[Federal Register Volume 65, Number 128 (Monday, July 3, 2000)]
[Rules and Regulations]
[Pages 41000-41002]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15659]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC-73


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Production Measurement Document Incorporated by Reference

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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SUMMARY: MMS is adding a production measurement document incorporated 
by reference to the regulations governing oil, gas, and sulphur 
operations in the Outer Continental Shelf (OCS). The document will 
continue to ensure that lessees are able to use the best available and 
most accurate technologies while operating in the OCS. The document is 
from the American Petroleum Institute's Manual of Petroleum Measurement 
Standards.

DATES: This rule is effective August 2, 2000. The incorporation by 
reference of publications listed in the regulation is approved by the 
Director of the Federal Register as of August 2, 2000.

FOR FURTHER INFORMATION CONTACT: Sharon Buffington, Engineering and 
Research Branch, at (703) 787-1147.

SUPPLEMENTARY INFORMATION: MMS uses standards, specifications, and 
recommended practices developed by standard-setting organizations and 
the oil and gas industry as a means of establishing requirements for 
activities in the OCS. This practice, known as incorporation by 
reference, allows MMS to incorporate the requirements of technical 
documents into the regulations without increasing the volume of the 
Code of Federal Regulations (CFR). MMS currently incorporates by 
reference approximately 85 documents into the offshore operating 
regulations.
    The regulations found at 1 CFR part 51 govern how MMS 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 edition of the document or publication cited in the regulations. 
This means that newer editions, amendments, or revisions to documents 
already incorporated by reference in regulations are not part of MMS's 
regulations.
    This rule adds the following API document to those currently 
incorporated by reference into MMS regulations:
     API Manual of Petroleum Measurement Standards (MPMS), 
Chapter 10, Section 9, Standard Test Method for Water in Crude Oils by 
Coulometric Karl Fischer Titration, First Edition, November 1993.
    MMS has reviewed this document and has determined that it must be 
incorporated into regulations to ensure that industry is able to use 
the best available and most accurate technologies. Our review shows 
that the option to use this standard will not impose additional costs 
on the offshore oil and gas industry. In fact, industry will still have 
the option to use the other procedures in current documents 
incorporated, as approved. Therefore, MMS is including this document 
via a final rule. MMS has determined under the Administrative Procedure 
Act (5 U.S.C. 553(b)(3)(B)) that publishing this rule as a notice of 
proposed rulemaking would be contrary to the public interest. The 
regulations found at 30 CFR 250.198(a)(2) allow updating documents 
without opportunity to comment when MMS determines 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.
    A summary of MMS's review of the document is provided below:
    API MPMS Chapter 10, Section 9, Standard Test Method for Water in 
Crude Oils by Coulometric Karl Fischer Titration, First Edition, 
November, 1993.
    This document lists the method for directly determining water in 
crude oils by volume and weight. It represents an industry standard 
that would be newly used in the OCS. The MMS will retain the documents 
from MPMS, Chapter 10, Sediment and Water, that describe the other 
methods of determining water in crude oils.

[[Page 41001]]

Procedural Matters

    This is a very simple rule. The rule's purpose is to add a document 
to those that are currently incorporated by reference in the 
regulations. If MMS did not give the option to use the other techniques 
incorporated into the regulations, MMS could not add this document via 
a final rule. The document will not cause any economic effect on any 
entity (small or large). It simply gives industry standards for using 
an alternate method to determine sediment and water.

Federalism (Executive Order 13132)

    According to Executive Order 13132, the rule does not have
    Federalism implications because it does not affect the relationship 
between the Federal and State governments.
    The rule simply provides the option and guidance to use new 
technology. It does not prevent any lessee, operator, or drilling 
contractor from performing operations on the OCS, provided they follow 
the regulations. This rule will not impose costs on States or 
localities.

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 (OMB) 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. This rule does not have new requirements. This rule will 
not create an inconsistency or otherwise interfere with an action taken 
or planned by another agency.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. The 
standards only apply to those lessees who choose to use the new 
technology. Either way, the costs will be the same.
    (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. There are no new costs. The standards contain 
guidance if lessees use the new measurement technology. They do have 
the option to use current technology. Therefore, the costs will be the 
same.
    (4) This rule does not raise novel legal or policy issues. The 
requirements are based on the legal authority of the OCS Lands Act and 
other laws.

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 Secs. 3(a) and 3(b)(2) of the Order.

Unfunded Mandate Reform Act (UMRA) of 1995 (Executive Order 12866)

    This rule does not impose an unfunded mandate on State, local, or 
tribal governments or the private sector of more than $100 million per 
year. The document was added to give lessees the option to use new 
technology. If they choose to do so, the cost will be the same. It does 
not contain new requirements, and it will not have a significant or 
unique effect on State, local, or tribal governments or the private 
sector. Therefore, a statement containing the information required by 
the UMRA (2 U.S.C. 1531 et seq.) is not required.

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.

Takings Implication Assessment

    According to Executive Order 12630, the proposed rule does not 
represent a governmental action capable of interference with 
constitutionally protected property rights. The standards are optional. 
Thus, a Takings Implication Assessment need not be prepared according 
to Executive Order 12630, Government Action and Interference with 
Constitutionally Protected Property Rights.

Regulatory Flexibility (RF) Act

    The Department certifies that this document will not have a 
significant economic effect on a substantial number of small entities 
under the RF Act (5 U.S.C. 601 et seq.). The optional standards 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.
    Under the Standard Industrial Classification code, 1381, Drilling 
Oil and Gas Wells, 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. This rule imposes no new operational requirements, 
reporting burdens, or other measures that would increase costs to 
lessees/operators, large or small. Therefore, this rule has no 
significant economic impact on 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 businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
businesses. 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)) the SBREFA. 
This rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more. The main purpose of this rule is to add industry standards to 
give lessees the option to use new measurement technology and the 
guidance if they choose to do so. The rule does not have new 
requirements.
    (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 cost to comply with the rule is 
the same as current requirements.
    (c) Does not have a significant adverse effect on competition, 
employment, investment, productivity, innovation, or ability of United 
States-based enterprises to compete with foreign-based enterprises. The 
rule does not contain new requirements.

Paperwork Reduction Act (PRA) of 1995

    The Department of the Interior has determined that this regulation 
does not contain information collection requirements pursuant to PRA 
(44 U.S.C. 3501 et seq.). We will not be submitting an information 
collection request to OMB.

[[Page 41002]]

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: June 7, 2000.
Sylvia V. Baca,
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, et seq.


    2. In Sec. 250.198, in the table in paragraph (e), add the 
following in alpha-numerical order:


Sec. 250.198  Documents incorporated by reference.

* * * * *
    (e) * * *

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        Title of documents              Incorporated by reference at
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API MPMS, Chapter 10, Section 9,    Sec.  250.1202(a)(3), (l)(4)
 Standard Test Method for Water in
 Crude Oils by Coulometric Karl
 Fischer Titration, First Edition,
 November 1993, API Stock No. 852-
 30210.
 
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[FR Doc. 00-15659 Filed 6-30-00; 8:45 am]
BILLING CODE 4310-MR-P