[Federal Register Volume 65, Number 84 (Monday, May 1, 2000)]
[Rules and Regulations]
[Pages 25284-25285]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10592]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Update of Revised/Reaffirmed Documents Incorporated by Reference

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Technical amendment.

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SUMMARY: This document makes technical amendments to regulations that 
were published in a final rule on December 28, 1999 (64 FR 72756), and 
which listed all documents incorporated by reference in regulations 
governing oil and gas and sulfur operations in the Outer Continental 
Shelf (OCS). This amendment incorporates Supplement 2 to the 21st 
Edition of American Petroleum Institute (API) Specification 6D (SPEC 
6D). The rulemaking of December 28, 1999, incorporated API SPEC 6D, 
21st Edition, but not the supplement.

EFFECTIVE DATE: May 31, 2000.
    The incorporation by reference of publications listed in the 
regulation is approved by the Director of the Federal Register as of 
May 31, 2000.

FOR FURTHER INFORMATION CONTACT: Carl W. Anderson at (703) 787-1608.

SUPPLEMENTARY INFORMATION:

Background

    Early in 1998, API requested that MMS incorporate by reference 
Supplements 1 and 2 (dated December 1996 and December 1997, 
respectively) to API SPEC 6D. (Supplement 2 actually fully incorporates 
and expands upon Supplement 1.) For metal-to-metal seated valves, the 
Supplements changed from a ``no visible leakage'' standard to 
``allowable internal leakage rates'' according to valve size. This 
raised two concerns for MMS with regard to its regulatory program. 
First, once an attempt has been made to purge a pipeline of all 
contents and close its valves, how can an operator be sure that the 
pipeline is properly isolated and free of combustibles or pressure 
during repairs? (Cutting into an existing pipeline in preparation to 
repair it is considered among the most hazardous operations conducted 
offshore.) Second, how can MMS be sure that out-of-service pipelines 
isolated by block valves are really shut down?
    MMS issued Notice to Lessees and Operators on the Outer Continental 
Shelf (NTL) No. 98-16N in October 1998 rejecting Supplements 1 and 2 as 
documents incorporated by reference. MMS needed more time to discuss 
the issues with API and to consider the ramifications of the 
``allowable internal leakage'' standard for the OCS regulatory program. 
MMS reasoned:

It may well be that the ``no visible leakage'' standard contained in 
the 21st and previous editions of API SPEC 6D is an unreasonably 
high standard for metal-to-metal seats. Metal-to-metal seats are 
non-deforming compared to non-metal-to-metal seats; therefore, it 
may be reasonable to expect that some leakage would occur between 
facing metal surfaces. Nevertheless, there appears to be no data or 
agreed-upon formula for predicting an acceptable leakage rate.

    The MMS made a concerted attempt with API to collect data on this 
question and held further discussions with industry. In February 1999, 
MMS proposed a research project on leakage rates to API and asked them 
to survey their members on their perceptions of the ``allowable leakage 
rates'' and willingness to participate in the research project. Only 25 
of 250 potential respondents replied. Their answers indicated that few 
valve suppliers believe that the ``no visible leakage'' standard is 
realistic, other than for special-purpose, non-off-the-shelf (i.e., 
expensive) valves. Support for new research was very limited.
    Industry representatives maintained that there is little formal 
data on leakage rates. They explained, however, that most 
correspondence on this subject focuses on leakage rates contained in 
International Standards Organization Standard 5208, Rate D. These rates 
are incorporated into Supplements 1 and 2. The API SPEC 6D workgroup 
generally agrees that these leakage rates are reasonable and in line 
with their experience.
    Further discussions with the API SPEC 6D workgroup revealed that 
participants almost unanimously agree that all pipeline valves leak 
after they have been in service for a short time due to operational 
residues and abrasion.

[[Page 25285]]

This indicates that initial leakage rates for new valves are irrelevant 
by the time a pipeline is in need of repair or placed out-of-service. 
Therefore, measures in addition to ``closed valves'' are needed to 
protect workers and to ensure ``isolated pipelines'' during pipeline 
repairs.
    The MMS's own pipeline workgroup conferred on these issues. They 
decided that rejecting the new allowable internal leakage rates would 
be unrealistic in light of what MMS had learned from its discussions 
with industry. Moreover, the maintenance of an unrealistic ``no visible 
leakage'' standard would not address the real regulatory dilemma that 
regardless of initial internal leakage rates, eventually all pipeline 
valves will leak internally. The MMS workgroup reasoned that since 
internal leakage occurs in pipeline valves regardless of initial 
leakage rates, MMS must address this concern in its inspection and 
maintenance procedures. Therefore, the MMS workgroup recommended 
canceling NTL 98-16N and adopting Supplement 2 as a document 
incorporated by reference. They also recommended two additions to 
Subpart J that would address the problems posed by leaking pipeline 
valves. The first would add a requirement for operators to submit a 
work plan detailing the measures they intend to take and procedures 
they intend to follow to ensure the safety of their employees during 
any pipeline repair. The second would add a requirement for placing a 
blind flange on lateral lines taken out-of-service. The MMS intends to 
propose both of these requirements in a separate rulemaking.
    MMS has reviewed Supplements 1 and 2 to the 21st Edition of API 
SPEC 6D in light of the above considerations and determined that they 
will not impose undue cost on the offshore oil and gas industry. 
Moreover, further discussions with API confirm that Supplement 2 
completely replaces Supplement 1. (Thus, parties that order copies of 
the 21st Edition of API SPEC 6D from API receive only Supplement 2 in 
addition to the primary document.) Therefore, we are incorporating 
Supplement 2 according to the authority in 30 CFR 250.198(a)(2).
    Upon the effective date of this technical amendment, NTL No. 98-16N 
is cancelled.

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.

    Accordingly, 30 CFR part 250 is amended by making the following 
technical amendments:

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), revise the entry 
for API SPEC 6D to read as set forth below.


Sec. 250.198  Documents incorporated by reference.

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    (e) * * *

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           Title of documents              Incorporated by reference at
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*                  *                  *                  *
                  *                  *                  *
API Spec 6D, Specification for Pipeline          Sec.  250.1002(b)(1).
 Valves (Gate, Plug, Ball, and Check
 Valves), Twenty-first Edition, March
 31, 1994, including Supplement 2,
 December 1, 1997, API Stock No. G03200.
 
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    Dated: April 21, 2000.
Joseph R. Levine,
Acting Chief, Engineering and Operations Division.
[FR Doc. 00-10592 Filed 4-28-00; 8:45 am]
BILLING CODE 4310-MR-P