[Federal Register Volume 68, Number 31 (Friday, February 14, 2003)]
[Rules and Regulations]
[Pages 7421-7427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3424]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC82


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Document Incorporated by Reference--American Petroleum 
Institute's Specification 2C for Offshore Cranes

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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SUMMARY: MMS is incorporating by reference into its regulations the 
Fifth Edition of the American Petroleum Institute's Specification for 
Offshore Cranes (API Spec 2C). MMS is taking this action to establish a 
minimum design standard for cranes installed on fixed platforms on the 
Outer Continental Shelf (OCS) after the effective date of this rule. 
The rule also requires lessees to equip all existing cranes installed 
on OCS fixed platforms with anti-two block safety devices. This final 
rule will ensure that OCS lessees use the best available and safest 
technologies for the design and construction of future cranes installed 
on the OCS.

EFFECTIVE DATE: March 17, 2003. The incorporation by reference of 
publications listed in the regulation is approved by the Director of 
the Federal Register as of March 17, 2003.

FOR FURTHER INFORMATION CONTACT: Wilbon Rhome, Industrial Specialist, 
Operations and Analysis Branch, at (703) 787-1587.

SUPPLEMENTARY INFORMATION: MMS is responsible for the regulation of 
cranes, booms, and other material-handling equipment installed on fixed 
platforms according to the 1998 MMS/United States Coast Guard (USCG) 
Memorandum of Understanding (MOU). MMS currently regulates cranes by 
requiring lessees and operators to comply with the American Petroleum 
Institute's Recommended Practice for the Operation and Maintenance of 
Offshore Cranes (API RP 2D), Fourth Edition. As outlined in the 1998 
MOU, USCG is responsible for cranes, booms, and other material-handling 
equipment installed on mobile offshore drilling units and floating 
production systems. In short, MMS regulates cranes installed on fixed 
platforms and the USCG regulates cranes installed on floating 
facilities.
    On July 19, 2001, we published a proposed rule in the Federal 
Register (66 FR 37611) to incorporate API's Specification for Offshore 
Cranes (API Spec 2C) and to require the installation of anti-two block 
devices on all cranes on fixed platforms. During the 90-day comment 
period (which ended on October 19, 2001), MMS received comments from 
one production operator, one contractor, one trade organization, one 
crane manufacturer, and three crane service companies. In the preamble 
to the proposed rule, we requested comments on nine specific questions. 
We grouped the comments to those questions and our responses in a 
table. Other comments and our responses follow.

Incorporation of API Spec 2C

    This final rule adds API Specification 2C for Offshore Cranes, 
Fifth Edition, April 3, 1995, to those documents currently incorporated 
by reference into MMS regulations. MMS has reviewed this document and 
determined that incorporating it into our regulations ensures that 
industry uses the best available and safest technologies for the design 
and construction of cranes used on OCS fixed platforms.
    The purpose of incorporating API Spec 2C into the regulations is to 
establish detailed requirements for the design and construction of 
pedestal-mounted cranes for new OCS fixed platforms. API Spec 2C 
includes minimum requirements for equipment, materials, manufacturing 
procedures, and testing (both design and operational) that are not 
covered in API RP 2D.
    The proposed rule required that new cranes on OCS fixed platforms 
meet the requirements of API Spec 2C. Comments on the rule indicated 
that there was uncertainty about which cranes were considered new 
cranes. Commenters asked if a rental crane was considered a new crane 
when it moved to a new location and did that rental crane have to meet 
the requirements of API Spec 2C?

[[Page 7422]]

