[Federal Register Volume 65, Number 157 (Monday, August 14, 2000)]
[Rules and Regulations]
[Pages 49485-49491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20352]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC41


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Subpart O--Well Control and Production Safety Training

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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SUMMARY: This rule amends MMS regulations governing the training of 
lessee and contractor personnel engaged in oil and gas and sulphur 
operations in the OCS. MMS is making this amendment to enhance safety, 
allow the development of new and innovative training techniques, to 
impose fewer prescriptive requirements on the oil and gas industry, and 
provide increased training flexibility.

EFFECTIVE DATE: October 13, 2000.

FOR FURTHER INFORMATION CONTACT: Wilbon Rhome or Joseph Levine, 
Operations and Analysis Branch, at (703) 787-1032.

SUPPLEMENTARY INFORMATION: On April 20, 1999, we published the proposed 
rule in the Federal Register (64 FR 19318). During the 90-day comment 
period, which ended on July 19, 1999, MMS held a workshop.

Background

    On February 5, 1997, we published a final rule in the Federal 
Register (62 FR 5320) concerning the training of lessee and contractor 
employees engaged in drilling, well completion, well workover, well 
servicing, or production safety system operations in the OCS. The final 
rule streamlined the previous regulations by 80 percent, provided the 
flexibility to use alternative training methods, and simplified the 
training options at 30 CFR 250, Subpart O--Training.
    The February 5, 1997, final rule did not sufficiently address 
developing a performance-based training system, so we planned to 
publish a proposed rule to better address this issue. Before 
considering any further revisions to the rule, we decided to hold a 
workshop in Houston, Texas. The purpose of the workshop was to discuss 
the development of a performance-based training system for OCS oil and 
gas activities.
    On April 4, 1997, we published a Federal Register notice (62 FR 
18070) announcing the workshop. We stated that the goal of the meeting 
was to develop a procedure that ensures that lessee and contractor 
employees are trained in well control or production safety system 
operations by creating a less prescriptive training program, focusing 
on results and not on processes.
    To improve the regulations at 30 CFR 250, Subpart O--Training, the 
workshop notice asked attendees to be prepared to present and discuss 
comments on the following four performance measures and indicators that 
could be used as part of a performance-based program:
     MMS Written Test;
     MMS Hands-On and Simulator Testing;
     Audits, Interviews, or Cooperative Reviews; and
     Incident of Noncompliance (INC), Civil Penalty, and Event 
Data.
    On June 10, 1997, we conducted a public workshop in Houston, Texas, 
which received excellent participation from industry and training 
schools. Approximately 190 people attended the workshop, representing a 
diverse cross section of the oil and gas industry.
    The next step in the development of a performance-based training 
system was accomplished by publishing a proposed rule on April 20, 
1999. The rule focused on the development of a performance-based 
training program. The proposed rule required lessee and contract 
employees to develop their own training programs tied to the job duties 
of their personnel. This final rule will primarily focus on training 
results rather than on the process by which employees are trained. By 
developing appropriate performance measures, MMS can evaluate the 
effectiveness of a lessee's training programs by:
     written testing;
     hands-on testing;
     training system audits; or
     employee interviews.
    This approach requires lessees to be responsible for the quality 
and the level of training their employees receive.

Differences Between Proposed and Final Rules

    In addition to the changes we made to the final rule in response to 
comments, we also reworded certain complex sections for further 
clarity. In many instances, the changes improve MMS's internal work 
processes to better serve

