[Federal Register Volume 68, Number 76 (Monday, April 21, 2003)]
[Rules and Regulations]
[Pages 19352-19355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-9669]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AD03


Oil and Gas and Sulphur Operations in the Outer Continental Shelf 
(OCS), Document Incorporated by Reference for Fixed Platforms

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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SUMMARY: MMS is publishing this final rule to incorporate by reference 
into our regulations the 21st edition of American Petroleum Institute 
Recommended Practice 2A (API RP 2A), ``Recommended Practice for 
Planning, Designing and Constructing Fixed Offshore Platforms--Working 
Stress Design.'' The updated document, 21st edition, will replace the 
19th and 20th editions of API RP 2A, which are already incorporated by 
reference into MMS regulations.

EFFECTIVE DATE: This rule becomes effective on May 21, 2003. The 
incorporation by reference of the publication listed in the regulation 
is approved by the Director of the Federal Register as of May 21, 2003.

FOR FURTHER INFORMATION CONTACT: Carl Anderson, Physical Scientist, at 
(703) 787-1608; or Joseph Levine, Chief, Operations Analysis Branch, at 
(703) 787-1033 or FAX (703) 787-1555.

SUPPLEMENTARY INFORMATION: The updated document, 21st edition, was 
published as part of a proposed rule. In that rule, MMS proposed to 
amend Subpart I of 30 CFR Part 250 and to incorporate into our 
regulations nine industry standards pertaining primarily to floating 
production platforms. MMS believes it is important to expedite 
incorporating by reference the 21st edition of API RP 2A ahead before 
the other standards since the overwhelming majority of platforms on the 
OCS are fixed platforms. Thus, we are preparing a separate final rule 
to update the document incorporated by reference relating to fixed 
platforms under the RIN 1010-AD03, and will publish a final rule 
incorporating the other eight standards on floating production 
platforms under the RIN 1010-AC85. Incorporating the 21st edition will 
immediately correct the deficiencies that the API workgroup identified 
in the 19th and 20th editions of API RP 2A. This will streamline the 
permitting of all fixed platforms so that OCS lessees and operators and 
MMS engineers will not have to continue to perform the corrective 
calculations and procedures called for in NTL No. 98-1N and NTL No. 98-
4N.
    Additional immediate benefits of adopting the 21st edition of API 
RP 2A are that it (1) greatly strengthens the Section 2 design criteria 
analysis methods and Section 3 structural steel analysis requirements; 
(2) strengthens procedures for analyzing minimum and special structures 
in Section 16 with respect to the Section 2 design criteria analysis 
methods; (3) reinforces the connection between Section 16 design loads 
and analyses for minimum and special structures with respect to Section 
5 fatigue analysis methods; and (4) contains assessment procedures in 
Section 17 for existing platforms. Neither the 19th edition nor the 
20th edition of API RP 2A included assessment procedures for existing 
platforms. The December 1996 Supplement 1 to the 20th edition of API RP 
2A included Section 17, Assessment of Existing Platforms, and has been 
used by industry since that time.
    The 21st edition provided the rationale for revising much of 
Subpart I--Platforms and Structures--that was described in the proposed 
rulemaking of December 27, 2001 (66 FR 66851-66865). The API RP 2A 
deals with bottom-founded structures which, until the proposed 
rulemaking, have been the primary focus of Subpart I. After publishing 
this rule, MMS will cancel two National Notices to Lessees and 
Operators (NTLs) related to the 19th and 20th editions of API RP 2A, 
NTL No. 98-1N, ``Interim Guidance for Applying Platform Design 
Criteria''; and NTL No.

[[Page 19353]]

98-4N ``Interim Guidance `Simplified Fatigue Analysis' Procedure.''
    The two NTLs to be cancelled were published in cooperation with the 
API RP 2A industry workgroup to provide guidance on either applying or 
recalculating certain design criteria specified in the 19th and 20th 
editions of API RP 2A. There were certain insufficient or erroneous 
design criteria in both the 19th and 20th editions of API RP 2A related 
to various structures and the water depths and wind conditions in which 
they were to operate. Once the 21st edition of API RP 2A is 
incorporated into the regulations, the NTLs will not be necessary.

