[Federal Register Volume 66, Number 248 (Thursday, December 27, 2001)]
[Proposed Rules]
[Pages 66848-66850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31710]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC95


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Document Incorporated by Reference--API 510

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed rule.

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SUMMARY: MMS is proposing to add a document to be incorporated by 
reference into our regulations governing oil and gas and sulphur 
operations in the Outer Continental Shelf (OCS). This revision will 
ensure that lessees use the best available and safest technologies 
while operating in the OCS. The new document, API 510, is titled 
``Pressure Vessel Inspection Code: Maintenance Inspection, Rating, 
Repair, and Alteration.''

DATES: We will consider all comments we receive by February 25, 2002. 
We will begin reviewing comments then and may not fully consider 
comments we receive after February 25, 2002.

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. 
If you wish to e-mail comments, the e-mail address is: 
[email protected]. Reference API 510 in your e-mail subject line. 
Include your name and return address in your e-mail message and mark 
your message for return receipt.

FOR FURTHER INFORMATION CONTACT: Richard Ensele, Operations Analysis 
Branch, at (703) 787-1583.

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. 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 specific edition or specific edition and 
supplement or addendum cited in the regulations.
    The proposed rule will incorporate by reference into MMS 
regulations the provisions of API 510.
    We have reviewed this document and have determined that the latest 
edition should be incorporated into the regulations to ensure the use 
of the best available and safest technologies.

MMS's Review Concerning Pressure Vessels

    The MMS documents incorporated by reference currently include three 
sections of the American Society of Mechanical Engineers (ASME) 1998 
Boiler and Pressure Vessel Code:
    Section I-- Rules for the Construction of Power Boilers;
    Section IV--Rules for the Construction of Heating Boilers; and
    Section VIII--Rules for the Construction of Pressure Vessels.
    Each of these sections provides requirements applicable to the 
design, fabrication, inspection, testing, and certification of newly 
constructed boilers and pressure vessels. The ASME Code has been the 
recognized standard for the construction of new boilers and pressure 
vessels since the early 1900's. The ASME Code does not, however, 
address the maintenance inspection, rating, repair, and alteration of 
pressure vessels after the vessels are placed into service.
    MMS has not previously included in its documents incorporated by 
reference a standard on pressure vessel maintenance inspection, rating, 
repair, and alteration. Our review of the document proposed for 
incorporation into MMS regulations, API 510, indicates that it would be 
beneficial to us and to the offshore industry to clarify requirements 
on pressure vessel operations, inspections, repairs, and maintenance of 
the pressure vessels in service on the OCS.
    In December 1931, ASME and the American Petroleum Institute (API) 
created a joint committee to consider safe practices in the design, 
construction, inspection, and repair of pressure vessels used in the 
oil and gas industry. The resulting API/ASME Code remained in effect 
until discontinued in 1956. Since the need for uniform maintenance, 
inspection, and repair of pressure vessels continued, API published the 
first edition of API 510 in 1958 to satisfy this need.
    Another set of boiler and pressure vessel requirements exists, 
which is widely used or referenced by many states and municipalities in 
their regulations. It is the National Board Inspection Code (NBIC). 
Many elements of the discontinued API/ASME Code have been included in 
the NBIC since its 1960 edition. It is the intention of both API and 
NBIC that their respective scopes not overlap. NBIC advises in its 
scope that ``It is recognized that an American Petroleum Institute 
Inspection Code, API-510, exists covering the maintenance inspection, 
repair, alteration and re-rating procedures for pressure vessels used 
by the petroleum and chemical process industries, which is applicable 
in these special circumstances. It is the intent that this Inspection 
Code cover installations other than those covered by API-510 unless the 
jurisdiction rules otherwise.''
    NBIC is an excellent generic code applicable to boilers and 
pressure vessels in general industrial uses. API 510 is designed 
specifically for the petroleum and chemical process industries. 
Therefore, API 510 is the appropriate document to provide for the 
safest maintenance inspection, rating, repair, and alteration of 
pressure vessels in service on the OCS.

[[Page 66849]]

Procedural Matters

Public Comments 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.

Background

    This proposed rulemaking will add a document to those incorporated 
by reference in the regulations. The addition of API 510, dealing with 
maintenance inspection, rating, repair, and alteration of the various 
pressure vessels in use on the OCS, to the documents incorporated by 
reference in our regulations will have a minor impact on the entire 
industry. The maintenance and repair of pressure vessels has been an 
ongoing responsibility of the industry since the OCS program's 
inception. The inclusion of API 510, first published in 1958, will 
provide for uniform maintenance and inspection practices.

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.
    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 minimal 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.
    (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.