[[Page 49486]]

its external customers. Following are the major changes by section.
     We replaced the tables in proposed Sec. 250.1504. In the 
proposed rule, the tables listed the minimum ``knowledge and job skill 
elements'' employees must have to competently perform their assigned 
well control and production safety duties. The elements were far too 
prescriptive for a performance-based rule. The new 30 CFR 250.1503(a) 
is more performance-based, stating that: ``You'' must establish and 
implement a training program so that all of your employees are trained 
to competently perform their assigned well control and production 
safety duties. The knowledge and job skill elements that an employee 
must possess in order to perform assigned well control or production 
safety duties are the responsibility of the lessee.
     We added Sec. 250.1502, establishing a 2-year transition 
period to ensure a smooth transition from the existing rule to the new 
requirement.
     We deleted proposed Sec. 250.1502(c) that stated that both 
lessees and contractors are required to develop training plans. We now 
specify that only lessees are required to develop a training plan.
     We modified proposed Sec. 250.1503(b)(1) through (7) to 
add clarity and specificity so that lessees understand they are 
responsible for ensuring that all personnel working on their leases are 
trained and can competently perform their assigned well control or 
production safety duties. We also wanted contractors to understand that 
the lessees will review their training program for contract personnel.
     We replaced proposed Sec. 250.1510 with Sec. 250.1503(c). 
In proposed Sec. 250.1510, we explained why it may be necessary for 
lessees to provide a training plan to the MMS. In Sec. 250.1503(c), we 
describe what documentation the lessee must provide to MMS upon request 
of the Regional or District Supervisor.
     We deleted proposed Sec. 250.1512 and moved the 
requirements to Sec. 250.1509 in the final rule. Under the current 
system, MMS-approved training schools conduct hands-on, simulator, or 
other types of testing that must be passed by the employees before they 
can work on the OCS. Under the final rule, Sec. 250.1509 outlines the 
requirements involved if MMS conducts, or requires the lessees to 
conduct, these tests. We are changing the requirement in the proposed 
rule that the lessees pay all costs associated with testing. This final 
rule specifies that the lessees are responsible for paying the testing 
costs, excluding salary and travel costs for MMS personnel.

Response to Comments

    MMS received 25 comments on the proposed rule. The comments were 
received from six production operators, six drilling contractors, two 
trade organizations, one standard setting organization, nine training 
schools, and one congressional office. We reviewed all the comments 
and, in some instances, we revised the final language based on these 
comments. MMS grouped the major comments and organized them by the 
proposed regulation section number or subject, as highlighted in the 
comment table.

                                                  Comment Table
----------------------------------------------------------------------------------------------------------------
          Requirement/Proposed rule                        Comment                        MMS response
----------------------------------------------------------------------------------------------------------------
Preamble....................................  The transition period is          Agree--MMS added a section
                                               inadequate. Lessees will not be   establishing a 2-year
                                               able to implement a               transition period to ensure the
                                               satisfactory program within a     smoothest transition from the
                                               90-day timeframe.                 existing rule to the new
                                                                                 requirement.
                                                                                New 30 CFR 250.1502.
Preamble....................................  The stated training plan          Agree--We noted and corrected.
                                               development time of 2.2 hours     Plan development time averages
                                               is an understatement.             40-60 hours.
Sec.  250.1501..............................  MMS should delete the             Agree--We deleted the
                                               requirement ``experienced,'' as   requirement ``experienced.''
                                               this would preclude ``new hire
                                               employees.'' The word
                                               ``experienced'' does not
                                               necessarily relate to
                                               ``competent,'' which is the
                                               primary goal of MMS' training
                                               program.
Sec.  250.1502..............................  Several commenters stated that    Agree--Contractors may have to
                                               contractors would need to         address the lessees' training
                                               assure each individual lessee     plans. These differences may
                                               they work for that their          exist regardless of the system
                                               personnel have been trained       that is in place. It is the
                                               according to the specific         responsibility of the lessees
                                               program requirements that have    to ensure that those
                                               been developed by that lessee.    differences do not impact the
                                               Contractors may have to modify    safety of operations.
                                               their program to fit each
                                               lessee's definition of an
                                               acceptable program, possibly
                                               requiring the contractor to
                                               alter its training program
                                               every time a rig changes to a
                                               different customer.
Sec.  250.1502..............................  Several commenters asked for      Agree--MMS did not mean to imply
                                               clarification concerning which    that catering staff, marine,
                                               personnel are to be trained.      helicopter and other
                                               The expanded scope of the rule    nonessential third-party
                                               from the prior regulations        ``contractor'' personnel be
                                               seems to imply that the           trained by the lessee.
                                               catering staff, marine,           According to this rule, only
                                               helicopter, and other             personnel engaged in well
                                               nonessential third-party          control or production safety
                                               ``contract or'' personnel must    operations must be trained.
                                               also be trained by the lessee.
Sec.  250.1502..............................  One commenter wanted MMS to       Agree--The focus of this rule
                                               remove the requirement that hot   has been limited to well
                                               tapping practices and             control and production safety
                                               procedures be included in the     training.
                                               lessee's training plan.
Sec.  250.1502(a)...........................  MMS' current prescriptive         Disagree--MMS believes lessees
                                               training requirements should be   should be responsible for
                                               maintained.                       developing procedures that
                                                                                 ensure their workers are
                                                                                 properly trained prior to
                                                                                 working on the OCS rather than
                                                                                 having MMS prescribe them.
Sec.  250.1502(c)...........................  One commenter stated that MMS     Agree--We now specify that
                                               should clarify if both lessees    lessees are required to develop
                                               and contractors are required to   a training plan. Lessees will
                                               develop training plans.           be responsible for ensuring
                                                                                 that all personnel working on
                                                                                 their leases are trained and
                                                                                 can competently perform their
                                                                                 assigned well control or
                                                                                 production safety duties.
                                                                                New 30 CFR 250.1503.

