[Federal Register Volume 67, Number 96 (Friday, May 17, 2002)]
[Rules and Regulations]
[Pages 35398-35412]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-11640]



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Part V





Department of the Interior





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Minerals Management Service



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30 CFR Parts 250, 256



Oil and Gas and Sulphur Operations in the Outer Continental Shelf--
Decommissioning Activities; Final Rule

  Federal Register/Vol. 67, No. 96/Friday, May 17, 2002/Rules and 
Regulations  

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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 250 and 256

RIN 1010-AC65


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Decommissioning Activities

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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SUMMARY: This final rule amends MMS regulations governing oil and gas 
operations in the Outer Continental Shelf (OCS) to update 
decommissioning requirements. The rule includes requirements for 
plugging a well, decommissioning a platform and pipeline, and clearing 
a lease site. We restructured the requirements to make the regulations 
easier to read and understand. The final rule also updates requirements 
to reflect changes in technology. The final technical changes will help 
ensure that lessees and pipeline right-of-way holders conduct 
decommissioning operations safely and effectively.

EFFECTIVE DATE: July 16, 2002.

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

SUPPLEMENTARY INFORMATION: On July 7, 2000, we published the proposed 
rule in the Federal Register (65 FR 41892). During the 90-day comment 
period, which ended on October 5, 2000, MMS received eight letters of 
comment from the oil and gas industry, the environmental community, and 
other government agencies.

Background

    In 1996, at the request of MMS, the Marine Board of the National 
Research Council (NRC) published a report titled ``An Assessment of 
Techniques for Removing Offshore Structures.'' On April 15-17, 1996, 
MMS convened an International Decommissioning Workshop in New Orleans, 
Louisiana, to discuss the recommendations in the NRC report and current 
industry decommissioning practices. The workshop drew over 475 
attendees to discuss and make recommendations on OCS decommissioning 
operations. On August 8, 1996, MMS published a notice in the Federal 
Register (61 FR 41422) that requested comments on its plans to follow 
up on recommendations received at the workshop.
    We also sponsored several other public workshops, including one in 
Ventura, California, on September 23-25, 1997. The purpose of the 
workshops was to continue the process of discussing decommissioning 
activities and to receive recommendations.

Differences Between Proposed and Final Rules

    In addition to the changes we made to the final rule in response to 
comments, MMS reworded certain phrases for further clarity. In many 
instances, the changes improve MMS's internal work processes. MMS has 
also added more specific guidance in this final rule concerning items 
that should be included in decommissioning applications.

Response to Comments

    We reviewed all of the comments, and in some instances, we revised 
the final language based on these comments. MMS grouped the comments by 
major issues and regulatory sections.

Organization of the Regulation

    We received comments from various non-government agencies 
supporting the new organizational structure of the regulation which 
locates all of the decommissioning requirements into one subpart. We 
received no negative comments; therefore, we have kept that structure.

Abandoning Platforms in Place (30 CFR 250.1728)

    Comment: MMS received comments from non-profit public interest 
groups, private citizens and government agencies stating that MMS 
should not permit oil companies to abandon platforms in place in the 
Pacific and Alaska OCS Regions.
    Response: MMS requires that lessees remove all platforms to at 
least 15 feet below the mud line. Depending on the situation, MMS may 
allow an alternate removal depth if the remaining structure would not 
become a hazard to other users of the seafloor and in other very 
specific situations as listed in Sec. 250.1728. However, this is not 
meant to allow large portions of platforms to be abandoned in place. As 
one commenter suggested, MMS is closely following the research and 
legislation on artificial reefs. As provided in Sec. 250.1730, MMS may 
grant a departure from the removal requirements if the structure 
becomes part of an artificial reef program.

Power Cable Guidance

    Comment: A lessee requested that MMS provide guidance on power 
cables.
    Response: Under 30 CFR 250.1700, power cables associated with OCS 
oil, gas, or sulphur operations may be considered to be obstructions. 
If they are, the lessee must remove them under Sec. 250.1740 through 
250.1743.

Site Clearance

    Comment: A lessee asked if NTL 98-26 concerning site clearance will 
be rescinded or revised because the new regulations would discuss site 
clearance.
    Response: We may revise the NTL, as authorized under Sec. 250.103, 
to provide more detail on trawling consistent with this final rule.
    Comment: A government agency recommended that the regulation should 
specify that the operator must remove drilling piles or shell mounds 
from the base of the platform if required by the Department of the 
Interior (DOI).
    Response: MMS has defined these items as obstructions in 
Sec. 250.1700. Sections 250.1740 through 250.1743 require that 
obstructions be removed.
    Comment: An oil industry group asked what the trawling requirements 
are for unburied pipelines.
    Response: We address the relationship of the trawling requirements 
to unburied pipelines in the regulation at Sec. 250.1741(g). That 
section prescribes that trawling must be parallel to an unburied 
pipeline and may not cross the pipeline unless the pipeline is smaller 
than 8 inches in diameter and has no obstructions present.
    Comment: An oil industry representative asked if the Regional 
Supervisor would be authorized to prescribe variances for site 
clearance.
    Response: Section 1740(c) authorizes variance.

Regulatory Flexibility (RF) Act

    Comment: Lessees commented that the costs for trawling operations 
for temporarily abandoned wells were underestimated for Sec. 250.1722.
    Response: We received estimates from trawling organizations that 
the trawling operation would cost about $2,500 per day, and it may take 
1 to 3 days to trawl the site of a temporarily abandoned (TA) well. 
However, we did not include an estimate for equipment that may be lost 
or damaged during the operation. Therefore, we may have unintentionally 
underestimated the cost by using an average cost of $3,000. We have re-
verified the costs with trawling organizations and have adjusted the 
costs upward to an average cost of $9,000 per operation. The trawling 
organizations noted that the costs for temporary abandonment would be 
less than the costs of trawling for site clearance because the amount 
of debris

[[Page 35399]]

should be substantially less for a TA well site.

Section 250.1006

    Comment: Pipeline companies commented that it is not clear whether 
Sec. 250.1006 applies to both lease term and right-of-way pipelines.
    Response: The requirements apply to both lease term and right-of-
way pipelines because DOI has regulatory authority for both. We have 
added the term ``DOI'' to the heading to make it clear that we are not 
referring to pipelines regulated by the Department of Transportation.
    Comment: A pipeline company commented that MMS should clarify the 
requirements for out-of-service pipelines at each timeframe.
    Response: We have created a table to clarify the requirements for 
out-of-service pipelines for 0 to 1 year, more than 1 year, and 5 or 
more years.
    Comment: A pipeline company suggested adding a definition for out-
of-service pipelines.
    Response: We have added a definition for out-of-service pipelines 
in Sec. 250.1001.
    Comment: A pipeline company commented that 1 year is not enough 
time to allow before MMS requires a lessee to flush and fill a line 
with seawater when the line is out of service. Also, 5 years is too 
much time before requiring total decommissioning.
    Response: We have retained the 1-year and 5-year requirements. MMS 
is doing research on flushing out-of-service pipelines and may address 
this in the future.

Section 250.1700

    Comment: A government agency commented that MMS should expand the 
definition of obstacles to include marine growth such as shell mounds, 
and debris from oil, gas, or sulphur operations left in vessel traffic 
lanes.
    Response: We have added marine growth to the definition of 
obstructions. Obstructions already include all debris from oil, gas, or 
sulphur operations, which is practical to remove from the area to be 
trawled.
    Comment: A lessee commented that MMS should remove ``(in the 
Pacific OCS Region)'' from the definition because the Gulf OCS Region 
has power cables.
    Response: We agree. MMS may require power cables to be removed if 
they are part of OCS oil, gas, or sulphur operations.

Section 250.1702

    Comment: A lessee commented that MMS should add a qualifier that 
the sales contracts between operating partners may excuse the new 
lessee from accruing decommissioning obligations.
    Response: All transferees of title or operating rights will 
continue to accrue the decommissioning obligations. Assignors and 
assignees may provide in their contract for allocation of 
responsibilities, but the Government should not be restricted from 
seeking performance by any of the parties by terms of a private 
agreement. This position has not changed.

Section 250.1703

    Comment: A government agency commented that MMS should include a 
diligence requirement to prevent operators from indefinitely delaying 
proper decommissioning. As a mechanism, the commenter suggested that 
MMS review production to determine if the operator is entitled to 
continue operations based on economics.
    Response: MMS does require lessees to prove that leases are still 
capable of production in paying quantities under 30 CFR 250.180 and 
that wells and other facilities are still needed for lease operations. 
Also see Sec. 250.1710 and 250.1711 for timely well plugging 
requirements.

Section 250.1704

    Comment: A lessee questioned how the MMS could expect to receive a 
platform removal application for the Pacific OCS Region and Alaska OCS 
Region at least 2 years before production ceases.
    Response: Planning ahead is the key to a successful decommissioning 
operation, particularly given the size of the facilities to be removed 
in the Pacific OCS Region. Removal events are planned and contracted 
for several years in advance. The platforms that will be removed in the 
Pacific OCS Region will be the largest platforms located in the deepest 
water to date. According to a research project that MMS contracted for 
the Pacific OCS Region titled the ``State of the Art of Removing Large 
Platforms Located in Deep Water,'' some of the removal equipment will 
be brought in from the North Sea at great expense, and it will take a 
considerable amount of planning and time.
    Comment: A lessee commented that MMS should include a requirement 
to make the final platform removal application due 2 years after the 
deadline for the initial platform removal application (in the Pacific 
OCS Region and Alaska OCS Region).
    Response: We have included this recommendation in Sec. 250.1704(b).
    Comment: A lessee commented that MMS should replace the provision 
for submitting decommissioning applications in (a) ``at least 2 years 
before production is projected to cease'' with ``at least 1 year before 
production is projected to cease.''
    Response: We have maintained the requirement for submitting the 
application 2 years in advance because of the complexity of the 
platform removals. If we find that we no longer need 2 years notice, we 
will revisit this regulation. However, we have adopted the 
recommendation to add the language ``before production is projected to 
cease'' to the requirement.

