[Federal Register Volume 68, Number 130 (Tuesday, July 8, 2003)]
[Proposed Rules]
[Pages 40585-40615]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16782]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 250 and 254

RIN 1010-AC57


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Incident Reporting Requirements

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice of Proposed Rulemaking.

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SUMMARY: This proposed rule revises and clarifies MMS requirements for 
reporting incidents associated with Outer Continental Shelf (OCS) oil 
and gas and other mineral operations. It adds a requirement for written 
reports and proposes the use of two new MMS report forms. The written 
reports must be submitted electronically. MMS has developed these 
reporting requirements in conjunction with the U.S. Coast Guard (USCG) 
and intends them to be as consistent as possible with USCG requirements 
for incidents where the two agencies have mutual interest and 
responsibilities. MMS is also working with the USCG to develop a single 
point electronic reporting system that would allow incident reports 
submitted through this single point to be sent to both agencies. This 
will help minimize duplicative reporting required by the two agencies.

DATES: We will consider all comments we receive by October 6, 2003. We 
will begin reviewing comments then and may not fully consider comments 
we receive after October 6, 2003.

ADDRESSES: If you wish to comment, 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 respond by 
e-mail, the e-mail address is: [email protected]. Use the term 
``Incident Reporting'' in your e-mail subject line. Include your name 
and address in your e-mail message and mark your message for return 
receipt.

[[Page 40586]]

    You may submit comments with respect to the information collection 
burden of the proposed rule either by fax (202) 395-5806 or email 
([email protected]) directly to the Office of Information and 
Regulatory Affairs, Office of Management and Budget; Attention: Desk 
Officer for the Department of the Interior (OMB control number 1010-
0XXX).

FOR FURTHER INFORMATION CONTACT: Melinda Mayes at 703-787-1063 or Staci 
Atkins at 703-787-1620, Engineering and Operations Division.

SUPPLEMENTARY INFORMATION: Current MMS incident reporting requirements 
at 30 CFR 250.191 do not include detailed reporting thresholds and 
definitions. This allows a range of interpretations by the lessees/
operators as to what should be reported. It is difficult to conduct 
meaningful incident analyses on data that are not consistently 
reported. Additionally, MMS does not currently require the submission 
of written incident reports. This also makes it more difficult to 
gather consistent information about each incident. The OCS lessees/
operators have the best and most immediate access to information about 
incidents that are associated with their operations.
    MMS's top priority is that OCS operations be conducted in a safe 
and environmentally sound manner. We must continue to identify unsafe 
equipment and procedures, as well as the human and organizational 
factors that cause incidents. To do this effectively, we need to 
upgrade our incident data analysis, investigation, and information 
publication functions. MMS uses incident data analyses and 
investigations to identify incident causes and trends. We also use it 
to evaluate both industry and individual operator performance. With 
this knowledge, we can develop strategies for promoting safety on the 
OCS. Strategies may include: developing regulatory initiatives, 
performing needed research, working with industry to develop new 
standards, conducting risk-based inspections, holding joint MMS/
industry workshops to address specific safety issues, working with 
individual lessees/operators to address particular safety concerns, or 
other appropriate actions. Publishing information on incident causes 
and trends also allows industry to identify potentially unsafe 
equipment, conditions, or procedures so that lessees and operators can 
take appropriate steps to improve the safety of their operations.
    Current MMS incident reporting requirements are not consistent with 
the USCG reporting requirements for OCS activities. This creates 
confusion for OCS lessees/operators in determining what incidents to 
report to each agency and makes it more difficult for MMS and the USCG 
to coordinate their respective responsibilities on the OCS as agreed to 
in a Memorandum of Understanding (MOU) signed December 16, 1998. The 
purpose of the MOU is to minimize duplication and promote consistent 
regulation of OCS facilities. This proposed rule will help achieve that 
goal in the area of incident investigation, data collection, and 
analysis.
    This proposed rule revises and clarifies MMS requirements for 
reporting incidents associated with OCS oil and gas and other mineral 
operations:
    a. Several definitions are added, including the term ``incident'' 
which replaces the term ``accident'' currently used in the regulations;
    b. More specific incident reporting thresholds for various incident 
types are established;
    c. Written reports are required and must be submitted 
electronically; and
    d. Two new MMS forms are proposed so that consistent information 
will be reported to MMS for all incidents.
    MMS is working with the USCG to develop a single point electronic 
reporting system that would allow reports submitted through a single 
point to fulfill the requirements of both MMS and the USCG.

Relationship of This Rule to USCG Reporting Requirements

    On December 7, 1999, the USCG published a Notice of Proposed 
Rulemaking (NPR) (64 FR 68416) amending its regulations at 33 CFR parts 
140-147, Outer Continental Shelf Activities. Among many other things, 
the USCG NPR revises requirements for reporting incidents related to 
OCS facilities and vessels engaged in OCS activities. After several 
extensions, the comment period closed on November 30, 2000. MMS has 
worked with the USCG to ensure that the MMS proposed reporting 
requirements are as consistent as possible with the USCG's proposed 
rule.
    This MMS proposed rule revises reporting requirements for all 
incidents that must be reported to MMS. The proposed rule also lists 
USCG reporting requirements for incidents where the two agencies have 
mutual interest and responsibility. We listed the USCG requirements so 
that both agencies' reporting requirements for these incidents can be 
found in one location. Our goal is for OCS lessees/operators to be able 
to submit reports to both agencies through one electronic system for 
those incidents where the two agencies have mutual interest and 
responsibility. Since this is an MMS rule, we can require that 
incidents be reported to MMS, but cannot require that the incidents be 
reported to the USCG. The USCG's regulations impose that requirement. 
The USCG will need to take some action that will allow the appropriate 
segments of its regulated community to report incidents electronically 
according to the MMS regulation. We have discussed this with the USCG, 
and we will continue to work closely with the USCG as we review the 
comments to the proposed rule and finalize the MMS incident reporting 
regulation.
    During the comment period for this rule, MMS will hold a workshop 
to discuss the rule and the development of an electronic reporting 
system. We will publish information on the workshop in the Federal 
Register. MMS and USCG encourage your comments on any aspect of this 
proposed rule and your participation in the workshop.

Background

    On January 5, 1998, (63 FR 256), MMS and the USCG published 
proposed revisions to the MMS/USCG MOU in the Federal Register.
    On February 13, 1998 (63 FR 7335), MMS published a proposed rule to 
revise MMS regulations for Postlease Operations Safety. The revisions 
were, among other things, intended to upgrade our incident 
investigation, data collection, and analysis functions. Some of the 
comments expressed concerns that were similar to those raised at an 
April 22, 1998, USCG-sponsored National Offshore Safety Advisory 
Committee (NOSAC) meeting. At that NOSAC meeting, industry expressed 
concerns about the duplicative and inconsistent incident reporting 
requirements of MMS and the USCG and the lack of specific reporting 
definitions and thresholds contained in the MMS February 1998 proposed 
rule. Because of these concerns, NOSAC formed an Incident Reporting 
Subcommittee to develop recommendations for a consistent approach to 
incident reporting between the two agencies. MMS, USCG, and industry 
representatives served on this subcommittee.
    On May 29, 1998 (63 FR 29478), MMS published a final rule that 
redesignated sections of 30 CFR part 250 to provide additional section 
numbers for future revisions. This redesignation did not change any 
requirements. Former Sec.  250.19, dealing with incident