[[Page 49487]]

 
Sec.  250.1502(c)...........................  A 5-year record retention         Disagree--MMS may need at least
                                               requirement for documentation     5 years of training records to
                                               for all employees is costly and   make an assessment of your
                                               unwarranted.                      training program and look at
                                                                                 safety trends.
                                                                                New 30 CFR 250.1503(c)(1).
Sec.  250.1504..............................  Several commenters suggested      Agree--MMS believes that the
                                               that the knowledge and job        tables are too prescriptive for
                                               skill elements included in the    a performance-based rule. We
                                               tables are far too prescriptive   have elected to delete the
                                               for a rule that MMS intends to    tables.
                                               be ``performance-based''.
Sec.  250.1509..............................  Clarity that an employee needs    Agree--Wording has been changed
                                               to be kept current on             to reflect periodic training of
                                               information related to his or     employees in relation to their
                                               her particular job.               specific job.
                                                                                New 30 CFR 250.1506.
Sec.  250.1510..............................  Several commenters pointed out    Disagree--As part of the final
                                               that the proposed rule does not   rule, lessees will be required
                                               contain requirements regarding    to develop a training plan
                                               course duration, class size, or   defining their program. Minimum
                                               periodic retraining. Some in      information to be included in
                                               industry may take this as a       the plan is included in the
                                               sign to extend the training       final rule. MMS will monitor
                                               frequency of their employees      company training programs to
                                               from 2 to 6 years, or to reduce   determine their effectiveness.
                                               well control certification to a  New 30 CFR 250.1503.
                                               one-time course and test.
Sec.  250.1510(b)(3)........................  Several commenters urged MMS not  Agree in part--MMS realizes that
                                               to use written tests as an        failing a written test does not
                                               indicator of an employee's        mean an employee does not know
                                               competency or the effectiveness   his or her job. A written test
                                               of an employee's training, and    is one of many tools MMS may
                                               one commenter stated that tests   use in assessing the
                                               should be administered orally     performance of a company's
                                               because many offshore workers     training program. MMS may elect
                                               have difficulty reading           to conduct oral tests according
                                               regulations or company            to the lessee's training plan.
                                               operating manuals.               New CFR 250.1508(a)
Sec.  250.1512..............................  Several commenters stated the     Disagree--Whenever possible, MMS
                                               requirements for hands-on,        will try to accommodate this
                                               simulator, or other types of      concern and minimize any
                                               testing will cause a disruption   potential disruptions. However,
                                               in operations if conducted        to assist in addressing
                                               offshore. This type of testing    personnel competency, hands-on,
                                               will not provide a valid          simulator, or other types of
                                               indicator of the lessee's         testing may be conducted in an
                                               performance or the                offshore environment.
                                               effectiveness of its training     Therefore, we retained the
                                               program.                          option for either onshore or
                                                                                 offshore testing.
                                                                                New CFR 250.1507(d)
Sec.  250.1512..............................  Several commenters stated that    Disagree--MMS may use hands-on,
                                               MMS should delete the             simulator, or other types of
                                               requirement that lessees and      tests as a method for
                                               contractors pay for all costs     evaluating the effectiveness of
                                               associated with hands-on,         a training program. Whenever
                                               simulator, or other types of      possible, MMS will make efforts
