[Federal Register Volume 67, Number 210 (Wednesday, October 30, 2002)]
[Rules and Regulations]
[Pages 66046-66049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26643]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC65


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

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Corrections to final regulations.

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SUMMARY: This document contains corrections to the final regulations 
published on Friday, May 17, 2002 (67 FR 35398). The final regulations 
related to decommissioning activities, and included requirements for 
plugging a well, decommissioning a platform and pipeline, and clearing 
a lease site. The

[[Page 66047]]

corrections being made are non-substantive and are necessary for 
clarification purposes only.

EFFECTIVE DATE: July 16, 2002.

FOR FURTHER INFORMATION CONTACT: Sharon Buffington, (703) 787-1147.

SUPPLEMENTARY INFORMATION: 

Background

    The final regulations that are the subject of these corrections add 
a new subpart Q to the 30 CFR part 250 regulations. They update 
decommissioning requirements to reflect changes in technology to ensure 
that lessees and pipeline right-of-way holders conduct decommissioning 
operations safely and effectively. The new subpart Q supersedes subpart 
G (Abandonment of Wells) in its entirety and selected sections of 
subpart J (Pipeline and Pipeline Rights-of-Way), and subpart I 
(Platforms and Other Facilities). The effective date of the regulations 
is July 17, 2002, and they affect all operators, lessees, and pipeline 
right-of-way holders on the Outer Continental Shelf.

Need for Correction

    As published, the final regulations contain some non-substantive 
items which could prove to be misleading and should be clarified. 
Explanations for the main issues follow:
    (1) In several places, we are correcting inaccurate citation 
references in the preamble and regulatory language.
    (2) Our response to a comment recommending that MMS include the 
requirements for the removal of subsea equipment, indicated that they 
are ``* * * handled case-by-case. * * * Too many variables exist to 
specify the requirements in regulations.'' We further stated that, 
``However, lessees can assume that equipment must be removed unless the 
requirements of Sec. Sec.  250.1725 through 250.1728. * * *'' The word 
``unless'' should have been ``under'' to indicate that the assumption 
is that subsea equipment must be removed and any exceptions would need 
MMS district office approval on a case-by-case basis.
    (3) The new subpart Q includes the requirements for both permanent 
plugging and temporary plugging or abandonment of a well. With respect 
to the latter, the regulations interchanged the terms temporarily 
``abandoned'' and temporarily ``plugged.'' In order to be as consistent 
as possible throughout our various regulations and with terms used on 
our forms and other documents, we are correcting the final regulations 
to consistently refer to this temporary status of a well as 
``abandoned.''
    (4) The table in Sec.  250.1704 was intended as a quick reference 
listing of when decommissioning applications and reports are submitted. 
We are correcting the table to redesignate paragraph (f) as (g), and to 
add a new paragraph (f) to reference the site clearance report for 
platforms or other facilities. The redesignated paragraph (g) is 
corrected by adding additional references for when form MMS-124 must be 
submitted. These were inadvertently omitted from the table. Subsequent 
to publishing the final 30 CFR 250, subpart Q, regulations, through a 
separate process, the title of this form is being changed from ``Sundry 
Notices and Reports on Wells'' to ``Application for Permit to Modify.'' 
This change is reflected in this correction document.
    (5) In Sec.  250.1712 paragraphs (e) and (f)(14) are corrected to 
eliminate duplicative language.
    (6) In the table in Sec.  250.1715 on permanent well plugging 
requirements, we are clarifying the requirements to indicate that the 
``plug(s)'' are ``set.'' Also, the line item on ``permafrost areas'' 
was inadvertently omitted and is added to the table as item (10).
    (7) In Sec. Sec.  250.1712 and 250.1717, the correction clarifies 
that the form MMS-124 reports should be submitted to the ``appropriate 
District Supervisor.''
    (8) The introductory text in Sec.  250.1726 is clarified to include 
``pipeline rights-of-way'' as well as leases.
    (9) In Sec.  250.1740, paragraphs (a) and (b) are corrected to 
allow for options other than trawling to verify site clearance around 
wells. This was an inadvertent oversight in the final rule and the 
correction agrees with the proposed rule language.
    (10) Sections 1740(c)(3) and 250.1743(b) are corrected to specify 
``Regional'' rather than the ``District'' Supervisor.
    (11) This document also makes other editorial corrections for 
clarification.