    The intent of the proposed rule to incorporate API Spec 2C was 
twofold: (1) That newly manufactured cranes must be manufactured 
according to specifications of API Spec 2C; and (2) that cranes 
installed on new fixed platforms must be manufactured according to 
specifications of API Spec 2C. Since the use of the term ``new'' is not 
precise we revised the final rule by inserting the effective date of 
the final rule to clarify the intended requirements. We have revised 
paragraphs (c) and (d) in 30 CFR 250.108 to accurately reflect the 
intent of the proposed rule. These paragraphs read as follows:
    ``(c) If a fixed platform is installed after March 17, 2003, all 
cranes on the platform must meet the requirements of the American 
Petroleum Institute's Specification for Offshore Cranes (API Spec 2C), 
incorporated by reference as specified in 30 CFR 250.198.''
    ``(d) All cranes manufactured after March 17, 2003, and installed 
on a fixed platform, must meet the requirements of API Spec 2C, 
incorporated by reference as specified in 30 CFR 250.198.''
    We do not use the term ``rental crane'' in the final rule because 
the comments indicated that there are differing definitions of what 
constitutes a rental crane. A rental crane must meet the same 
requirements as any other crane installed on a fixed platform. If a 
rental crane is manufactured after March 17, 2003, then it must meet 
the requirements of API Spec 2C. If a rental crane is installed on a 
fixed platform that was installed after March 17, 2003, then it must 
meet the requirements of API Spec 2C. The comments also raised the 
issue about the appropriate use of rental cranes. MMS will discuss this 
issue with interested parties after the publication of this final rule.
    Several commenters pointed out that API Spec 2C applies only to 
pedestal-mounted cranes and that the requirements in the specification 
may not be appropriate for smaller cranes or other material-handling 
equipment. MMS understands that API Spec 2C provides specifications for 
pedestal-mounted cranes and that it is not intended for other types of 
material-handling equipment. MMS regulates other material-handling 
equipment by requiring lessees to operate and maintain that equipment 
in a manner that ensures safe operation and prevents pollution. The 
requirements for other material-handling equipment are contained in new 
30 CFR 250.108(f), previously 30 CFR 250.108(b).

Requirement for Anti-Two Block Devices

    This final rule also requires lessees to install anti-two block 
devices on all existing cranes within 2 years of the effective date of 
this rule. In the past, MMS has encouraged industry to equip all cranes 
operating on OCS fixed platforms with an anti-two block safety device, 
regardless of the age or specific use of the crane. MMS has now 
determined that anti-two block safety devices must be used on all 
cranes installed on OCS fixed platforms. We are convinced that 
retrofitting all existing cranes with the anti-two block safety devices 
will benefit the industry by increasing safety, and reducing crane 
incidents on the OCS.
    Our concern was highlighted by the International Association of 
Drilling Contractors in October 2000 when it issued a safety alert 
titled ``Near Miss--Anti-Two Blocking Devices.'' This safety alert 
stated that anti-two block safety devices should be installed on all 
cranes because ``Having a safety device like this ensures that 
everything is in place to prevent a problem. The anti-two block safety 
device for the crane boom is a protection device as is the crown 
protection device on the rig's drawworks. Both are very important to 
working safely.''
    In response to comments, the final regulations provide a 2-year 
transition period for the retrofitting of existing OCS fixed platform 
cranes with anti-two block safety devices. This additional year will 
allow industry adequate time to implement this change without causing 
undue hardships.

Recordkeeping Requirements

    With the incorporation of API Spec 2C, we would include additional 
recordkeeping requirements in 30 CFR 250.108 to be consistent with the 
specification. Current regulations require you to keep inspection, 
testing, and maintenance records at the OCS facility for at least 2 
years. The proposed rule would have expanded this requirement to retain 
these records for the ``life of the crane.'' Comments received on the 
proposed rule assert that requiring the lessees to retain these records 
for the life of the crane would create a significant paperwork and 
administrative burden. Several commenters recommended that MMS should 
continue to follow our existing requirements of retaining crane records 
for 2 years. Another commenter said that keeping inspection, testing, 
and maintenance records for 4 years would provide a great predictive 
maintenance tool in determining integrity on previous and future 
discrepancies. Based on these comments, we have revised the final rule 
to require lessees to keep inspection, testing, and maintenance records 
for 4 years. We believe that keeping records for an additional 2 years 
will allow lessees to make an improved assessment of the crane 
maintenance program and identify any safety trends.
    The final rule also requires the lessee to retain all design and 
construction records, including installation records for any anti-two 
block safety devices, for the life of the crane at the OCS fixed 
platforms. The rule further modifies 30 CFR 250.108 to require lessees 
to keep training records on rigger personnel, as well as those for 
crane operators. There were no comments objecting to these 
requirements.

Response to Comments on Preamble Questions

    In the preamble to the proposed rule, we requested comments on nine 
specific questions. We have grouped the comments to those questions and 
our responses in the following table.