                                               testing.                          to minimize costs associated
                                                                                 with testing. The final rule
                                                                                 clarifies that lessees will not
                                                                                 be responsible for paying the
                                                                                 salary and travel costs of MMS
                                                                                 personnel. New 30 CFR
                                                                                250.1507(d).
Sec.  250.1512..............................  Several commenters stated that    Disagree--MMS does not have the
                                               MMS should not use an             equipment or expertise to
                                               authorized representative to      conduct hands-on, simulator, or
                                               administer or witness MMS hands-  live well testing. For that
                                               on, simulator, or live well       reason, the final rule includes
                                               testing. They believe that MMS    a provision that either the MMS
                                               should bear the burden of         or its authorized
                                               guaranteeing impartiality and     representative would administer
                                               controlling costs during these    or witness the testing if we
                                               tests.                            find it necessary.
                                                                                New CFR 250.1509(a).
Testing-out.................................  One commenter urged MMS not to    Disagree--MMS and much of
                                               move in the direction of          industry sees value in
                                               testing-out, especially in        training, even for advanced
                                               positions critical to             employees who can pass the
                                               operational safety, such as       test. However, under a
                                               well control.                     performance-based system,
                                                                                 certain lessees may choose to
                                                                                 implement the testing-out
                                                                                 options for some of their
                                                                                 personnel. MMS will measure
                                                                                 these results according to the
                                                                                 requirements in Sec.  250.1507
                                                                                 to ensure the competency of
                                                                                 these employees.
General.....................................  One commenter stated that         Disagree--MMS believes that this
                                               statistics on incidents in OCS    final rule provides companies
                                               waters overwhelmingly support     the opportunity to develop
                                               the success of MMS' current       their own programs tailored to
                                               training program. With today's    the needs of their employees.
                                               environment in the oil and gas    The changes in the final rule
                                               industry, this is not the time    are expected to decrease
                                               to experiment with a new type     incidents and improve company
                                               of training regulation.           performance by holding lessees
                                                                                 accountable for the competency
                                                                                 of their employees.
WellCAP.....................................  Several commenters stated that    Agree--MMS commends IADC for the
                                               MMS should consider referencing   WellCAP program and
                                               the International Association     acknowledges the value WellCAP
                                               of Drilling Contractors (IADC)    could bring in providing
                                               WellCAP training program, or      minimum well control training
                                               its associated documents in the   requirements to lessees and
                                               final rule. WellCAP is ideally    contractors worldwide. MMS
                                               positioned to act as an           intends to publish a proposed
                                               industry benchmark in the         rule that proposes the
                                               absence of MMS' school-based      incorporation of WellCAP or a
                                               system, providing training        comparable third party
                                               uniformity and an acceptable      certification program into
                                               level of quality to well          Subpart O.
                                               control training worldwide.
----------------------------------------------------------------------------------------------------------------


[[Page 49488]]

Procedural Matters

Regulatory Planning and Review (Executive Order 12866)

