[Federal Register Volume 67, Number 154 (Friday, August 9, 2002)]
[Rules and Regulations]
[Pages 51757-51761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-18143]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC93


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Document Incorporated by Reference--API RP 14C

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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SUMMARY: MMS is updating one document incorporated by reference in 
regulations governing oil, gas, and sulphur operations in the Outer 
Continental Shelf (OCS). This final rule revises the American Petroleum 
Institute (API) Recommended Practice (RP) 14C (API RP 14C), Sixth 
Edition, March 1998, currently incorporated by reference into our 
regulations. We are updating the API RP 14C document to the Seventh 
Edition, March 2001. The new edition will allow lessees to use updated 
industry standard technologies while operating in the OCS.

EFFECTIVE DATE: This rule is effective September 9, 2002. The 
incorporation by reference of publications listed in the regulations is 
approved by the Director of the Federal Register as of September 9, 
2002.

FOR FURTHER INFORMATION CONTACT: Wilbon A. Rhome at (703) 787-1587.

SUPPLEMENTARY INFORMATION: We use standards, specifications, and 
recommended practices developed by standard-setting organizations and 
the oil and gas industry as a means of establishing requirements for 
activities on the OCS. This practice, known as incorporation by 
reference, allows us to incorporate the provisions of technical 
standards into the regulations. The legal effect of incorporation by 
reference is that the material is treated as if it were published in 
the Federal Register. This material, like any other properly issued 
regulation, then has the force and effect of law. We hold operators/
lessees accountable for complying with the documents incorporated by 
reference in our regulations. We currently incorporate by reference 85 
private sector consensus standards into the offshore operating 
regulations.
    The regulations at 1 CFR part 51 govern how we and other Federal 
agencies incorporate various documents by reference. Agencies may only 
incorporate by reference through publication in the Federal Register. 
Agencies must also gain approval from the Director of the Federal 
Register for each publication incorporated by reference. Incorporation 
by reference of a document or publication is limited to the specific 
edition, supplement, or addendum cited in the regulations.
    The regulations at 30 CFR 250.198(a)(2) allow MMS to update 
documents without opportunity to comment when we determine that the 
revisions to a document result in safety improvements or represent new 
industry standard technology and do not impose undue costs on the 
affected parties. MMS has made that determination in this instance. 
Consequently, under 5 U.S.C 553(b)(B), MMS finds that notice and 
comment procedures are unnecessary. Accordingly, this final rule 
revises the currently incorporated by reference API document RP 14C, 
for Analysis, Design, Installation and Testing of Basic Surface Safety 
Systems for Offshore Production Platforms, to incorporate the Seventh 
Edition, dated March 2001. The following is a summary of the background 
for this decision.

Background

    Current MMS testing requirements specify that the above-mentioned 
safety devices be tested ``at least once each calendar month, but at no 
time shall more than 6 weeks elapse between tests.'' In mid-1997, a 
number of lessees operating on the OCS requested a departure from MMS 
safety system testing requirements as outlined in 30 CFR 250.804 
(formerly 250.124(a)(3)(i)) for producing operations. See former 30 CFR 
250.3 (1997). (Current provisions for alternative procedures and 
departures are found at 30 CFR 250.141 and 250.142 (2001).) 
Specifically, companies requested approval to test electronic pressure 
transmitters and level sensors (e.g., Pressure Safety High (PSH), 
Pressure Safety Low (PSL), Level Safety High (LSH), and Level Safety 
Low (LSL)) at a frequency less than required in the regulations.
    This raised two concerns for MMS with regard to its regulatory 
program. First, we did not have guidelines in place to support our 
decisionmaking process for approving or denying alternative compliance 
requests, waivers, or departures related to the testing of electronic 
safety systems. Second, MMS could not be sure that testing at a lesser 
frequency would not compromise the safety of OCS workers. MMS believes 
that the burden of proof lies with industry to demonstrate that the 
requested testing frequency for these devices affords a degree of 
protection, safety, or performance equal to or better than what can be 
achieved by following the current regulatory requirements.
    Consequently, in May 1999, MMS contacted API to discuss our 
concerns with the testing and maintenance of electronic pressure 
transmitters and level sensors. We requested API not wait until the 
next regularly scheduled revision of API RP 14C, Sixth Edition, to 
review and update the document. Specifically, MMS asked API to define 
what guidelines industry should follow to request approval of a 
departure from the electronic pressure transmitter and level sensor 
testing requirements in 30 CFR 250.804(a)(3)(i)(ii).
    In June 1999, a workgroup comprised of representatives from the oil 
and gas industry, API, and MMS was assembled to develop guidelines to 
address concerns with the testing and maintenance of electronic 
pressure transmitters and level sensors. The workgroup reviewed 20 
years of past maintenance and testing data, but because of 
technological improvements, only focused on the latest 5 to 10 years of 
data. These data supported industry's assumption that testing at a 
lesser frequency would not compromise the safety of OCS workers and 
would still afford a degree of protection at least equal to what could 
be achieved by following current MMS requirements. Thus, the workgroup 
recommended revisions to API RP 14C, Sixth Edition, specifically, 
Appendix C--Support Systems, and Appendix D--Reporting Procedures. API 
incorporated the revisions and issued the Seventh Edition of API RP 14C 
in March 2001. API made no changes to RP 14C other than the reduced 
testing frequency for electronic pressure transmitters and level 
sensors.