[[Page 40587]]

reporting, was redesignated as Sec.  250.119.
    At a November 5, 1998, NOSAC meeting, the Incident Reporting 
Subcommittee presented a framework and recommendations for MMS and the 
USCG to use in developing incident reporting regulations. 
Recommendations included:
    [sbull] Delay the portion of the final rule for Postlease 
Operations Safety dealing with incident reporting regulations (to allow 
MMS and USCG time to address inconsistencies between the two agencies' 
requirements);
    [sbull] Improve the cycle time to provide better feedback of 
incident data (incident analysis, faster safety alerts, trend 
analysis);
    [sbull] Establish a USCG/MMS team to focus on the incident 
reporting process;
    [sbull] Include stakeholders in the process;
    [sbull] Use, wherever possible, common definitions for like terms;
    [sbull] Strive for a process that requires single agency reporting;
    [sbull] Explore the value of a single form with multiple data 
needs;
    [sbull] Investigate alternate reporting methods and timing for 
reports; and
    [sbull] Clarify and identify who is responsible for initiating the 
reports.
    MMS and the USCG concurred with the NOSAC Subcommittee's 
recommendations, and in December 1998 met to begin developing mutually 
agreeable reporting requirements and an electronic reporting system. 
The two agencies developed a draft set of requirements and, in June 
1999, invited industry representatives from the NOSAC Subcommittee to 
meet and discuss the draft requirements.
    On December 16, 1998, MMS and the USCG signed a new MOU, which was 
published in the Federal Register on January 15, 1999 (64 FR 2660). The 
purpose of the MOU is to minimize duplication and promote consistent 
regulation of OCS facilities. In the Federal Register notice, we also 
described several actions that the two agencies would consider in 
implementing the MOU. Several were related to incident investigation, 
data collection, and analysis, and they included:
    [sbull] Work on safety management, including accident 
investigations to promote safe practices;
    [sbull] Continue to work on single point reporting;
    [sbull] Communicate electronically;
    [sbull] Improve the process of reporting and collecting incident 
data; and
    [sbull] Share incident data to prevent accidents, particularly 
fatalities.
    On December 28, 1999 (64 FR 72756), MMS published the final rule 
for Postlease Operations Safety (30 CFR 250, subpart A). In the final 
rule, the section relating to incident reporting, 30 CFR 250.119, was 
renumbered as 30 CFR 250.191. We addressed a few of the comments on the 
proposed incident reporting requirements in that final rule. However, 
we did not make changes to incident reporting requirements (except for 
rewriting them in plain English) and deferred the issue to a separate 
rulemaking process, i.e., this MMS proposed rule.

Discussion of Proposed Changes in This MMS Proposed Rule

1. Renumbering

    We propose to renumber 30 CFR 250.190 as 250.186.
    We propose to revise 30 CFR 250.191 into several sections as 
follows:
    Section 250.187--What is the scope of the incident reporting 
requirements?
    Section 250.188--What incidents must I immediately report to MMS, 
USCG, National Response Center (NRC), or the Responsible Party?
    Section 250.189--What other incidents must I report to MMS?
    Section 250.190--What reporting procedures must I follow?
    Section 250.191--How does MMS conduct incident investigations?

2. Definitions (Sec.  250.105)

    Twelve new definitions are proposed. Five definitions are proposed 
to clarify specific MMS incident reporting requirements. Seven are 
proposed to clarify both MMS and USCG requirements.
    Definitions that clarify specific MMS reporting requirements:
    [sbull] Collision--We developed this definition to clarify the 
types of collisions that should be reported. The USCG does not have a 
definition for collision.
    [sbull] Gas release--Reporting these incidents is a new proposed 
requirement, so a definition was added.
    [sbull] Loss of well control--Loss of well control incidents have 
the potential to result in very serious consequences from both a safety 
and environmental standpoint. Because of the potential consequences, 
MMS needs to investigate and understand the causes of all of these 
incidents so that appropriate measures to prevent them can be 
identified. Currently, MMS regulations require reporting of all 
``blowouts,'' and the term ``blowout'' is undefined. Because of the 
seriousness of loss of well control incidents, we believe most of these 
incidents are already being reported under current MMS regulations. 
However, a small number of lessees/operators may not be reporting all 
types of loss of well control incidents. In particular, some lessees/
operators may not be reporting incidents where the well is put on a 
diverter and subsequently controlled. MMS proposes to replace the term 
``blowout'' with ``loss of well control'' and has defined ``loss of 
well control'' as broadly as possible, including diverter incidents.
    [sbull] Reportable releases of H2S-- Sec.  250.490(l) 
currently requires lessees/operators to notify MMS of these incidents. 
We are retaining that requirement and are providing a definition for 
``Reportable Releases of H2S'' that uses the same wording found in 
Sec.  250.490(l).
    [sbull] Fire--Industry comments on the MMS proposed rule for 
Postlease Operations Safety (February 13, 1998, 63 FR 7335) requested 
that MMS provide a definition for fires and identify what types of 
fires are to be reported. In response to these comments, we are 
proposing a definition of fire. We started with the definition from the 
American Petroleum Institute's (API) Recommended Practice 14G, Third 
Edition, December 1, 1993. It is likely the one used by most OCS 
lessees/operators. To this definition, MMS has specifically added 
incidents involving smoke with no visible flame. This addition is in 
response to industry questions about whether ``smoke only'' incidents 
must be reported.
    Definitions needed to clarify both MMS and USCG requirements:
    [sbull] Incident--We propose to replace the term ``accident'' with 
the term ``incident'' and have proposed a definition. Current MMS 
regulations refer to ``accidents.'' Many people think of an accident as 
an event that results in serious personal injury or involves 
significant damage to property, while the term ``incident'' connotes a 
broader range of events. This proposed rule, like the current rule, 
includes reporting of events that result in serious injury or damage to 
property and events that result in minor or no injuries and little or 
no property damage. Thus, we believe the term ``incident'' is more 
appropriate. We do not intend to require reporting of illnesses and 
injuries arising from causes other than operational incidents, such as 
communicable diseases, food poisoning, etc. The definition of 
``incident'' is designed to exclude these types of events.
    The current USCG regulations and the USCG proposed rule use the 
term ``casualty'' or ``marine casualty'' to refer to events that must 
be reported. The definition of incident in this MMS proposed rule 
includes these terms.

[[Page 40588]]

    [sbull] Mobile Offshore Drilling Unit (MODU)--Current MMS 
regulations do not include a definition for MODU. The definition 
proposed in this NPR is taken from the USCG NPR (33 CFR 140.25) with 
one change. We have eliminated the exclusion of MIDUs (Mobile Inland 
Drilling Units) that appears in the USCG NPR. The USCG proposed rule 
specifies the limited locations where MIDUs may operate on the OCS (33 
CFR 145.505) and also proposes some requirements for MIDUs that are 
different than those for MODUs (33 CFR, part 145, Subpart F). 
Therefore, the USCG proposed rule includes separate definitions for 
MODUs and MIDUs. However, for the purpose of incident reporting, this 
distinction is not needed. Therefore, in this MMS NPR we have 
eliminated the exclusion of MIDUs from the USCG NPR defintion of MODUs, 
so that the reporting requirements apply to both MODUs and MIDUs when 
they operate on the OCS.
    [sbull] OCS Activity--A definition of ``OCS activity'' is added to 
help define other terms. This proposed definition is taken directly 
from the MMS/USCG MOU with a minor editorial change.
    [sbull] OCS Facility--A definition of ``OCS facility'' is added to 
clarify reporting requirements for vessels in relation to these 
facilities. Current MMS regulations include three definitions for 
facility. However, their applications are limited to specific sections 
of the 30 CFR part 250 regulations. The USCG proposed rule definition 
of ``facility'' (33 CFR 140.25) does not include pipelines, which MMS 
needs to include in this rulemaking. In this MMS proposed rule, we 
added a definition for OCS facility that is taken from the MMS/USCG 
MOU, which does include pipelines. To this definition, we added a 
phrase that specifies when MODUs are considered to be an OCS facility. 
We are also correcting a typographical error in the MMS/USCG MOU 
definition by replacing the word ``and'' with the word ``or'' to 
indicate that the purpose of an OCS facility is ``exploring for, 
developing, producing, or transporting resources from the OCS.''
    [sbull] Property Damage--Since some of the proposed incident 
reporting thresholds are based on the dollar amount of property damage, 
a definition is needed. At 33 CFR 143.110(a)(6), the USCG NPR 
incorporates a description of what ``property damage'' includes. We 
have used the USCG wording for our proposed definition with minor 
editorial changes and one additional change. We have replaced the term 
``facility'' with the term ``OCS facility.'' The USCG NPR includes a 
definition for ``facility,'' which is not the same as our proposed 
definition of ``OCS facility.'' The definition of ``OCS facility'' is 
broader in scope than the USCG proposed rule definition of 
``facility,'' particularly because it includes pipelines and MODUs. For 
incident reporting purposes, the use of the broader term, ``OCS 
facility,'' in relation to property damage is more appropriate and 
should satisfy the needs of both agencies.
    [sbull] Vessel--We are proposing reporting of certain incidents 
involving vessels (boats, barges, etc.) and need to define the term 
``vessel.'' The USCG NPR definition for vessel (33 CFR 140.25) does not 
specifically exclude atmospheric or pressurized vessels used for 
containing liquids and gases. We propose to use the definition from the 
MMS/USCG MOU, which does specifically exclude atmospheric and pressure 
vessels. We have made minor editorial changes to this definition.
    [sbull] Vessels engaged in OCS activities--This definition is 
needed to help identify the scope of the proposed reporting 
requirements (Sec.  250.187). There is no definition for these vessels 
in current MMS or USCG regulations, proposed USCG regulations, or the 
MMS/USCG MOU. The definition in this proposed rule is based on a 
vessel's distance from an OCS facility.