    This document is a significant rule and is 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. The rule does not add any new cost to the oil and gas 
industry, and it will not reduce the level of safety to personnel or 
the environment.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. The 
Department of the Interior (DOI) has several Memoranda of Understanding 
(MOUs) with the U.S. Coast Guard that define the responsibilities of 
each agency with respect to activities on the OCS. The MOUs are 
effective in avoiding inconsistency or interfering with any action 
taken 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. This rule will not affect programs such as listed 
here. This is a training rule that applies to the lessees working on 
the OCS. There are no entitlements, grants, or user fees that apply.
    (4) Although moving towards performance-based rules is a fairly new 
concept, this rulemaking will not raise any legal issues. However, 
there may be certain novel policy issues to consider, thus, this rule 
is significant and is subject to review by OMB. We held a public 
workshop before proposing this change.

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. This 
is a training rule that applies to lessees working on the OCS and 
amends current MMS regulations to provide increased training 
flexibility. Thus, this rule will not directly affect the relationship 
between the Federal and State Governments. This rule does not impose 
costs on State or localities because the rule applies only to the 
lessees working on the OCS.

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.

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 estimated yearly gross cost to the oil and gas industry to 
train its employees is $5,945,250. Based on a 12-year cycle, well-
control students would normally take six basic courses (\1/2\ course 
per year), and production safety system students would take four basic 
courses (\1/3\ course per year). Therefore, the annual training cost to 
train 15,000 students in well control would be $3,975,000 ($530  x  \1/
2\ course per year  x  15,000 students). The annual training cost to 
train 15,000 students in a production safety system would be $1,955,250 
($395  x  \1/3\ course per year  x  15,000 students). The total annual 
cost is $5,930,250. There may be additional costs to the lessees or 
contractors with poor performance records if MMS or its authorized 
representative conducts, or requires the lessee or contractor to 
conduct hands-on, simulator, or other types of testing. They will be 
required to pay for all costs associated with the testing, excluding 
salary and travel costs for MMS personnel.
    We estimate that not more than 50 employees (industry-wide) per 
year, at a cost of $300 per employee, will be required to take the MMS 
hands-on, simulator, or other types of testing. The total cost for 
those employees should not exceed $15,000 per year.
    We feel that the cost of complying with the final rule would be 
somewhat less than this amount.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions. Based on our experience, the training 
industry should not change significantly under a performance-based 
system. Because of lower overhead and competitive pricing in the 
industry, costs should remain stable; and
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or ability of United 
States-based enterprises to compete with foreign-based enterprises.

Unfunded Mandates 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 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.

Paperwork Reduction Act (PRA) of 1995

    We examined the proposed rule and these final regulations under 
section 3507(d) of the PRA. Because of the changes proposed to the 
current 30 CFR 250, Subpart O regulations, we submitted the information 
collection requirements to OMB for approval as part of the proposed 
rulemaking process. As the final rule contains minor changes in the 
collection of information, before publication, we again submitted the 
information collection to OMB for approval. In response to comments, we 
concluded that we significantly underestimated the burden for the 
primary paperwork aspect of the rule that requires lessees to develop 
``training plans'' (Sec. 250.1503(b) and (c)). In our resubmission to 
OMB, the burden for this requirement is 60 hours per plan. The 
following two new requirements (associated hour burden is shown in 
parenthesis) are the only differences in the information collected 
under the final rule from that approved for the proposed rule:
     Sec. 1502--Notify MMS if lessees implement the revised 
final regulations before the end of the 2-year transition period (1 
hour).
     Sec. 1503(c)--Provide copies of the training plan to MMS, 
if requested (5 hours).
    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. OMB has 
approved the collection of information required in the final rule under 
OMB control number 1010-0128.
    The title of this collection of information was changed to ``30 CFR 
250, Subpart O Well Control and Production Safety Training'' to 
correspond with the revised title of the subpart. Responses are 
mandatory. The frequency of submission varies according to the 
requirement but is generally ``on occasion.'' We estimate there are 
approximately 130 respondents to this collection of information.

