[Federal Register Volume 68, Number 9 (Tuesday, January 14, 2003)]
[Proposed Rules]
[Pages 1808-1811]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-665]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC89


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Documents Incorporated by Reference--API RP 14F and API RP 14FZ

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed rule.

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SUMMARY: MMS is proposing to update one document already incorporated 
by reference into our regulations, and add another document to be 
incorporated by reference for the first time into our regulations 
governing oil and gas and sulphur operations in the Outer Continental 
Shelf (OCS). These revisions will ensure that lessees use the best 
available and safest technologies while operating in the OCS. The 
updated document, API RP 14F, is the Fourth Edition of the American 
Petroleum Institute's (API) Recommended Practice for Design and 
Installation of Electrical Systems for Fixed and Floating Offshore 
Petroleum Facilities for Unclassified and Class I, Division 1 and 
Division 2 Locations. The new document, API RP 14FZ, is titled 
``Recommended Practice for Design and Installation of Electrical 
Systems for Fixed and Floating Offshore Petroleum Facilities for 
Unclassified and Class I, Zone 0, Zone 1 and Zone 2 Locations.''

DATES: We will consider all comments we receive by March 17, 2003. We 
will begin reviewing comments then and may not fully consider comments 
we receive after March 17, 2003.

ADDRESSES: Mail or hand-carry comments (three copies) to the Department 
of the Interior; Minerals Management Service; Mail Stop 4024; 381 Elden 
Street; Herndon, Virginia 20170-4817; Attention: Rules Processing Team 
(Comments). If you wish to e-mail your comments, the address is 
[email protected]. Reference ``1010AC89--API RP 14F and API RP 
14FZ'' in your subject line. Include your name and return address in 
the message and mark it for return receipt.

FOR FURTHER INFORMATION CONTACT: Richard Ensele, Operations Analysis 
Branch, at (703) 787-1583, or David Nedorostek, Operations Analysis 
Branch, at (703) 787-1029.

SUPPLEMENTARY INFORMATION: We use standards, specifications, and 
recommended practices developed by standard-setting organizations and 
the oil and gas industry for establishing requirements for activities 
in the OCS. This practice, known as incorporation by reference, allows 
us to incorporate the provisions of technical standards into the 
regulations without increasing the volume of the Code of Federal 
Regulations. 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. The regulations, found at 1 CFR Part 51, govern how MMS 
and other Federal agencies incorporate various documents by reference. 
Agencies can only incorporate by reference through publication in the 
Federal Register. Agencies must also gain approval from the Director of 
the Federal Register for each publication incorporated by reference. 
Incorporation by reference of a document or publication is limited to 
the specific edition or to the specific edition and supplement or 
addendum cited in the regulations.
    This proposed rule will update API RP 14F, Third Edition, September 
1, 1991, Recommended Practice for Design

[[Page 1809]]

and Installation of Electrical Systems for Offshore Production 
Platforms that is currently incorporated by reference into MMS 
regulations in 30 CFR 250.114. The proposed rule will also incorporate 
by reference into MMS regulations at 30 CFR 250.114, for the first 
time, the provisions of API RP 14FZ. The provisions of 30 CFR 250.114 
apply only to platforms, artificial islands, fixed structures, and 
their facilities. Therefore, any requirements for floating facilities 
in these two documents will not apply. Under the Memorandum of 
Understanding (MOU) between the Minerals Management Service, U.S. 
Department of the Interior and the United States Coast Guard (USCG), 
U.S. Department of Transportation, dated December 16, 1998, the USCG is 
responsible for electrical systems on floating facilities. 
Additionally, according to the MOU, the USCG is responsible for aids to 
navigation, emergency lighting, survival craft, and general alarms, so 
any such references in these two documents do not apply.
    We have reviewed these documents and have determined that the 
latest editions of both documents should be incorporated into the 
regulations to ensure the use of the best available and safest 
technologies. The title of API RP 14F has been changed in the Fourth 
Edition to conform with API RP 500, Recommended Practice for 
Classification of Locations for Electrical Installations at Petroleum 
Facilities Classified as Class I, Division 1 and Division 2, which is 
currently incorporated into MMS regulations. Our review shows that the 
changes between the old (Third) edition and the new (Fourth) edition 
are minor. Most of the changes apply to floating facilities, and are, 
therefore, not part of this rulemaking for the reasons cited above. In 
addition, the Third Edition is not readily available to affected 
parties because it is out of print. The oil and gas industry is already 
building new structures in accordance with the provisions of the Fourth 
Edition of this standard. Also, the Fourth Edition has been revised 
using an API standard editorial format.