3. Scope (Sec.  250.187)

    We propose to expand the scope of the current regulations and 
provide additional guidance. Current regulations do not specify when 
incidents involving vessels are related to operations on a lease, 
easement, right-of-way, or other permit. As a result, it is unclear 
when these incidents must be reported to MMS. Numerous crew, supply, 
and other vessels transit the OCS daily. They visit OCS facilities to 
load/unload crew and supplies and to provide fuel and other services to 
those facilities. The USCG has jurisdiction over vessel operations on 
the OCS. However, to coordinate response and investigation 
responsibilities, both MMS and the USCG need to know about incidents 
where vessels may be involved with or pose a threat to an OCS facility. 
We have identified these situations as incidents involving ``vessels 
engaged in OCS activities,'' and have added a reporting requirement. A 
definition of ``vessels engaged in OCS activities'' is also proposed 
and is based on the distance of the vessel from an OCS facility.
    As noted earlier in the preamble, we list the USCG's reporting 
requirements in this MMS proposed rule so that reports for both 
agencies can be made through one electronic system. Since MMS cannot 
require that incidents be reported to the USCG, the USCG will need to 
take some action to allow its regulated community to report incidents 
according to MMS regulations. This issue is also addressed in the scope 
of this MMS proposed rule.
    The following table compares the scope of current MMS regulations 
and this MMS proposed rule.

              Scope of MMS Current and Proposed Regulations
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            MMS proposed rule                 MMS current regulations
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Sec.   250.187(a)                         250.191(a)
Incidents that:.........................  [Accidents] connected with any
(1) Occur on the area covered by your      activities or operations on
 lease, easement, right-of-way, or other   the lease.
 permit; and.                             Sec.   250.191(b)
(2) Are related to operations resulting   If you hold an easement, right-
 from the exercise of your rights under    of-way, or other permit, and
 your lease, easement, right-of-way, or    your operation is related to
 permit. This includes incidents           the exercise of the easement,
 involving vessels engaged in OCS          right-of-way, or other
 activities as defined in Sec.   250.105.  permit, you must comply with
                                           paragraph (a) for any
                                           accident occurring on the
                                           area covered by the easement,
                                           right-of-way, or other
                                           permit.
Sec.   250.187(b)
You may be required to report incidents   Not addressed in current
 described in Sec.  Sec.   250.188 and     regulations.
 250.190 to the USCG under USCG rules.
 You may use the notifications and
 reports that you make to MMS under
 those sections to satisfy USCG incident
 reporting requirements if and to the
 extent allowed by USCG regulations.
Sec.   250.187(c)

[[Page 40589]]

 
Nothing in this subpart relieves you      Not addressed in current
 from making notifications and reports     regulations.
 of incidents that may be required by
 other regulatory agencies.
------------------------------------------------------------------------

4. Reporting Thresholds (Sec.  250.188 through Sec.  250.189)

    Three reporting categories are proposed based on the seriousness of 
the outcome of the incident. Those categories are ``Immediate,'' ``12-
Hour,'' and ``15-Day'' and are named for the time when the first 
notification or report is due. Within each of these categories, 
reporting thresholds are proposed for various incident types (fires, 
explosions, injuries, gas releases, etc.).
    We are proposing three reporting categories to ensure that MMS and 
the USCG receive timely notification of incidents so that we may 
respond appropriately. For incidents in the ``Immediate'' category, one 
or both agencies need to be notified right away because they may need 
to take one or more of the following actions: (1) Be involved in or 
monitor the ongoing response to the incident; (2) determine if the 
incident jeopardizes ongoing operational safety and take appropriate 
action; or (3) initiate an incident investigation. Although incidents 
in the ``12-Hour'' category are less serious in terms of outcome, MMS 
still needs to be notified to determine if any of the actions 
previously listed are needed. Incidents in the ``15-Day'' category are 
not likely to require immediate action from MMS. However, the agency 
still needs to know about them because they involve unsafe conditions 
or actions related to offshore operations that we may need to address.
    The following discussion summarizes the thresholds we are proposing 
for each incident type. A table comparing these proposed thresholds 
with those in the current regulation is found at the end of this 
discussion.
    For some incident types, the proposed overall reporting threshold 
is the same as in MMS current regulations. For other incident types, 
reporting thresholds have been modified through proposed definitions or 
more specific reporting thresholds. Other incident types included in 
this proposed rule are not specifically addressed in the current 
regulations. One incident type in the current regulation is not 
specifically addressed in this proposed rule.
    Incidents--No change to the current reporting thresholds. Although 
the language may be different for the following four incident types, 
the reporting thresholds remain the same.
    [sbull] Death--Current regulations and the proposed rule both 
require reporting any death. In the proposed rule, all deaths other 
than deaths due to natural causes would have to be reported to MMS and 
would be reported in the ``Immediate'' category. Although current 
regulations do not specifically exclude deaths due to natural causes, 
they do indicate that reportable incidents are those that are connected 
with any activities or operations on the lease or operations that are 
related to the exercise of rights under an easement, right-of-way, or 
other permit. We therefore believe that the reporting threshold in this 
proposed rule is essentially the same as that in the current 
regulation.
    [sbull] Explosions--Current regulations and the proposed rule 
require reporting all explosions. In the proposed rule, explosions are 
reported in either the ``Immediate'' or ``12 Hour'' category, depending 
on the amount of property damage resulting from the explosion.
    [sbull] H2S Releases--The current regulations at Sec.  
250.490(l) and the proposed rule require reporting of H2S 
releases. The reporting threshold of both the current and proposed rule 
is also the same. In the proposed rule, all H2S releases are 
reported in the ``Immediate'' category.
    [sbull] Oil spills--The reporting threshold in the current 
regulation and the proposed rule is the same. In the proposed rule, all 
oil spills are reported in the ``Immediate'' category.
    Incidents where current reporting thresholds are modified. Overall 
reporting thresholds for the following three incident types have been 
modified.
    [sbull] Fires--Current regulations require reporting of all fires, 
and the term fire is undefined. As noted earlier, MMS, in response to 
industry comments, is proposing a definition for fire based on the 
definition from API Recommended Practice 14G, Third Edition, December 
1, 1993. Incidents involving smoke with no visible flame are also 
included to address questions we have received from the industry. The 
proposed rule requires reporting of all fires except those that are 
completely contained in the living quarters and result in $25,000 or 
less in property damage. This exception eliminates the need to report 
minor fires that pose little risk to safety. In this proposed rule, 
fires are reported in the ``Immediate,'' ``12-Hour,'' or ``15-Day'' 
categories, depending on the amount of property damage or number of 
injuries resulting from the fire.
    [sbull] Loss of well control--Current regulations require reporting 
of all blowouts, and the term ``blowout'' is undefined. Because of the 
potential risks associated with these incidents, the term ``loss of 
well control'' is proposed as a substitute for ``blowout,'' and has 
been broadly defined to ensure all of these incidents are included. The 
proposed rule requires that all losses of well control be reported in 
the ``Immediate'' category.
    [sbull] Injuries--Current MMS regulations require reporting of all 
serious injuries, without defining the term ``serious.'' In this MMS 
NPR, we have maintained the current MMS requirement to report all 
serious injuries. We have specified what constitutes a serious injury, 
using the same criteria that the USCG has included in its NPR. Although 
the USCG NPR does not include a requirement for reporting less serious 
injuries, MMS has determined that it is important for us to develop a 
better understanding of the causes of these incidents as precursors or 
``near misses'' to the more serious injury incidents. To do this, we 
need to examine more than just the most serious incidents. Examining 
the causes of less serious incidents will enable us to work with the 
industry to identify effective ways for preventing serious injury 
incidents. When MMS began to prepare this proposed rule, we decided to 
use the Occupational Safety and Health Administration (OSHA) terms 
``lost workdays'' and ``first aid'' to define reporting thresholds 
because these were widely used by the petroleum and other industries 
and had been in place for many years. For calendar year 1997, many OCS 
operators submitted incident data for the voluntary MMS/USCG/Industry 
performance measures program. Data from the resulting report (Outer 
Continental Shelf Performance Measures; Safety, Environmental and 
Regulatory Compliance Indicators from the U.S. Offshore Oil and Gas 
Industry, Report for 1996-1998), published in August 1999, indicated 
that there were 507 ``lost workday'' cases in 1997. In