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                         MMS questions                                        Comments received                              MMS response
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(a) Will the the addition of API Spec 2C to MMS' documents       Most commenters agreed that incorporating    MMS has incorporated API Spec 2C in the
 incorporated by reference increase safety and safe operations    API Spec 2C would increase safety on the     regulations to promote safe crane
 on the OCS?                                                      OCS?                                         operations on the OCS.
                                                                 One commenter stated that there is too much  MMS has determined that API Spec 2C is the
                                                                  flexibility in the interpretation of API     best available reference for the design,
                                                                  Spec 2C for it to have any effect on         construction, and testing of pedestal
                                                                  safety. Noted flexibility shortcomings       mounted cranes for offshore use. Any
                                                                  were that Spec 2C only applied to pedestal   valid shortcomings of this document
                                                                  cranes, that more specificity was needed     should be addressed in the next edition.
                                                                  in presenting the basis of rating for load   It is not a shortcoming of this document
                                                                  rating charts, and the noise level allowed   in that it only applies to pedestal-
                                                                  was too high..                               mounted cranes.

[[Page 7423]]

 
(b) Are there other standards for offshore cranes that may be    All commenters with the exception of one     MMS reviewed the ABS standard and, while
 appropriate for MMS to incorporate as part of MMS'               responded ``no'' to this question. One       we recognize that there are some
 regulations?                                                     commenter stated that MMS should accept      similarities between ABS and API Sec 2C,
                                                                  cranes certified in accordance with the      we do not think that ABS is as widely
                                                                  requirements of the American Bureau of       accepted or recognized as an industry
                                                                  Shipping (ABS) Certification of Cranes       standard for cranes on OCS fixed
                                                                  (ABS 1991).                                  platforms.
(c) When should MMS require all cranes on OCS fixed platforms    Most commenters said that many cranes        MMS understands that there are many types
 to be fully compliant with API Spec 2C?                          cannot become compliant with API Spec 2C     of cranes working on fixed platforms on
                                                                  for a number of reasons (i.e., engineering   the OCS. The final rule clarifies that
                                                                  data not available, some cranes used         the only cranes that must meet the
                                                                  offshore are not offshore are not pedestal   requirements of API Spec 2C are:
                                                                  cranes so they cannot comply with API Spec  [sbull] If a fixed platform is installed
                                                                  2C, etc). Even if you could retrofit some    engineering data after March 17, 2003,
                                                                  of the cranes the costs would exceed the     all cranes on the platform must meet the
                                                                  benefits. A couple of commenters said MMS    requirements of the American Petroleum
                                                                  should grandfather older cranes under any    Institutes's Specification for Offshore
                                                                  new regulations.                             Cranes (API Spec 2C), incorporated by
                                                                                                               references as specified in 30 CFR
                                                                                                               250.108.
                                                                                                              [sbull] All cranes manufactured after
                                                                                                               March 17, 2003, and installed on a fixed
                                                                                                               platform, must meet the requirements of
                                                                                                               API Spec 2C, incorporated by reference as
                                                                                                               specified in 30 CFR 250.108.
                                                                                                              Except for these cases, the final rule
                                                                                                               does not prohibit the use of cranes that
                                                                                                               do not meet the requirements of API Spec
                                                                                                               2C.
(d) Is a 1-year transition period enough time for industry to    One commenter stated that 1 year should      MMS revised the final rule to provide 2
 comply with the change proposed in 30 CFR 250.108(c)?            offer enough time to comply if MMS is        years instead of 1 year for installing
                                                                  willing to accept as ``existing'' any        the anti-two block safety device on all
                                                                  cranes that had been ordered prior to the    existing cranes because the proposed 1-
                                                                  date of the final rule.                      year transition period did not allow
                                                                 Several commenters stated that the 1-year     adequate time for all lessees to install
                                                                  transition period is inadequate and will     the anti-two block device on the
                                                                  not allow for a systematic approach for      necessary cranes.
                                                                  retrofitting pre-1983, older model, and     The final rule does not require the
                                                                  existing mechanical cranes with the          retrofitting of any cranes to the
                                                                  required anti-two block safety device..      specifications of API Spec 2C.
(e) Should MMS establish a requirement similar to the U.S.       One commenter stated that it used a third-   This final rule does not require an
 Coast Guard (USCG), which requires cranes to be installed        party crane servicing company to conduct     approved crane plan or third-party
 according to an approved crane plan and inspected and load       the initial load test for all temporary      inspection for the installation of
 tested by an Agency-approved third party when the crane is       crane installations and recommended this     cranes. As pointed out by several
 installed?                                                       practice for all initial installations of    commenters, API RP 2D does address load
                                                                  temporary cranes.                            testing for the installation of new
                                                                 One commenter recommended the installation    cranes placed in service, cranes that are
                                                                  of cranes according to plan approved by a    being permanently relocated, and rental
                                                                  qualified engineer but third-party           cranes after each rig-up or relocation.
                                                                  witnessing was not necessary..               However, MMS believes that the
                                                                 Another said API RP 2D adequately addresses   installation of rental cranes and the
                                                                  requirements for new crane installations..   relocation of cranes are issues that
                                                                 Another period out the crane manufacturer     warrant additional discussions with
                                                                  or crane manufacturer's qualified agent      operators, crane manufacturers, crane
                                                                  should perform the installation,             service companies, and other interested
                                                                  inspection, and load testing of new          parties. MMS will being discussions with
                                                                  cranes. The commenter also saw no value in   interested parties after the publication
                                                                  a third party witnessing the installation    of this final rule.
                                                                  because it does not perform any type of
                                                                  inspection other than a walk-around,
                                                                  visual type of inspection..
(f) Should MMS require all new cranes for installation on OCS    Several commenters pointed out that          MMS understands that all manufacturers
 fixed platforms to have an API monogram on the nameplate of      manufacturers that apply the API monogram    that participate in the monogram program
 the crane as evidence of certification of anti-two block         to the nameplate are warranting that they    must meet all requirements set forth in
 safety device?                                                   have an API license and that the             API Spec 2C, including evidence of
                                                                  construction of the crane complies in all    certification of the anti-two block
                                                                  details to API Spec 2C (not limited just     safety devices. The API monogram is
                                                                  to certification of the anti-two block       strictly voluntary and MMS has no plans
                                                                  safety devices).                             to make this program a requirement.