Section 250.1711 (Proposed section 250.1707)

    Comment: An oil industry organization recommended that MMS change 
(b) to ``If the well is the last producing well on a lease, and not 
useful for further operations and is not capable of profitable oil, 
gas, or sulphur production.'' This would eliminate abandonment of wells 
for a producing lease, field, or platform.
    Response: We disagree. It is MMS's responsibility to ensure that 
wells are properly plugged as soon as it is determined that they are no 
longer needed for operations. We do not see any benefit to keeping an 
unnecessary well unplugged.
    Comment: We received a comment from a government agency asking how 
we know when a well is not capable of producing in paying quantities.
    Response: Some of the information that we may request with form 
MMS-124 includes recent well tests, remaining recoverable reserves, 
production data, pressure data, and economic analysis. This information 
would help us determine if a well is capable of producing in paying 
quantities.

Section 250.1712 (Proposed section 250.1709)

    Comment: An oil industry organization recommended that in proposed 
Sec. 250.1709(a)(2), MMS should only require submission of 
``available'' recent well test data and pressure data because the data 
may not be available at the time of the submittal of form MMS-124.
    Response: We agree, and we have revised the final rule at 
Sec. 250.1712(b).
    Comment: An oil industry organization recommended that MMS change 
proposed Sec. 250.1709(a)(6)(ii) from ``All perforated intervals'' to 
``All perforated intervals that have not been plugged.'' This 
eliminates the need to re-submit any details regarding other

[[Page 35400]]

intervals in the well that were previously abandoned with the 
appropriate approvals.
    Response: We agree, and we have made the change at 
Sec. 250.1712(f)(2).

Section 250.1715 (Proposed section 250.1710)

    Comment: An oil industry organization recommended that MMS delete 
proposed paragraph Sec. 250.1710(h) concerning cement displacement 
plugs because it is addressed in paragraph (k) for testing of plugs 
placed by displacement, it is not common practice and is expensive 
($20,000).
    Response: We agree, and we have made the change and renumbered the 
paragraphs. See Sec. 250.1715(b) in this final rule.
    Comment: An oil industry organization recommended that MMS change 
``plugs'' to ``plug(s)'' as applicable to cover both where it would be 
one plug and where there may be more than one anticipated.
    Response: We agree, and we have done so in appropriate places in 
the rule.
    Comment: An oil industry organization recommended that MMS remove 
the word ``permanent'' before bridge plugs in proposed 
Sec. 250.1710(d)(2), because other references to bridge plugs do not 
specify the type of bridge plug.
    Response: We agree, and we have deleted this limitation to a 
specific type of bridge plug.
    Comment: An oil industry organization recommended that MMS change 
proposed Sec. 250.1710(i) to ``Cement plugs designed to set before 
freezing and have a low heat of hydration'' for clarity.
    Response: We agree, and we have made the change.

Section 250.1716 (Proposed section 250.1712 and section 250.1713)

    Comments: A county government organization recommended that this 
section should specify that the operators should not leave the 
wellheads and casing above the mud line.
    Response: MMS will only allow a lessee an alternate removal depth 
when the object would not become a hazard, the water depth is greater 
than 800 meters, or other very specific situations. We believe that 
this is a reasonable requirement. A 1996 report from the NRC titled, 
``An Assessment of Techniques for Removing Structures,'' recommends 
that regulations governing removals need to be sufficiently flexible to 
accommodate the complex requirements of a wide variety of structures, a 
spectrum of marine life, and various users. MMS will analyze the 
requests for alternate removal depth carefully and case-by-case.
    Comment: A lessee noted that it is not clear how to determine and/
or prove that a particular obstruction constitutes a hazard.
    Response: In determining whether an obstruction constitutes a 
hazard, consider whether the area would not be used by others (fishing 
community, military, etc.) and whether geotechnical information 
demonstrates that erosional processes will not expose the object to 
create obstructions.
    Comment: A lessee recommended that MMS use 1,000 feet or more 
instead of 800 meters (2,624 feet) as the depth for departure from the 
requirement to remove all wellheads and casings to at least 15 feet 
below the mud line, in paragraph (a).
    Response: Allowing an alternate removal requirement for all 
wellheads and casings in water depths 1,000 feet or more may not 
provide adequate protection against the wellhead becoming an 
obstruction. However, applications for removal in water depths less 
than 800 meters (2,624 feet) will be evaluated case-by-case. We also 
request concurrence from the Department of the Navy on these types of 
proposals.
    Comment: An oil industry organization recommended that MMS add 
language to allow an alternative removal depth if ``seafloor sediment 
stability poses safety concerns,'' because when using divers, mudline 
requirements can be difficult to meet in areas with soft sediments, and 
cave-ins have led to diver injuries.
    Response: We agree that there may be cases when seafloor sediment 
stability poses safety concerns if divers are used; however, we would 
only approve an alternative removal depth if you determine, and MMS 
concurs, that you must use divers, and seafloor sediment stability 
poses safety concerns. You must have determined that no other removal 
method is possible. We have made this change in the regulations.

Section 250.1721 (Proposed section 250.1711)

    Comment: An oil industry organization recommended that MMS change 
the wording in proposed Sec. 250.1711(c) to ``Set a retrievable or 
permanent-type bridge plug or a cement plug at least 100-feet long in 
the inner-most casing. The top of the bridge plug or cement plug must 
be no greater than 1,000 feet below the mud line. MMS may consider 
approving alternate requirements for sub-sea wells case-by-case.'' 
Shallow plugs on wells intended for re-entry can be dangerous.
    Response: We agree and have added Sec. 250.1721(d).
    Comment: A lessee commented that MMS should require a subsea dome 
cover only when the water is less than 200 feet.
    Response: We disagree because damage can occur to fishing nets in 
depths between 200 and 300 feet. Therefore, we have specified in 
Sec. 250.1721(f) that subsea domes are not required in water depths 
greater than 300 feet.
    Comment: An oil industry organization recommended that MMS should 
allow subsea domes in proposed Sec. 250.1711(g)(3) that extend more 
than 10 feet above the seafloor case-by-case due to different well 
conditions that may exist. The 10-foot requirement seems an arbitrary 
figure, with no engineering or maritime justification. In fact, the 
current installations are greater than 10 feet above the seafloor.
    Response: We have added flexibility in Sec. 250.1722(b) for 
allowing subsea domes that extend beyond 10 feet when approved. 
However, the higher the dome, the more difficult it will be for lessees 
to add a net guard and to have the trawling completed. We have also 
clarified that corrective action must be taken if the dome is not 
effective.
    Comment: A lessee commented that MMS should rescind NTL 98-19 and 
use Sec. 250.1720.
    Response: The NTL is designed to give more specific guidance on 
satisfying the performance-based requirement. We plan to revise it to 
compliment the new regulation.
    Comment: A lessee commented that MMS should add more flexibility to 
the new requirement for trawling over temporarily abandoned well domes.
    Response: We agree. In Sec. 250.1722(h), MMS has added that we may 
issue a departure for the trawling test if the lessee marks the subsea 
protective covering with an automatic daily tracking buoy or uses a 
design and installation method that has been proven with similar bottom 
conditions.

Section 250.1725 (Proposed section 250.1718)

    Comment: A lessee commented that in proposed Sec. 250.1718(a) MMS 
should include a requirement for considering whether removal and 
placement in a previously designated artificial reef site is more 
appropriate, and to allow time to make this determination.
    Response: MMS is not the agency to determine if placement in an 
artificial reef site is more appropriate. However, if time is needed to 
make this determination, it may be obtained under Sec. 250.1725(a).

[[Page 35401]]

    Comment: An oil industry organization recommended that MMS add 
language to allow abandonment in place of subsea equipment in greater 
than 1,000 feet of water because they pose no hazard or obstruction. 
This has also been approved in DWOP submittals by MMS.
    Response: MMS may approve such a request on a case-by-case basis 
only. However, blanket approval will not be given.
    Comment: An oil industry organization recommended that MMS amend 
the rule to provide a waiver to defer platform removal as part of a 
joint industry program to remove multiple platforms or facilities. A 
joint industry program to remove multiple platforms (e.g. SWARS program 
in the Pacific OCS Region) may require that platforms remain for longer 
than 1 year after lease termination. This may also be the preferred 
alternative due to lower environmental impacts.
    Response: Under 30 CFR 250.141, MMS can grant departures from 
regulations or lease stipulations or approve alternative compliance 
measures for sufficient cause.

Section 250.1727 (Proposed section 250.1719)

    Comment: A commenter recommended that MMS require that unburied 
pipelines that may become an obstruction be removed.
    Response: Removal is required under Sec. 250.1754 because lessees 
and pipeline right-of-way holders may only decommission pipelines in 
place if they will not become a hazard.
    Comment: A lessee asked what constitutes an active pipeline. Also 
NTL 98-26 lists requirements for unburied lines. The lessee recommended 
that we put these requirements in this rule.
    Response: Active pipelines are those not out of service or 
decommissioned. We have put a definition for pipelines taken out of 
service at Sec. 250.1001 and included the requirements for unburied 
pipelines in Sec. 250.1741(g).
    Comment: An oil industry organization recommended that MMS add ``if 
applicable'' before the list of information to include in the platform 
removal application.
    Response: We agree, and we have made the change.
    Comment: A commenter recommended that MMS include the requirements 
of the removal for subsea equipment.
    Response: Subsea equipment removals are handled case-by-case by the 
MMS District offices. Too many variables exist to specify the 
requirements in the regulations. However, lessees can assume that 
equipment must be removed unless the requirements of Sec. 250.1725 
through 250.1728 are met.