Correction of Publication

    The preamble of the final rule published on May 17, 2002, which was 
the subject of FR Doc. 02-11640, is corrected as follows:

Preamble [Corrected]

    On page 35400, in the 1st column, in the 7th paragraph under the 
heading Section 250.1715 (Proposed section 250.1710), the citation 
``Sec.  250.1710(i)'' is corrected to read ``Sec.  250.1710(j)'.
    On page 35401, in the 1st column, in the 4th paragraph, the words 
`` and 250.142'' are added after the citation ``30 CFR 250.141''.
    On page 35401, in the 2nd column, in the 1st sentence, the word 
``unless'' is corrected to read ``under'' and the words ``are met'' are 
removed.

PART 250--[CORRECTED]

    Part 250 is corrected by making the following correcting 
amendments:

Subpart Q--Decommissioning Activities [Corrected]


Sec.  250.1700  [Corrected]

    1. In Sec.  250.1700, the 2nd sentence in paragraph (c) is 
corrected by removing ``templates and pilings'' and adding in its place 
``templates, pilings''.
    2. The table in Sec.  250.1704 is corrected as follows:
    A. The heading in the 1st column of the table is revised to read 
``Decommissioning applications and reports''.
    B. Paragraph (f) in the 1st column is correctly designated as 
paragraph (g), and is revised to read as set forth below.
    C. A new paragraph (f) is added in the 1st column with 
corresponding entries in the 2nd and 3rd columns as set forth below.


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

* * * * *

------------------------------------------------------------------------
Decommissioning applications
         and reports             When to submit         Instructions
------------------------------------------------------------------------
 
                              * * * * * * *
(f) Site clearance report     Within 30 days after  Include information
 for a platform or other       you complete site     required under Sec.
 facility.                     clearance               250.1743(b).
                               verification
                               activities.
(g) Form MMS-124,             (1) Before you        Include information
 Application for Permit to     temporarily abandon   required under Sec.
 Modify (formerly Sundry       or permanently plug    Sec.   250.1712
 Notices and Reports on        a well or zone.       and 250.1721.
 Wells).
                              (2) Within 30 days    Include information
                               after you plug a      required under Sec.
                               well.                   250.1717.

[[Page 66048]]

 
                              (3) Before you        Refer to Sec.
                               install a subsea      250.1722(a).
                               protective device.
                              (4) Within 30 days    Include information
                               after you complete    required under Sec.
                               a protective device     250.1722(d).
                               trawl test.
                              (5) Before you        Refer to Sec.
                               remove any casing     250.1723.
                               stub or mud line
                               suspension
                               equipment and any
                               subsea protective
                               device.
                              (5) Within 30 days    Include information
                               after you complete    required under Sec.
                               site clearance          250.1743(a).
                               verification
                               activities.
------------------------------------------------------------------------


    3. Section 250.1712 is corrected by revising the 1st sentence in 
the introductory text and paragraphs (e) and (f)(14) to read as 
follows:


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, Application for Permit to Modify, to the appropriate District 
Supervisor and receive approval. * * *
* * * * *
    (e) A description of the work; and
    (f) * * *
    (14) Your plans to protect archaeological and sensitive biological 
features, including anchor damage during plugging operations, a brief 
assessment of the environmental impacts of the plugging operations, and 
the procedures and mitigation measures you will take to minimize such 
impacts.

    4. In Sec.  250.1715, in the table in paragraph (a), paragraphs 
(a)(1) through (a)(4) are revised and paragraph (a)(10) is added to 
read as follows:


Sec.  250.1715  How must I permanently plug a well?