[[Page 7424]]

 
(g) Should a rental crane that is installed on OCS fixed         All that commented said that rental cranes   The term ``rental crane'' is not used in
 platforms be considered a new crane and, therefore be required   should not be considered a new crane.        the final rule. The final rule clarifies
 to be fully compliant with API Spec 2C?                          Additional comments were:.                   which cranes must meet the requirements
                                                                 [sbull] But rental cranes should meet API     of API Spec 2C. The response to question
                                                                  Spec 2C..                                    (c) identifies the cranes that must meet
                                                                 [sbull] It is not practical to                the specification.
                                                                  retroactively seek certification of         Comments on rental cranes indicated that
                                                                  existing rental cranes..                     there are differing definitions of what
                                                                 [sbull] All new rental cranes should be       constitutes a rental crane. The comments
                                                                  compliant with API Spec 2C, but some         also raise the issue about the
                                                                  existing rental cranes may not be able to    appropriate use of rental cranes. MMS
                                                                  be brought to the specification..            will include these issues in the
                                                                 ``Rental cranes'' covers a large variety of   discussion with interested parties after
                                                                  lifting devices. A considerable number of    the publication of the final rule.
                                                                  rental cranes are misrepresented. All
                                                                  rental cranes that are designed to pick up
                                                                  over 10,000 pounds should be required to
                                                                  meet the requirements of API Spec 2C..
(h) Should MMS limit the type of anti-two block devices that     One commenter said that all hydraulic        The final does not limit the type of anti-
 are acceptable? What are the known failure rates of the          cranes should have a shut down system as     two block devices that must be installed
 different types?                                                 the anti-two block device. Mechanical        on all cranes. The final rule provides
                                                                  cranes could allow for audible alarms        lessees and operators the flexibility and
                                                                  until the crane has a major overhaul.        opportunity to choose the anti-two block
                                                                  Another commenter states that MMS should     safety device that best suits the
                                                                  limit the types of anti-two block safety     particular operation. Limiting lessees to
                                                                  devices to those capable of shutting down    a certain type of anti-two block device
                                                                  the crane.                                   could create a financial hardship and may
                                                                 One comment was that MMS should not limit     not increase safety. It is the lessee's
                                                                  the types of anti-two block devices          responsibility to operate its cranes
                                                                  because API 2C adequately addresses the      safely.
                                                                  issue..                                     The MMS' review of the SAE standard did
                                                                 One comment suggested that MMS examine the    not reveal any new information that could
                                                                  Society of Automotive Engineers (SAE)        be used as part of this final rule.
                                                                  standards regarding problems that may be
                                                                  encountered with the different types of
                                                                  anti-two block safety devices..
                                                                 One commenter stated the repeated testing
                                                                  as required by API RP 2D leads to the
                                                                  failure of the device..
(i) Should MMS consider an additional cost factor for            One commenter said that MMS should consider  With proper planning (e.g., parts and
 retrofitting existing cranes with the anti-two block safety      all costs associated with the installation   personnel are at the work location before
 device (e.g., an associated cost for the amount of time a        of anti-two blocks. Another said MMS         the crane is taken out of service),
 crane is expected to be out-of-service while it is being         should consider out-of-service time while    lessees should be able to keep out-of-
 retrofitted).                                                    another commenter said that the time to      service time a minimum. The final rule
                                                                  install the necessary equipment could be     now provides a 2-year instead of the 1-
                                                                  planned to minimize or eliminate any out-    year transition period that was in the
                                                                  of-service time. MMS should also consider    proposed rule. This revision ensures that
                                                                  the cost of replacing a crane if it can't    lessees will have sufficient time to
                                                                  be retrofitted for an anti-two block         install an anti-two block device without
                                                                  device                                       disrupting crane activities. MMS has
                                                                                                               determined that any additional costs
                                                                                                               associated with retrofitting existing
                                                                                                               cranes should be minimized and were
                                                                                                               considered in this rulemaking.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    As noted in the responses to question (e), MMS believes that the 
installation of rental cranes and the relocation of cranes are issues 
that warrant additional attention. There have been numerous incidents 
and serious accidents involving the installation and use of rental 
cranes, including a fatal accident that occurred on May 5, 2002. 
However, any additional regulatory actions dealing with rental cranes 
are beyond the scope of this rulemaking. MMS will initiate discussions 
with operators, crane manufacturers, crane service companies, and other 
interested parties on the issues concerning rental cranes.
    Finally, one commenter provided several relatively inexpensive 
suggestions and modifications for making older cranes (pre-1983) safer. 
These suggestions and modifications are:
    [sbull] Maintain and post ``Actual Lift Capacity Charts'' in the 
cab of crane.
    [sbull] Install high angle safety systems for lattice boom cranes 
or cranes that use a boom hoist and wire rope to lift the boom.
    [sbull] Upgrade wire rope to meet the latest API Spec 2C safety 
factors.
    [sbull] Post caution signs on all pre-1983 cranes and all non-API 
cranes to warn the crane operators that these cranes may not have the 
same safety factors as cranes built after 1983.
    MMS is passing these suggestions on to lessees, operators, and 
contractors in the hope that they may be used to improve crane safety 
on the OCS.