Section 250.1728 (Proposed section 250.1720 and section 250.1721)

    Comment: A commenter argued that subsea equipment in water depths 
greater than 1,000 feet should be allowed to remain on the seafloor as 
long as it is cleaned and flushed of all hydrocarbons.
    Response: MMS believes that Sec. 250.1728 is flexible enough to 
accommodate this request if the equipment is not an obstruction. 
However, lessees must still seek approval from the Regional Supervisor. 
MMS coordinates with the Department of the Navy on these requests, and 
we keep a list of all objects remaining above the mud line. Also, MMS 
does not have the authority to allow leaving a partial platform in 
place. If the platform is not officially converted into an artificial 
reef, it requires an ocean dumping permit from the Environmental 
Protection Agency (EPA). MMS believes that wellheads and casing are not 
part of the platform, and the decision to leave these types of 
structures in place is similar to abandoning pipelines in place, and 
does not require an EPA permit.
    Comment: Specify the 800-meter water depth in feet also.
    Response: MMS will state the water depth both as 800 meters and 
2,624 feet throughout the regulation.

Section 250.1730 (Proposed section 250.1723)

    Comment: A commenter suggested that a minimum unobstructed water 
column depth of 300 feet be given as acceptable for marine navigation 
regarding partial structure removals.
    Response: MMS does not have the authority to set specific 
limitations on partial structure removals because the limitations will 
be determined by other agencies.
    Comment: A commenter suggested that instead of requiring that an 
unobstructed water column be above the structure, MMS should require 
that lessees satisfy U.S. Coast Guard (USCG) navigational requirements 
for the remaining structure.
    Response: We agree, and we have changed (b) accordingly. We have 
also made a change in (a) from the National Artificial Reef Program to 
the State's artificial reef plan for accuracy.

Section 250.1740 (Proposed section 250.1714)

    Comment: An oil industry organization recommended that MMS reduce 
the required water depth for trawling to 200 feet.
    Response: We did not make this change in the final rule because we 
are also anticipating future fishing and military uses with our 
requirements because the obstructions would be there for a very long 
time. We also have determined this criteria in consultation with a 
representative group of interested parties; therefore, we have not made 
this change.

Section 250.1741 (Proposed section 250.1714 and section 250.1717)

    In Sec. 250.1741, we have clarified that sensitive biological 
features must be protected by not trawling closer than 500 feet. This 
is a current requirement.
    Comment: An oil industry organization recommended that MMS limit 
the requirement for trawling around wells to less than a 200-foot water 
depth and use a 200-foot radius centered on an exploration or 
delineation well.
    Response: We are maintaining the requirement for 300 feet for both 
water depth and radius because 200 feet would not protect other users 
of the OCS. We have determined these requirements in consultation with 
a representative group of interested parties who are anticipating 
future needs.

Section 250.1742 (Proposed section 250.1715)

    Comment: An oil industry organization recommended that MMS add the 
flexibility to use diver or remotely operated vehicle (ROV) inspections 
and video documentation. Many drilling rigs are now equipped with an 
ROV, which provides for an efficient, reliable inspection of the well 
site before rig departure.
    Response: We agree, and we have made the change.

Section 250.1741 (Proposed section 250.1717)

    Comment: A commenter recommended that the lessee should send the 
clearance report that is required in proposed Sec. 250.1717(g) to MMS, 
along with the completion report to ensure that all the right paperwork 
is submitted to MMS on time. Paragraph (g)(6) should be combined with 
(g).
    Response: We agree and have changed the final rule accordingly.

[[Page 35402]]

Proposed Section 250.1722

    Comments: A private citizen, a non-profit public interest group, 
and a government agency suggested that MMS should not state its policy 
on artificial reefs, since it does not manage the program, and it is 
controversial in California. Also, paragraph (c) needs to allow for the 
operator, not the State, to retain liability for the structure if left 
as an artificial reef. Another commenter said that paragraph (c) 
unilaterally requires the State agency to take responsibility for the 
platforms, in perpetuity. Also, another commenter mentioned that an 
area previously designated as an artificial reef should be considered 
the number one option for a reef proposal.
    Response: MMS deleted proposed Sec. 250.1722 because it is 
unnecessary to the regulation.
    Comment: A commenter said that the rule should address other uses, 
such as mariculture and research for decommissioned platforms.
    Response: Having agreed to delete proposed Sec. 250.1722, there is 
no need for the suggested change.

Section 250.1750 (Proposed section 250.1724)

    Comment: A commenter argued that this paragraph needs to specify 
that pipelines may be left in place only when they are buried.
    Response: If the unburied pipeline is an obstruction, it may not be 
left in place. This is now covered in Sec. 250.1754.

Section 250.1754 (Proposed section 250.1725)

    Comment: A commenter suggested that the rule define the term 
``hazard.''
    Response: We have changed the term ``hazard'' to ``obstruction'' 
because ``obstruction'' is defined in the regulation. We have also 
moved the requirement to remove a pipeline that subsequently becomes a 
hazard (proposed Sec. 250.1725(i)) to Sec. 250.1754 for emphasis and 
clarity.

Procedural Matters

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 new or expanded requirements are written in plain 
language and designed to ensure that lessees decommission facilities to 
protect the environment and minimize obstructions to other uses of the 
OCS. The economic effects of this rule will be minimal. Lessees 
planning decommissioning activities in the Pacific OCS Region and 
Alaska OCS Region would be required to plan these activities at least 2 
years before production ceases and submit an initial decommissioning 
application. This will impact an estimated two lessees a year, as shown 
in Table 1. The cost to develop an initial decommissioning application 
is estimated at $1,000 per application.

Table 1.--New Reporting Cost for the Initial Decommissioning Application
             Submitted in the Pacific and Alaska OCS Regions
------------------------------------------------------------------------
                                                 Yearly
                               -----------------------------------------
                                   Cost @
                                 $1,000 per      Lessees    Applications
                                 application    affected      submitted
------------------------------------------------------------------------
Small Businesses..............       $1,000             1             1
Other Lessees.................        1,000             1             1
                               ---------------
------------------------------------------------------------------------


                                   Table 2.--New Requirement Cost for Trawling
----------------------------------------------------------------------------------------------------------------
                                                  First year                          Subsequent years
                                   -----------------------------------------------------------------------------
                                     Total cost                             Total cost
                                    @ $9000 per    Lessees       Domes     @ $9000 per    Lessees       Domes
                                       trawl       affected     trawled       Trawl       affected     trawled
----------------------------------------------------------------------------------------------------------------
Small Businesses..................     $180,000           20           20      $27,000            3            3
Other Lessees.....................      225,000           10           25       18,000            2            2
                                   ---------------------------
----------------------------------------------------------------------------------------------------------------


                    Table 3.--Total Costs for Both the New Plan and New Trawling Requirement
----------------------------------------------------------------------------------------------------------------
                                             First year                             Subsequent years
                             -----------------------------------------------------------------------------------
                                                              Domes                                     Domes
                                               Lessees      trawled +                    Lessees      trawled +
                               Total cost     affected        plans      Total cost     affected        plans
                                                            submitted                                 submitted
----------------------------------------------------------------------------------------------------------------
Small Businesses............     $181,000            21            21       $28,000             4             4
Other Lessees...............      226,000            11            26        19,000             3             3
                             -----------------------------
----------------------------------------------------------------------------------------------------------------


[[Page 35403]]

    Also, lessees who use domes to protect temporarily abandoned wells 
would be required to trawl over those domes after they install them. We 
estimate the cost for trawling would be $9,000 for each of the 45 
existing domes and $9,000 to trawl each of the 10 additional domes 
installed each year. We estimate that 30 lessees will be required to 
trawl the 45 existing domes, and 5 lessees will trawl the additional 10 
domes each subsequent year as shown in Table 2. The total costs are 
shown in Table 3.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. The new or 
expanded requirements are minimal and apply only to the OCS 
decommissioning activities.
    (3) This rule does not significantly alter the budgetary effects or 
entitlements, grants, user fees, or loan programs or the rights or 
obligations of their recipients. The new requirements and costs are 
minimal, and the main purpose of the rule is to write it in plain 
language.
    (4) This rule does not raise novel legal or policy issues. The new 
requirements are based on the legal authority of the OCS Lands Act and 
other laws.

Regulatory Flexibility (RF) Act

    The Department certifies that this proposed 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 changes proposed in 30 CFR 
250, subpart Q, 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 SBA's North American Industry Classification System code 
211111, Crude Petroleum and Natural Gas Extraction, 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.
    Where there are some additional new or expanded reporting 
requirements in this rule, they do not impose extensive burdens. The 
cost to comply with the new requirements is a one-time cost of 
approximately $9,000 paid to a trawling organization to trawl over 
domes of temporarily abandoned wells in shallow water. The OCS has 
approximately 45 of these domes. In subsequent years, we predict that 
10 new domes will be trawled over. We estimate that 20 of the 30 
lessees that will trawl over the 45 existing domes are small businesses 
and 3 out of the 5 lessees that will trawl over domes in subsequent 
years will be small businesses. The cost to the small businesses will 
be $180,000 the first year and $27,000 each subsequent year, as shown 
in Table 2 (in the Regulatory Planning and Review section). However, 
the trawling industry, another small business, will benefit by having 
less loss to their equipment.
    Also, about two lessees per year in the Pacific OCS Region or 
Alaska OCS Region will need to submit an initial decommissioning plan 
for a cost of approximately $1,000 to develop each application as shown 
in Table 1 (in the Regulatory Planning and Review section).
    We estimate that one of these lessees will be a small business. 
These plans are necessary to ensure that early planning is occurring 
for these upcoming decommissioning activities.
    Based on these calculations, 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 the SBREFA (5 U.S.C. 804(2)). 
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 reorganize the 
requirements and write them in plain language. The new requirements 
will cost lessees $407,000 for the first year and $47,000 in subsequent 
years and only a few lessees will be affected.
    (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 new 
requirements is minor and will minimize conflicts with other uses of 
the OCS.
    (c) Does not have a significant adverse effect on competition, 
employment, investment, productivity, innovation, or ability of U.S.-
based enterprises to compete with foreign-based enterprises. The 
regulation contains a few new requirements that are not burdensome and 
ensure that decommissioning operations in the OCS are conducted 
properly.