Regulatory Flexibility (RF) Act

    The Department certifies that this rule 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 provisions of this rule 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 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 North American Industry Classification System Code 
211111, Crude Petroleum and Natural Gas Extraction, MMS estimates that 
a total of 1,380 firms drill oil and gas wells onshore and offshore. 
The group affected by this rule is the approximately 130 companies that 
are offshore lessees/operators. According to SBA criteria, 39 companies 
qualify as large firms, leaving up to 91 companies that may qualify as 
small firms with fewer than 500 employees. However, because of the 
extremely high cost and technical complexity involved in exploration 
and development offshore, the vast majority of lessees/operators that 
will be affected will be companies with larger revenues.
    The API document proposed for incorporation into MMS regulations 
covers pressure vessels on offshore structures. Offshore structures can 
cost hundreds of millions of dollars to build and install. The document 
to be incorporated by this rule has been used by the industry for many 
years, and the latest edition represents the current state-of-the-art 
industry practices. Boilers and pressure vessels currently being built 
are being constructed according to the requirements in the ASME Code. 
Existing pressure vessel equipment is being inspected and maintained to 
the requirements of API 510. Additional costs, if any, are already 
accepted by the industry.
    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 
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 
documents and minor revisions to some operating and maintenance 
procedures. The minor revisions to operating and maintenance procedures 
may result in some minor costs or may actually result in minor cost 
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.
    (c) Does not have significant adverse effect on competition, 
employment, investment, productivity, innovation, or the ability of 
United States-based enterprises to compete with foreign-based 
enterprises.

Paperwork Reduction Act (PRA) of 1995

    There are no information collection requirements associated with 
this rule. The DOI 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.

Federalism (Executive Order 13132)

    According to Executive Order 13132, the rule does not have 
significant Federalism effects. This rule will not substantially and 
directly affect the relationship between the Federal and State 
Governments. This rule will simply add one additional document 
incorporated by reference to ensure that the industry uses the best and 
safest technologies. This rule does not impose costs on States or 
localities. Any costs incurred affect only the oil industry and will be 
minor.

[[Page 66850]]

Takings Implication Assessment (Executive Order 12630)

    According to Executive Order 12630, this rule does not have 
significant Takings implications. A Takings Implication Assessment is 
not required.

Energy Supply, Distribution, or Use (Executive Order 13211)

    This rule is not a significant rule and is not subject to review by 
the Office of Management and Budget under Executive Order 12866. The 
rule does not have a significant effect on energy supply, distribution, 
or use because it merely adds a new standard to be incorporated by 
reference that will provide for uniform maintenance and inspection 
practices. Thus, a Statement of Energy Supply, Distribution, or Use is 
not required.

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)

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the NEPA of 1969 is not required.

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: December 3, 2001.
J. Steven Griles,
Acting Assistant Secretary, Land and Minerals Management.
    For the reasons stated in the preamble, the Minerals Management 
Service 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), a new entry for 
document API 510 is added in alphanumeric order to read as follows:


Sec. 250.198  Documents incorporated by reference.

* * * * *
    (e) * * *

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           Title of document               Incorporated by reference at
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*                  *                  *                  *
         *                  *                  *
API 510, Pressure Vessel Inspection      Sec.  250.803(b)(1), (b)(1)(i);
 Code: Maintenance Inspection, Rating,    Sec.  250.1629(b)(1),
 Repair, and Alteration, Eighth           (b)(1)(i).
 Edition, June 1997, API Stock No.
 C51008.
 
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    4. In Sec. 250.803, paragraph (b)(1) and the first sentence of 
paragraph (b)(1)(i) are revised to read as follows:


Sec. 250.803  Additional production system requirements.

* * * * *
    (b) *  *  *
    (1) Pressure and fired vessels. Pressure and fired vessels must be 
designed, fabricated, and code stamped in accordance with the 
applicable provisions of sections I, IV, and VIII of the American 
Society of Mechanical Engineers (ASME) Boiler and Pressure Vessel Code. 
Pressure and fired vessels must have maintenance inspection, rating, 
repair, and alteration performed in accordance with the applicable 
provisions of the American Petroleum Institute's Pressure Vessel 
Inspection Code: Maintenance Inspection, Rating, Repair, and Alteration 
(API 510).
    (i) Pressure safety relief valves must be designed and installed in 
accordance with the applicable provisions of sections I, IV, and VIII 
of the ASME Boiler and Pressure Vessel Code, and must have maintenance 
inspection, rating, repair, and alteration performed in accordance with 
the provisions of API 510. * * *
* * * * *
    5. In Sec. 250.1629, paragraph (b)(1) and the first sentence of 
paragraph (b)(1)(i) are revised to read as follows:


Sec. 250.1629  Additional production and fuel gas system requirements.

* * * * *
    (b) * * *
    (1) Pressure and fired vessels must be designed, fabricated, and 
code stamped in accordance with the applicable provisions of sections 
I, IV, and VIII of the American Society of Mechanical Engineers (ASME) 
Boiler and Pressure Vessel Code. Pressure and fired vessels must have 
maintenance inspection, rating, repair, and alteration performed in 
accordance with the provisions of the American Petroleum Institute's 
Pressure Vessel Inspection Code: Maintenance Inspection, Rating, 
Repair, and Alteration (API 510).
    (i) Pressure safety relief valves must be designed and installed in 
accordance with the applicable provisions of sections I, IV, and VIII 
of the ASME Boiler and Pressure Vessel Code, and must have maintenance 
inspection, rating, repair, and alteration performed in accordance with 
the applicable provisions of API 510. * * *
* * * * *

[FR Doc. 01-31710 Filed 12-26-01; 8:45 am]
BILLING CODE 4310-MR-P