Conclusions

    MMS reviewed the new Seventh Edition of API RP 14C and determined 
that:
     Incorporating into regulations the Seventh Edition that 
specifies a reduced testing frequency will not jeopardize the use of 
the best and safest technologies.
     The changes between the old and new editions represent new 
industry standard technology and will not

[[Page 51758]]

impose undue cost on the offshore oil and gas industry.
     The changes to our regulations will eliminate the need for 
industry to request certain departures from the regulations.
    Based on our determinations, we are incorporating the new Seventh 
Edition of API RP 14C and making the corresponding revisions to 30 CFR 
250.804(a)(3)(i)(ii) and 250.1630(a)(2)(i)(ii).

Procedural Matters

    The purpose of this rule is to update one document that is 
currently incorporated by reference in the regulations. The differences 
between the newer document and the older document are very minor. The 
minor differences between the newer and older documents will not cause 
a significant economic effect on any entity (small or large). 
Therefore, this regulation's impact on the entire industry is minor.

Regulatory Planning and Review (Executive Order 12866)

    This document is not a significant rule and is not subject to 
review by the Office of Management and Budget (OMB) under Executive 
Order 12866.
    (1) This rule will not have an effect of $100 million or more on 
the economy. It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities. This rule does not have new requirements and does not 
prevent any lessee or operator from performing operations on the OCS. 
The updated standard (Seventh Edition of API RP 14C) allows companies 
operating on the OCS to test electronic pressure transmitters and level 
sensors at a frequency less than required in the regulations. It does 
not impose additional costs. A positive benefit to less testing is that 
costs should decrease for the oil and gas industry.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. This rule 
does not affect how lessees or operators interact with other agencies, 
nor does it affect how MMS will interact with other agencies.
    (3) This rule does not alter the budgetary effects or entitlements, 
grants, user fees, or loan programs or the rights or obligations of 
their recipients. The rule only affects businesses operating on the OCS 
with respect to a standard that provides new (reduced) testing criteria 
for electronic pressure transmitters and level sensors.
    (4) This rule does not raise novel legal or policy issues. The 
requirements are based on the legal authority of the OCS Lands Act (43 
U.S.C. 1331 et seq.).

Regulatory Flexibility (RF) Act

    The Department certifies that this rule will not have a significant 
economic effect on a substantial number of small entities as defined 
under the RF Act (5 U.S.C. 601 et seq.). An RF Analysis is not 
required. Accordingly, a Small Entity Compliance Guide is not required.
    The provisions of this rule will not have a significant economic 
effect on 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.
    Offshore lessees/operators are classified under SBA's North 
American Industry Classification System (NAICS) code 211111 (Crude 
Petroleum and Natural Gas Extraction) and NAICS 213111 code (Drilling 
Oil and Gas Wells). We estimate approximately 130 companies will be 
affected by this rulemaking. According to SBA criteria, 39 companies 
are large firms, leaving up to 91 companies (70 percent) that may 
qualify as small firms with fewer than 500 employees.
    This rule imposes no new operational requirements, reporting 
burdens, or other measures that would increase costs to lessees/
operators, large or small. Therefore, this rule has no significant 
economic impact on small entities.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
businesses. If you wish to comment on the enforcement actions of MMS, 
call toll-free 1-888-734-3247. 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 (5 U.S.C. 804(2)) the SBREFA. 
This rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more. The main purpose of this rule is to update an industry 
standard that will allow lessees to test electronic pressure 
transmitters and level sensors at a reduced frequency, thereby 
eliminating the need to request departures. The rule does not have new 
requirements.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions. The cost to comply with the rule by 
the affected parties should be less than current requirements.
    (c) Does not have a significant adverse effect on competition, 
employment, investment, productivity, innovation, or ability of United 
States-based enterprises to compete with foreign-based enterprises. The 
rule does not contain new requirements.