Paperwork Reduction Act (PRA) of 1995

    We examined the proposed rule and these final regulations under 
section 3507(d) of the PRA. As part of the proposed rulemaking process, 
we submitted the information collection requirements in the entire 
proposed subpart Q to OMB for approval. The final regulations do 
contain minor changes in the collection of information from what was 
proposed. Therefore, before publication, we again submitted the subpart 
Q information collection to OMB, and OMB approved them under OMB 
control number 1010-0142, with a current expiration date of July 31, 
2004. An agency may not collect or sponsor, and you are not required to 
respond to, a collection of information unless it displays a currently 
valid OMB control number.
    The title of the collection of information for this final rule is 
``30 CFR 250, Subpart Q--Decommissioning Activities.'' Respondents 
include approximately 130 Federal OCS oil and gas or sulphur lessees 
and 106 holders of pipeline rights-of-way. The frequency of response is 
on occasion or annually, depending upon the requirement. Responses to 
this collection of information are mandatory. MMS will protect 
proprietary information according to the Freedom of Information Act and 
30 CFR 250.196, ``Data and information to be made available to the 
public.''
    This rulemaking primarily consolidates information collection 
requirements on decommissioning from our current regulations in 30 CFR 
250, subparts G, I, and J (approved under OMB control numbers 1010-
0079, 1010-0058, and 1010-0050, respectively). The approved burdens for 
those subparts will be correspondingly reduced when the new subpart Q 
regulations take effect. The proposed rulemaking imposed only one new 
information collection burden. Section 250.1726 (proposed 
Sec. 250.1705) requires submission of an initial decommissioning 
application in the Pacific OCS Region and Alaska OCS

[[Page 35404]]

Region, which we estimate will require 20 burden hours per application.
    Most of the section numbers in the final regulations have changed 
from the proposed rule, and information collection requirements are now 
in different sections. The final regulations also are more specific 
with respect to several reporting requirements. These new burdens were 
included in the subsequent information collection submission that OMB 
approved.
    We estimate the total annual reporting ``hour'' burden for the 
final rule to be 6,071 hours. There are no recordkeeping requirements. 
There are no paperwork ``non-hour cost'' burdens associated with these 
regulations. Following is a breakdown of the hour burden estimate.

                                                Burden Breakdown
----------------------------------------------------------------------------------------------------------------
                                                                                                         Annual
 Citation 30 CFR 250 subpart Q   Reporting requirement          Burden            Average number per     burden
                                                                                         year            hours
----------------------------------------------------------------------------------------------------------------
1703; 1704....................  Request approval for                 Burden included below                     0
                                 decommissioning.
1704(f); 1712; 1716; 1717;      Submit form MMS-124 to         Burden included under 1010-0045.                0
 1721(a), (f), (g);              plug wells; provide
 1722(a),(b), (d); 1723(b);      subsequent report;
 1743(a).                        request alternate
                                 depth departure;
                                 request procedure to
                                 protect obstructions
                                 above seafloor;
                                 report results of
                                 trawling; certify
                                 area cleared of
                                 obstructions; remove
                                 casing stub or mud
                                 line suspension
                                 equipment and subsea
                                 protective covering;
                                 or other departures..
1713 (Final New)..............  Notify MMS 48 hours     15 minutes............  100 notices..........         25
                                 before beginning
                                 operations to
                                 permanently plug a
                                 well.
1721(e); 1722(e), (h)(1);       Identify and report              U.S. Coast Guard requirement.                 0
 1741(c).                        subsea wellheads,
                                 casing stubs, or
                                 other obstructions;
                                 mark wells protected
                                 by a dome; mark
                                 location to be
                                 cleared as navigation
                                 hazard.
1722(c), (g)(2) (Final New)...  Notify MMS within 5     15 minutes............  10 notices...........          3
                                 days if trawl does
                                 not pass over
                                 protective device or
                                 causes damages to it;
                                 or if inspection
                                 reveals casing stub
                                 or mud line
                                 suspension is no
                                 longer protected.
1722(f), (g)(3)...............  Submit annual report    2 hours...............  75 reports...........        150
                                 on plans for re-entry
                                 to complete or
                                 permanently abandon
                                 the well and
                                 inspection report..
1722(h) (Final New)...........  Request waiver of       2 hours...............  2 requests...........          4
                                 trawling test.
1704(a); 1726 (Proposed New)..  Submit initial          20 hours..............  2 applications.......         40
                                 decommissioning
                                 application in
                                 Pacific OCS and
                                 Alaska OCS Regions.
1704(b); 1725; 1727; 1728;      Submit final            8 hours...............  124 applications.....        992
 1730.                           application to remove
                                 platform or other
                                 subsea facility
                                 structures (including
                                 alternate depth
                                 departure) or
                                 approval to maintain,
                                 to conduct other
                                 operations, or to
                                 convert to artificial
                                 reef.
1725(e) (Final New)...........  Notify MMS 48 hours     15 minutes............  124 notices..........         31
                                 before beginning
                                 removal of platform
                                 and other facilities.
1704(c); 1729 (Final New).....  Submit post platform    2 hours...............  124 reports..........        248
                                 or other facility
                                 removal report.
1740(b)(5), (c)(3);             Request approval of     4 hours...............  125 requests.........        500
 1740(g)(1); 1743(b).            well site, platform,
                                 or other facility
                                 clearance method;
                                 including contacting
                                 pipeline owner or
                                 operator.
1743(b).......................  Verify permanently      12 hours..............  124 verifications....      1,488
                                 plugged well,
                                 platform, or other
                                 facility removal site
                                 cleared of
                                 obstructions and
                                 submit certification
                                 letter.
1704(d); 1751; 1752...........  Submit application to   8 hours...............  257 applications.....      2,056
                                 decommission pipeline
                                 in place or remove
                                 pipeline.
1753 (Final New)..............  Submit post pipeline    2 hours...............  257 reports..........        514
                                 decommissioning
                                 report.
1700 through 1754.............  General departure and   2 hours...............  10 requests..........         20
                                 alternative
                                 compliance requests
                                 not specifically
                                 covered elsewhere in
                                 subpart Q regulations.
 
----------------------------------------------------------------------------------------------------------------

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. The 
final rule revises existing operation regulations. It does not prevent 
any lessee, operator, or drilling contractor from performing operations 
on the OCS, provided they follow the regulations. This rule is updating 
decommissioning requirements and will not impose costs on States or 
localities.

Takings Implication Assessment (Executive Order 12630)

    According to Executive Order 12630, the final rule does not 
represent a governmental action capable of interference with 
constitutionally protected property rights. The new requirements are 
minor and deal with minimizing obstructions to other uses of the OCS. 
Thus, a Takings Implication Assessment need not be prepared according 
to Executive Order 12630, Government Action and Interference with 
Constitutionally Protected Property Rights.

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

    This rule is not a significant rule and is not subject to review by 
OMB under Executive Order 13211. The rule does not have a significant 
effect on energy supply, distribution, or use because it will not 
reduce crude oil supply or production. It also will not increase energy 
prices or increase dependence on foreign supplies. The new or expanded 
requirements are written in plain language and designed to ensure that 
lessees decommission facilities to protect the environment and minimize

[[Page 35405]]

obstructions to other uses of the OCS. The economic effects of this 
rule will be minimal.

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 Sec. 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. This rule was mainly updated to include plain language and to 
give additional guidance. It contains very few 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.

List of Subjects

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 reserves, Penalties, Pipelines, Natural gas, Petroleum, Public 
lands--mineral resources, Public lands--rights-of-way, Reporting and 
recordkeeping requirements, Sulphur, Surety bonds.

30 CFR Part 256

    Administrative practice and procedure, Continental shelf, 
Government contracts, Oil and gas exploration, Public lands--mineral 
resources, Reporting and recordkeeping requirements, Surety bonds.

    Dated: April 23, 2002.
Rebecca W. Watson,
Assistant Secretary, Land and Minerals Management.

    For the reasons stated in the preamble, the Minerals Management 
Service (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.


Sec. 250.102  What does this part do?

    2. In Sec. 250.102, the following changes are made:
    a. In Sec. 250.102, in the table in paragraph (b), line (1) is 
removed.
    b. Lines 2 through 13 are redesignated lines 1 through 12 
respectively.
    c. A new line 13 is added to read as follows:

       Table.--Where To Find Information for Conducting Operations
------------------------------------------------------------------------
                  For information about--                     Refer to--
------------------------------------------------------------------------
 
                  *        *        *        *        *
(13) Permanently plugging wells............................  Sec. 250.17
                                                                      10
 
                  *        *        *        *        *
------------------------------------------------------------------------

    3. In Sec. 250.199, the following changes are made:
    a. In the table in paragraph (e), entry (7) is removed.
    b. Entries (8) through (16) are renumbered (7) through (15).
    c. A new entry (16) is added to read as follows:

------------------------------------------------------------------------
30 CFR 250 subpart/title (OMB    Reasons for collecting information and
         control No.)                           how used
------------------------------------------------------------------------
 
*                  *                  *                  *
                  *                  *                  *
(16) Subpart Q,                To determine that decommissioning
 Decommissioning Activities     activities comply with regulatory
 (1010-0142).                   requirements and approvals. To ensure
                                that site clearance and platform or
                                pipeline removal are properly performed
                                to protect marine life and the
                                environment and do not conflict with
                                other users of the OCS.
*                  *                  *                  *
                  *                  *                  *
------------------------------------------------------------------------

Subpart G--[Removed and Reserved]

    4. Subpart G ( Sec. 250.700-250.704) is removed and reserved.

Subpart I--Platforms and Structures


Sec. 250.913  [Removed]

    5. Section 250.913 is removed.

Subpart J--Pipelines and Pipeline Rights-of-Way

    6. In Sec. 250.1001, the following definition is added in 
alphabetical order:


Sec. 250.1001  Definitions.