Discussion and Analysis of Comments

    Eight organizations submitted nine comments on the proposed 
rulemaking. Commenters included the American Bureau of Shipping (ABS); 
the Offshore Operator's Committee (OOC); Shell Exploration & Production 
Company (Shell), which commented twice; the Independent Petroleum 
Association of America (IPAA); the National Ocean Industries 
Association (NOIA); ChevronTexaco; Newfield Exploration Company 
(Newfield); and ATP Oil & Gas Corporation (ATP). In all, MMS identified 
22 issues raised by these respondents. Nearly all are either related to 
adoption of the other eight industry standards covered in the December 
27, 2001, NPR; the approval procedures for floating production 
platforms; or the proposed rewrite of Subpart I. All of these comments 
will be discussed in a separate final rule.
    Industry has had years of experience applying API RP 2A on the OCS, 
and no respondent objected to the adoption of the 21st edition of API 
RP 2A. The ABS raised one technical issue related to its adoption, as 
follows:

    The document adopts the API-RP2A-WSD [working stress design]. Is 
the API-RP2A-LRFD [load and resistance factors design] not 
acceptable at this time for any application? Some of the 
requirements in API-RP2A-LRFD, such as hydrostatic collapse of 
tubular members for deepwater applications, may be more reasonable 
than those in WSD. If acceptable, guidance in the regulations should 
specify load and resistance factors.

    Since the early 1980s, MMS has followed the policy currently 
outlined in Sec. Sec.  250.141 and 250.142 of our operating 
regulations, whereby we promote the use of technology or innovative 
practices that are not necessarily covered in our regulations. For 
example, Sec.  250.141 tells the lessee or operator that ``You may use 
alternate procedures or equipment after receiving approval as described 
in this section.'' The approval must be in writing from either the MMS 
District or Regional Supervisor. Paragraph (a) of Sec.  250.141 
requires that ``Any alternate procedures or equipment that you propose 
to use must provide a level of safety and environmental protection that 
equals or surpasses current MMS requirements.'' Paragraph (c) of Sec.  
250.141 requires that the lessee or operator submit information or 
provide an oral presentation to describe the site-specific 
applications, performance characteristics, and safety features of the 
alternate procedures or equipment. Also, under Sec.  250.142, the 
lessee or operator may submit a written request to the District or 
Regional Supervisor for an approval to depart from current MMS 
operating regulations.
    Thus, if a lessee or operator believes that the load and resistance 
factor design (LRFD) version of API RP 2A is more appropriate for its 
proposed platform than the working stress design (WSD) version, the 
lessee or operator may submit its arguments to use the former under 
Sec. Sec.  250.141 and 250.142 of MMS operating regulations.

Procedural Matters

Regulatory Planning and Review (Executive Order 12866)

    This document is not a significant rule and is not subject to 
review by OMB under Executive Order 12866.
    (1) The rule will not have an annual effect on the economy of $100 
million or more or adversely affect in a material way the economy, a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities. The overall effect of the rule will not 
create an adverse effect upon the ability of the United States offshore 
oil and gas industry to compete in the world marketplace, nor will the 
rule adversely affect investment or employment factors locally. The 
economic analysis for this rule is available from the Department of the 
Interior; Minerals Management Service; Operations Analysis Branch; Mail 
Stop 4022; 381 Elden Street; Herndon, Virginia 20170-4817; Attention: 
Carl W. Anderson.
    (2) This rule will not create inconsistencies with other agencies' 
actions. This rule does not change the relationships of the OCS oil and 
gas leasing program with other agencies' actions. These relationships 
are all encompassed in agreements and memorandums of understanding that 
will not change with this rule.
    (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. There 
are precedents for actions of this type under past lease stipulations 
and regulations dealing with safety provisions under the OCS Lands Act.

Regulatory Flexibility (RF Act)

    The Department of the Interior certifies that this proposed rule 
will not have a significant economic effect on a substantial number of 
small entities under the RF Act (5 U.S.C. 601 et seq.). This rule 
applies to all lessees that operate on the OCS. Small lessees that 
operate under this rule would fall under the Small Business 
Administration's (SBA) North American Industry Classification System 
Codes 211111, Crude Petroleum and Natural Gas Extraction and 213111, 
Drilling Oil and Gas Wells. For the purposes of this section, the 
``small entity'' is considered to be an individual, limited 
partnership, or small company, considered to be at ``arm's length'' 
from the control of any parent company, with fewer than 500 employees. 
Mid-size and large corporations and partnerships under their direct 
control have access to lines of credit and internal corporate cash 
flows that are not available to the ``small entity.'' Some of the 
operators MMS regulates under the OCS oil and gas leasing program are 
considered small entities. We estimate that of the 130 lessees that 
explore for and produce oil and gas on the OCS, approximately 90 are 
small businesses (70 percent). The 21st edition of API RP 2A will 
reduce the costs of new platforms to these lessees, because the 21st 
edition allows lower-cost design criteria for platforms that have lower 
``consequences of failure.'' Thus, an unmanned platform can be built 
with lower-cost design criteria than a manned platform. Under the 19th 
and 20th editions of API RP 2A, both unmanned and manned platforms had 
to be built under high-cost design criteria. Therefore, MMS concludes 
that this final rule will have a beneficial effect on small operators.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small business 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.

