),
                                                   (a)(5); Sec.
                                                   250.1002(d); Sec.
                                                   250.1004(b)(9); Sec.
                                                   250.1628(c), (d)(2);
                                                   Sec.  250.1629(b)(2),
                                                   (b)(4)(v); Sec.
                                                   250.1630(a).
API RP 14E, Recommended Practice for Design and   Sec.  250.802(e)(3);
 Installation of Offshore Production Platform      Sec.  250.1628(b)(2),
 Piping Systems, Fifth Edition, October 1, 1991,   (d)(3).
 API Stock No. G07185.
API RP 14F, Recommended Practice for Design and   Sec.  250.114(c); Sec.
 Installation of Electrical Systems for Offshore    250.803(b)(9)(v);
 Production Platforms, Third Edition, September    Sec.  250.1629(b)(4)(
 1, 1991, API Stock No. G07190.                    v).
API RP 14G, Recommended Practice for Fire         Sec.  250.803(b)(8),
 Prevention and Control on Open Type Offshore      (b)(9)(v); Sec.
 Production Platforms, Third Edition, December     250.1629(b)(3),
 1, 1993, API Stock No. G07194.                    (b)(4)(v).
API RP 14H, Recommended Practice for              Sec.  250.802(d).
 Installation, Maintenance and Repair of Surface
 Safety Valves and Underwater Safety Valves
 Offshore, Fourth Edition, July 1, 1994, API
 Stock No. G14H04.
API RP 500, Recommended Practice for              Sec.  250.114(a); Sec.
 Classification of Locations for Electrical         250.802(e)(4)(i);
 Installations at Petroleum Facilities, First      Sec.  250.803(b)(9)(i
 Edition, June 1, 1991, API Stock No. G06005.      ); Sec.
                                                   250.1628(b)(3);
                                                   (d)(4)(i); Sec.
                                                   250.1629(b)(4)(i).
API RP 2556, Recommended Practice for Correcting  Sec.  250.1202(l)(4).
 Gauge Tables for Incrustation, Second Edition,
 August 1993, API Stock No. H25560; also
 available under the umbrella of the MPMS.
API Spec Q1, Specification for Quality Programs,  Sec.  250.806(a)(2)(ii
 Fifth Edition, December 1994, API Stock No.       ).
 GQ1005.
API Spec 6A, Specification for Wellhead and       Sec.  250.806(a)(3);
 Christmas Tree Equipment, Seventeenth Edition,    Sec.  250.1002
 February 1, 1996, API Stock No. G06A17.           (b)(1), (b)(2).
API Spec 6AV1, Specification for Verification     Sec.  250.806(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 Valves    Sec.  250.1002(b)(1).
 (Gate, Plug, Ball, and Check Valves), Twenty-
 first Edition, March 31, 1994, API Stock No.
 G03200.
API Spec 14A, Specification for Subsurface        Sec.  250.806(a)(3).
 Safety Valve Equipment, Ninth Edition, July 1,
 1994, API Stock No. G14A09.
API Standard 2551, Standard Method for            Sec.  250.1202(l)(4).
 Measurement and Calibration of Horizontal
 Tanks, First Edition, 1965, reaffirmed January
 1997; API Stock No. H25510; also available
 under the umbrella of the MPMS.
API Standard 2552, Measurement and Calibration    Sec.  250.1202(l)(4).
 of Spheres and Spheroids, First Edition, 1966,
 reaffirmed January 1997, API Stock No. H25520;
 also available under the umbrella of the MPMS.
API Standard 2555, Method for Liquid Calibration  Sec.  250.1202(l)(4).
 of Tanks, September 1966, reaffirmed January
 1997, API Stock No. H25550; also available
 under the umbrella of the MPMS.
ASTM Standard C33-93, Standard Specification for  Sec.  250.908(b)(4)(i)
 Concrete Aggregates including Nonmandatory
 Appendix.
ASTM Standard C94-96, Standard Specification for  Sec.  250.908(e)(2)(i)
 Ready-Mixed Concrete.                             .
ASTM Standard C150-95a, Standard Specification    Sec.  250.908(b)(2)(i)
 for Portland Cement.                              .
ASTM Standard C330-89, Standard Specification     Sec.  250.908(b)(4)(i)
 for Lightweight Aggregates for Structural         .
 Concrete.
ASTM Standard C595-94, Standard Specification     Sec.  250.908(b)(2)(i)
 for Blended Hydraulic Cements.                    .
AWS D1.1-96, Structural Welding Code--Steel,      Sec.  250.907(b)(1)(i)
 1996, including Commentary.
AWS D1.4-79, Structural Welding Code--            Sec.  250.908(e)(3)(ii
 Reinforcing Steel, 1979.                          )
NACE Standard MR.01-75-96, Sulfide Stress         Sec.  250.417(p)(2)
 Cracking Resistant Metallic Materials for Oil
 Field Equipment, January 1996.
NACE Standard RP 01-76-94, Standard Recommended   Sec.  250.907(d).
 Practice, Corrosion Control of Steel Fixed
 Offshore Platforms Associated with Petroleum
 Production.
------------------------------------------------------------------------