Summary of the Changes in the Fourth Edition of API RP 14F Pertaining 
to Platforms, Artificial Islands, Fixed Structures, and their 
Facilities

    In the fourth edition of 14F several subsections that were 
contained in the third edition have been consolidated in a subsection 
titled Protection Techniques Related to Equipment Installed in 
Locations Classified as Division 1 and Division 2. These include 
explosion proof equipment, hermetically sealed devices, intrinsically 
safe devices, nonincendive equipment, and purged enclosures. No new 
requirements were imposed.
    In the fourth edition of 14F, cable-shielding considerations have 
been added to the Electrical Distribution Systems section. This allows 
for the installation of metal clad cables in lieu of sealed conduits 
for electrical wiring. The use of metal clad cables could result in 
savings to industry of up to 40% over the use of sealed conduits and 
conventional wiring practices. Both methods of cable shielding provide 
for equal safety.
    Subsections have been added to the fourth edition of 14F to cover 
advances in technology in battery-powered DC supply systems 
(uninterruptible power supplies), electric oil-immersion heaters, 
cathodic protection, and hand held electronic devices. These four new 
subsections cover equipment that is now in standard use on OCS 
structures, but that was not in the early 1990's when the third edition 
was completed. These new subsections should not impose any new costs on 
the industry, since operators are already using this equipment.

Review of API RP 14FZ

    The two recommended practices addressed by this rulemaking are 
nearly identical. The original version (14F) is to be used with the 
electrical classification system contained in API RP 500. This system 
of electrical classification differentiates locations by ``Divisions.'' 
This document (API RP 500) is already incorporated by reference into 
the regulations. A similar document, API RP 505, Recommended Practice 
for Classification of Locations for Electrical Installations at 
Petroleum Facilities Classified as Class I, Zone 0, Zone 1, and Zone 2, 
is also currently incorporated by reference into the regulations. This 
system classifies hazardous locations by ``Zones'' based on how long a 
hazardous vapor is present. The new 14FZ document is to be used with 
API RP 505. The difference between the two pairs of documents, 14F/500 
and 14FZ/505, is that 14F/500 uses two ``Divisions'' to classify 
hazardous areas while 14FZ/505 uses three ``Zones'' to define these 
classified hazardous areas. The 14F document defines techniques for 
protection from fires in the Division system. The 14FZ document defines 
protection techniques in the Zone system for hazardous locations. Both 
systems provide for safe work environments for personnel. The 
protection techniques identified for the Division system are not all 
acceptable for the Zone system, and vice versa. The Zone system 
identifies more protection techniques than the Division system, 
however, both systems have proven their safety by comparisons of both 
systems through the National Electrical Code, Factory Mutual, and 
Underwriters Laboratories. The operator could realize cost savings if 
the Zone system (505/14FZ) is used in classifying and designing 
electrical systems. We are proposing to incorporate the new API RP 14FZ 
to complete the set of documents in the regulations, and give lessees a 
choice in installing electrical systems. The incorporation of API RP 
14FZ will not impose any additional costs on the industry, since it is 
nearly identical to API RP 14F and may result in cost savings. The 
operators must use one set of documents or the other to design and 
install electrical systems on their facilities. The costs for complying 
with the documents are similar. We're merely giving the industry a 
choice in regard to classifying and installing electrical systems under 
the API RP 500 system or the API RP 505 system.