* * * * *
    Out-of-service pipelines are those pipelines that have not been 
used to transport oil, natural gas, sulfur, or produced water for more 
than 30 consecutive days.
* * * * *
    7. Section 250.1006 is revised to read as follows:


Sec. 250.1006  How must I decommission and take out of service a DOI 
pipeline?

    (a) The requirements for decommissioning pipelines are listed in 
Sec. 250.1750 through Sec. 250.1754.
    (b) The table in this section lists the requirements if you take a 
DOI pipeline out of service:

------------------------------------------------------------------------
  If you have the pipeline out of
           service for:                        Then you must:
------------------------------------------------------------------------
(1) 1 year or less................  Isolate the pipeline with a blind
                                     flange or a closed block valve at
                                     each end of the pipeline.
(2) More than 1 year but less than  Flush and fill the pipeline with
 5 years.                            inhibited seawater.
(3) 5 or more years...............  Decommission the pipeline according
                                     to Sec. 250.1750-250.1754.
------------------------------------------------------------------------


[[Page 35406]]

Sec. 250.1007  [Amended]

    8. In Sec. 250.1007 paragraph (c) is removed.
    9. In Sec. 250.1014, the second sentence is revised to read as 
follows:


Sec. 250.1014  Relinquishment of a right-of-way grant.

     * * * It must contain those items addressed in Sec. 250.1751 and 
250.1752 of this part. * * *
    10. Subpart Q is added to read as follows:

Subpart Q--Decommissioning Activities

General

Sec.
250.1700   What do the terms ``decommissioning'', ``obstructions'', 
and ``facility'' mean?
250.1701   Who must meet the decommissioning obligations in this 
subpart?
250.1702   When do I accrue decommissioning obligations?
250.1703   What are the general requirements for decommissioning?
250.1704   When must I submit decommissioning applications and 
reports?

Permanently Plugging Wells

250.1710   When must I permanently plug all wells on a lease?
250.1711   When will MMS order me to permanently plug a well?
250.1712   What information must I submit before I permanently plug 
a well or zone?
250.1713   Must I notify MMS before I begin well plugging 
operations?
250.1714   What must I accomplish with well plugs?
250.1715   How must I permanently plug a well?
250.1716   To what depth must I remove wellheads and casings?
250.1717   After I permanently plug a well, what information must I 
submit?

Temporarily Plugging Wells

250.1721   If I temporarily plug a well that I plan to re-enter, 
what must I do?
250.1722   If I install a subsea protective device, what 
requirements must I meet?
250.1723   What must I do when it is no longer necessary to maintain 
a well in temporary abandoned status?

Removing Platforms and Other Facilities

250.1725   When do I have to remove platforms and other facilities?
250.1726   When must I submit an initial platform removal 
application, and what must it include?
250.1727   What information must I include in my final application 
to remove a platform or other facility?
250.1728   To what depth must I remove a platform or other facility?
250.1729   After I remove a platform or other facility, what 
information must I submit?
250.1730   When might MMS approve partial structure removal or 
toppling in place?

Site Clearance for Wells, Platforms, and Other Facilities

250.1740   How must I verify that the site of a permanently plugged 
well, removed platform, or removed facility is clear of 
obstructions?
250.1741   If I drag a trawl across a site, what requirements must I 
meet?
250.1742   What other methods can I use to verify that a site is 
clear?
250.1743   How do I certify that a site is clear of obstructions?

Pipeline Decommissioning

250.1750   When may I decommission a pipeline in place?
250.1751   How do I decommission a pipeline in place?
250.1752   How do I remove a pipeline?
250.1753   After I decommission a pipeline, what information must I 
submit?
250.1754   When must I remove a pipeline decommissioned in place?

    Authority: 43 U.S.C. 1331 et seq.

Subpart Q--Decommissioning Activities

General


Sec. 250.1700  What do the terms ``decommissioning'', ``obstructions'', 
and ``facility'' mean?

    (a) Decommissioning means:
    (1) Ending oil, gas, or sulphur operations; and
    (2) Returning the lease or pipeline right-of-way to a condition 
that meets the requirements of regulations of MMS and other agencies 
that have jurisdiction over decommissioning activities.
    (b) Obstructions means structures, equipment, or objects that were 
used in oil, gas, or sulphur operations or marine growth that, if left 
in place, would hinder other users of the OCS. Obstructions may 
include, but are not limited to, shell mounds, wellheads, casing stubs, 
mud line suspensions, well protection devices, subsea trees, jumper 
assemblies, umbilicals, manifolds, termination skids, production and 
pipeline risers, platforms, templates, pilings, pipelines, pipeline 
valves, and power cables.
    (c) Facility means any installation other than a pipeline used for 
oil, gas, or sulphur activities that is permanently or temporarily 
attached to the seabed on the OCS. Facilities include production and 
pipeline risers, templates and pilings, and any other facility or 
equipment that constitutes an obstruction such as jumper assemblies, 
termination skids, umbilicals, anchors, and mooring lines.


Sec. 250.1701  Who must meet the decommissioning obligations in this 
subpart?

    (a) Lessees and owners of operating rights are jointly and 
severally responsible for meeting decommissioning obligations for 
facilities on leases, including the obligations related to lease-term 
pipelines, as the obligations accrue and until each obligation is met.
    (b) All holders of a right-of-way are jointly and severally liable 
for meeting decommissioning obligations for facilities on their right-
of-way, including right-of-way pipelines, as the obligations accrue and 
until each obligation is met.
    (c) In this subpart, the terms ``you'' or ``I'' refer to lessees 
and owners of operating rights, as to facilities installed under the 
authority of a lease, and to right-of-way holders as to facilities 
installed under the authority of a right-of-way.

[[Page 35407]]

Sec. 250.1702  When do I accrue decommissioning obligations?

    You accrue decommissioning obligations when you do any of the 
following:
    (a) Drill a well;
    (b) Install a platform, pipeline, or other facility;
    (c) Create an obstruction to other users of the OCS;
    (d) Are or become a lessee or the owner of operating rights of a 
lease on which there is a well that has not been permanently plugged 
according to this subpart, a platform, a lease term pipeline, or other 
facility, or an obstruction;
    (e) Are or become the holder of a pipeline right-of-way on which 
there is a pipeline, platform, or other facility, or an obstruction; or
    (f) Re-enter a well that was previously plugged according to this 
subpart.


Sec. 250.1703  What are the general requirements for decommissioning?

    When your facilities are no longer useful for operations, you must:
    (a) Get approval from the appropriate District Supervisor before 
decommissioning wells and from the Regional Supervisor before 
decommissioning platforms and pipelines or other facilities;
    (b) Permanently plug all wells;
    (c) Remove all platforms and other facilities;
    (d) Decommission all pipelines;
    (e) Clear the seafloor of all obstructions created by your lease 
and pipeline right-of-way operations; and
    (f) Conduct all decommissioning activities in a manner that is 
safe, does not unreasonably interfere with other uses of the OCS, and 
does not cause undue or serious harm or damage to the human, marine, or 
coastal environment.


Sec. 250.1704  When must I submit decommissioning applications and 
reports?

    You must submit decommissioning applications and receive approval 
and submit subsequent reports according to the table in this section.

             Decommissioning Applications and Reports Table
------------------------------------------------------------------------
 Decommissioning applications       When to submit        Instructions
------------------------------------------------------------------------
(a) Initial platform removal    In the Pacific OCS      Include
 application [not required in    Region or Alaska OCS    information
 the Gulf of Mexico OCS          Region, submit the      required under
 Region].                        application to the      Sec. 250.1726.
                                 Regional Supervisor
                                 at least 2 years
                                 before production is
                                 projected to cease.
(b) Final removal application   Before removing a       Include
 for a platform or other         platform or other       information
 facility.                       facility in the Gulf    required under
                                 of Mexico OCS Region,   Sec. 250.1727.
                                 or not more than 2
                                 years after facility
                                 the submittal of an
                                 initial platform
                                 removal application
                                 to the Pacific OCS
                                 Region and the Alaska
                                 OCS Region.
(c) Post-removal report for a   Within 30 days after    Include
 platform or other facility.     you remove a platform   information
                                 or other facility.      required under
                                                         Sec. 250.1729.
(d) Pipeline decommissioning    Before you              Include
 application.                    decommission a          information
                                 pipeline.               required under
                                                         Sec. 250.1751(a
                                                         ) or Sec.
                                                         250.1752(a), as
                                                         applicable.
(e) Post-pipeline               Within 30 days after    Include
 decommissioning report.         you decommission a      information
                                 pipeline.               required under
                                                         Sec. 250.1753.
(f) Form MMS-124, Sundry        (1) Before you plug a   Include
 Notices and Reports on Wells.   well.                   information
                                                         required under
                                                         Sec. 250.1712.
                                (2) Within 30 days      Include
                                 after you plug a well.  information
                                                         required under
                                                         Sec. 250.1717.
                                (3) Within 30 days      Include
                                 after you complete      information
                                 siteclearance           required under
                                 activities.             Sec. 250.1743(b
                                                         ).
------------------------------------------------------------------------

Permanently Plugging Wells


Sec. 250.1710  When must I permanently plug all wells on a lease?

    You must permanently plug all wells on a lease within 1 year after 
the lease terminates.


Sec. 250.1711  When will MMS order me to permanently plug a well?

    MMS will order you to permanently plug a well if that well:
    (a) Poses a hazard to safety or the environment; or
    (b) Is not useful for lease operations and is not capable of oil, 
gas, or sulphur production in paying quantities.