Paperwork Reduction Act (PRA) of 1995

    The Department of the Interior (DOI) has determined that this 
regulation does not contain information collection requirements 
pursuant to PRA (44 U.S.C. 3501 et seq.). A form OMB 83-I information 
collection request to OMB is not required.

Federalism (Executive Order 13132)

    According to Executive Order 13132, the rule does not have 
Federalism implications because it does not affect the relationship 
between the Federal and State governments, and will not impose costs on 
States or localities. The rule simply updates a standard incorporated 
by reference in MMS regulations to allow companies to test electronic 
pressure transmitters and level sensors at a reduced frequency.

Takings Implications 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 updated standard 
addresses reduced testing frequency for electronic pressure 
transmitters and level sensors. Thus, MMS did not prepare a Takings 
Implication Assessment according to Executive Order 12630, Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights.

[[Page 51759]]

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. The primary purpose of 
this rule is to update an incorporated standard to allow for reduced 
testing frequency of electronic pressure transmitters and level 
sensors.

Civil Justice Reform (Executive Order 12988)

    In accordance with Executive Order 12988, the Office of the 
Solicitor has determined that this rule does not unduly burden the 
judicial system and meets the requirements of sections 3(a) and 3(b)(2) 
of the Order.

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. It does not contain new requirements, and it will not have a 
significant or unique effect on State, local, or tribal governments or 
the private sector. Therefore, a statement containing the information 
required by the UMRA (2 U.S.C. 1531 et seq.) is not required.

National Environmental Policy Act (NEPA) of 1969

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

List of Subjects in 30 CFR Part 250

    Continental shelf, Environmental impact statements, Environmental 
protection, Government contracts, Incorporation by reference, 
Investigations, Mineral royalties, Oil and gas development and 
production, Oil and gas exploration, Oil and gas reserves, Penalties, 
Pipelines, Public lands-mineral resources, Public lands-rights-of-way, 
Reporting and recordkeeping requirements, Sulphur development and 
production, Sulphur exploration, Surety bonds.

    Dated: August 2, 2002.
Rebecca W. Watson,
Assistant Secretary, Land and Minerals Management.

    For the reasons stated in the preamble, MMS amends 30 CFR part 250 
as follows:

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

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

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


Sec. 250.198  [Amended]

    2. In Sec. 250.198, in the table in paragraph (d), the addresses 
for the entry for ``ANSI/ASME Codes'' are revised; and in the table in 
paragraph (e), the entry for ``API RP 14C'' is revised to read as 
follows:


Sec. 250.198  Documents incorporated by reference.

* * * * *
    (d) * * *

------------------------------------------------------------------------
                  For                               Write to
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*                  *                  *                  *
                  *                  *                  *
ANSI/ASME Codes.......................  American National Standards
                                         Institute, Attention Sales
                                         Department, 25 West 43rd
                                         Street, 4th Floor, New York, NY
                                         10036; and/or American Society
                                         of Mechanical Engineers, 22 Law
                                         Drive, P.O. Box 2900,
                                         Fairfield, NJ 07007.
 
*                  *                  *                  *
                  *                  *                  *
------------------------------------------------------------------------

    (e) * * *

------------------------------------------------------------------------
           Title of documents              Incorporated by reference at
------------------------------------------------------------------------
 
*                  *                  *                  *
                  *                  *                  *
API RP 14C, Recommended Practice for     Sec.  250.802(b), (e)(2); Sec.
 Analysis, Design, Installation, and      250.803(a), (b)(2)(i), (b)(4),
 Testing of Basic Surface Safety          (b)(5)(i), (b)(7), (b)(9)(v),
 Systems for Offshore Production          (c)(2); Sec.  250.804(a),
 Platforms, Seventh Edition, March        (a)(5); Sec.  250.1002(d);
 2001, API Stock No. C14C07.              Sec.  250.1004(b)(9); Sec.
                                          250.1628(c), (d)(2); Sec.
                                          250.1629(b)(2), (b)(4)(v); and
                                          Sec.  250.1630(a).
 
*                  *                  *                  *
                  *                  *                  *
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    3. In Sec. 250.802, paragraphs (b) and (e)(2) are revised to read 
as follows.


Sec. 250.802  Design, installation, and operation of surface 
production-safety systems.