Procedural Matters

Public Comments Procedure

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

Background

    This proposed rulemaking will update one document that is currently 
incorporated by reference in the regulations and will add another 
document to those incorporated by reference in the regulations. The 
differences between the Third Edition and the Fourth Edition of API RP 
14F are very minor. The minor differences will not cause a significant 
economic effect on any entity (small or large), and may result in cost 
savings due to the inclusion of metal clad cable. In fact, the

[[Page 1810]]

oil and gas industry is already building structures using the new 
standard. Therefore, this regulation's impact on the entire industry is 
minor. The addition of API RP 14FZ will give the industry a choice in 
designing and installing electrical systems on offshore facilities.

Regulatory Planning and Review (Executive Order 12866)

    This document is not a significant rule and is not subject to 
review by the Office of Management and Budget (OMB) under Executive 
Order 12866.
    (1) This rule will not have an effect of $100 million or more on 
the economy. It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities.
    The rule may have a positive economic impact because of the cost 
savings from using shielded cables in lieu of sealed conduits. 
Otherwise, the documents do not contain any significant revisions that 
will cause lessees or operators to change their business practices. The 
documents will not require the retrofitting of any facilities.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency.
    (3) This rule does not alter the budgetary effects or entitlements, 
grants, user fees, or loan programs or the rights or obligations of 
their recipients.
    (4) This rule does not raise novel legal or policy issues.

Regulatory Flexibility (RF) Act

    The Department of the Interior (DOI) certifies that this proposed 
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.). The provisions of this rule will not have a significant economic 
effect on offshore lessees and operators, including those that are 
classified as small businesses. The Small Business Administration (SBA) 
defines small business as having:
    [sbull] Annual revenues of $5 million or less for exploration 
service and field service companies.
    [sbull] Fewer than 500 employees for drilling companies and for 
companies that extract oil, gas, or natural gas liquids.
    The API documents proposed for incorporation into MMS regulations 
cover electrical installations on offshore structures. The documents to 
be incorporated by this rule have been used by the industry for many 
years, and the latest editions represent state-of-the-art industry 
equipment and practices. The structures currently being built are being 
constructed according to the requirements in either API RP 14F (Fourth 
Edition) or API RP 14FZ.
    The proposed rule's purpose is to update one document that is 
currently incorporated by reference in the regulations, and to 
incorporate by reference a new nearly identical document into the 
regulations. The differences between the newer document and the older 
document are very minor. The updated document consolidates several 
subsections in a new subsection covering protection techniques. In 
addition, cable shielding considerations were added to the updated 
document. This allows for the installation of metal clad cables in lieu 
of sealed conduits. The use of metal clad cables could result in 
savings to industry of up to 40% over the use of sealed conduits and 
conventional wiring practices. Other subsections have been added to the 
updated document to cover advances in technology. New subsections cover 
equipment that is now in standard use on OCS facilities, but that was 
not in use in the early 1990's when the older Third Edition was 
completed, and incorporated into the regulations. These new subsections 
should not impose any additional costs to industry, since operators are 
already using this new equipment and technology. By incorporating both 
14F and 14FZ, which are nearly identical, but utilize different 
classification systems, we are giving the industry a choice in 
electrical classification methods.
    Under the North American Industry Classification System Code 
211111, Crude Petroleum and Natural Gas Extraction, MMS estimates that 
a total of 1,380 firms drill oil and gas wells onshore and offshore. 
The group affected by this rule is the approximately 130 companies that 
are offshore lessees/operators. According to SBA criteria, 
approximately 90 companies are small business (70 percent). As 
discussed above, 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.
    Comments from the public are important to us. 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 5 U.S.C. 804(2), SBREFA. This 
rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more. The proposed rule will not cause any significant costs to 
lessees or operators. The only costs will be the purchase of the new 
documents and minor revisions to some operating and maintenance 
procedures. The minor revisions to operating and maintenance procedures 
may result in some minor costs or may actually result in minor cost 
savings.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, federal, state, or local government 
agencies, or geographic regions.
    (c) Does not have significant adverse effect on competition, 
employment, investment, productivity, innovation, or the ability of 
United States-based enterprises to compete with foreign-based 
enterprises.

Paperwork Reduction Act (PRA) of 1995

    There are no information collection requirements associated with 
this rule. The DOI has determined that this regulation does not contain 
information collection requirements pursuant to the PRA (44 U.S.C. 3501 
et seq.) We will not be submitting an information collection request to 
OMB.