Procedural Matters

    The specifications in the API Spec 2C document we are incorporating 
by reference are currently widely accepted industry standards. The USCG 
has already incorporated API Spec 2C into its regulations. All cranes 
manufactured after 1983 came equipped with the anti-two block safety 
devices, and many earlier model cranes have been retrofitted with the 
anti-two block safety devices. The final rule will cause lessees to 
retrofit approximately 200 cranes that currently do not have anti-two 
block devices. MMS estimates that this will cost lessees approximately 
$800,000.

[[Page 7425]]

The final rule also provides 2 years for industry to complete the 
retrofit. The 2-year period will allow industry to schedule the 
required retrofits in a systematic approach. Therefore, this 
regulation's impact on the entire OCS oil and gas 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 annual economic effect of $100 
million or adversely affect an economic sector, productivity, jobs, the 
environment, or other units of government. A cost-benefit and economic 
analysis is not required. The major purpose of this final rule is to 
establish a minimum design standard for future cranes installed on 
fixed platforms on the OCS and to prevent accidents that can be 
prevented by equipping cranes with anti-two block safety devices. This 
rule requires lessees to equip all existing cranes installed on OCS 
fixed platforms with anti-two block safety devices by March 16, 2005. 
Since API Spec 2C has already been accepted as an industry standard by 
most of the offshore community, including the USCG, the impact of this 
regulation on the entire industry is minor. Therefore, the associated 
costs to equip the remaining cranes, not previously retrofitted with 
anti-two block safety devices, will be minor. Based on our experience 
and information in MMS's Technical Information Management System, we 
estimate that about 5 percent (or a total of not more than 200) of the 
estimated 4,000 cranes located on OCS fixed platforms will need to be 
retrofitted with the anti-two block safety device. We estimate that 
this will cost approximately $4,000 per retrofit, for a total cost of 
not more than $800,000.
    (2) This final rule will not create inconsistencies with other 
agencies' actions. This rule will not affect how lessees or operators 
interact with other agencies.
    (3) This final rule will not affect entitlements, grants, user 
fees, loan programs, or their recipients. The rule deals only with the 
action to incorporate by reference API Spec 2C into our regulations.
    (4) This final rule will not raise novel legal or policy issues. 
The final rule does involve a new policy issue to require lessees to 
equip all new and existing cranes installed on OCS fixed platforms with 
anti-two block safety devices, but this new policy decision is not 
``novel.'' The final rule simply addresses recognized gaps in our 
safety regulations. These minimum requirements are generally accepted 
industry practices.