[[Page 49489]]

    We use the collection of information required by these regulations 
to ensure that workers in the OCS are properly trained with the 
necessary skills to perform their jobs in a safe and pollution-free 
manner. In some instances, MMS will conduct oral interviews of offshore 
employees to evaluate the effectiveness of a company's training 
program. This information is necessary to verify training compliance 
with the requirements.
    Reporting and Recordkeeping ``Hour'' Burden: The approved annual 
burden of this collection of information is 5,739 hours. Based on $50 
per hour, we estimate the total ``hour'' burden cost to respondents to 
be $286,950.
    Reporting and Recordkeeping ``Non-Hour Cost'' Burden: There are no 
``non-hour cost'' burdens in the final regulations.
    It should be noted that this final rule will not take full effect 
for 2 years from the effective date of the rule, but it allows for 
early implementation at the discretion of lessees. Therefore, we will 
continue to maintain approved information collections for the current 
Subpart O regulations (under OMB control number 1010-0078) as well as 
for these final regulations during the transition period.

Regulatory Flexibility (RF) Act

    DOI 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 Small Business Administration (SBA) 
defines a small business as having:
     Annual revenues of $5 million or less for exploration 
service and field service companies; and
     Fewer than 500 employees for drilling companies and for 
companies that extract oil, gas, or natural gas liquids.
    Under SBA's Standard Industrial Classification (SIC) 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.
    As explained in the PRA section, companies will be required to 
develop training plans. We estimate that the burden for developing 
these plans is approximately 60 hours each. If 91 lessees are small 
businesses, the burden would be 5,460 hours. At an average hourly cost 
of $50, the impact of this requirement is $273,000 on small businesses. 
Once the plan has been developed, there are no new costs for 
implementation.
    The costs for an alternative training program would simply offset 
the current cost of sending employees to accredited schools. 
Alternative training provides both added flexibility and cost savings 
for companies who train their employees either onshore or offshore, at 
a centralized location, or during their off hours on a platform or 
drilling rig. It is expected that they would receive the same quality 
of training that they have been receiving for years. We estimate that 
the company may spend 5-10 ($250-$500) hours annually to update the 
plans. Thus, the annual cost for updating plans for small businesses is 
approximately $22,750 to $45,500. The cost for this update will be 
minimal.
    A positive effect for the lessees under the new rule is that they 
will have increased options concerning where to get their training. 
This will change how a company does business. This should not result in 
any additional training costs or economic burdens. Under the final 
rule, the oil and gas industry will have the flexibility to tailor its 
training program to the specific needs of each company. Lessees will be 
given the added flexibility to determine the type of training, 
methodology (classroom, computer, team, on-the-job), length of 
training, frequency and subject matter content for their training 
program.
    In addition to lessees, MMS currently regulates the training 
schools. There are 52 MMS-accredited training schools. We have approved 
26 schools to teach production safety courses, 22 schools to teach well 
control courses, and 4 schools to teach both well control and 
production courses. The training companies best fit under the SIC 8249, 
and the criterion for small businesses is $5 million in revenue. Based 
on this criterion, 25 training companies will fall into the small 
business category.
    Under these final regulations, we will no longer be accrediting 
training schools or imposing any regulatory burden. However, lessee 
personnel and the employees of contractors hired by the lessee will 
have to be trained and found competent in the duties associated with 
their particular job. Training schools that teach a broad range of 
vocational courses, in addition to MMS accreditation courses, and who 
provide quality training at a competitive price, should experience no 
significant change in their normal business, except the schools will no 
longer be burdened with MMS reporting and recordkeeping requirements.
    Training schools that were previously MMS-accredited will benefit 
because their plans are in place and approved by MMS. Additionally, 
schools that have established a loyal customer-base will not be 
affected by the implementation of this rule. Therefore, this new 
provision will not cause prices to increase or decrease. Based on our 
experience, the failure rate of the schools in the offshore training 
industry should not change significantly under a performance-based 
program. Under the current regulations, we maintain a database that 
tracks training schools approved by the agency. Based on information 
from this database, less than 2 percent of the schools approved by MMS 
go out of business each year. Under the new rule, we expect this to 
remain the same. MMS experience has shown that because of lower 
overhead and competitive pricing, small training schools are just as 
capable as the larger schools at adapting to change.
    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.