[[Page 19354]]

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.
    (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 effects on competition, 
employment, investment, productivity, innovation, or ability of United 
States-based enterprises to compete with foreign-based enterprises. The 
21st edition of API RP 2A will reduce the costs of new platforms to 
these lessees, because it allows lower-cost design criteria for 
platforms that have lower ``consequences of failure.'' Thus, an 
unmanned platform can be built with lower-cost design criteria than a 
manned platform. Under the 19th and 20th editions of API RP 2A, both 
unmanned and manned platforms had to be built under high-cost design 
criteria. Therefore, MMS concludes that the rule will not have a 
significant economic impact on a substantial number of small entities.

Paperwork Reduction Act (PRA) of 1995

    The revision to a section of Subparts A and I of 30 CFR 250 will 
simplify, to a modest degree, the information collection (IC) aspects 
of MMS regulations. These are currently approved under OMB control 
numbers 1010-0114 (Subpart A) and 1010-0058 (Subpart I). For purposes 
of only incorporating by reference the 21st edition of API RP 2A into 
MMS regulations, MMS did not submit an information collection request 
(ICR) to OMB for these sections.
    This final rule incorporates by reference into MMS regulations the 
21st edition of API RP 2A in place of the 19th and 20th editions and a 
supplement to the 20th edition that are currently listed in Sec.  
250.198(e). By incorporating the 21st edition, MMS will actually reduce 
the paperwork burden for lessees and operators, because they will no 
longer have to refer to NTLs No. 98-1N and 98-4N to correct the 
deficiencies that API has acknowledged exist in the 19th and 20th 
editions of API RP 2A.
    Potential respondents are approximately 130 Federal OCS lessees and 
operators and Certified Verification Agents or other third-party 
reviewers of fixed and floating platforms. Responses are mandatory. The 
frequency of response varies by section, but is primarily on occasion 
or annually. The IC does not include questions of a sensitive nature. 
MMS will protect information considered proprietary according to 30 CFR 
250.196 (Data and information to be made available to the public) and 
30 CFR part 252 (OCS Oil and Gas Information Program).
    MMS will use the information collected and records maintained under 
current Subpart I regulations to determine the structural integrity of 
all fixed platforms and to ensure that such integrity will be 
maintained throughout the useful life of these structures. The 
information is necessary to determine that platforms and structures are 
sound and safe for their intended purpose and the safety of personnel 
and pollution prevention. As part of our continuing effort to reduce 
paperwork and respondent burdens, MMS invites the public and other 
Federal agencies to comment on any aspect of the reporting burden in 
this final rule. You may submit your comments directly to the Office of 
Information and Regulatory Affairs, OMB. Please send a copy of your 
comments to MMS so that MMS can use them in future paperwork burden 
analyses of our regulations. Refer to the ADDRESSES section for mailing 
instructions.
    The current OMB control numbers are 1010-0114 (subpart A) and 1010-
0058 (subpart I).
    a. MMS specifically solicits comments on the following questions:
    (1) Is the collection of information necessary for MMS to properly 
perform its functions, and will it be useful?
    (2) Are the estimates of the burden hours of the collection 
reasonable?
    (3) Do you have any suggestions that would enhance the quality, 
clarity, or usefulness of the information to be collected?
    (4) Is there a way to minimize the information collection burden on 
those who are to respond, including the use of appropriate automated 
electronic, mechanical, or other forms of information technology?
    b. In addition, the PRA requires agencies to estimate the total 
annual reporting and recordkeeping ``non-hour'' cost burden resulting 
from the collection of information. MMS has not identified any and 
solicits your comments on this item. For reporting and recordkeeping 
only, your response should split the cost estimate into two components: 
(1) The total capital and startup cost component, and (2) annual 
operation, maintenance, and purchase of services component. Your 
estimates should consider the costs to generate, maintain, and disclose 
or provide the information. You should describe the methods you use to 
estimate major cost factors, including system and technology 
acquisition, expected useful life of capital equipment, discount 
rate(s), and the period over which you incur costs. Generally, your 
estimates should not include equipment or services purchased before 
October 1, 1995, to comply with requirements not associated with the 
information collection, for reasons other than to provide information 
or keep records for the Government, or as part of a usual and customary 
business or private practice.