    (a) * * *

------------------------------------------------------------------------
         If you have:                      Then you must use:
------------------------------------------------------------------------
(1) Zones in open hole.......  Cement plug(s) set 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 set 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) A perforated zone that is  (i) A method to squeeze cement to all
 currently open and not         perforations;
 previously squeezed or        (ii) A cement plug set by the
 isolated.                      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)(3)(iii)(A) through (E) of
                                this section instead of those specified
                                in paragraphs (a)(3)(i) and (a)(3)(ii)
                                of this section.
                               (A) A cement retainer with effective back-
                                pressure control set 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    (i) A cement plug set at least 100 feet
 stub end is within the         above and below the stub end;
 casing.                       (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.
------------------------------
 
                              * * * * * * *
(10) Permafrost areas........  (i) A fluid to be left in the hole that
                                has a freezing point below the
                                temperature of the permafrost, and a
                                treatment to inhibit corrosion; and
                               (ii) Cement plugs designed to set before
                                freezing and have a low heat of
                                hydration.
------------------------------------------------------------------------


[[Page 66049]]

* * * * *

    5. The introductory text in Sec.  250.1717, is revised to read as 
follows:


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, Application for Permit to Modify (subsequent report), to 
the appropriate District Supervisor, and include the following 
information:
* * * * *

Temporary Abandoned Wells

    6. The undesignated center heading preceding Sec.  250.1721 is 
revised to read as set forth above.


Sec.  250.1721  [Corrected]

    7. In Sec.  250.1721, in the section heading and two places in the 
introductory text of Sec.  250.1721, the word ``plug'' is revised to 
read ``abandon''.


Sec.  250.1722  [Corrected]

    8. Section Sec.  250.1722 is corrected as follows:
    A. In the introductory text, the citation ``Sec.  250.1721(f)'' is 
revised to read ``Sec.  250.1721(f)(3)'';
    B. In paragraph (c), the citation ``Sec.  250.1740(a)'' is revised 
to read `` Sec.  250.1741(d) through (h)''; and
    C. In paragraph (g), the word ``greater'' is revised to read 
``less''.


Sec.  250.1723  [Corrected]

    9. In the introductory text of Sec.  250.1723, the words 
``temporarily plugged'' are revised to read ``temporary abandoned''.

    10. In Sec.  250.1726, the introductory text is revised to read as 
follows:


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 
and pipeline rights-of-way in the Pacific OCS Region or the Alaska OCS 
Region. It must include the following information:
* * * * *


Sec.  250.1740  [Corrected]

    11. Section 250.1740 is corrected as follows:
    A. Paragraph (a) is removed, paragraph (b) is redesignated 
paragraph (a).
    B. The introductory text in newly redesignated paragraph (a) is 
revised, a new paragraph (b) is added, and the introductory text in 
paragraph (c) is revised to read as set forth below.
    C. In paragraph (c)(3), the word ``District'' is revisted to read 
``Regional''.


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?

* * * * *
    (a) For a well site, you must either:
* * * * *
    (b) For a platform or other facility site in water depths less than 
300 feet, you must drag a trawl over the site.
    (c) For a platform or other facility site in water depths 300 feet 
or more, you must either:
* * * * *

    12. Section 250.1741 is corrected as follows:
    A. Paragraph (b) is revised to read as set forth below.
    B. In the table in paragraph (g), in paragraph (g)(3) the word 
``active'' is added between the words ``diameter'' and ``pipelines'' to 
read ``diameter active pipelines''.


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

* * * * *
    (b) You must trawl 100 percent of the limits described in paragraph 
(a) of this section in two directions.
* * * * *


Sec.  250.1743  [Corrected]

    13. In Sec.  250.1743, in paragraph (b), the word ``District'' is 
revised to read ``Regional''.


Sec. Sec.  250.1721, 250.1722, 250.1723, 250.1743  [Corrected]

    14. In addition to the corrections set forth above, remove the 
words ``Sundry Notices and Reports on Wells'' and add, in their place, 
the words ``Application for Permit to Modify'' in the following places:
    A. Section 250.1721(a) and (g);
    B. Section 250.1722(a) and (d);
    C. Section 250.1723(b); and
    D. Section 250.1743(a).

    Dated: August 30, 2002.
Rebecca W. Watson,
Assistant Secretary, Land and Minerals Management.
[FR Doc. 02-26643 Filed 10-29-02; 8:45 am]
BILLING CODE 4310-MW-P