[Federal Register Volume 65, Number 2 (Tuesday, January 4, 2000)]
[Rules and Regulations]
[Pages 217-219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Part 250
RIN 1010-AC55
Update of Documents Incorporated by Reference
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Final rule.
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SUMMARY: MMS is updating one document incorporated by reference and
adding a new document incorporated by reference in regulations
governing oil and gas and sulphur operations in the Outer Continental
Shelf (OCS). The new editions of these documents incorporated by
reference will ensure that lessees use the best available and safest
technologies while operating in the OCS. The updated document, with
Errata Change dated August 17, 1998, is the Second Edition of the
American Petroleum Institute's (API) Recommended Practice for
Classification of Locations for Electrical Installations at Petroleum
Facilities Classified as Class I, Division 1 and Division 2 (API RP
500). The new document, with Errata Change dated August 17, 1998, is
the First Edition of the API's Recommended Practice for Classification
of Locations for Electrical Installations at Petroleum Facilities
Classified as Class I, Zone 0, Zone 1, and Zone 2 (API RP 505).
DATES: This rule is effective February 3, 2000. The incorporation by
reference of publications listed in the regulation is approved by the
Director of the Federal Register as of February 3, 2000.
FOR FURTHER INFORMATION CONTACT: Fred Gray, Operations Analysis Branch,
at (703) 787-1027.
SUPPLEMENTARY INFORMATION: On March 19, 1999, we published a Notice of
Proposed Rulemaking (64 FR 13535), titled ``Update of Documents
Incorporated by Reference,'' revising the table in 30 CFR 250.101(e);
250.403(b); 250.802(e)(4)(i); 250.803(b)(9)(i); 250.1628(b)(3) and
(d)(4)(i); and 250.1629(b)(4)(i). Our 90-day comment period closed on
June 17, 1999. We received four positive, supportive comments. This
final rule amends the seven foregoing regulations. Please note that our
final regulations revising 30 CFR 250, subpart A, relocated
Sec. 250.101(e) to 250.198(e) and Sec. 250.403(b) to 250.114(a). This
final rule reflects those changes.
We use standards, specifications, and recommended practices
developed by standard-setting organizations and the oil and gas
industry for establishing requirements for activities in the OCS. This
practice, known as incorporation by reference, allows us to incorporate
the provisions of technical standards into the regulations without
increasing the volume of the Code of Federal Regulations (CFR). 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/lessees accountable for complying with
the documents incorporated by reference in our regulations. After the
effective date of this rule, 85 private sector consensus standards will
be incorporated by reference into the offshore operating regulations.
The regulations found at 1 CFR part 51 govern how we and other
Federal agencies incorporate various documents by reference. Agencies
can only incorporate by reference through publication in the Federal
Register. Agencies must also gain approval from the Director of the
Federal Register for each publication incorporated by reference.
Incorporation by reference of a document or publication is limited to
the specific edition or specific edition and supplement or addendum
cited in the regulations.
Comments on the Rule
We received comments from Noble Drilling Services, Inc.; Shell
Offshore Inc. on behalf of itself and other affiliates of Shell Oil
Company; Mahl & Associates, Inc.; and the International Association of
Drilling Contractors. All commenters support the proposed rule
incorporating by reference the two API documents.
Procedural Matters
This is a very simple rule. The rule's purpose is to update one
document that is currently incorporated by reference in the regulations
and to add one additional document incorporated by reference. The
differences between the newer document and the older document are very
minor. The minor differences between the newer and older document will
not cause a significant economic effect on any entity (small or large).
Similarly, the addition of the new document, API RP 505, will not have
a significant effect on any entity (small or large). Therefore, this
regulation's impact on the entire industry is minor.
Federalism (Executive Order (E.O. 13132)
According to E.O. 13132, this rule does not have Federalism
implications. This rule does not substantially and directly affect the
relationship between the Federal and State governments. This rule does
not impose costs on States or localities. The rule simply addresses
offshore structure design methods for lessee/operator consideration.
Takings Implication Assessment (E.O. 12630)
According to E.O. 12630, this rule does not have significant
Takings Implications. A Takings Implication Assessment is not required.
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 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 rule would have no significant economic impact because the
documents do not contain any significant revisions that will cause
lessees or operators to change their business practices. The documents
will not require the retrofitting of any facilities. The documents may
lead to minor changes in operating practices, but the associated costs
will be very minor.
(2) This rule will not create a serious inconsistency or otherwise
interfere with an action taken or planned by another agency. This rule
simply grants lessee/operator additional flexibility when designing an
offshore structure and will not affect any action of another 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, because the documents do not address or affect any of
these programs, rights or obligations.
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(4) This rule does not raise novel legal or policy issues. This is
a very simple rule which only addresses ordinary operational decisions
of the lessee/operator and does not affect legal or policy issues.
Civil Justice Reform (E.O. 12988)
According to E.O. 12988, the Office of the Solicitor has determined
that this rule does not unduly burden the judicial system and meets the
requirements of sections 3(a) and 3(b)(2) of the Order.
National Environmental Policy Act (NEPA) of 1969
This rule does not constitute a major Federal action significantly
affecting the quality of the human environment. A detailed statement
under the NEPA is not required.
Paperwork Reduction Act of 1995
There are no information collection requirements associated with
this rule.
Regulatory Flexibility Act
The Department certifies that this document will not have a
significant economic effect on a substantial number of small entities
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). 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.
We estimate that there is a total of 1,380 firms that drill oil and
gas wells onshore and offshore under the Small Business
Administration's Standard Industrial Classification (SIC) 1381,
Drilling Oil and Gas Wells. 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.