[[Page 40590]]

that same year, MMS received reports for 83 injuries, or only about 16 
percent of the ``lost workday'' cases reported by the performance 
measures participants.
    [sbull] ``Lost workdays,'' as defined by OSHA, encompassed 
relatively minor injuries and illnesses up through the most serious 
ones. To eliminate the more minor injuries and illnesses included under 
the OSHA definition of ``lost workdays,'' MMS considered establishing a 
reporting threshold based on a certain number of ``lost workdays.'' 
Discussions with offshore industry representatives indicated that the 
industry keeps basic information about lost workday cases, but that 
tracking the number of ``lost workdays'' for each case in order to 
determine which cases should be reported to MMS would be very 
burdensome. Therefore, we decided not to set the threshold at a certain 
number of ``lost workdays.'' Instead, we decided to propose that all 
``lost workday'' cases as defined by OSHA be reported while minimizing 
the amount of information requested for these incidents.
    On January 19, 2001, OSHA published a final rule for occupational 
injury and illness recording and reporting requirements (29 CFR 1904.7, 
66 FR 5916) which became effective on January 1, 2002. In that rule, 
the term ``lost workday'' was eliminated. We have adopted the terms 
from OSHA's final rule that replace ``lost workdays.'' Therefore, to 
define reporting thresholds for injuries, we are proposing the use of 
``days away from work'' and ``restricted work or job transfer'' where 
we originally had decided to use ``lost workdays.'' Similarly, to 
define a threshold for fires involving injuries, we are proposing 
OSHA's new term ``medical treatment beyond first aid'' instead of 
referring to ``first aid'' as defined in the previous version of OSHA's 
regulations. We have adopted these terms as defined by OSHA, to be 
consistent with these already existing recording requirements and 
definitions rather than promulgating requirements with different 
criteria.
    In this proposed rule, an injury threshold for each reporting 
category is proposed. The most serious injuries would be reported in 
the ``Immediate'' category, and the reporting threshold is defined by 
the nature of the injury.
    In the ``12-Hour'' category, we propose the reporting of: (1) 
incidents resulting in injuries or illnesses to more than one person 
that involve ``days away from work'' or ``restricted work or job 
transfer `` and (2) all fires resulting in injuries or illnesses to 
more than one person that involve ``medical treatment beyond first 
aid.'' Incidents already reported under the ``Immediate'' category are 
excluded.
    In the ``15-Day'' category, we propose the reporting of all 
incidents resulting in injuries or illnesses to one person that involve 
``days away from work'' or ``restricted work or job transfer.'' 
Incidents already reported in the ``Immediate'' or ``12-Hour'' category 
are excluded.
    Incident types that are not addressed in the current regulations. 
The following eight incident types are not addressed in current MMS 
regulations. Six of these must be reported to MMS; the others must be 
reported to the USCG or NRC.
    [sbull] Collision--Because these incidents have potentially serious 
consequences, MMS wants to ensure that they are reported. A specific 
requirement is included to report collisions and sets the reporting 
threshold at those incidents resulting in more than $25,000 of property 
damage. All collisions are reported in either the ``Immediate'' or 
``12-Hour'' category, depending on whether the amount of property 
damage is more or less than $100,000.
    [sbull] Incidents Involving Property Damage--Although incidents 
involving property damage alone do not result in serious outcomes in 
terms of personal injury, they do represent unsafe conditions that have 
the potential for more serious consequences, including personal injury. 
Receiving information about these incidents will help MMS identify 
safety concerns and work with industry on appropriate preventative 
measures. The dollar amount of property damage is proposed as a 
reporting threshold for specific incidents such as collisions, fires, 
and explosions, as well as a general threshold for other incidents. The 
proposed rule requires that incidents resulting in property damage 
greater than $25,000 be reported. They are reported in either the 
``Immediate'' or ``12-Hour'' category, depending on the amount of 
property damage.
    [sbull] Gas Releases--Because of the potential hazard that a 
release of flammable gas poses to an offshore facility as a precursor 
to an explosion, MMS needs to determine how often and under what 
circumstances these incidents are occurring on the OCS. This 
information will enable us to work with the industry to determine if 
additional prevention measures are needed. The proposed rule defines 
gas releases as unintentional releases that without correction could 
raise gas concentrations to the lower flammable (explosive) limit. Gas 
releases do not include gas that is vented or flared. These events have 
their own reporting requirements. In this proposed rule, gas releases 
are reported in the ``15-day'' category.
    [sbull] Non-weather-related incidents where personnel muster for 
evacuation--Incidents where personnel prepare for evacuation represent 
situations that have the potential to become serious. MMS needs to 
determine how often and under what circumstances these incidents are 
occurring on the OCS. This information will enable us to identify 
additional safety concerns that may need to be addressed and to work 
with the industry on prevention measures. The proposed rule requires 
that these incidents be reported in the ``15-day'' category.
    [sbull] Incidents that impair the operation of an OCS facility's 
primary firefighting and lifesaving equipment--Firefighting and 
lifesaving equipment are critical to the protection of offshore 
operations, personnel, property, and the environment. If this equipment 
is impaired, MMS and the USCG need to know immediately to coordinate 
appropriate response. Therefore, we are proposing that these incidents 
be reported.
    [sbull] Vessels engaged in OCS activities that are involved in 
incidents listed in the USCG regulations at 46 CFR 4.05-1(a)(1) through 
4.05-1(a)(4)--These incidents involve things such as a vessel's loss of 
main propulsion, etc., and are the responsibility of the USCG. If such 
incidents occur near an OCS facility, they have the potential to 
jeopardize the safety of operations, personnel, or property, on the 
facility or the surrounding environment. In these situations, both MMS 
and the USCG need to know about the incident to coordinate appropriate 
response and investigation actions. As noted earlier, MMS is proposing 
a definition for ``vessels engaged in OCS activities.'' This definition 
is based on the vessel being within 500 meters of an OCS facility. 
Because vessels within this distance have the potential to be involved 
with or affect the safety of both the vessel and the facility, these 
incidents would be immediately reported to both agencies.
    [sbull] Vessels not engaged in OCS activities that are involved in 
accidents listed in the USCG regulations at 46 CFR 4.05--This NPR is 
intended to address both MMS and the USCG reporting requirements for 
incidents where we have mutual interest. However, this NPR also 
includes a statement that nothing in this subpart would relieve the 
obligation for any vessel not engaged in OCS activities to provide 
notices or reports to the USCG as required by 46 CFR 4.05. These 
incidents are beyond the scope of MMS interest and

[[Page 40591]]

responsibility and fall within the USCG's jurisdiction, but we added 
this statement to ensure that there is no ambiguity between MMS and 
USCG requirements.
    [sbull] Hazardous spills--Current regulations do not specifically 
address reporting of hazardous spills. MMS is interested in these 
incidents as they relate to the safety of OCS operations and protection 
of the environment but does not have direct jurisdiction or expertise 
over hazardous substances. MMS is able to get initial reports from the 
NRC for incidents involving these substances. Therefore, this proposed 
rule reminds lessees/operators that all hazardous spills must be 
reported to the NRC as currently required by Environmental Protection 
Agency (EPA) regulations.
    Incident type that is addressed in the current regulation, but not 
in this NPR.
    [sbull] Serious accidents--The current regulation requires 
reporting of all serious accidents but does not define this term. We 
wrote this proposed rule to provide more specific reporting definitions 
and thresholds. We believe that these definitions and thresholds 
encompass the incidents that MMS would consider serious. Therefore, the 
general category of serious incidents is no longer needed, and we have 
not included it in the proposed rule.
    The following table compares the reporting thresholds in current 
regulations with the ones that are proposed.

      Reporting Thresholds of MMS Proposed and Current Regulations
------------------------------------------------------------------------
            MMS proposed rule                 MMS current regulations
------------------------------------------------------------------------
Sec.   250.188(a)(1) ``Immediate''        Sec.   250.191(a)
 Category
All deaths, except for deaths due to      Any death.
 natural causes.
Sec.   250.188(a)(4) ``Immediate''        Sec.   250.191(a)
 Category
All explosions resulting in property      All explosions.
 damage greater than $100,000.
 