Sec. 250.199  Paperwork Reduction Act statements--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.

[[Page 72793]]

    (b) Respondents are OCS oil, gas, and sulphur lessees and 
operators. The requirement to respond to the information collections in 
this part is mandated under the Act (43 U.S.C. 1331 et seq.) and the 
Act's Amendments of 1978 (43 U.S.C. 1801 et seq.). Some responses are 
also required to obtain or retain a benefit or may be voluntary. 
Proprietary information will be protected under Sec. 250.196, Data and 
information to be made available to the public; parts 251 and 252; 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, NW, Washington, DC 
20240.
    (e) MMS is collecting this information for the reasons given in the 
following table:

------------------------------------------------------------------------
 30 CFR 250 subpart/title (OMB control        Reasons for collecting
                  No.)                       information and how used
------------------------------------------------------------------------
(1) Subpart A, General (1010-0114).....  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. To
                                          support the unproved and
                                          proved reserve estimation,
                                          resource assessment, and fair
                                          market value determinations.
(2) Subpart B, Exploration and           To inform MMS, States, and the
 Development and Production Plans (1010-  public of planned exploration,
 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.
(3) Subpart C, Pollution Prevention and  To inform MMS of measures to be
 Control (1010-0057).                     taken to prevent water and air
                                          pollution. To ensure that
                                          appropriate measures are taken
                                          to prevent water and air
                                          pollution.
(4) Subpart D, Oil and Gas Drilling      To inform MMS of the equipment
 Operations (1010-0053).                  and procedures to be used in
                                          drilling operations on the
                                          OCS. To ensure that drilling
                                          operations are safe and
                                          protect the human, marine, and
                                          coastal environment.
(5) Subpart E, Oil and Gas Well-         To inform MMS of the equipment
 Completion Operations (1010-0067).       and procedures to be used in
                                          well-completion operations on
                                          the OCS. To ensure that well-
                                          completion operations are safe
                                          and protect the human, marine,
                                          and coastal environment.
(6) Subpart F, Oil and Gas Well-         To inform MMS of the equipment
 Workover Operations (1010-0043).         and procedures to be used
                                          during well-workover
                                          operations on the OCS. To
                                          ensure that well-workover
                                          operations are safe and
                                          protect the human, marine, and
                                          coastal environment.
(7) Subpart G, Abandonment of Wells      To inform MMS of procedures to
 (1010-0079).                             be used during the temporary
                                          and 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.
(8) Subpart H, Oil and Gas Production    To inform MMS of the equipment
 Safety Systems (1010-0059).              and procedures to be used
                                          during production operations
                                          on the OCS. To ensure that
                                          production operations are safe
                                          and protect the human, marine,
                                          and coastal environment.
(9) Subpart I, Platforms and Structures  To provide MMS with information
 (1010-0058).                             regarding the design,
                                          fabrication, and installation
                                          of platforms on the OCS. To
                                          ensure the structural
                                          integrity of platforms
                                          installed on the OCS.
(10) Subpart J, Pipelines and Pipeline   To provide MMS with information
 Rights-of-Way (1010-0050).               regarding the design,
                                          installation, and operation of
                                          pipelines on the OCS. To
                                          ensure that pipeline
                                          operations are safe and
                                          protect the human, marine, and
                                          coastal environment.
(11) Subpart K, Oil and Gas Production   To inform MMS of production
 Rates (1010-0041).                       rates for hydrocarbons
                                          produced on the OCS. To ensure
                                          economic maximization of
                                          ultimate hydrocarbon recovery.
(12) Subpart L, Oil and Gas Production   To inform MMS of the
 Measurement, Surface Commingling, and    measurement of production,
 Security (1010-0051).                    commingling of hydrocarbons,
                                          and site security plans. To
                                          ensure that produced
                                          hydrocarbons are measured and
                                          commingled to provide for
                                          accurate royalty payments and
                                          security is maintained.
(13) 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.
(14) Subpart N, Remedies and Penalties   The requirements in subpart N
 (1010-0121).                             are exempt from the Paperwork
                                          Reduction Act of 1995
                                          according to 5 CFR 1320.4.
(15) 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.