Incorporation of the new document into MMS regulations would allow
the offshore structure to be designed and built using either offshore
electrical location classification method. Thus, incorporation of the
new document will not impose new cost on the offshore oil and gas
industry and may provide beneficial flexibility. The Department also
determined that the indirect effects of this rule on small entities
that provide support for offshore activities are small (in effect
zero).
Based on these reasons, 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 final rule will not cause any significant costs to lessees
or operators. The only costs will be the purchase of the new documents
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 costs associated with this rule
are either minor or may actually result in minor cost savings.
(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. This
rule simply grants lessee/operator additional flexibility when
designing an offshore structure and will not have any adverse effects.
Unfunded Mandates Reform Act (UMRA) of 1995
This rule does not impose an unfunded mandate on State, local, and
tribal governments or the private sector of more than $100 million per
year. The rule does not have a significant or unique effect on State,
local, or tribal governments or the private sector. A statement
containing the information required by the UMRA (2 U.S.C. 1531 et seq.)
is not required.
List of Subjects in 30 CFR Part 250
Continental shelf, Environmental impact statements, Environmental
protection, Government contracts, Incorporation by reference,
Investigations, Mineral royalties, Oil and gas development and
production, Oil and gas exploration, Oil and gas reserves, Penalties,
Pipelines, Public lands--mineral resources, Public lands--rights-of-
way, Reporting and recordkeeping requirements, Sulphur development and
production, Sulphur exploration, Surety bonds.
Dated: November 22, 1999.
Sylvia V. Baca,
Acting Assistant Secretary, Land and Minerals Management.
For the reasons stated in the preamble, MMS amends 30 CFR Part 250
as follows:
PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
1. The authority citation for part 250 continues to read as
follows:
Authority: 43 U.S.C. 1331.
2. In Sec. 250.198, in the table in paragraph (e), the entry for
``API RP 500'' is revised to read as follows:
Sec. 250.198 Documents incorporated by reference.
* * * * *
(e) * * *
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Incorporated by reference
Title of document at
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* * * *
* *
API RP 500, Recommended Practice for Sec. 250.114(a);
Classification of Locations for Electrical Sec. 250.802(e)(4)(i);
Installations at Petroleum Facilities Sec. 250.803(b)(9)(i);
Classified as Class I, Division 1 and Sec. 250.1628(b)(3);
Division 2, Second Edition, November 1997, (d)(4)(i);
API Stock No. C50002. Sec. 250.1629(b)(4)(i).
* * * *
* *
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3. In Sec. 250.198, the following document incorporated by
reference is added to the Table in paragraph (e) in alphanumerical
order.
Sec. 250.198 Documents incorporated by reference.
* * * * *
(e) * * *
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Incorporated by reference
Title of document at
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* * * *
* *
API RP 505, Recommended Practice for Sec. 250.114(a);
Classification of Locations for Electrical Sec. 250.802(e)(4)(i);
Installations at Petroleum Facilities Sec. 250.803(b)(9)(i);
Classified as Class I, Zone 0, Zone 1, and Sec. 250.1628(b)(3);
Zone 2, First Edition, November 1997, API (d)(4)(i);
Stock No. C50501. Sec. 250.1629(b)(4)(i).
* * * *
* *
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4. In Sec. 250.114, paragraph (a) is revised to read as follows:
Sec. 250.114 How must I install and operate electrical equipment?
* * * * *
(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, 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.
* * * * *
5. In Sec. 250.802, paragraph (e)(4)(i) introductory text is
revised to read as follows:
Sec. 250.802 Design, installation, and operation of surface
production-safety systems.
* * * * *
(e) * * *
(4) * * *
(i) A plan for each platform deck outlining all hazardous areas
classified 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, 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, and outlining areas in which potential
ignition sources, other than electrical, are to be installed. The area
outlined will include the following information:
* * * * *
6. In Sec. 250.803, the last sentence of paragraph (b)(9)(i) is
revised to read as follows:
Sec. 250.803 Additional production system requirements.
* * * * *
(b) * * *
(9) * * *
(i) * * * A classified area is any area classified Class I, Group
D, Division 1 or 2, following the guidelines of API RP 500, or any area
classified Class I, Zone 0, Zone 1, or Zone 2, following the guidelines
of API RP 505.
* * * * *
7. In Sec. 250.1628, paragraphs (b)(3) and (d)(4)(i) are revised to
read as follows:
Sec. 250.1628 Design, installation, and operation of production
systems.
* * * * *
(b) * * *
(3) Electrical system information including a plan of each platform
deck, outlining all hazardous areas classified 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, 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, and outlining areas
in which potential ignition sources are to be installed;
* * * * *
(d) * * *
(4) * * *
(i) A plan of each platform deck, outlining all hazardous areas
classified according to API RP 500, Recommended Practice for
Classification of Locations for Electrical Installations at Petroleum
Facilities Classified as Class I, Division 1 and Divisions 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, and outlining areas in which potential
ignition sources are to be installed;
* * * * *
8. In Sec. 250.1629, the last sentence of paragraph (b)(4)(i) is
revised to read as follows:
Sec. 250.1629 Additional production and fuel gas system requirements.
* * * * *
(b) * * *
(4) * * *
(i) * * * A classified area is any area classified Class I, Group
D, Division 1 or 2, following the guidelines of API RP 500, or any area
classified Class I, Zone 0, Zone 1, or Zone 2, following the guidelines
of API RP 505.
* * * * *
[FR Doc. 00-26 Filed 1-3-00; 8:45 am]
BILLING CODE 4310-MR-P