Sec.   250.189(a)(2) ``12-Hour''
 Category.
All explosions resulting in property
 damage equal to or less than $100,000.
Sec.   250.188(a)(7) ``Immediate''        Sec.   250.490(l)
 Category.
All reportable releases of H2S. These     Reporting required of H2S
 releases are defined using the same       releases, which result in a
 wording as in the current MMS             15-minute time weighted
 regulation at Sec.   250.490(l).          average atmospheric
                                           concentration of H2S of 20
                                           ppm or more anywhere on the
                                           facility.
Sec.   250.188(a)(8)-250.188(a)(10)       Sec.   250.191(a)
 ``Immediate'' Category.
The thresholds for reporting spills       Report all spills of oil or
 utilize the current criteria at Sec.      other liquid pollutants
 254.46 and therefore are the same as      according to 30 CFR Part 254.
 the current MMS rule.
Sec.   250.188(a)(4) ``Immediate''        Sec.   250.191(a)
 Category.
All fires resulting in property damage    All fires (undefined).
 greater than $100,000.
Fire is defined at Sec.   250.105 as:
`` `* * * the phenomenon of combustion
 manifested in light, flame, and heat'
 and has the same meaning as in API RP
 14G, Third Edition, December 1, 1993.
 In addition, the term `fire' as used in
 this part includes incidents of
 combustion involving smoke with no
 visible flame''
Sec.   250.189(a)(3) and Sec.
 250.189(a)(4) ``12-Hour'' Category.
[sbull] Sec.   250.189(a)(3)--All fires
 (defined at Sec.   250.105) not
 reported in Sec.   250.188(a) that
 result in property damage equal to or
 less than $100,000 but greater than
 $25,000
[sbull] Sec.   250.189(a)(4)--All fires
 (defined at Sec.   250.105) not
 reported in Sec.   250.188(a) or Sec.
 250.189(a)(3) resulting in injuries or
 illnesses that involve medical
 treatment beyond first aid to more than
 one person
Sec.   250.189(a)(6) ``15-Day'' Category
All other fires (defined at Sec.
 250.105) not reported under Sec.
 250.188(a) or Sec.  Sec.
 250.189(a)(3)--250.189(a)(4), excluding
 those completely contained in the
 living quarters
Sec.   250.188(a)(3) ``Immediate''        Sec.   250.191(a)
 Category.
All losses of well control..............  All blowouts (undefined).
Loss of well control is defined at Sec.
  250.105 as either of the following:
[sbull] (1) Uncontrolled flow of
 formation or other well fluids. The
 flow may be between two or more exposed
 formations or it may be at or above the
 mudline. This includes uncontrolled
 flow resulting from failures of either
 surface or subsurface equipment or
 procedures
[sbull] (2) Flow of formation or other
 well fluids through a diverter
Sec.   250.188(a)(2) ``Immediate''        Sec.   250.191(a)
 Category.
Injuries resulting in one or more of the  Any serious injury
 following:.                               (undefined).
[bull] Hospitalization of a person for
 more than 48 hours within 5 days of the
 incident;
[bull] Fractured bone (other than in a
 finger, toe, or nose);
[bull] Loss of limb;
[bull] Severe hemorrhaging;
[bull] Severe damage to a muscle, nerve,
 or tendon;
[bull] Damage to an internal organ; or
[bull] Evacuation to shore of three or
 more people
Sec.   250.189(a)(1) ``12-Hour''
 Category
[bull] Sec.   250.189(a)(1) All
 incidents not reported under Sec.
 250.188(a) resulting in injuries or
 illnesses to more than one person that
 involve either:
(i) Days away from work; or
(ii) Restricted work or job transfer
Sec.   250.189(a)(5) ``15-Day'' Category
All incidents not reported under Sec.
 250.188(a) or paragraph Sec.  Sec.
 250.189(a)(1)-250.189(a)(4) resulting
 in an injury or illness to one person
 that involves either:

[[Page 40592]]

 
(i) Days away from work; or
(ii) Restricted work or job transfer
Sec.   250.188(a)(5) ``Immediate''        Not addressed in current MMS
 Category.                                 regulations
All collisions resulting in property
 damage greater than $100,000
Collision is defined at Sec.   250.105
 as the striking of:
(1) an ``OCS facility'' by a ``vessel''
 or helicopter; or
(2) two ``vessels'' together where at
 least one is engaged in OCS activities,
 regardless of whether one or both
 ``vessels'' are in motion
Sec.   250.189(a)(3) ``12-Hour''
 Category
All collisions not reported in Sec.
 250.189(a)(3) that result in property
 damage equal to or less than $100,000
 but greater than $25,000
Sec.   250.188(a)(4) ``Immediate''
 Category
All incidents resulting in property
 damage greater than $100,000
Sec.   250.189(a)(3) ``12-Hour''
 Category
All incidents resulting in property
 damage greater than $25,000 but equal
 to or less than $100,000
Sec.   250.189(a)(7) ``15-Day'' Category
Gas releases
Sec.   250.189(a)(8) ``15-Day'' Category
All non-weather-related incidents when
 personnel muster for evacuation
Sec.   250.188(a)(6) ``Immediate''
 Category
Any incident that impairs the operation
 of any OCS facility's primary
 firefighting or lifesaving equipment
Sec.   250.188(a)(11) ``Immediate''
 Category
Vessels engaged in OCS activities that
 are involved in the incidents listed in
 46 CFR 4.05-(1)(a)(1) through 4.05-
 (1)(a)(4)
Sec.   250.188(a)(12) ``Immediate''
 Category
All releases of hazardous substances in
 reportable quantities as required by
 EPA regulations at 40 CFR Sec.   302.6.
 Hazardous substances and reportable
 quantities are listed at 40 CFR Sec.
 302.4 (report to National Response
 Center (NRC) only)
Sec.   250.188(c)
Nothing in this subpart relieves the
 obligation for any vessel that is not
 engaged in OCS activities to provide
 notification and reports to the USCG as
 required by 46 CFR 4.05 (report to USCG
 only)
Not specifically addressed in this        Sec.   250.191(a)
 proposed rule.                           All serious accidents
                                           (underfined).
------------------------------------------------------------------------

5. Reporting Procedures (Sec.  250.190)

    Except for oil spills, current MMS regulations do not require 
submission of written incident reports. Since written reports would be 
required under this proposed rule, we have included procedures for the 
timing, method, and format for these reports. Written reports must be 
submitted electronically. We are working with the USCG to develop an 
electronic reporting system that would allow lessees/operators to 
submit reports to both agencies through a single point.
    [sbull] ``Immediate'' Reporting Category (Sec.  250.188). This 
category includes incidents that must be reported to both agencies. MMS 
and the USCG have worked together to make the reporting procedures as 
consistent as possible with the USCG proposed rule for these incidents. 
Most incidents listed in this section require immediate oral 
notification to both MMS and the USCG. This dual notification is 
essential so each agency can determine what immediate response, 
investigation, and coordination is needed. Written Follow-up Reports 
for most incidents in this category would be required. Some Follow-up 
Reports must be submitted to MMS and some to both MMS and the USCG. 
Written Final Reports must be submitted to MMS for the most serious 
incidents in this category.
    Current USCG regulations require submission of written reports 
either in a narrative form or on their existing form CG-2692. Form CG-
2692 provides some of the information that MMS needs, but not all. We 
have developed a new form, MMS-142, to supplement form CG-2692. Form 
MMS-142 is divided into four sections. For incidents where Follow-up 
Reports must be submitted to MMS or to both agencies, submission of a 
form CG-2692 and form MMS-142 (sections 1-3) is required.
    We would require a complete form MMS-142 (sections 1-4) for 
incidents for which you must submit a Final Report to MMS. Company 
reports may be used to substitute for the Final Report if they contain 
the information requested by form MMS-142.
    The USCG NPR proposes a new form, CG-RMAID, to submit written 
reports for fixed and floating facilities. We have not incorporated 
this form for incident reporting because it is still a proposed form 
subject to final USCG regulations. We may be ready to finalize our 
incident reporting rule before the form CG-RMAID is approved for use. 
Also, as recommended by NOSAC, MMS will continue to work with the USCG 
to develop a single incident reporting form for incidents that are of 
interest to both agencies. Although most of the information requested 
by form MMS-142 is not duplicative of information requested by form CG-
2692, both agencies agree that a single incident reporting form will 
provide more efficient data submission for the regulated community and 
data collection and analysis for the agencies. Before developing a 
joint incident reporting form, both MMS and the USCG would like to 
consider comments we receive about the incident reporting requirements 
in our respective proposed rules.
    [sbull] ``12-Hour'' and ``15-Day'' Reporting Categories. Incidents 
listed in Sec. Sec.  250.189(a)(1)--250.189(a)(8) are reported only to 
MMS. No oral notifications are required. For incidents listed in 
Sec. Sec.  250.189(a)(1)--250.189(a)(4),

[[Page 40593]]

Initial and Follow-up written reports must be submitted using the forms 
CG-2692 and MMS-142 (sections 1-3). For incidents listed in Sec. Sec.  
250.189(a)(5)--250.189(a)(8), a ``15-Day'' written report must be 
submitted on a new MMS form, MMS-143.
    The table in Sec.  250.190(a)(4) specifies the forms that must be 
submitted for the various written report requirements. Forms CG-2692, 
MMS-142, and MMS-143 are included in the Appendix to this proposed 
rule.
    A comparison between reporting procedures in the current MMS 
regulation and the proposed rule is shown in the table below.