* * * * *
    (b) Platforms. You must protect all platform production facilities 
with a basic and ancillary surface safety system designed, analyzed, 
installed, tested, and maintained in operating condition in accordance 
with API RP 14C (incorporated by reference as specified in 
Sec. 250.198). If you use processing components other than those for 
which Safety Analysis Checklists are included in API RP 14C you must 
utilize the analysis technique and documentation specified therein to 
determine the effects and requirements of these components on the 
safety system. Safety device requirements for pipelines are under 
Sec. 250.1004.
* * * * *
    (e) * * *
    (2) A schematic piping flow diagram (API RP 14C, Figure E, 
incorporated by reference as specified in Sec. 250.198) and the related 
Safety analysis Function Evaluation chart (API RP 14C, subsection 4.3c, 
incorporated by reference as specified in Sec. 250.198).
* * * * *

    4. In Sec. 250.803, the following changes are made:
    A. Revise paragraph (a), the first sentence in paragraph (b)(2)(i), 
and paragraphs (b)(4) introductory text, (b)(5)(i), (b)(7), and 
(b)(9)(v) to read as set forth below.
    B. In paragraph (b)(10), the citation ``Sec. 250.403'' is revised 
to read ``Sec. 250.114''.
    C. Revise Paragraph (c)(2) introductory text to read as set forth 
below.
    D. In paragraph (d), the citation ``Sec. 250.402'' is revised to 
read ``Secs. 250.109 through 250.113''.

[[Page 51760]]

Sec. 250.803  Additional production system requirements.

    (a) General. Lessees must comply with the following production 
safety system requirements (some of which are in addition to those 
contained in API RP 14C, incorporated by reference as specified in 
Sec. 250.198).
    (b) * * *
    (2) Flowlines. (i) You must equip flowlines from wells with high- 
and low-pressure shut-in sensors located in accordance with section A.1 
and Figure A1 of API RP 14C (incorporated by reference as specified in 
Sec. 250.198). * * *
* * * * *
    (4) ESD. The ESD must conform to the requirements of Appendix C, 
section C1, of API RP 14C (incorporated by reference as specified in 
Sec. 250.198), and the following:
* * * * *
    (5) Engines. (i) Engine exhaust. You must equip engine exhausts to 
comply with the insulation and personnel protection requirements of API 
RP 14C, section 4.2c(4) (incorporated by reference as specified in 
Sec. 250.198). Exhaust piping from diesel engines must be equipped with 
spark arresters.
* * * * *
    (7) Gas compressors. You must equip compressor installations with 
the following protective equipment as required in API RP 14C, sections 
A4 and A8 (incorporated by reference as specified in Sec. 250.198).
* * * * *
    (9) * * *
    (v) Fire- and gas-detection systems must be an approved type, 
designed and installed in accordance with API RP 14C (incorporated by 
reference as specified in Sec. 250.198), API RP 14G (incorporated by 
reference as specified in Sec. 250.198), and API RP 14F, Design and 
Installation of Electrical System for Offshore Production Platforms 
(incorporated by reference as specified in Sec. 250.198).
* * * * *
    (c) * * *
    (2) When wells are disconnected from producing facilities and blind 
flanged, equipped with a tubing plug, or the master valves have been 
locked closed, you are not required to comply with the provisions of 
API RP 14C (incorporated by reference as specified in Sec. 250.198) or 
this regulation concerning the following:
* * * * *

    5. In Sec. 250.804, the following changes are made:
    A. In paragraph (a) introductory text, revise the last sentence to 
read as set forth below.
    B. In paragraph (a)(3), the introductory text is revised to read as 
set forth below.
    C. Paragraphs (a)(4) through (a)(11) are redesignated (a)(5) 
through (a)(12).
    D. A new paragraph (a)(4) is added to read as set forth below.
    E. In newly redesignated paragraph (a)(5), the second sentence is 
revised to read as set forth below.
    F. In newly redesignated paragraph (a)(10), the citation ``(a)(6)'' 
is revised to read ``(a)(7)''.


Sec. 250.804  Production safety-system testing and records.

    (a) * * * Testing must be in accordance with API RP 14C, Appendix D 
(incorporated by reference as specified in Sec. 250.198), and the 
following:
* * * * *
    (3) The following safety devices (excluding electronic pressure 
transmitters and level sensors) must be tested at least once each 
calendar month, but at no time will more than 6 weeks elapse between 
tests:
* * * * *
    (4) The following electronic pressure transmitters and level 
sensors must be tested at least once every 3 months, but at no time may 
more than 120 days elapse between tests:
    (i) All PSH and PSL, and
    (ii) All LSH and LSL controls.
    (5) * * * The FSV's must be tested for leakage in accordance with 
the test procedure specified in API RP 14C, Appendix D, section D4, 
table D2, subsection D (incorporated by reference as specified in 
Sec. 250.198). * * *
* * * * *

    6. In Sec. 250.1002, the first sentence in paragraph (d) is revised 
to read as follows:


Sec. 250.1002  Design requirements for DOI pipelines.

