[Federal Register Volume 67, Number 137 (Wednesday, July 17, 2002)]
[Proposed Rules]
[Pages 46942-46945]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-17880]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 250 and 251

RIN 1010-AC81


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf; Geological and Geophysical (G&G) Explorations of the Outer 
Continental Shelf--Proprietary Terms and Data Disclosure

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This rule proposes to modify the start date for the 50-year 
proprietary term for geophysical data, and the start date for the 25-
year proprietary term for geophysical information that MMS acquires 
pursuant to a permit issued under 30 CFR part 251. We propose to change 
the start of the proprietary terms from the date the data and 
information are submitted to the date the permit is issued. Although 
the lengths of the proprietary terms do not change, the net result is 
the total length of time that geophysical data and information, 
selected and retained by MMS, are held by MMS before public release 
will be less than under current practice.
    In addition, the rule would clarify that geological data and 
information, acquired under part 251 and submitted to MMS under part 
250, retain proprietary terms under part 251. The rule also expands 
language that allows selective inspection of G&G data and information 
that MMS acquires under parts 250 and 251, and uses for specified 
purposes, by only those persons with a direct interest in related MMS 
decisions and issues.

DATES: We will consider all comments received by September 16, 2002. We 
will begin reviewing comments then and may not fully consider comments 
we receive after September 16, 2002.

ADDRESSES: Mail or hand-carry comments to the Department of the 
Interior; Minerals Management Service; Mail Stop 4024; 381 Elden 
Street; Herndon, Virginia 20170-4817; Attention: Rules Processing Team. 
If you wish to e-mail comments, the address is: [email protected]. 
Reference AC-81 G&G in your subject line. Include your name and return 
address in your message and mark your message for return receipt.

FOR FURTHER INFORMATION CONTACT: George Dellagiarino or David Zinzer at 
(703) 787-1628.

SUPPLEMENTARY INFORMATION: This proposed rule would modify the start 
date for the proprietary terms for geophysical permit data and 
information, acquired under part 251, by starting the terms with the 
date MMS issues the permit. (The proposed rule does not affect the 
proprietary terms for geophysical data and information related to a 
deep stratigraphic test.) Currently, the proprietary terms begin when 
the data and information are submitted to MMS. This change would 
conform with geological permit data and information whose proprietary 
terms begin with the date MMS issues the permit. This modification is 
necessary because MMS may select geophysical data and information 
numerous times from a single permit.
    Current regulations establish a separate release date for each 
submission of geophysical data or information because the start of the 
proprietary term occurs with each submission to MMS. This results in 
complicated and burdensome recordkeeping for submitted data or 
information over a period of 50 or 25 years (respectively) for each 
submission. When it is time to release data or information to the 
public, the dates of submission for the data or information are not 
readily ascertainable. It also presents confusion to our customers with 
regard to the separate public release dates applicable to different 
parts of data and information obtained under a single permit. Beginning 
the proprietary term at the time that a permit is issued for all 
submissions of data or information minimizes such confusion, and aids 
MMS in managing the release of data and information once the 
proprietary term expires.
    Furthermore, as progressively more data and information are 
submitted electronically, the specific ``date of submission'' becomes 
even more difficult to ascertain. Because we will be acquiring these 
data and information from a consortium on a continuous basis, it will 
become difficult if not impossible to identify the start date, based on 
a date of submission, for the proprietary terms. The only readily 
identifiable date available is the date the permit was issued.
    To relieve a substantial administrative recordkeeping burden and to 
exercise proper management of the release of geophysical data and 
information, we propose to make this change retroactive to the original 
establishment date of the regulations at 30 CFR part 251, June 11, 
1976.
    The original 1976 proprietary term for geophysical data acquired 
under a permit was 10 years after issuance of the permit. For 
geophysical information acquired under a permit, the proprietary term 
was 10 years after submission to the (then U.S. Geological Survey) 
Supervisor. Effective March 17, 1988, the proprietary term for 
geophysical data was changed to 50 years after the date on which data 
are submitted, and for geophysical information the proprietary term was 
changed to 25 years after the date the information is submitted. These 
are the current terms for geophysical data and information.
    Because these changes were made retroactive to June 1976, companies 
submitting data and information between June 1976 and March 1988 enjoy 
the benefit of the proprietary terms of their data and information 
submitted during that timeframe being extended to 50 years and 25 
years, respectively.
    The 1988 extension of proprietary terms recognized the longer 
periods that geophysical data and information remain of some commercial 
value. MMS believes that the proposed modifications still would 
adequately protect geophysical data and information because the data 
and information are protected for 50 and 25 years, respectively, after 
issuance of the permit.
    In addition, we propose to clarify that geological data and 
information, originally acquired under a permit