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:
    [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.
    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 approximately 91 companies (70 percent) that 
may qualify as small firms with fewer than 500 employees.
    We estimate that about 5 percent of the 4,000 cranes (not more than 
200) located on the OCS need to be retrofitted with anti-two block 
safety devices. Retrofitting an existing crane with an anti-two block 
system would cost approximately $4,000. Since 70 percent of the 
businesses operating on the OCS are small business firms, a 
corresponding 70 percent of the 200 cranes to be retrofitted would most 
likely involve small entities. The cost to small entities to retrofit 
these 140 cranes with anti-two block safety devices to comply with this 
standard is estimated to be $560,000 (140 x $4,000 = $560,000).
    While MMS does not know how many cranes each small operator must 
retrofit, MMS expects that the typical small operator would need to 
retrofit one or two cranes during the 2-year period allowed by the 
final rule. The cost for the typical small operator would be between 
$4,000 and $8,000 over the 2-year period. This cost does not constitute 
a significant impact to the typical small operator. There may be a few 
small operators that will need to retrofit several more cranes than the 
typical small operator. The costs for these few small operators could 
double or triple the costs incurred by the typical small operator. 
However, MMS believes that even these increased costs do not constitute 
a significant impact to these small operators. In addition, an operator 
can decide not to retrofit the crane with an anti-two block device. The 
operator has the option of taking the crane out of service or obtaining 
a rental crane to take its place. Therefore, this rule does not 
constitute a significant impact upon a substantial number of small 
entities.
    This final rule applies to all lessees and operating companies that 
operate cranes on OCS fixed platforms. Incorporation of this new 
document into MMS regulations will:
    (1) Increase safety;
    (2) Provide the oil and gas industry with uniform guidelines and 
detailed requirements for design and construction of pedestal-mounted 
cranes for OCS fixed platforms; and
    (3) Provide for consistency with other regulatory agencies such as 
the USCG.
    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 5 U.S.C. 804(2), SBREFA. This 
rule:
    (1) Does not have an annual effect on the economy of $100 million 
or more. The final rule will not cause any significant costs to lessees 
or operators. The only costs will be the purchase of the API Spec 2C 
document, minor revisions to company operating procedures, and the 
installation of an anti-two block device on cranes installed on OCS 
fixed platforms that do not already have this safety device. These 
costs should be approximately $800,000 for the entire industry.
    (2) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or

[[Page 7426]]

local government agencies, or geographic regions.
    (3) Will not have a significant adverse effect on competition, 
employment, investment, productivity, innovation, or the ability of 
United States-based enterprises to compete with foreign-based 
enterprises. This rule applies to the lessees operating cranes on OCS 
fixed platforms.

Paperwork Reduction Act (PRA) of 1995

    According to the PRA, an agency may not conduct or sponsor a 
collection of information unless it displays a current OMB control 
number. Until OMB approves the collection of information and assigns a 
control number, you are not required to respond. In connection with the 
proposed rulemaking, we submitted the information collection 
requirements to OMB for review and approval under section 3507(d) of 
the PRA. OMB approved the collection and assigned OMB control number 
1010-0146, with a current expiration date of September 30, 2004. The 
information collection requirements in these final regulations remain 
unchanged from those OMB approved for the proposed rule, with one 
exception. We reduced certain proposed record retention requirements 
from ``life of the crane'' to 4 years. Since this change will have no 
effect on the annual paperwork burden of the regulations, we have 
determined that MMS is not required to resubmit the information 
collection requirements in the final regulations to OMB for approval.
    The title of the collection of information for this final rule is 
``30 CFR 250, Subpart A--Crane Requirements.'' Potential respondents 
are approximately 130 Federal OCS lessees and operators. The paperwork 
requirements in the final regulations are mandatory. This collection 
does not include proprietary information or questions of a sensitive 
nature. MMS will use the information to determine that crane operations 
are safe and that crane operators and rigger personnel meet the 
physical qualifications and have completed appropriate training.
    Current regulations at 30 CFR 250.108(d)(2) require that lessees 
retain records on testing, inspection, and maintenance of cranes 
installed on OCS fixed platforms for 2 years, and retain records on 
crane operator qualifications for at least 4 years. As previously 
discussed, this final regulation revises the 2-year retention period to 
4 years, and expands the qualification recordkeeping to include rigger 
personnel as well as crane operators. The final regulations also 
require lessees to retain records on crane design, construction, and 
retrofitting for the life of the crane. MMS estimated the paperwork 
burden to be an additional 2 hours per respondent each year for the 
expanded recordkeeping requirements. OMB approved a for a total of 260 
annual burden hours for this requirement.