------------------------------------------------------------------------
              MMS proposed rule                 MMS current regulations
------------------------------------------------------------------------
                               Who Reports
------------------------------------------------------------------------
Sec.   250.105 You--defined the same as in     Sec.   250.105 You--
 the current MMS regulations.                   defined as a lessee, the
                                                owner or holder of
                                                operating rights, a
                                                designated agent of the
                                                lessee(s), a pipeline
                                                right-of-way holder, or
                                                State lessee granted a
                                                right-of-use and
                                                easement.
Sec.   250.188(a), Sec.   250.189(a)(1)--Sec.  Sec.   250.191(a), Sec.
   250.189(a)(8), For these incidents, ``You    250.191(b), Sec.
 must notify/submit....''.                      250.490(I), and Sec.
                                                254.46 For these
                                                incidents, ``You must
                                                notify/report....''
Sec.   250.188(b) Notifications and written    Not addressed in current
 reports made by the owner, agent, master,      MMS regulations.
 operator, or person in charge of a vessel
 will satisfy the reporting requirements for
 that vessel.
----------------------------------------------
                       Oral Notifications Required
------------------------------------------------------------------------
Sec.   250.188(a)(1)--Sec.   250.188(a)(6)     Sec.   250.191(a)
 and Sec.   250.188(a)(11) ``Immediate''        Reportable incidents
 category These reportable incidents require    require notification to
 oral notification to the MMS District          the MMS District
 Supervisor. Most of these incidents would      Supervisor.
 also be reported to the nearest USCG Marine
 Safety Office (or Marine Inspection Office
 or Coast Guard Group Office).
Sec.   250.188(a)(7) ``Immediate'' category    Sec.   250.490(I)
 Reportable releases of H2S require oral        Reportable releases of
 notification to the MMS District Supervisor.   H2S require notification
                                                to MMS.
Sec.   254.188(a)(8), Sec.   254.188(a)(9),    Sec.   254.46 All spills
 Sec.   254.188(a)(10) ``Immediate'' category   require notification to
 All spills require oral notification to the    the MMS Regional
 MMS District Supervisor, the NRC, and/or the   Supervisor, the NRC, and/
 responsible party (as appropriate for the      or the responsible party
 incident) per Sec.   254.46.                   (as appropriate for the
                                                incident).
Sec.   250.190(a)(2)(i) You must make oral     Not addressed in current
 notification within 24 hours and submit the    regulations, except for
 appropriate written reports for incidents      spills of a barrel or
 that are not reported, but later found to be   more. Per Sec.
 reportable.                                    254.46(b)(1): You must
Sec.   250.190(a)(2)(ii) You must make the      report a spill from your
 appropriate oral notifications and submit      facility not originally
 the appropriate reports for incidents that     reported, but
 have been reported, but are later found to     subsequently found to be
 be reportable under a different section or     one barrel or more.
 paragraph..
Sec.   250.188(a)(12)--``Immediate'' category  Not addressed in current
 These incidents require oral notification to   regulations.
 the NRC.
----------------------------------------------
                        Written Reports Required
------------------------------------------------------------------------
Sec.   250.188(a)(1)--Sec.   250.188(a)(6)     Sec.   250.191(a), Sec.
 and Sec.   250.188(a)(11) ``Immediate''        250.191(b), No written
 category These incidents require written       reports are required for
 Follow-up Reports to MMS or to the MMS and     any of these incidents
 USCG.                                          that are reportable
                                                under current MMS
                                                regulations.
Sec.   250.188(a)(1)--Sec.   250.188(a)(4)     Sec.   250.191(a), Sec.
 ``Immediate'' category These incidents         250.191(b), No written
 require written Final Reports to MMS.          reports are required for
                                                any of these incidents
                                                that are reportable
                                                under current MMS
                                                regulations.
Sec.   250.188(a)(1)--Sec.   250.188(a)(4)
 ``Immediate'' category These incidents
 require written Final Reports to MMS.
Sec.   250.189(a)(1)--Sec.   250.189(a)(4)
 ``12-Hour'' category All of these incidents
 require written Initial and Follow-up
 Reports to MMS.
Sec.   250.189(a)(5)-- Sec.   250.189(a)(8)
 category ``15-Day'' All of these incidents
 require written ``15-Day'' Reports to MMS.
Sec.   250.188(a)(7) ``Immediate'' category    Sec.   250.490(I) No
 Reportable releases of H2S require a written   written report required
 Follow-up Report to MMS.                       for reportable releases
                                                of H2S.
Sec.   254.188(a)(9) ``Immediate'' category    Sec.   254.46(b)(2)
 Written report requirements for spills are     Spills of a barrel or
 the same as in the current MMS regulation,     more require a written
 except that spills of 200 barrels or more      Follow-up Report to the
 require a written Final Report to MMS.         Regional Supervisor,
                                                MMS.
Sec.   250.190(b)(1) If you are submitting     Not addressed in current
 reports under Sec.   250.188 to fulfill USCG   regulation.
 requirements, you must make a written report
 for each OCS facility and vessel involved in
 the incident.
----------------------------------------------
                         Written Reporting Forms
------------------------------------------------------------------------
Sec.   250.190(a)(4)(i) ``Immediate''          Sec.   254.46(b)(2) Only
 category Written reports are submitted to      spills of a barrel or
 MMS or to both MMS and the USCG. Follow-up     more require a written
 Reports to MMS require the use of forms CG-    Follow-up report. No
 2692 and MMS-142, Sections 1-3. Incidents      particular report form
 reported to the MMS under Sec.                 is required.
 250.188(a)(11) only require submission of
 the CG-2692 for the Follow-up Report.
Sec.   250.190(a)(4)(ii) ``Immediate''
 category Final Report to MMS must be
 submitted using the form MMS-142, Sections 1-
 4.
Sec.   250.190(b)(2) Company reports may be
 used for the Final Report if they include
 all of the information requested by form MMS-
 142.

[[Page 40594]]

 
Sec.   250.190(a)(4)(iii) ``12-Hour'' Initial
 Reports must be submitted to MMS on Forms CG-
 2692 and MMS-142, Sections 1-2.
Sec.   250.190(a)(4)(iv) ``12-Hour'' category
 Follow-up Reports must be submitted to MMS
 on Forms CG-2692 and MMS-142, Sections 1-3.
Sec.   250.190(a)(4)(v) ``15-Day'' category
 15-Day Reports must be submitted to MMS on
 Form MMS-143.
----------------------------------------------
                          Written Report Timing
------------------------------------------------------------------------
Sec.   250.188 (a) ``Immediate'' category      Sec.   254.46(b)(2) Only
 Follow-up Reports within 5 days; Final         spills of a barrel or
 Report within 60 days; Follow-up Report for    more require a written
 spills of 1 barrel or more within 15 days      Follow-up report. The
 after the spillage has been stopped.           report is due within 15
                                                days after the spillage
                                                has been stopped.
Sec.   250.190(b)(3) If Final Report is
 submitted within the timeframe for the
 Follow-up Report, no additional reporting is
 required.
Sec.  Sec.   250.189(a)(1) 250.189(a)(4) ``12-
 Hour'' category Initial Report within 12
 hours; Follow-up Report within 5 days.
Sec.  Sec.   250.189(a)(5)--250.189(a)(8)
 ``15-Day'' category 15-Day Report within 15
 days.
----------------------------------------------
                           Other Requirements
------------------------------------------------------------------------
Sec.   250.190(a)(3) MMS District Supervisor   Sec.   254.46(b)(2) For
 may require additional information on a case-  spills, the Regional
 by-case basis if the District Supervisor       Supervisor can require
 concludes that the information is needed to    additional information
 determine the cause of the incident (for all   if it is determined that
 reported incidents).                           an analysis of the
                                                response is necessary.
Sec.   250.190(a)(1) Requires electronic       Not addressed in current
 submission of all written reports.             regulations.
Sec.   250.190(b)(1) If reports are being
 submitted under Sec.   250.188 to fulfill
 USCG requirements, a written report for each
 OCS facility and vessel involved in the
 incident is required.
------------------------------------------------------------------------

6. Incident Investigations--Proposed Sec.  250.191

    The proposed revisions to this section include:
    [sbull] Placement of the information about incident investigations 
in a separate section;
    [sbull] Removing the reference to the USCG in relation to incident 
investigations;
    [sbull] Removing the reference to the panel's legal advisors; and
    [sbull] Removing the reference to ``no civil and criminal issues.''
    The first three revisions were made in response to comments on the 
previous proposed rule on ``Postlease Safety Operations,'' published on 
February 13, 1998 (63 FR 7335). For additional information, please 
refer to the ``Response to Comments Section.''
    In the fourth revision, we propose to remove the existing version's 
reference to ``no civil and criminal issues'' from this section. We 
believe that the presence of this language could be misconstrued by 
some as an exemption from MMS enforcement actions associated with 
incidents.
    The sole purpose of MMS incident investigations is to find the 
facts relevant to the incident, draw conclusions from the facts with 
respect to the cause, and make recommendations to prevent incidents in 
the future. MMS strongly believes that the best way to accomplish this 
is to conduct our investigations in a non-adversarial manner. MMS 
incident investigations are not a forum for either potential plaintiffs 
or potential defendants in any civil action (tort, etc.) that may arise 
from the incident. However, regulatory violations may come to light as 
a result of the investigation, and MMS reserves the right to pursue any 
such violation according to the Outer Continental Shelf Lands Act and 
the procedures in 30 CFR 250, Subpart N.
    We do not anticipate that removal of this language in the 
regulation will make any significant difference in the way we conduct 
our incident investigations.

