[Federal Register Volume 65, Number 37 (Thursday, February 24, 2000)]
[Proposed Rules]
[Pages 9232-9234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4292]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC66


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf; Update of International Organization for Standardization 
Documents Incorporated by Reference

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed rule.

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SUMMARY: The MMS is proposing to remove API Specification 14A and 
replace it with a new document incorporated by reference in regulations 
governing oil and gas and sulphur operations in the Outer Continental 
Shelf (OCS). The addition of this document incorporated by reference 
will ensure that lessees use the best available and safest technologies 
while operating in the OCS. The proposed new document has been issued 
by the International Organization for Standardization (ISO) and is an 
international standard titled: ``Petroleum and natural gas industries--
Downhole equipment--Subsurface safety valve equipment'' (ISO 
10432:1999, otherwise known as API/ISO 10432:1999).

DATES: We will consider all comments we receive by May 24, 2000. We 
will begin reviewing comments then and may not fully consider comments 
we receive after May 24, 2000.

ADDRESSES: Mail or hand-carry comments (three copies) to the Department 
of the Interior; Minerals Management Service; Mail Stop 4024; 381 Elden 
Street; Herndon, Virginia 20170-4817; Attention: Rules Processing Team. 
The Rules Processing Team' e-mail address is: [email protected].

FOR FURTHER INFORMATION CONTACT: Fred Gray, Operations Analysis Branch, 
at (703) 787-1027.

SUPPLEMENTARY INFORMATION: 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 was 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. We currently incorporate by reference 85 private 
sector consensus standards 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.
    ISO is a worldwide federation of national standards bodies (ISO 
member bodies). Founded in the mid 1940s, ISO is a non-profit agency 
based in Geneva, Switzerland, whose purpose is to promote the 
development of international standards and related activities to 
facilitate the global exchange of goods and services. The American 
National Standards Institute (ANSI) is the official United States 
member body to ISO.
    The work of preparing international standards is normally carried 
out through an ISO technical committee (TC). Each member body 
interested in a subject for which a TC has been established has the 
right to be represented on that committee. ANSI relies on various 
United States trade and industry associations, such as the American 
Petroleum Institute (API), for support on industry specific standards. 
This standard was developed by ISO/TC 67, ``Materials, equipment and 
offshore structures for petroleum and natural gas industries.'' API has 
been appointed by ANSI to administer the U.S. ISO/TC 67 delegation, 
known as the U.S. Technical Advisory Group (U.S.TAG). MMS has been an 
active participant in the U.S. TAG since August 1998.
    This second edition of the international standard cancels and 
replaces the first edition (ISO 10432:1993) and includes the changes in 
the similar API standard, API Specification 14A, Ninth edition, 1994, 
and its supplement dated December 15, 1997. ISO 10432:1999 was released 
as a Final Draft International Standard (FDIS) on June 3, 1999. Voting 
to advance the FDIS to a full international standard occurred on August 
3, 1999, and the standard was published as an international standard in 
November 1999.
    This standard was formulated to provide the minimum acceptable 
requirements for subsurface safety valve (SSSV) equipment--the SSSV is 
a downhole safety device used to shut off flow of hydrocarbons in the 
event of an emergency. MMS views this important piece of equipment as 
the last line of defense in securing the well and/or preventing 
pollution of the environment. The standard covers SSSVs, safety valve 
locks, safety valve landing nipples, and all components that establish 
tolerances and/or clearances that may affect performance or 
interchangeability of the SSSV equipment.
    We have reviewed this document and have determined that the new 
edition should be incorporated into the regulations to ensure the use 
of the best and safest technologies. We currently incorporate by 
reference the ninth edition (July 1994) of API Specification 14A, 
without Supplement 1. Until now we have not included API Specification 
14A, Supplement 1, in the documents incorporated by reference in our 
regulations. API Specification 14A, Supplement 1, includes editorial 
corrections, changes, and revisions approved by the API Subcommittee on 
Valves and Wellhead Equipment. The revisions strengthened guidelines 
for

[[Page 9233]]

equipment changes that affect requalification testing, added new 
definitions to clarify the revised design change language, and deleted 
a 3-year requalification testing requirement for SSSVs.
    MMS has been analyzing the potential impacts of deleting the 3-year 
requalification testing requirement for SSSVs and specifically requests 
public comment on this issue. MMS has been involved in a series of 
meetings and discussions with oil and gas operating companies, 
representatives of oil and gas associations, equipment manufacturers, 
quality assurance auditors, independent third-party testing and 
research facilities, and MMS offshore inspectors to consider the 
relative merits of the 3-year requalification testing requirement. Our 
data gathering indicates that manufacturers of SSSVs perform functional 
testing of each valve manufactured and each valve must pass all test 
criteria before shipment to a purchaser. Functionally testing every 
valve produces volumes of data and is a good indicator of product 
conformity, design efficiency, quality procedures, and safety 
effectiveness. The requalification testing process, conducted on a 
single valve once every 3 years, provides significantly less data and 
does not address safety considerations in each manufactured valve.
    It is anticipated that API will adopt ISO 10432:1999 as the API/ISO 
standard. Since maintaining one standard is more resource efficient 
than maintaining two in parallel, it is also anticipated that all 
future revisions to the SSSV standard will be made to API/ISO 
10432:1999. MMS sees value in developing international standards and is 
supportive of harmonization of technical standards worldwide where 
practical. If MMS issues a final rulemaking to incorporate by reference 
ISO 10432:1999 (API/ISO 10432:1999) into our regulations, we will 
simultaneously remove API Specification 14A from the documents we 
incorporate by reference.
    Comments are sought on the suitability of including the 
international standard among the documents incorporated by reference in 
our regulations.