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 
because it concerns the manufacturing requirements for specific 
equipment used in offshore oil and gas activities. The rule only 
affects manufacturers and users of such equipment. This rule does not 
impose costs on State or localities, as it only affects manufacturers 
and users of specific equipment used in offshore oil and gas 
activities.

Takings Implication Assessment (Executive Order 12630)

    According to Executive Order 12630, this rule does not have 
significant Takings implications. A Takings Implication Assessment 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) of 1969

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

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.

Government-to-Government Relationship With Tribes

    According to the President's memorandum of April 29, 1994, 
``Government-to-Government Relations with Native American Tribal 
Governments'' (59 FR 22951) and 512 DM 2, we have determined that there 
are no effects from this action on Federally-recognized Indian tribes.

List of Subjects

    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: January 29, 2003.
Rebecca W. Watson,
Assistant Secretary, Land and Mineral Management.

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


    2. Section 250.108 is revised as follows:


Sec.  250.108  What requirements must I follow for cranes and other 
material-handling equipment?

    (a) All cranes installed on fixed platforms must be operated in 
accordance with American Petroleum Institute's Recommended Practice for 
Operation and Maintenance of Offshore Cranes (API RP 2D), incorporated 
by reference as specified in 30 CFR 250.198.
    (b) All cranes installed on fixed platforms must be equipped with a 
functional anti-two block device by March 16, 2005.
    (c) If a fixed platform is installed after March 17, 2003, all 
cranes on the platform must meet the requirements of the American 
Petroleum Institute's Specification for Offshore Cranes (API Spec 2C), 
incorporated by reference as specified in 30 CFR 250.198.
    (d) All cranes manufactured after March 17, 2003, and installed on 
a fixed platform, must meet the requirements of API Spec 2C, 
incorporated by reference as specified in 30 CFR 250.198.
    (e) You must maintain records specific to a crane or the operation 
of a

[[Page 7427]]

crane installed on an OCS fixed platform, as follows:
    (1) Retain all design and construction records, including 
installation records for any anti-two block safety devices, for the 
life of the crane. The records must be kept at the OCS fixed platform.
    (2) Retain all inspection, testing, and maintenance records of 
cranes for at least 4 years. The records must be kept at the OCS fixed 
platform.
    (3) Retain the qualification records of the crane operator and all 
rigger personnel for at least 4 years. The records must be kept at the 
OCS fixed platform.
    (f) You must operate and maintain all other material-handling 
equipment in a manner that ensures safe operations and prevents 
pollution.

    3. In Sec.  250.198, in the table in paragraph (e) a new entry for 
``API Spec 2C'' is added in alphanumerical order, and the entry for 
``API RP 2D'' is revised as follows:


Sec.  250.198  Documents incorporated by reference.

* * * * *
    (e) * * *

------------------------------------------------------------------------
        Title of documents              Incorporated by reference at
------------------------------------------------------------------------
 
                              * * * * * * *
API Spec 2C, Specification for     Sec.   250.108(c) and (d).
 Offshore Cranes, Fifth Edition,
 April 1, 1995, API Stock No.
 G02C05.
API RP 2D, Recommended Practice    Sec.   250.108(a).
 for Operation and Maintenance of
 Offshore Cranes, Fourth Edition,
 August 1, 1999, API Stock No.
 G02D04.
 
                              * * * * * * *
------------------------------------------------------------------------

[FR Doc. 03-3424 Filed 2-13-03; 8:45 am]
BILLING CODE 4310-MR-P