7. Hydrogen Sulfide--Conforming Changes to Sec.  250.490

    Revisions to 30 CFR 250.490(l) are proposed so that this section 
conforms to the proposed reporting requirements. They include:
    [sbull] Revision of the term ``facility'' to read ``OCS facility'';
    [sbull] Addition of a requirement to submit a written Follow-up 
Report; and
    [sbull] Clarification that notifications and reports must be made 
according to Sec. Sec.  250.187 through 250.188 and Sec.  250.190.

8. Oil Spills--Conforming Changes to Sec.  254.46

    Revisions to 30 CFR 254.46 are proposed so that this section 
conforms to the proposed reporting requirements. They include:
    [sbull] Clarification that oil spill notifications must be made to 
the appropriate MMS ``District'' Supervisor rather than the MMS 
``Regional'' Supervisor;
    [sbull] Addition of a requirement to submit a written Final Report 
for spills of 200 barrels or more; and
    [sbull] Clarification that notifications and reports must be made 
according to Sec. Sec.  250.187 through 250.188 and Sec.  250.190.

Request for Comments on Issues Related to the Proposed Rule

    In addition to comments on the proposed rule, we specifically 
solicit comments on the following questions:
    1. Should MMS require operators to submit information on the total 
number of hours worked by their employees and contractors offshore? If 
so, what recommendations do you have for MMS collecting the data, and 
how can we minimize the collection burden?
    The Bureau of Labor Statistics uses a formula based on the total 
number of hours worked to normalize injury/illness data and calculate 
incident rates. MMS currently does not require ``collection of hours 
worked'' information for offshore workers and, therefore, cannot 
normalize the raw injury data we receive to produce comparable rates 
for the OCS. Through the voluntary joint Government/industry OCS 
Performance Measures Program, MMS does receive total hours worked for 
company employees and

[[Page 40595]]

contractors (about \2/3\ of all OCS operators participated in 1998). 
From these data, we are able to calculate rates for the data submitted. 
Receiving information on hours worked from all OCS operators would 
allow MMS to produce normalized injury/illness analyses and trend data 
for all injury incidents reported to MMS.
    2. What kind of information should MMS collect about contractor 
performance on the OCS?
    According to 1998 OCS Performance Measures data, contractors 
represented about 80 percent of the total hours worked on the OCS and 
were involved in over 80 percent of the recordable and lost workday 
injury and illness cases. Gathering and analyzing data specific to 
contractors and contract operations might provide insight to operators, 
contractors, and MMS about ways to decrease injuries to contractors and 
enhance the safety of contract operations.
    3. What specific incident data analyses could MMS publish to help 
lessees/operators enhance the safety of their operations?
    MMS intends to provide OCS lessees, operators, and others with the 
most useful incident data analyses possible. Are there specific 
analyses that would be particularly helpful to the industry or other 
regulators in preventing incidents and promoting safety?
    4. What kind of electronic reporting methods are most accessible to 
you as an OCS lessee/operator? What recommendations do you have for 
developing an electronic system?

Response to Comments On the February 13, 1998, Proposed Rule

    The table below lists the several comments (by organization) we 
received about incident reporting requirements in response to the 
February 13, 1998, proposed rule on ``Postlease Operations Safety.'' 
The ``MMS Response'' column provides our response with respect to this 
proposed rule. Letters from Chevron, Independent Petroleum Association 
of America, National Ocean Industries Association, and Shell Offshore 
Inc., indicated that they supported the comments submitted jointly by 
the API/Offshore Operators Committee.

----------------------------------------------------------------------------------------------------------------
    Previous proposed rule
           section                       Comment                    Rationale                 MMS response
----------------------------------------------------------------------------------------------------------------
                                               Trustees for Alaska
----------------------------------------------------------------------------------------------------------------
Sec.   250.20(a).............  We support the requirement                              A requirement for written
                                for written accident                                    reports is included
                                reports                                                 (Sec.   250.188-190).
------------------------------
Sec.   250.20................  We encourage the MMS to     Offshore operators should   MMS and the USCG
                                revise the accident         not be required to report   participated in the
                                reporting requirements      incidents using two         NOSAC Subcommittee and
                                that are being discussed    different forms to two      subsequently worked
                                by the USCG National        separate Federal            together to develop this
                                Offshore Safety Advisory    Agencies. In addition,      MMS proposed rule. The
                                Committee Subcommittee      the definition of fire is   reporting requirements
                                which includes MMS          still an issue of           in this MMS proposed
                                members.                    confusion between           regulation are as
                                                            operations, and an          consistent as possible
                                                            explanation may be          with the requirements in
                                                            appropriate in the          the USCG's proposed
                                                            regulations.                rule, so that the USCG
                                                                                        will be able to allow
                                                                                        reporting under the MMS
                                                                                        regulation for incidents
                                                                                        where both agencies have
                                                                                        mutual interest and
                                                                                        responsibility. The
                                                                                        requirement to submit
                                                                                        written reports
                                                                                        electronically would
                                                                                        allow reports submitted
                                                                                        through a single point
                                                                                        to satisfy the
                                                                                        requirements of both
                                                                                        agencies.
                                                                                       While proposing the use
                                                                                        of an MMS form in
                                                                                        conjunction with form CG-
                                                                                        2692, most of the
                                                                                        information on the MMS
                                                                                        form is not duplicative
                                                                                        of information requested
                                                                                        on form CG-2692. MMS and
                                                                                        the USCG agree that a
                                                                                        joint incident form
                                                                                        would be beneficial to
                                                                                        both the industry and
                                                                                        our agencies. We will
                                                                                        continue to work on
                                                                                        developing one.
                                                                                       A definition and
                                                                                        reporting thresholds for
                                                                                        fires are included (Sec.
                                                                                          250.105 and Sec.
                                                                                        250.187-190).
------------------------------

[[Page 40596]]

 
                                International Association of Drilling Contractors
----------------------------------------------------------------------------------------------------------------
Sec.   250.20................  We note that the preamble                               Incident reporting
                                indicates that ``MMS will                               definitions and
                                provide more guidance on                                thresholds are included
                                thresholds for fires, and                               to specify what we are
                                factors that impair                                     proposing so you can
                                safety, through Notices                                 examine and comment on
                                to Lessees.'' While we                                  the potential reporting
                                concur that additional                                  burden (Sec.   250.105
                                guidance should be                                      and Sec.   250.187-190).
                                provided, we are
                                concerned that the
                                reporting burden may be
                                substantially altered in
                                this manner without
                                appropriate review and
                                accounting under the
                                provisions of the
                                Paperwork Reduction Act.
Sec.   250.20(a).............  We are opposed to Sec.      Much of the information     MMS and the USCG have
                                250.20 as proposed. We      required by MMS is          worked to develop
                                are not fundamentally       already required by the     reporting requirements
                                opposed to MMS requiring    Coast Guard under 33 CFR    in this MMS proposed
                                the collection and          146 (casualties) or 33      rule that are as
                                reporting of this           CFR 151 (oil spills).       consistent as possible
                                information; however, we    Such duplicative            with the USCG proposed
                                are opposed to both the     reporting requirements      rule for incidents where
                                MMS and the USCG            are contrary to the         both agencies have
                                requiring collection and    Presidential Statement of   mutual interest and
                                reporting of duplicative    Regulatory Philosophy and   responsibility. The
                                information.                Principles as set forth     electronic reporting
                                                            in Executive Order 12866.   proposed in this MMS
                                                            It is particularly          proposed rule would
                                                            perplexing that the MMS     allow reports submitted
                                                            is proposing new            through a single point
                                                            information collection      to satisfy the
                                                            requirements with respect   requirements of both
                                                            to casualties at a time     agencies.
                                                            when the Coast Guard has
                                                            already announced a
                                                            rewrite of its
                                                            regulations in 33 CFR 146.
                                                           After twenty years of       While this MMS proposed
                                                            joint jurisdiction it is    rule proposes the use of
                                                            time for the two agencies   an MMS form in
                                                            to coordinate their         conjunction with form CG-
                                                            activities and develop      2692, most of the
                                                            procedures for inter-       information on the MMS
                                                            Agency exchange of          form is not duplicative
                                                            information rather than     of information requested
                                                            require duplicative         on form CG-2692. MMS and
                                                            reports.                    the USCG agree that a
                                                                                        joint incident form
                                                                                        would be beneficial to
                                                                                        both the industry and
                                                                                        our agencies. We will
                                                                                        continue to work on
                                                                                        developing one (Sec.
                                                                                        250.105 and Sec.
                                                                                        250.187-190).
Sec.   250.20................  For the sake of clarity we  While there is certainly a  We made the recommended
                                would suggest that the      linkage between MMS (or     change. Information on
                                provisions regarding        the Coast Guard)            conducting
                                investigations be placed    receiving information       investigations is in a
                                in a separate paragraph.    regarding major fires,      separate section (Sec.
                                                            major oil spillage, death   250.191).
                                                            or serious injury and
                                                            their mandate to conduct
                                                            an investigation and make
                                                            a public report, both
                                                            Agencies are authorized,
                                                            on their own discretion,
                                                            to investigate lesser
                                                            incidents, reportable or
                                                            not. This could be made
                                                            clearer if the
                                                            regulations regarding
                                                            investigations were not
                                                            included within the
                                                            provisions on reporting.
------------------------------