* * * * *
    (d) If the maximum source pressure (MSP) exceeds the pipeline's 
MAOP, you must install and maintain redundant safety devices meeting 
the requirements of section A9 of API RP 14C (incorporated by reference 
as specified in Sec. 250.198). * * *
* * * * *

    7. In Sec. 250.1004, the first sentence in paragraph (b)(9) is 
revised to read as follows:


Sec. 250.1004  Safety equipment requirements for DOI pipelines.

* * * * *
    (b) * * *
    (9) Pipeline pumps must comply with section A7 of API RP 14C 
(incorporated by reference as specified in Sec. 250.198). * * *
* * * * *

    8. In Sec. 250.1604 the following changes are made:
    A. In paragraph (c), the citation ``Sec. 250.402'' is revised to 
read ``Sec. 250.109 through Sec. 250.113''.
    B. In paragraph (d), the citation `` Sec. 250.403'' is revised to 
read ``Sec. 250.114''.

    9. In Sec. 250.1628, paragraphs (c) and (d)(2) are revised to read 
as follows:


Sec. 250.1628  Design, installation and operation of production system.

* * * * *
    (c) Hydrocarbon handling vessels associated with fuel gas system. 
You must protect hydrocarbon handling vessels associated with the fuel 
gas system with a basic and ancillary surface safety system. This 
system must be designed, analyzed, installed, tested, and maintained in 
operating condition in accordance with API RP 14C, Analysis, Design, 
Installation, and Testing of Basic Surface Safety Systems for Offshore 
Production Platforms (incorporated by reference as specified in 
Sec. 250.198). If processing components are to be utilized, other than 
those for which Safety Analysis Checklists are included in API RP 14C, 
you must use the analysis technique and documentation specified therein 
to determine the effect and requirements of these components upon the 
safety system.
    (d) * * *
    (2) A schematic flow diagram (API RP 14C, Figure E1, incorporated 
by reference as specified in Sec. 250.198) and the related Safety 
Analysis Function Evaluation chart (API RP 14C, subsection 4.3c, 
incorporated by reference as specified in Sec. 250.198).
* * * * *

    10. In Sec. 250.1629, revise paragraphs (b)(2) and (b)(4)(v) to 
read as follows:


Sec. 250.1629  Additional production and fuel gas system requirements.

* * * * *
    (b) * * *
    (2) Engine exhaust. You must equip engine exhausts to comply with 
the insulation and personnel protection requirements of API RP 14C, 
section 4.2c(4) (incorporated by reference as specified in 
Sec. 250.198). Exhaust piping from diesel engines must be equipped with 
spark arresters.
* * * * *
    (4) * * *
    (v) Fire- and gas-detection systems must be an approved type, 
designed and installed in accordance with API RP 14C

[[Page 51761]]

(incorporated by reference as specified in Sec. 250.198), API RP 14G 
(incorporated by reference as specified in Sec. 250.198), and API RP 
14F, Design and Installation of Electrical System for Offshore 
Production Platforms (incorporated by reference as specified in 
Sec. 250.198).
* * * * *

    11. In Sec. 250.1630 the following changes are made:
    A. Paragraphs (a) introductory text and (a)(2) introductory text 
are revised to read as set forth below.
    B. Paragraphs (a)(3) through (a)(5) are redesignated (a)(4) through 
(a)(6).
    C. New paragraph (a)(3) is added to read as set forth below.


Sec. 250.1630  Safety-system testing and records.

    (a) Inspection and testing. You must inspect and successfully test 
safety system devices at the interval specified below or more 
frequently if operating conditions warant. Testing must be in 
accordance with API RP 14C, Appendix D (incorporated by reference as 
specified in Sec. 250.198). For safety system devices other than those 
listed in API RP 14C, Appendix D, you must utilize the analysis 
technique and documentation specified therein for inspection and 
testing of these components, and the following:
* * * * *
    (2) The following safety devices (excluding electronic pressure 
transmitters and level sensors) must be inspected and tested at least 
once each calendar month, but at no time may more than 6 weeks elapse 
between tests:
* * * * *
    (3) The following electronic pressure transmitters and level 
sensors must be inspected and tested at least once every 3 months, but 
at no time may more than 120 days elapse between tests:
    (i) All PSH or PSL, and
    (ii) All LSH and LSL controls.
* * * * *

[FR Doc. 02-18143 Filed 8-8-02; 8:45 am]
BILLING CODE 4310-MR-P