[[Page 72794]]

 
(16) Subpart P, Sulphur Operations       To inform MMS of sulphur
 (1010-0086).                             exploration and development
                                          operations on the 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.
(17) Forms MMS-123, Application for      To inform MMS of the procedures
 Permit to Drill, and MMS-123S,           and equipment to be used in
 Supplemental APD Information Sheet,      drilling operations. To ensure
 Subparts D, E, P (1010-0044 and 1010-    that drilling and well-
 0131).                                   completion are safe and
                                          protect the environment, use
                                          adequate equipment, conform
                                          with provisions of the lease,
                                          and the public is informed.
(18) Form MMS-124, Sundry Notices &      To inform MMS of well-
 Reports on Wells, Subparts D, E, F, G,   completion and well-workover
 P (1010-0045).                           operations, changes to any
                                          ongoing well operations, and
                                          well abandonment operations.
                                          To ensure that MMS has up-to-
                                          date and accurate information
                                          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.
(19) Form MMS-125, Well Summary Report,  To inform MMS of the results of
 Subparts D, E, F, P (1010-0046).         well-completion or well-
                                          workover 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.
(20) Form MMS-126, Well Potential Test   To inform MMS of the production
 Report, Subpart K (1010-0039).           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.
(21) Form MMS-127, Request for           To inform MMS of data
 Reservoir Maximum Efficiency Rate        concerning oil and gas well-
 (MER), Subpart K (1010-0018).            completion in a rate-sensitive
                                          reservoir and to verify
                                          requested efficiency rate. To
                                          ensure that reservoirs are
                                          classified correctly and the
                                          requested production rate will
                                          not waste oil or gas.
(22) Form MMS-128, Semiannual Well Test  To inform MMS of the status and
 Report, Subpart K (1010-0017).           capacity of gas wells and
                                          verify production capacity. To
                                          ensure that depletion of
                                          reservoirs results in greatest
                                          ultimate recovery of
                                          hydrocarbons.
(23) Form MMS-131, Performance Measures  To collect data related to a
 Data (Voluntary) (1010-0112).            set of performance measures.
                                          To evaluate the effectiveness
                                          of industry's continued
                                          improvement of safety and
                                          environmental management in
                                          the OCS.
(24) Form MMS-132, Evacuation            To inform MMS in the event of a
 Statistics (used in the GOM Region),     major disruption in the
 Subpart A (1010-0114).                   availability and supply of
                                          natural gas and oil due to
                                          natural occurrences/
                                          hurricanes. To advise the USCG
                                          of rescue needs, and to alert
                                          the news media and interested
                                          public entities when
                                          production is shut in and when
                                          resumed.
(25) Form MMS-133, Weekly Activity       To inform MMS of well status,
 Report (used in the GOM Region),         well and casing tests, and
 Subpart D (1010-0132).                   well casing configuration
                                          data. To have accurate data
                                          and information on the wells
                                          under MMS jurisdiction to
                                          ensure compliance with
                                          approved plans.
------------------------------------------------------------------------