Takings Implication Assessment (Executive Order 12630)

    According to Executive Order 12630, the rule does not have 
significant takings implications. MMS determined that this rule does 
not represent a governmental action capable of interference with 
constitutionally protected property rights. Thus, a Takings Implication 
Assessment is not required under Executive Order 12630, Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights.

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.

List of Subjects in 30 CFR Part 250

    Continental shelf, Environmental impact statements, Environmental 
protection, Government contracts, Investigations, Mineral royalties, 
Oil and gas development and production, Oil and gas exploration, Oil 
and gas

[[Page 49490]]

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: July 14, 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. Subpart O is revised to read as follows:

Subpart O--Well Control and Production Safety Training

Sec.
250.1500   Definitions.
250.1501   What is the goal of my training program?
250.1502   Is there a transition period for complying with the 
regulations in this subpart?
250.1503   What are my general responsibilities for training?
250.1504   May I use alternative training methods?
250.1505   Where may I get training for my employees?
250.1506   How often must I train my employees?
250.1507   How will MMS measure training results?
250.1508   What must I do when MMS administers written or oral 
tests?
250.1509   What must I do when MMS administers or requires hands-on, 
simulator, or other types of testing?
250.1510   What will MMS do if my training program does not comply 
with this subpart?


Sec. 250.1500  Definitions.

    Terms used in this subpart have the following meaning:
    Employee means direct employees of the lessees who are assigned 
well control or production safety duties.
    I or you means the lessee engaged in oil, gas, or sulphur 
operations in the Outer Continental Shelf (OCS).
    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 an owner of operating rights for that lease 
and the MMS-approved assignee of that lease.
    Production safety means production operations as well as the 
installation, repair, testing, maintenance, or operation of surface or 
subsurface safety devices.
    Well control means drilling, well completion, well workover, and 
well servicing operations. For purposes of this subpart, well 
completion/well workover means those operations following the drilling 
of a well that are intended to establish or restore production to a 
well. It includes small tubing operations but does not include well 
servicing. Well servicing means snubbing, coil tubing, and wireline 
operations.


Sec. 250.1501  What is the goal of my training program?

    The goal of your training program must be safe and clean OCS 
operations. To accomplish this, you must ensure that your employees and 
contract personnel engaged in well control or production safety 
operations understand and can properly perform their duties.


Sec. 250.1502  Is there a transition period for complying with the 
regulations in this subpart?

    (a) During the period October 13, 2000 until October 15, 2002 you 
may either:
    (1) Comply with the provisions of this subpart. If you elect to do 
so, you must notify the Regional Supervisor; or
    (2) Comply with the training regulations in 30 CFR 250.1501 through 
250.1524 that were in effect on June 1, 2000 and are contained in the 
30 CFR, parts 200 to 699, edition revised as of July 1, 1999, as 
amended on December 28, 1999 (64 FR 72794).
    (b) After October 15, 2002, you must comply with the provisions of 
this subpart.


Sec. 250.1503  What are my general responsibilities for training?

    (a) You must establish and implement a training program so that all 
of your employees are trained to competently perform their assigned 
well control and production safety duties. You must verify that your 
employees understand and can perform the assigned well control or 
production safety duties.
    (b) You must have a training plan that specifies the type, 
method(s), length, frequency, and content of the training for your 
employees. Your training plan must specify the method(s) of verifying 
employee understanding and performance. This plan must include at least 
the following information:
    (1) Procedures for training employees in well control or production 
safety practices;
    (2) Procedures for evaluating the training programs of your 
contractors;
    (3) Procedures for verifying that all employees and contractor 
personnel engaged in well control or production safety operations can 
perform their assigned duties;
    (4) Procedures for assessing the training needs of your employees 
on a periodic basis;
    (5) Recordkeeping and documentation procedures; and
    (6) Internal audit procedures.
    (c) Upon request of the Regional or District Supervisor, you must 
provide:
    (1) Copies of training documentation for personnel involved in well 
control or production safety operations during the past 5 years; and
    (2) A copy of your training plan.