Procedural Matters

    This is a very simple rule to add one additional document 
incorporated by reference. The addition of the new document, ISO 
10432:1999 (API/ISO 10432:1999), will not have a significant effect on 
any entity (small or large). One entity which serves as a third party 
independent testing facility for initial design verification testing 
and subsequent 3-year requalification design testing will be affected. 
Therefore, this regulation's impact on the entire industry is minor.

Public Comment Procedure

    Our practice is to make comments, including names and home 
addresses of respondents, available for public review during regular 
business hours. Individual respondents may request that we withhold 
their home address from the rulemaking record, which we will honor to 
the extent allowable by law. There may be circumstances in which we 
would withhold from the rulemaking record a respondent's identity, as 
allowable by the law. If you wish us to withhold your name and/or 
address, you must state this prominently at the beginning of your 
comment. However, we will not consider anonymous comments. We will make 
all submissions from organizations or businesses, and from individuals 
identifying themselves as representatives or officials of organizations 
or businesses available for public inspection in their entirety.

Federalism (Executive Order 13132)

    According to Executive Order 13132, this rule does not have 
Federalism implications. This rule does not substantially and directly 
affect the relationship between the Federal and State governments 
because it concerns the manufacturing requirements for specific 
equipment used in offshore oil and gas wells. The rule only affects 
manufacturers and users of such equipment. This rule does not impose 
costs on States or localities, as it only affects manufacturers and 
users of specific equipment used in offshore oil and gas wells.

Takings Implication Assessment (Executive Order 12630)

    According to Executive Order 12630, this rule does not have 
significant Takings Implications.

Regulatory Planning and Review (Executive Order 12866)

    This document is not a significant rule and is not subject to 
review by the Office of Management and Budget under Executive Order 
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 
document does not contain any significant revisions that will cause 
lessees or operators to change their business practices. The document 
will not require the retrofitting of any facilities.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by 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.
    (4) This rule does not raise novel legal or policy issues.

Civil Justice Reform (Executive Order 12988)

    According to Executive Order 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.). In 
general, the entities that engage in offshore activities are not 
considered small due to the technical and financial resources and 
experience necessary to safely conduct such activities. Incorporating 
the new document into MMS regulations would allow SSSVs with design 
verification approval to be manufactured and placed into service 
without the need for requalification testing every 3 years. Thus, 
incorporating the new document will not impose new cost on the offshore 
oil and gas industry but rather the new document will reduce the costs 
to the offshore oil and gas industry by decreasing the costs of the 
newly manufactured SSSVs, in that manufacturers of SSSVs will not incur 
the costs of requalification testing every 3-years. The Department also 
determined that the indirect effects of this rule on small entities 
that provide

[[Page 9234]]

support for offshore activities are small (in effect zero).
    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 only costs will be the purchase of the new 
document and revisions to some operating procedures. The revisions to 
operating procedures will actually result in significant costs savings, 
in that manufacturers of SSSVs will not incur the costs of 
requalification testing every 3-years.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
United States-based enterprises to compete with foreign-based 
enterprises.

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: February 8, 2000.
Sylvia V. Baca,
Acting Assistant Secretary, Land and Minerals Management.

    For the reasons stated in the preamble, the MMS proposes to amend 
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, et seq.

    2. In Sec. 250.198, in the table in paragraph (e), the entry for 
``API Spec 14A'' is removed and a new entry is added in alphanumerical 
order to read as follows:


Sec. 250.198  Documents incorporated by reference.

* * * * *
    (e) * * *

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          Title of documents              Incorporated by reference at
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*                  *                  *                  *
                  *                  *                  *
ISO/FIS 10432 (1999), Petroleum and     Sec.  250.806(a)(3).
 natural gas industries--Downhole
 equipment--Subsurface safety valve
 equipment.
 
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                  *                  *                  *
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    3. In Sec. 250.806, the last sentence in paragraph (a)(3) is 
revised to read as follows:


Sec. 250.806  Safety and pollution prevention equipment quality 
assurance requirements.

    (a) * * *
    (3)* * * All SSSVs must meet the technical specifications of ISO/
FIS 10432 (1999) (API/ISO 10432:1999).
* * * * *
[FR Doc. 00-4292 Filed 2-23-00; 8:45 am]
BILLING CODE 4310-MR-P