Sec. 250.1712  What information must I submit before I permanently plug 
a well or zone?

    Before you permanently plug a well or zone, you must submit form 
MMS-124, Sundry Notices and Reports on Wells, and receive approval. A 
request for approval must contain the following information:
    (a) The reason you are plugging the well (or zone), for completions 
with production amounts specified by the Regional Supervisor, along 
with substantiating information demonstrating its lack of capacity for 
further profitable production of oil, gas, or sulfur;
    (b) Recent well test data and pressure data, if available;
    (c) Maximum possible surface pressure, and how it was determined;
    (d) Type and weight of well-control fluid you will use;
    (e) A description of the work (including any measures proposed to 
protect archaeological or biological bottom features from anchor 
damage); and
    (f) A current and proposed well schematic and description that 
includes:
    (1) Well depth;
    (2) All perforated intervals that have not been plugged;
    (3) Casing and tubing depths and details;
    (4) Subsurface equipment;
    (5) Estimated tops of cement (and the basis of the estimate) in 
each casing annulus;
    (6) Plug locations;
    (7) Plug types;
    (8) Plug lengths;
    (9) Properties of mud and cement to be used;
    (10) Perforating and casing cutting plans;
    (11) Plug testing plans;
    (12) Casing removal (including information on explosives, if used);
    (13) Proposed casing removal depth; and
    (14) Your plans to protect archaeological and sensitive biological 
features during plugging operations, including a brief assessment of 
the environmental impacts of the plugging operations and the procedures 
and

[[Page 35408]]

mitigation measures you will take to minimize such impacts.


Sec. 250.1713  Must I notify MMS before I begin well plugging 
operations?

    You must notify the appropriate District Supervisor at least 48 
hours before beginning operations to permanently plug a well.


Sec. 250.1714  What must I accomplish with well plugs?

    You must ensure that all well plugs:
    (a) Provide downhole isolation of hydrocarbon and sulphur zones;
    (b) Protect freshwater aquifers; and
    (c) Prevent migration of formation fluids within the wellbore or to 
the seafloor.


Sec. 250.1715  How must I permanently plug a well?

    (a) You must permanently plug wells according to the table in this 
section. The District Supervisor may require additional well plugs as 
necessary.

                                      Permanent Well Plugging Requirements
----------------------------------------------------------------------------------------------------------------
                        If you have--                                         Then you must use--
----------------------------------------------------------------------------------------------------------------
(1) Zones in open hole......................................  Cement plug(s) from at least 100 feet below the
                                                               bottom to 100 feet above the top of oil, gas, and
                                                               fresh-water zones to isolate fluids in the
                                                               strata.
(2) Open hole below casing..................................  (i) A cement plug set by the displacement method,
                                                               at least 100 feet above and below deepest casing
                                                               shoe;
                                                              (ii) A cement retainer with effective back-
                                                               pressure control set 50 to 100 feet above the
                                                               casing shoe, and a cement plug that extends at
                                                               least 100 feet below the casing shoe and at least
                                                               50 feet above the retainer; or
                                                              (iii) A bridge plug 50 feet to 100 feet above the
                                                               shoe with 50 feet of cement on top of the bridge
                                                               plug, for expected or known lost circulation
                                                               conditions.
(3) perforated zone that is currently open and not            A (i) A method to squeeze cement to all
 previously squeezed or isolated.                              perforations;
                                                              (ii) A cement plug set by the displacement method,
                                                               at least 100 feet above to 100 feet below the
                                                               perforated interval, or down to a casing plug,
                                                               whichever is less; or
                                                              (iii) If the perforated zones are isolated from
                                                               the hole below, you may use any of the plugs
                                                               specified in paragraphs (A) through (E) of this
                                                               paragraph instead of those specified in
                                                               paragraphs (3)(i) and (3)(ii) of this section:
                                                                 (A) A cement retainer with effective back-
                                                                  pressure control 50 to 100 feet above the top
                                                                  of the perforated interval, and a cement plug
                                                                  that extends at least 100 feet below the
                                                                  bottom of the perforated interval with at
                                                                  least 50 feet of cement above the retainer;
                                                                 (B) A bridge plug set 50 to 100 feet above the
                                                                  top of the perforated interval and at least 50
                                                                  feet of cement on top of the bridge plug;
                                                                 (C) A cement plug at least 200 feet in length,
                                                                  set by the displacement method, with the
                                                                  bottom of the plug no more than 100 feet above
                                                                  the perforated interval;
                                                                 (D) A through-tubing basket plug set no more
                                                                  than 100 feet above the perforated interval
                                                                  with at least 50 feet of cement on top of the
                                                                  basket plug; or
                                                                 (E) A tubing plug set no more than 100 feet
                                                                  above the perforated interval topped with a
                                                                  sufficient volume of cement so as to extend at
                                                                  least 100 feet above the uppermost packer in
                                                                  the wellbore and at least 300 feet of cement
                                                                  in the casing annulus immediately above the
                                                                  packer.
(4) A casing stub where the stub end is within the casing...  (i) A cement plug at least 100 feet above and
                                                               below the stub end;
                                                              (ii) A cement retainer or bridge plug set at least
                                                               50 to 100 feet above the stub end with at least
                                                               50 feet of cement on top of the retainer or
                                                               bridge plug; or
                                                              (iii) A cement plug at least 200 feet long with
                                                               the bottom of the plug set no more than 100 feet
                                                               above the stub end.
(5) A casing stub where the stub end is below the casing....  A plug as specified in paragraph (a)(1) or (a)(2)
                                                               of this section, as applicable.
(6) An annular space that communicates with open hole and     A cement plug at least 200 feet long set in the
 extends to the mud line.                                      annular space. For a well completed above the
                                                               ocean surface, you must pressure test each casing
                                                               annulus to verify isolation.
(7) A subsea well with unsealed annulus.....................  A cutter to sever the casing, and you must set a
                                                               stub plug as specified in paragraphs (a)(4) and
                                                               (a)(5) of this section.
(8) A well with casing......................................  A cement surface plug at least 150 feet long set
                                                               in the smallest casing that extends to the mud
                                                               line with the top of the plug no more than 150
                                                               feet below the mud line.
(9) Fluid left in the hole..................................  A fluid in the intervals between the plugs that is
                                                               dense enough to exert a hydrostatic pressure that
                                                               is greater than the formation pressures in the
                                                               intervals.
----------------------------------------------------------------------------------------------------------------

    (b) You must test the first plug below the surface plug and all 
plugs in lost circulation areas that are in open hole. The plug must 
pass one of the following tests to verify plug integrity:
    (1) A pipe weight of at least 15,000 pounds on the plug; or
    (2) A pump pressure of at least 1,000 pounds per square inch. 
Ensure that the pressure does not drop more than 10 percent in 15 
minutes. The District Supervisor may require you to tests other 
plug(s).


Sec. 250.1716  To what depth must I remove wellheads and casings?

    (a) Unless the District Supervisor approves an alternate depth 
under paragraph (b) of this section, you must remove all wellheads and 
casings to at least 15 feet below the mud line.
    (b) The District Supervisor may approve an alternate removal depth 
if:
    (1) The wellhead or casing would not become an obstruction to other 
users of the seafloor or area, and geotechnical and other information 
you provide demonstrate that erosional processes capable of exposing 
the obstructions are not expected; or
    (2) You determine, and MMS concurs, that you must use divers, and 
the seafloor sediment stability poses safety concerns; or
    (3) The water depth is greater than 800 meters (2,624 feet).


Sec. 250.1717  After I permanently plug a well, what information must I 
submit?

    Within 30 days after you permanently plug a well, you must submit 
form MMS-124, Sundry Notices and Reports

[[Page 35409]]

on Wells (subsequent report), and include the following information:
    (a) Information included in Sec. 250.1712 with a final well 
schematic;
    (b) Description of the plugging work;
    (c) Nature and quantities of material used in the plugs; and
    (d) If you cut and pulled any casing string, the following 
information:
    (1) A description of the methods used (including information on 
explosives, if used);
    (2) Size and amount of casing removed; and
    (3) Casing removal depth.

Temporary Plugging of Wells


Sec. 250.1721  If I temporarily plug a well that I plan to re-enter, 
what must I do?

    You may temporarily plug a well when it is necessary for proper 
development and production of a lease. To temporarily plug a well, you 
must do all of the following:
    (a) Submit form MMS-124, Sundry Notices and Reports on Wells, and 
the applicable information required by Sec. 250.1712 to the appropriate 
District Supervisor and receive approval;
    (b) Adhere to the plugging and testing requirements for permanently 
plugged wells listed in the table in Sec. 250.1715, except for 
Sec. 250.1715 (a)(8). You do not need to sever the casings, remove the 
wellhead, or clear the site;
    (c) Set a bridge plug or a cement plug at least 100-feet long at 
the base of the deepest casing string, unless the casing string has 
been cemented and has not been drilled out. If a cement plug is set, it 
is not necessary for the cement plug to extend below the casing shoe 
into the open hole;
    (d) Set a retrievable or a permanent-type bridge plug or a cement 
plug at least 100 feet long in the inner-most casing. The top of the 
bridge plug or cement plug must be no more than 1,000 feet below the 
mud line. MMS may consider approving alternate requirements for subsea 
wells case-by-case;
    (e) Identify and report subsea wellheads, casing stubs, or other 
obstructions that extend above the mud line according to U.S. Coast 
Guard (USCG) requirements; and
    (f) Except in water depths greater than 300 feet, protect subsea 
wellheads, casing stubs, mud line suspensions, or other obstructions 
remaining above the seafloor by using one of the following methods, as 
approved by the Regional or District Supervisor:
    (1) A caisson designed according to 30 CFR 250, subpart I, and 
equipped with aids to navigation;
    (2) A jacket designed according to 30 CFR 250, subpart I, and 
equipped with aids to navigation; or
    (3) A subsea protective device that meets the requirements in 
Sec. 250.1722.
    (g) Within 30 days after you temporarily plug a well, you must 
submit form MMS-124, Sundry Notices and Reports on Wells (subsequent 
report), and include the following information:
    (1) Information included in Sec. 250.1712 with a well schematic;
    (2) Information required by Sec. 250.1717(b), (c), and (d); and
    (3) A description of any remaining subsea wellheads, casing stubs, 
mudline suspension equipment, or other obstructions that extend above 
the seafloor.