[[Page 46943]]

pursuant to part 251 and later submitted to MMS by a lessee under parts 
203 or 250, retain the proprietary terms under part 251 for geological 
permit data and information, namely, 10 years after MMS issues the 
permit.
    To allow parties who are directly affected by our decisions 
regarding units, reservoirs, operations, environmental protection, 
field determinations, and royalty relief to better understand the basis 
of our decisionmaking process and any related issues, we are also 
proposing to selectively allow inspection of germane G&G permit and 
lease data and information that MMS uses to:
    (1) Make unitization determinations on two or more leases;
    (2) Make competitive reservoir determinations;
    (3) Ensure proper plans of development for competitive reservoirs;
    (4) Promote operational safety;
    (5) Protect the environment;
    (6) Make field determinations; or
    (7) Determine eligibility for royalty relief.
    The disclosure would be restricted to limited inspection of these 
data and information by those persons with a direct interest in related 
MMS decisions and issues. Copying, direct access, or other forms of 
retention by the interested persons will not be allowed. These 
inspections will occur only at meetings between MMS and the interested 
persons involved in the above cases.

Procedural Matters

Public Comments Procedure

    Our practice is to make comments, including names and addresses of 
respondents, available for public review during regular business hours. 
Individual respondents may request that we withhold their home address 
from the rulemaking record, which we will honor to the extent allowable 
by law. There may be circumstances in which we would withhold from the 
rulemaking record a respondent's identity, as allowable by law. If you 
wish us to withhold your name and/or address, you must state this 
prominently at the beginning of your comment. However, we will not 
consider anonymous comments. We will make all submissions from 
organizations or businesses, and from individuals identifying 
themselves as representatives or officials of organizations or 
businesses, available for public inspection in their entirety.

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. MMS takes all actions that result from the change in the 
start dates of the proprietary terms, with no costs to outside parties. 
Similarly, there would be no costs associated to industry concerning 
our disclosing permitted geophysical information for ensuring proper 
development.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. There are 
no other Federal agencies involved in this process, as it relates to 
release or disclosure of geophysical data and information.
    (3) This rule does not alter the budgetary effects or entitlements, 
grants, user fees, or loan programs or rights or obligations of their 
recipients. This rule has no effect on these programs or such rights.
    (4) This rule changes the basis for the start of proprietary terms 
for geophysical data and geophysical information acquired under a 
permit, retroactive to June 11, 1976. This rule does not raise novel 
legal or policy issues, although we recognize that this change in the 
start date may be controversial. Certain geophysical companies, if 
still in existence, whose data and information being held by us may be 
released earlier than under current regulations, may have concerns 
about the change. However, any data to be released will be at least 50 
years old, and any information to be released will be at least 25 years 
old. As previously stated, the intent of this rule is to alleviate 
administrative recordkeeping burdens and to ensure proper development 
of fields or reservoirs.