Federalism (Executive Order 13132)

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

Takings Implication Assessment (Executive Order 12630)

    According to Executive Order 12630, this rule does not have 
significant

[[Page 1811]]

Takings implications. A Takings Implication Assessment is not required.

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

    The rule does not have a significant effect on energy supply, 
distribution, or use because it merely updates one standard already 
incorporated by reference and adds a new standard to be incorporated by 
reference that will provide for uniform maintenance and inspection 
practices. Thus, a Statement of Energy Supply, Distribution, or Use is 
not required.

Civil Justice Reform (Executive Order 12988)

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

National Environmental Policy Act (NEPA) ?

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

Unfunded Mandates Reform Act (UMRA) of 1995

    This rule does not impose an unfunded mandate on state, local, and 
tribal governments or the private sector of more than $100 million per 
year. The rule does not have a significant or unique effect on state, 
local, or tribal governments or the private sector. A statement, 
containing the information required by the UMRA (2 U.S.C. 1531 et 
seq.), is not required.

List of Subjects in 30 CFR Part 250

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

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

    For the reasons stated in the preamble, the Minerals Management 
Service proposes to amend 30 CFR Part 250 as follows:

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

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

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

    2. In Sec.  250.114, paragraph (c) is revised to read as follows:


Sec.  250.114  How must I install and operate electrical equipment?

* * * * *
    (c) You must install all electrical systems according to API RP 
14F, Recommended Practice for Design and Installation of Electrical 
Systems for Fixed and Floating Offshore Petroleum Facilities for 
Unclassified and Class I, Division 1 and Division 2 Locations 
(incorporated by reference as specified in Sec.  250.198), or API RP 
14FZ, Recommended Practice for Design and Installation of Electrical 
Systems for Fixed and Floating Offshore Petroleum Facilities for 
Unclassified and Class I, Zone 0, Zone 1, and Zone 2 Locations 
(incorporated by reference as specified in Sec.  250.198).
* * * * *
    3. In Sec.  250.198, in the table in paragraph (e), the entry for 
API RP 14F is revised and a new entry for document API RP 14FZ is added 
in alphanumeric order to read as follows:


Sec.  250.198  Documents incorporated by reference.

* * * * *
    (e) * * *

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             Title of document              Incorporated by reference at
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                              * * * * * * *
API RP 14F, Recommended Practice for        Sec.   250.114(c); Sec.
 Design and Installation of Electrical       250,803(b)(9)(v); Sec.
 Systems for Fixed and Floating Offhsore     250.1629(b)(4)(v)
 Petroleum Facilities for Unclcassified
 and Class I, Division 1 and Division 2
 Locations, Fourth Edition, June 1999, API
 Stock No. G14F04.
API RP 14FZ, Recommended Practice for       Sec.   250.114(c); Sec.
 Design and Installation of Electrical       250.803(b)(9)(v); Sec.
 Systems for Fixed and Floating Offshore     250.1629(b)(4)(v)
 Petroleum Facilities for Unclassified and
 Class I, Zone 0, Zone 1, and Zone 2
 Locations, First Edition, September 2001,
 API Stock No, G14FZ1.
 
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    4. In Sec.  250.803, paragraph (b)(9)(v) is revised to read as 
follows:


Sec.  250.803  Additional production system requirements.

* * * * *
    (9) * * *
    (v) Fire- and gas-detection systems must be an approved type, 
designed and installed according to API RP 14C, API RP 14G, and API RP 
14F or API RP 14FZ (the preceding four documents incorporated by 
reference as specified in Sec.  250.198).
* * * * *
    5. In Sec.  250.1629, paragraph (b)(4)(v) is revised to read as 
follows:


Sec.  250.1629  Additional production and fuel gas system requirements.

* * * * *
    (4) * * *
    (v) Fire- and gas-detection systems must be an approved type, 
designed and installed according to API RP 14C, API RP 14G, and API RP 
14F or API RP 14FZ (the preceding four documents incorporated by 
reference as specified in Sec.  250.198).
* * * * *
[FR Doc. 03-665 Filed 1-13-03; 8:45 am]
BILLING CODE 4310-MR-P