Sec. 250.1722  If I install a subsea protective device, what 
requirements must I meet?

    If you install a subsea protective device under Sec. 250.1721(f), 
you must install it in a manner that allows fishing gear to pass over 
the obstruction without damage to the obstruction, the protective 
device, or the fishing gear.
    (a) Use form MMS-124, Sundry Notices and Reports on Wells to 
request approval from the appropriate District Supervisor to install a 
subsea protective device.
    (b) The protective device may not extend more than 10 feet above 
the seafloor (unless MMS approves otherwise).
    (c) You must trawl over the protective device when you install it 
(adhere to the requirements at Sec. 250.1740(a)). If the trawl does not 
pass over the protective device or causes damage to it, you must notify 
the appropriate District Supervisor within 5 days and perform remedial 
action within 30 days of the trawl;
    (d) Within 30 days after you complete the trawling test described 
in paragraph (c) of this section, submit a report to the appropriate 
District Supervisor using form MMS-124, Sundry Notices and Reports on 
Wells, that includes the following:
    (1) The date(s) the trawling test was performed and the vessel that 
was used;
    (2) A plat at an appropriate scale showing the trawl lines;
    (3) A description of the trawling operation and the net(s) that 
were used;
    (4) An estimate by the trawling contractor of the seafloor 
penetration depth achieved by the trawl;
    (5) A summary of the results of the trawling test including a 
discussion of any snags and interruptions, a description of any damage 
to the protective covering, the casing stub or mud line suspension 
equipment, or the trawl, and a discussion of any snag removals 
requiring diver assistance; and
    (6) A letter signed by your authorized representative stating that 
he/she witnessed the trawling test.
    (e) If a temporarily abandoned well is protected by a subsea device 
installed in a water depth less than 100 feet, mark the site with a 
buoy installed according to the USCG requirements.
    (f) Provide annual reports to the Regional Supervisor describing 
your plans to either re-enter and complete the well or to permanently 
plug the well.
    (g) Ensure that all subsea wellheads, casing stubs, mud line 
suspensions, or other obstructions in water depths greater than 300 
feet remain protected.
    (1) To confirm that the subsea protective covering remains properly 
installed, either conduct a visual inspection or perform a trawl test 
at least annually.
    (2) If the inspection reveals that a casing stub or mud line 
suspension is no longer properly protected, or if the trawl does not 
pass over the subsea protective covering without causing damage to the 
covering, the casing stub or mud line suspension equipment, or the 
trawl, notify the appropriate District Supervisor within 5 days, and 
perform the necessary remedial work within 30 days of discovery of the 
problem.
    (3) In your annual report required by paragraph (f) of this 
section, include the inspection date, results, and method used and a 
description of any remedial work you will perform or have performed.
    (h) You may request approval to waive the trawling test required by 
paragraph (c) of this section if you plan to use either:
    (1) A buoy with automatic tracking capabilities installed and 
maintained according to USCG requirements at 33 CFR part 67 (or its 
successor); or
    (2) A design and installation method that has been proven 
successful by trawl testing of previous protective devices of the same 
design and installed in areas with similar bottom conditions.


Sec. 250.1723  What must I do when it is no longer necessary to 
maintain a well in temporary abandoned status?

    If you or MMS determines that continued maintenance of a well in a 
temporarily plugged status is not necessary for the proper development 
or production of a lease, you must:
    (a) Promptly and permanently plug the well according to 
Sec. 250.1715;
    (b) Remove any casing stub or mud line suspension equipment and any 
subsea protective covering. You must submit a request for approval to 
perform such work to the appropriate District

[[Page 35410]]

Supervisor using form MMS-124, Sundry Notices and Reports on Wells; and
    (c) Clear the well site according to Sec. 250.1740 through 
Sec. 250.1742.

Removing Platforms and Other Facilities


Sec. 250.1725  When do I have to remove platforms and other facilities?

    (a) You must remove all platforms and other facilities within 1 
year after the lease or pipeline right-of-way terminates, unless you 
receive approval to maintain the structure to conduct other activities. 
Platforms include production platforms, well jackets, single-well 
caissons, and pipeline accessory platforms.
    (b) Before you may remove a platform or other facility, you must 
submit a final removal application to the Regional Supervisor for 
approval and include the information listed in Sec. 250.1727.
    (c) You must remove a platform or other facility according to the 
approved application.
    (d) You must flush all production risers with seawater before you 
remove them.
    (e) You must notify the Regional Supervisor at least 48 hours 
before you begin the removal operations.


Sec. 250.1726  When must I submit an initial platform removal 
application and what must it include?

    An initial platform removal application is required only for leases 
in the Pacific OCS Region or the Alaska OCS Region. It must include the 
following information:
    (a) Platform or other facility removal procedures, including the 
types of vessels and equipment you will use;
    (b) Facilities (including pipelines) you plan to remove or leave in 
place;
    (c) Platform or other facility transportation and disposal plans;
    (d) Plans to protect marine life and the environment during 
decommissioning operations, including a brief assessment of the 
environmental impacts of the operations, and procedures and mitigation 
measures that you will take to minimize the impacts; and
    (e) A projected decommissioning schedule.


Sec. 250.1727  What information must I include in my final application 
to remove a platform or other facility?

    You must submit a final application to remove a platform or other 
facility to the Regional Supervisor for approval. This requirement 
applies to leases in all MMS Regions. If you are proposing to use 
explosives, provide three copies of the application. If you are not 
proposing to use explosives, provide two copies of the application. 
Include the following information in the final removal application, as 
applicable:
    (a) Identification of the applicant including:
    (1) Lease operator/pipeline right-of-way holder;
    (2) Address;
    (3) Contact person and telephone number; and
    (4) Shore base.
    (b) Identification of the structure you are removing including:
    (1) Platform Name/MMS Complex ID Number;
    (2) Location (lease/right-of-way, area, block, and block 
coordinates);
    (3) Date installed (year);
    (4) Proposed date of removal (Month/Year); and
    (5) Water depth.
    (c) Description of the structure you are removing including:
    (1) Configuration (attach a photograph or a diagram);
    (2) Size;
    (3) Number of legs/casings/pilings;
    (4) Diameter and wall thickness of legs/casings/pilings;
    (5) Whether piles are grouted inside or outside;
    (6) Brief description of soil composition and condition;
    (7) The sizes and weights of the jacket, topsides (by module), 
conductors, and pilings; and
    (8) The maximum removal lift weight and estimated number of main 
lifts to remove the structure.
    (d) A description, including anchor pattern, of the vessel(s) you 
will use to remove the structure.
    (e) Identification of the purpose, including:
    (1) Lease expiration/right-of-way relinquishment date; and
    (2) Reason for removing the structure.
    (f) A description of the removal method, including:
    (1) A brief description of the method you will use;
    (2) If you are using explosives, the following:
    (i) Type of explosives;
    (ii) Number and sizes of charges;
    (iii) Whether you are using single shot or multiple shots;
    (iv) If multiple shots, the sequence and timing of detonations;
    (v) Whether you are using a bulk or shaped charge;
    (vi) Depth of detonation below the mud line; and
    (vii) Whether you are placing the explosives inside or outside of 
the pilings;
    (3) If you will use divers or acoustic devices to conduct a pre-
removal survey to detect the presence of turtles and marine mammals, a 
description of the proposed detection method; and
    (4) A statement whether or not you will use transducers to measure 
the pressure and impulse of the detonations.
    (g) Your plans for transportation and disposal (including as an 
artificial reef) or salvage of the removed platform.
    (h) If available, the results of any recent biological surveys 
conducted in the vicinity of the structure and recent observations of 
turtles or marine mammals at the structure site.
    (i) Your plans to protect archaeological and sensitive biological 
features during removal operations, including a brief assessment of the 
environmental impacts of the removal operations and procedures and 
mitigation measures you will take to minimize such impacts.
    (j) A statement whether or not you will use divers to survey the 
area after removal to determine any effects on marine life.


Sec. 250.1728  To what depth must I remove a platform or other 
facility?

    (a) Unless the Regional Supervisor approves an alternate depth 
under paragraph (b) of this section, you must remove all platforms and 
other facilities (including templates and pilings) to at least 15 feet 
below the mud line.
    (b) The Regional Supervisor may approve an alternate removal depth 
if:
    (1) The remaining structure would not become an obstruction to 
other users of the seafloor or area, and geotechnical and other 
information you provide demonstrate that erosional processes capable of 
exposing the obstructions are not expected; or
    (2) You determine, and MMS concurs, that you must use divers and 
the seafloor sediment stability poses safety concerns; or
    (3) The water depth is greater than 800 meters (2,624 feet).


Sec. 250.1729  After I remove a platform or other facility, what 
information must I submit?

    Within 30 days after you remove a platform or other facility, you 
must submit a written report to the Regional Supervisor that includes 
the following:
    (a) A summary of the removal operation including the date it was 
completed;
    (b) A description of any mitigation measures you took; and
    (c) A statement signed by your authorized representative that 
certifies that the types and amount of explosives you used in removing 
the platform or other facility were consistent with those

[[Page 35411]]

set forth in the approved removal application.


Sec. 250.1730  When might MMS approve partial structure removal or 
toppling in place?