Regulatory Flexibility (RF) Act

    The Department certifies that this document will not have a 
significant economic effect on a substantial number of small entities 
under the RF Act (5 U.S.C. 601 et seq.). This revised rule would modify 
the start of the proprietary terms for geophysical data and information 
and add language to ensure proper development of fields or reservoirs 
under 30 CFR 251.14 and 250.196. The only entities affected by this 
rule change are certain geophysical companies, if still in existence, 
whose data and information being held by us may be released earlier 
than under current regulations. The Small Business Administration 
classifies geophysical surveying and mapping services companies under 
the North American Industry Classification System Code 541360. These 
changes will have no economic impact on these constituents, as MMS 
takes all of the actions with no cost to our customers.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
business. If you wish to comment on the enforcement actions of MMS, 
call toll-free (888) 734-3247. You may comment to the Small Business 
Administration without fear of retaliation. Disciplinary action for 
retaliation by an MMS employee may include suspension or termination 
from employment with the Department of the Interior.

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:
    (1) Does not have an annual effect on the economy of $100 million 
or more. This rule would modify the proprietary terms for geophysical 
data and information for consistency with those for geological data and 
information and allow for possible limited disclosure of certain 
permitted information for assuring proper development of a field or 
competitive reservoir. This rule will not impose any costs on industry.
    (2) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic areas. The modification to the proprietary term 
and change in language regarding disclosure of information for proper 
development will not cause a burden in terms of finance or time for any 
outside parties.
    (3) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, ability of United 
States-based enterprises to compete with foreign-based enterprises as 
the information to be released will be 25 years old, and any data to be 
released will be 50 years old. There are no United States- or foreign-
based enterprises involved in this rule.

[[Page 46944]]

Paperwork Reduction Act (PRA) of 1995

    A form OMB-83-I submission to OMB is not required. The proposed 
rule concerns actions by MMS and does not contain new requirements 
subject to the PRA. Nor does the proposed rule change the information 
collection requirements OMB approved for 30 CFR part 250, subpart A 
(OMB control number 1010-0114, current expiration date of September 30, 
2002), or in 30 CFR part 251 (OMB control number 1010-0048, current 
expiration date of May 31, 2003).

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 
proposed modification to the proprietary terms affects only our own 
methods of doing business, and the added language regarding data 
disclosure would only be of interest to industry. There will be no 
financial costs to States.

Takings Implications Assessment (Executive Order 12630)

    According to Executive Order 12630, the rule does not have 
significant Takings implications. A Takings Implication Assessment is 
not required because the rule would not take away or restrict an 
operator's right to collect data and information and would have us 
maintain that data and information as proprietary under the terms of 
the permit.

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 12866. The rule does not have a significant 
effect on energy supply, distribution, or use because the rule's 
purpose is to modify the start of the proprietary terms for geophysical 
data and information acquired from industry and released by MMS, and to 
modify language allowing for selected disclosure by MMS of G&G data and 
information used by MMS for specified purposes.

Civil Justice Reform (Executive Order 12988)

    According to Executive Order 12988, the Office of the Solicitor has 
determined that the rule does not unduly burden the judicial system and 
meets the requirements of sections 3(a) and 3(b)(2) of the Order. The 
rule would have little effect on the judicial system, because it is an 
administrative action to modify the proprietary terms and support the 
MMS decisionmaking process for proper development.

National Environment Policy Act (NEPA)

    We have analyzed this rule according to the criteria of the NEPA 
and 516 DM. This rule does not constitute a major Federal action 
significantly affecting the quality of the human environment. An 
environmental assessment is not required. This rule will have no impact 
regarding the criteria of the NEPA.

Unfunded Mandate Reform Act (UMRA) of 1995

    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 does not create any kind of a mandate for State, local, 
or tribal governments or the private sector. A statement containing the 
information required by the UMRA, 2 U.S.C. 1501 et seq. is not 
required.

List of Subjects in 30 CFR Parts 250 and 251

    Continental shelf, Freedom of information, Exploration, 
Development, Minerals Management Service, Oil, Gas, Sulphur, Reporting 
and recordkeeping requirements, Research, Public lands--mineral 
resources.