Sec. 250.1504  May I use alternative training methods?

    You may use alternative training methods. These methods may include 
computer-based learning, films, or their equivalents. This training 
should be reinforced by appropriate demonstrations and ``hands-on'' 
training. Alternative training methods must be conducted according to, 
and meet the objectives of, your training plan.


Sec. 250.1505  Where may I get training for my employees?

    You may get training from any source that meets the requirements of 
your training plan.


Sec. 250.1506  How often must I train my employees?

    You determine the frequency of the training you provide your 
employees. You must do all of the following:
    (a) Provide periodic training to ensure that employees maintain 
understanding of, and competency in, well control or production safety 
practices;
    (b) Establish procedures to verify adequate retention of the 
knowledge and skills that employees need to perform their assigned well 
control or production safety duties; and
    (c) Ensure that your contractors' training programs provide for 
periodic training and verification of well control or production safety 
knowledge and skills.


Sec. 250.1507  How will MMS measure training results?

    MMS may periodically assess your training program, using one or 
more of the methods in this section.
    (a) Training system audit. MMS or its authorized representative may 
conduct a training system audit at your office. The training system 
audit will compare your training program against this subpart. You must 
be prepared to explain your overall training program and produce 
evidence to support your explanation.

[[Page 49491]]

    (b) Employee or contract personnel interviews. MMS or its 
authorized representative may conduct interviews at either onshore or 
offshore locations to inquire about the types of training that were 
provided, when and where this training was conducted, and how effective 
the training was.
    (c) Employee or contract personnel testing. MMS or its authorized 
representative may conduct testing at either onshore or offshore 
locations for the purpose of evaluating an individual's knowledge and 
skills in perfecting well control and production safety duties.
    (d) Hands-on production safety, simulator, or live well testing. 
MMS or its authorized representative may conduct tests at either 
onshore or offshore locations. Tests will be designed to evaluate the 
competency of your employees or contract personnel in performing their 
assigned well control and production safety duties. You are responsible 
for the costs associated with this testing, excluding salary and travel 
costs for MMS personnel.


Sec. 250.1508  What must I do when MMS administers written or oral 
tests?

    MMS or its authorized representative may test your employees or 
contract personnel at your worksite or at an onshore location. You and 
your contractors must:
    (a) Allow MMS or its authorized representative to administer 
written or oral tests; and
    (b) Identify personnel by current position, years of experience in 
present position, years of total oil field experience, and employer's 
name (e.g., operator, contractor, or sub-contractor company name).


Sec. 250.1509  What must I do when MMS administers or requires hands-
on, simulator, or other types of testing?

    If MMS or its authorized representative conducts, or requires you 
or your contractor to conduct hands-on, simulator, or other types of 
testing, you must:
    (a) Allow MMS or its authorized representative to administer or 
witness the testing;
    (b) Identify personnel by current position, years of experience in 
present position, years of total oil field experience, and employer's 
name (e.g., operator, contractor, or sub-contractor company name); and
    (c) Pay for all costs associated with the testing, excluding salary 
and travel costs for MMS personnel.


Sec. 250.1510  What will MMS do if my training program does not comply 
with this subpart?

    If MMS determines that your training program is not in compliance, 
we may initiate one or more of the following enforcement actions:
    (a) Issue an Incident of Noncompliance (INC);
    (b) Require you to revise and submit to MMS your training plan to 
address identified deficiencies;
    (c) Assess civil/criminal penalties; or
    (d) Initiate disqualification procedures.

[FR Doc. 00-20352 Filed 8-11-00; 8:45 am]
BILLING CODE 4310-MR-P