    The Regional Supervisor may grant a departure from the requirement 
to remove a platform or other facility by approving partial structure 
removal or toppling in place for conversion to an artificial reef or 
other use if you meet the following conditions:
    (a) The structure becomes part of a State artificial reef program, 
and the responsible State agency acquires a permit from the U.S. Army 
Corps of Engineers and accepts title and liability for the structure; 
and
    (b) You satisfy any U.S. Coast Guard (USCG) navigational 
requirements for the structure.

Site Clearance for Wells, Platforms, and Other Facilities


Sec. 250.1740  How must I verify that the site of a permanently plugged 
well, removed platform, or other removed facility is clear of 
obstructions?

    Within 60 days after you permanently plug a well or remove a 
platform or other facility, you must verify that the site is clear of 
obstructions by using one of the following methods:
    (a) For a site in water depths less than 300 feet, you must drag a 
trawl over the site.
    (b) For a well site in water depths 300 feet or more, you may:
    (1) Drag a trawl over the site;
    (2) Scan across the location using sonar equipment;
    (3) Inspect the site using a diver;
    (4) Videotape the site using a camera on a remotely operated 
vehicle (ROV); or
    (5) Use another method approved by the District Supervisor if the 
particular site conditions warrant.
    (c) For a platform or other facility site in water depths 300 feet 
or more, you may:
    (1) Drag a trawl over the site;
    (2) Scan across the site using sonar equipment; or
    (3) Use another method approved by the District Supervisor if the 
particular site conditions warrant.


Sec. 250.1741  If I drag a trawl across a site, what requirements must 
I meet?

    If you drag a trawl across the site in accordance with 
Sec. 250.1740, you must meet all of the requirements of this section.
    (a) You must drag the trawl in a grid-like pattern as shown in the 
following table:

------------------------------------------------------------------------
           For a--                 You must drag the trawl across a--
------------------------------------------------------------------------
(1) Well site................  300-foot-radius circle centered on the
                                well location.
(2) Subsea well site.........  600-foot-radius circle centered on the
                                well location.
(3) Platform site............  1,320-foot-radius circle centered on the
                                location of the platform.
(4) Single-well caisson, well  600-foot-radius circle centered on the
 protector jacket, template,    structure location.
 or manifold.
------------------------------------------------------------------------

    (b) You must trawl 100 percent of the limits described in 
Sec. 250.1741 in two directions.
    (c) You must mark the area to be cleared as a hazard to navigation 
according to USCG requirements until you complete the site clearance 
procedures.
    (d) You must use a trawling vessel equipped with a calibrated 
navigational positioning system capable of providing position accuracy 
of +30 feet.
    (e) You must use a trawling net that is representative of those 
used in the commercial fishing industry (one that has a net strength 
equal or greater than that provided by No. 18 twine).
    (f) You must ensure that you trawl no closer than 300 feet from a 
shipwreck, and 500 feet from a sensitive biological feature.
    (g) If you trawl near an active pipeline, you must meet the 
requirements in the following table:

------------------------------------------------------------------------
            For--               You must trawl--       And you must--
------------------------------------------------------------------------
(1) Buried active pipelines.  ....................  First contact the
                                                     pipeline owner or
                                                     operator to
                                                     determine the
                                                     condition of the
                                                     pipeline before
                                                     trawling over the
                                                     buried pipeline.
(2) Unburied active           no closer than 100    Trawl parallel to
 pipelines that are 8 inches   feet to the either    the pipeline Do not
 in diameter or larger.        side of the           trawl across the
                               pipeline.             pipeline.
(3) Unburied smaller          no closer than 100    Trawl parallel to
 diameter pipelines in the     feet to either side   the pipeline. Do
 trawl area that have          of the pipeline.      not trawl across
 obstructions (e.g.,                                 the pipeline.
 pipeline valves) present.
(4) Unburied active           parallel to the       ....................
 pipelines in the trawl area   pipeline.
 that are smaller than 8
 inches in diameter and have
 no obstructions present.
------------------------------------------------------------------------

    (h) You must ensure that any trawling contractor you may use:
    (1) Has no corporate or other financial ties to you; and
    (2) Has a valid commercial trawling license for both the vessel and 
its captain.


Sec. 250.1742  What other methods can I use to verify that a site is 
clear?

    If you do not trawl a site, you can verify that the site is clear 
of obstructions by using any of the methods shown in the following 
table:

----------------------------------------------------------------------------------------------------------------
            If you use--                           You must--                          And you must--
----------------------------------------------------------------------------------------------------------------
(a) Sonar..........................  cover 100 percent of the appropriate   Use a sonar signal with a frequency
                                      grid area listed in Sec. 250.1741(a).  of at least 500 kHz.

[[Page 35412]]

 
(b) A diver........................  ensure that the diver visually         Ensure that the diver uses a search
                                      inspects 100 percent of the            pattern of concentric circles or
                                      appropriate grid area listed in Sec.   parallel lines spaced no more than
                                      250.1741(a).                           10 feet apart.
(c) An ROV ensure (remotely          ensure that the ROV camera records     Ensure that the ROV uses a pattern
 operated vehicle).                   videotape over 100 percent of the      of concentic circles or parallel
                                      appropriate grid area listed in Sec.   lines spaced no more than 10 feet
                                      250.1741(a).                           apart.
----------------------------------------------------------------------------------------------------------------

Sec. 250.1743  How do I certify that a site is clear of obstructions?

    (a) For a well site, you must submit to the appropriate District 
Supervisor within 30 days after you complete the verification 
activities a form MMS-124, Sundry Notices and Reports on Wells, to 
include the following information:
    (1) A signed certification that the well site area is cleared of 
all obstructions;
    (2) The date the verification work was performed and the vessel 
used;
    (3) The extent of the area surveyed;
    (4) The survey method used;
    (5) The results of the survey, including a list of any debris 
removed or a statement from the trawling contractor that no objects 
were recovered; and
    (6) A post-trawling job plot or map showing the trawled area.
    (b) For a platform or other facility site, you must submit the 
following information to the appropriate District Supervisor within 30 
days after you complete the verification activities:
    (1) A letter signed by an authorized company official certifying 
that the platform or other facility site area is cleared of all 
obstructions and that a company representative witnessed the 
verification activities;
    (2) A letter signed by an authorized official of the company that 
performed the verification work for you certifying that they cleared 
the platform or other facility site area of all obstructions;
    (3) The date the verification work was performed and the vessel 
used;
    (4) The extent of the area surveyed;
    (5) The survey method used;
    (6) The results of the survey, including a list of any debris 
removed or a statement from the trawling contractor that no objects 
were recovered; and
    (7) A post-trawling job plot or map showing the trawled area.

Pipeline Decommissioning


Sec. 250.1750  When may I decommission a pipeline in place?

    You may decommission a pipeline in place when the Regional 
Supervisor determines that the pipeline does not constitute a hazard 
(obstruction) to navigation and commercial fishing operations, unduly 
interfere with other uses of the OCS, or have adverse environmental 
effects.


Sec. 250.1751  How do I decommission a pipeline in place?

    You must do the following to decommission a pipeline in place:
    (a) Submit a pipeline decommissioning application in triplicate to 
the Regional Supervisor for approval that includes the following 
information:
    (1) Reason for the operation;
    (2) Proposed decommissioning procedures;
    (3) Length (feet) of segment to be decommissioned; and
    (4) Length (feet) of segment remaining.
    (b) Pig the pipeline, unless the Regional Supervisor determines 
that pigging is not practical;
    (c) Flush the pipeline;
    (d) Fill the pipeline with seawater;
    (e) Cut and plug each end of the pipeline;
    (f) Bury each end of the pipeline at least 3 feet below the 
seafloor or cover each end with protective concrete mats, if required 
by the Regional Supervisor; and
    (g) Remove all pipeline valves and other fittings that could unduly 
interfere with other uses of the OCS.


Sec. 250.1752  How do I remove a pipeline?

    Before removing a pipeline, you must:
    (a) Submit a pipeline removal application in triplicate to the 
Regional Supervisor for approval that includes the following 
information:
    (1) Proposed removal procedures;
    (2) If the Regional Supervisor requires it, a description, 
including anchor pattern(s), of the vessel(s) you will use to remove 
the pipeline;
    (3) Length (feet) to be removed;
    (4) Length (feet) of the segment that will remain in place;
    (5) Plans for transportation of the removed pipe for disposal or 
salvage;
    (6) Plans to protect archaeological and sensitive biological 
features during removal operations, including a brief assessment of the 
environmental impacts of the removal operations and procedures and 
mitigation measures that you will take to minimize such impacts; and
    (7) Projected removal schedule and duration.
    (b) Pig the pipeline, unless the Regional Supervisor determines 
that pigging is not practical; and
    (c) Flush the pipeline.


Sec. 250.1753  After I decommission a pipeline, what information must I 
submit?

    Within 30 days after you decommission a pipeline, you must submit a 
written report to the Regional Supervisor that includes the following:
    (a) A summary of the decommissioning operation including the date 
it was completed;
    (b) A description of any mitigation measures you took; and
    (c) A statement signed by your authorized representative that 
certifies that the pipeline was decommissioned according to the 
approved application.


Sec. 250.1754  When must I remove a pipeline decommissioned in place?

    You must remove a pipeline decommissioned in place if the Regional 
Supervisor determines that the pipeline is an obstruction.

PART 256--LEASING OF SULPHUR OR OIL AND GAS IN THE OUTER 
CONTINENTAL SHELF

    11. The authority citation for part 256 continues to read as 
follows:

    Authority: 42 U.S.C. 6213, 43 U.S.C. 1331 et seq.


Sec. 256.56  [Amended]

    12. In Sec. 256.56(a)(1), the citation ``250.700'' is revised to 
read ``250.1703''.


Sec. 256.62  [Amended]

    13. In Sec. 256.62(e)(2), the citation ``part 250'', subpart G'' is 
revised to read ``part 250, subpart Q''.
[FR Doc. 02-11640 Filed 5-16-02; 8:45 am]
BILLING CODE 4310-MR-P