    Dated: July 2, 2002.
Rebecca W. Watson,
Assistant Secretary, Land and Minerals Management.
    For the reasons stated in the preamble, the Minerals Management 
Service (MMS) proposes to amend 30 CFR parts 250 and 251 as follows:

PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

    1. The authority citation for part 250 continues to read as 
follows:

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

    2. In Sec. 250.196 the following changes are made:
    A. Revise the section heading as set forth below.
    B. Revise the introductory paragraph as set forth below.
    C. Revise the introductory language in paragraph (b) as set forth 
below.
    D. Remove line item (1) from the table in paragraph (b); 
redesignate line items (2) through (10) as (1) through (9) 
respectively; and revise redesignated line (9) to read as set forth 
below.
    E. Add new paragraph (c) to read as set forth below.


Sec. 250.196  Data and information to be made available to the public 
or for limited inspection.

    MMS will protect data and information that you submit under this 
part, and part 203 of this chapter, as described in this section. 
Paragraphs (a) and (b) of this section describe what data and 
information will be made available to the public without the consent of 
the lessee and under what circumstances and in what time period. 
Paragraph (c) of this section describes what data and information will 
be made available for limited inspection without the consent of the 
lessee and under what circumstances.
* * * * *
    (b) MMS will release lease and permit data and information that you 
submit, but that are not normally submitted on MMS forms, according to 
the following table:

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                If                       MMS will release              At this time          Special provisions
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
(9) Data and information acquired   G&G data, analyzed          Geological data and         None.
 by a permit under part 251 are      geological information,     information: 10 years
 submitted by a lessee under 30      processed and interpreted   after MMS issues the
 CFR part 203 or part 250 and        G&G information.            permit; Geophysical data:
 retained by MMS.                                                50 years after MMS issues
                                                                 the permit; Geophysical
                                                                 information: 25 years
                                                                 after MMS issues the
                                                                 permit.
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[[Page 46945]]

    (c) MMS may allow limited inspection, but only to persons with a 
direct interest in related MMS decisions and issues and who agree to 
confidentiality of G&G data and information submitted under this part 
or part 203 of this chapter and that MMS uses:
    (i) To make unitization determinations on two or more leases;
    (ii) To make competitive reservoir determinations;
    (iii) To ensure proper plans of development for competitive 
reservoirs;
    (iv) To promote operational safety;
    (v) To protect the environment;
    (vi) To make field determinations; or
    (vii) To determine eligibility for royalty relief.

PART 251--GEOLOGICAL AND GEOPHYSICAL (G&G) EXPLORATIONS OF THE 
OUTER CONTINENTAL SHELF

    3. The authority citation for part 251 continues to read as 
follows:

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

    4. In Sec. 251.14 the introductory language in paragraph (b) is 
revised, the table in paragraph (b)(1) is revised, and paragraph (b)(3) 
is added to read as follows:


Sec. 251.14  Protecting and disclosing data and information submitted 
to MMS under a permit.

* * * * *
    (b) Timetable for release of G&G data and information that MMS 
acquires. MMS will release or disclose data and information that you or 
a third party submit and MMS retains in accordance with paragraphs 
(b)(1), (b)(2), and (b)(3) of this section.
    (1) * * *

------------------------------------------------------------------------
 If you or a third party submit and MMS     The Regional Director will
             retains . . .                release them to the public . .
--------------------------------------------------------.---------------
(i) Geological data and information....  10 years after MMS issues the
                                          permit.
(ii) Geophysical data..................  50 years after MMS issues the
                                          permit.
(iii) Geophysical information..........  25 years after MMS issues the
                                          permit.
------------------------------------------------------------------------

* * * * *
    (3) MMS may allow limited inspection, but only to persons with a 
direct interest in related MMS decisions and issues and who agree to 
confidentiality of G&G data and information submitted under this part 
and that MMS uses:
    (i) To make unitization determinations on two or more leases;
    (ii) To make competitive reservoir determinations;
    (iii) To ensure proper plans of development for competitive 
reservoirs;
    (iv) To promote operational safety;
    (v) To protect the environment;
    (vi) To make field determinations; or
    (vii) To determine eligibility for royalty relief.

[FR Doc. 02-17880 Filed 7-16-02; 8:45 am]
BILLING CODE 4310-MR-P