    5. In Sec. 250.203(m), the citation ``250.112'' is revised to read 
``250.182''.
    6. In Sec. 250.204(p) and (r), the citation ``250.112'' is revised 
to read ``250.183''.
    7. In Sec. 250.304(e)(2), the citation ``250.110'' is revised to 
read ``250.174''.
    8. Sections 250.402, 250.403, 250.507, 250.508, 250.607, and 
250.608 are removed and reserved.
    9. In Sec. 250.414(a), the citation ``250.106(a)'' is revised to 
read ``250.140'' and in Sec. 250.414(g), the citation ``250.117'' is 
revised to read ``250.190''.
    10. In Sec. 250.415(d), the citation ``250.117'' is revised to read 
``250.190''.
    11. In Sec. 250.416(b), the citation ``250.110'' is revised to read 
``250.170''.
    12. In Sec. 250.513(d), the citation ``250.117'' is revised to read 
``250.190''.
    13. In Sec. 250.1102(a) (9), (b)(8), and (b)(9), the citation 
``250.117'' is revised to read ``250.190''.
    14. In the introductory text of Sec. 250.1201, the citation 
``250.101'' is revised to read ``250.198''.
    15. In Sec. 250.1202(a)(3), (b)(4)(i), the introductory text of 
(g), (k)(1), (l)(4), the citation ``250.101'' is revised to read 
``250.198''.
    16. In Sec. 250.1203(b)(2) and (b)(4), the citation ``250.101'' is 
revised to read ``250.198''.
    17. In Sec. 250.1301(d), (g)(1), (g)(2)(ii), the citation 
``250.110'' is revised to read ``250.170'' and the citation ``250.113'' 
in (d) and (g)(1) is revised to read ``250.180''.
    18. In Sec. 250.1507, in the table, the second column for the entry 
``Welding and burning'' is revised to ``A''.
    19. In Sec. 250.1617(a), the citation ``250.106(a)'' is revised to 
read ``250.140'' and in paragraph (d), the citation ``250.117'' is 
revised to read ``250.190''.
    20. In Sec. 250.1618(a), the citation ``250.106(a)'' is revised to 
read ``250.140''.
    21. In Sec. 250.1619(b), the citation ``250.110'' is revised to 
read ``250.170''.
    22. In Sec. 250.1629(a), the citation ``250.291'' is revised to 
read ``250.1628''.

PART 252--OUTER CONTINENTAL SHELF (OCS) OIL AND GAS INFORMATION 
PROGRAM

    23. The authority citation continues to read as follows:

    Authority: OCS Lands Act, 43 U.S.C. 1331 et seq., as amended, 92 
Stat. 629; Freedom of Information Act, 5 U.S.C. 552.

    24. In Sec. 252.7(a)(2)(i) and (ii), the citation ``250.4'' is 
revised to read ``250.106''.

PART 253--OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE 
FACILITIES

    25. The authority citation continues to read as follows:

    Authority: 33 U.S.C. 2701 et seq.

    26. In Sec. 253.11(b)(2), the citation ``250.108'' is revised to 
read ``250.143''.
    27. In Sec. 253.51(d), the citation ``250.110'' is revised to read 
``250.170''.

[[Page 72795]]

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

    28. 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.

    29. 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 .
    30. 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.
    31. Section 256.35 is amended by adding paragraph (c) as follows:


 256.35  Qualifications 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 250.135.
    32-33. In Sec. 256.70, the citation ``250.113'' is revised to read 
``250.180''.
    34. Section 256.73 is revised to read as follows:


Sec. 256.73  Effect of suspensions on lease term.

    (a) A suspension may extend the term of a lease (see 30 CFR 
250.171) with the extension being the length of time the suspension is 
in effect except as provided in paragraph (b) of this section.
    (b) A Directed Suspension does 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.
    (c) MMS may issue suspensions for a period of up to 5 years per 
suspension. 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 the section under the heading 
``Suspensions'' in 30 CFR part 250, subpart A.
    35. In Sec. 256.77(d)(3), the citation ``250.112'' is revised to 
read ``250.182''.

PART 282--OPERATIONS IN THE OUTER CONTINENTAL SHELF FOR MINERALS 
OTHER THAN OIL, GAS, AND SULPHUR

    36. The authority citation for part 282 continues to read as 
follows:

    Authority: 43 U.S.C. 1331 et seq.

    37. In Sec. 282.28(a), the citation ``250.126'' is revised to read 
``250.194''.

[FR Doc. 99-31869 Filed 12-27-99; 8:45 am]
BILLING CODE 4310-MR-P