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. 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.

Takings Implications Assessment (Executive Order 12630)

    According to Executive Order 12630, the rule does not have 
significant Takings implications. A Takings Implication Assessment is 
not required. Based on our Paperwork Burden analysis and our economic 
analysis for this rule, which will incorporate by reference the 21st 
edition of API RP 2A into MMS regulations, the annual incremental cost 
of complying with this regulation for approximately 98 businesses will 
be negligible. These businesses are already complying with the 
requirements of the 19th and 20th editions of API RP 2A, and upgrading 
to the 21st edition will only simplify the requirements. Therefore, 
this rule will not result in any takings, and the Department of the 
Interior does not need to prepare a Takings Implication Assessment 
under Executive Order 12630, Governmental Actions and Interference with 
Constitutionally Protected Property Rights. The rule will not take away 
or restrict a lessee's right to develop an OCS oil and gas lease 
according to the lease terms.

Federalism (Executive Order 13132)

    According to Executive Order 13132, this rule does not have 
Federalism implications. This rule will not substantially or directly 
affect the relationship between the Federal and State governments 
because it deals strictly with technical standards that the offshore 
oil and gas industry must use in designing, fabricating, and installing

[[Page 19355]]

fixed offshore facilities. This rule will not impose costs on States or 
localities, nor will it require any action on the part of States or 
localities.

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. MMS has analyzed this 
rule under the criteria of the NEPA and 516 Departmental Manual 6, 
Appendix 10.4C(1). MMS completed a Categorical Exclusion Review for 
this action on November 20, 2000, and concluded that ``the rulemaking 
does not represent an exception to the established criteria for 
categorical exclusion; therefore, preparation of an environmental 
analysis or environmental impact statement will not be required.''

Consultation and Coordination With Indian Tribal Governments (Executive 
Order 13175)

    In accordance with Executive Order 13175, this rule does not have 
tribal implications that impose substantial direct compliance costs on 
Indian tribal governments.

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: April 8, 2003.
Rebecca W. Watson,
Assistant Secretary, Land and Minerals Management.


0
For the reasons stated in the preamble, Minerals Management Service 
(MMS) amends 30 CFR part 250 as follows:

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

0
1. The authority citation for part 250 continues to read as follows:

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


0
2. In Sec.  250.198, in the table in paragraph (e), the following 
changes are made:
0
A. Remove entries for API RP 2A, 19th Edition; API RP 2A, 20th Edition; 
and API RP 2A, 20th Edition, Supplement 1.
0
B. Add the entry for API RP 2A, 21st Edition, 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 2A-WSD, Recommended         Sec.   250.900(g); Sec.   250.912(a).
 Practice for Planning, Designing
 and Constructing Fixed Offshore
 Platforms--Working Stress
 Design; Twenty-first Edition,
 December 2000 (API Order No.
 G2AWSD).
 
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0
3. In Sec.  250.900, revise paragraph (g) to read as follows:


Sec.  250.900  General requirements.

* * * * *
    (g) In addition to the requirements of this subpart, platform 
design, fabrication, and installation shall conform to API RP 2A-WSD 
``Recommended Practice For Planning, Designing, And Constructing Fixed 
Offshore Platforms--Working Stress Design,'' (incorporated by 
reference, see Sec.  250.198), or American Concrete Institute (ACI) 
357R, ``Guide for the Design and Construction of Fixed Offshore 
Concrete Structures,'' (incorporated by reference, see Sec.  250.198), 
as appropriate. Alternative codes or rules may be utilized with 
approval of the Regional Supervisor. The requirements contained in 
these documents (API RP 2A-WSD and ACI 327R) are incorporated by 
reference in this part, see Sec.  250.198.

0
4. In Sec.  250.912(a), revise the first sentence to read as follows:


Sec.  250.912  Periodic inspection and maintenance.

    (a) All platforms installed in the OVS shall be inspected 
periodically in accordance with the provisions of section 14, Surveys 
of API RP 2A-WSD (incorporated by reference, see Sec.  250.198). * * *
* * * * *
[FR Doc. 03-9669 Filed 4-18-03; 8:45 am]
BILLING CODE 4310-MR-P