[[Page 40597]]

 
                            American Petroleum Institute/Offshore Operators Committee
----------------------------------------------------------------------------------------------------------------
Sec.   250.20................  Except for requirements to  Definitions of accidents    MMS and the USCG
                                report oil spills, delete   are inconsistent with       participated in the
                                all other reporting         those used in SEMP (NTL     NOSAC Subcommittee. In
                                requirements and            98-6N) and those required   response to the
                                incorporate                 by the USCG for similar     subcommittee's
                                recommendations of the      incidents. These proposed   recommendations, the two
                                USCG NOSAC Incident         regulations in many cases   agencies have worked to
                                Reporting Subcommittee      duplicate reporting         make the proposed
                                established on April 22,    requirements of the         reporting requirements
                                1998, consisting of MMS,    United States Coast         as consistent as
                                USCG and industry           Guard. At a meeting of      possible with those in
                                personnel.                  NOSAC in Washington on      the USCG's proposed rule
                                                            April 22, 1998, a           for incidents that are
                                                            Subcommittee was            of interest to both
                                                            established to review and   agencies. The electronic
                                                            recommend changes to        reporting would allow
                                                            improve the process of      reports submitted at a
                                                            defining and reporting      single point to satisfy
                                                            incidents to the MMS and    the requirements of both
                                                            the USCG. This effort was   agencies.
                                                            endorsed by Carolita
                                                            Kallaur, Associate
                                                            Director for Offshore
                                                            Minerals Management.
                                                            Recommendations will be
                                                            completed by October 1998.
                                                           Significant administrative  Most of the information
                                                            burden would be added to    requested in the MMS
                                                            all operators if this       form is not duplicative
                                                            proposed regulation was     of the information
                                                            implemented. This would     requested in form CG-
                                                            be the most expedient       2692. We will continue
                                                            method to resolve this      to work with the USCG on
                                                            issue and avoid OMB and     developing a joint
                                                            other intervention in       incident reporting form
                                                            adding this                 (Sec.   250.105 and Sec.
                                                            administrative burden to      250.187-190).
                                                            operators and contractors.
Sec.   250.20(a).............  Industry has expressed      To avoid uncertainty, the   Definitions and
                                concerns to the MMS that    rule should include the     thresholds are included
                                ``fires'' needs to be       definition, especially      so that operators/
                                better defined since        when the MMS is planning    lessees can comment on
                                industry has confusion on   to use fires as one of      what is proposed,
                                what needs to be            the criteria included       including fires (Sec.
                                reported. We recommend      with the disqualification   250.105 and Sec.
                                that the MMS include a      procedures found in this    250.187-190).
                                description or definition   proposed rule in Section
                                for what a fire is and      250.12. The preamble
                                what types of fires they    states that more guidance
                                expect to receive in the    will be given in an NTL.
                                reports.                    We prefer that the
                                                            language be included in a
                                                            rule.
Sec.   250.20(a).............  MMS should include          MMS should respect the      We did not make the
                                language that allows the    confidentiality and         recommended change. MMS
                                Operator to submit this     sensitivity of              protects proprietary
                                information marked          information marked          information submitted by
                                ``Confidential'' and the    ``Confidential'' as they    lessees and operators to
                                MMS to maintain it in       do with other information   protect their
                                such a way without          they receive from           competitive interests.
                                divulging the details       operators.                  Information that might
                                that may be involved in                                 be involved in legal
                                legal action.                                           action at some unknown
                                                                                        time in the future can
                                                                                        only be protected it if
                                                                                        falls within one of the
                                                                                        exceptions to the
                                                                                        Freedom of Information
                                                                                        Act and Privacy Act
                                                                                        (Sec.   250.191).
Sec.   250.20(a)(1)..........  We recommend that this      It would be impossible for  We included recommended
                                subsection qualify that     a pipeline right-of-way     changes in Sec.
                                the operation must be       owner to be aware of any    250.191(b) of the final
                                related to the exercise     accidents which might       rule for Subpart A,
                                of the easement, right-of-  happen to occur within      Postlease Operations
                                way, or other permit.       the pipeline right-of-way   Safety (64 FR 72756,
                                                            corridor which did not      December 28, 1999).
                                                            directly influence or       Similar language is
                                                            impact the exercise of      included at Sec.
                                                            the right-of-way itself.    250.187(a) in this
                                                                                        proposed rule.
Sec.   250.20(a)(2)..........  We recommend that the       The cited portions of the   We included recommended
                                final rule qualify the      OCS Lands Act specify       changes in Sec.
                                investigative authority     that either the Secretary   250.191(c) of the final
                                so that it is not           of the U.S. Coast Guard     rule for Subpart A,
                                exercised by both the       may institute               Postlease Operations
                                Department of               investigations, but not     Safety (64 FR 72756,
                                Transportation's United     both. This limitation       December 28, 1999).
                                States Coast Guard, and     must be contained in the
                                the Department of           regulations in order for
                                Interior's MMS.             them to be lawful.

[[Page 40598]]

 
                                                                                       However, in this proposed
                                                                                        rule, we deleted the
                                                                                        reference to the USCG
                                                                                        because procedures
                                                                                        outlined in Sec.
                                                                                        250.191 apply only to
                                                                                        MMS investigations. The
                                                                                        MOU between MMS and the
                                                                                        USCG,, signed on
                                                                                        December 16, 1998,
                                                                                        outlines how the two
                                                                                        agencies will coordinate
                                                                                        their incident
                                                                                        investigation activities
                                                                                        conducted under the
                                                                                        authority of the OCS
                                                                                        Lands Act, as amended
                                                                                        (43 U.S.C. 1331 et seq.)
                                                                                        (Sec.   250.191).
Sec.   250.20(a)(2)..........  We recommend that [sic]     This provision violates     We did not make the
                                the striking of the         the provisions of Section   proposed changes.
                                provision which only        22(f) of the OCS Lands      Incident investigations
                                allows panel members and    Act which requires that     are fact-finding
                                panel experts to address    the production of           proceedings without
                                questions to the person     documents and the           adverse parties. The
                                giving testimony.           handling of testimony and   purpose of the
                                                            witnesses be analogous to   investigation is to
                                                            the Federal Rules of        prepare a public report
                                                            Civil Procedures. The       that determines the
                                                            Federal Rules Of Civil      cause of the incident.
                                                            Procedures give the party   Persons who are not
                                                            at risk for citation the    panel members or panel
                                                            opportunity to              experts may have
                                                            participate in              interests other than
                                                            questioning of witnesses    finding the cause of the
                                                            in the course of any        incident. Allowing them
                                                            hearing.                    to question the person
                                                                                        giving testimony could
                                                                                        easily lead to an
                                                                                        adversarial proceeding.
                                                                                        However, in response to
                                                                                        the comment, we have
                                                                                        deleted the reference to
                                                                                        the panel's legal
                                                                                        advisors as being one of
                                                                                        the categories of people
                                                                                        who can question the
                                                                                        person giving testimony
                                                                                        (Sec.   250.191(b)). As
                                                                                        noted earlier in the
                                                                                        Preamble, we also
                                                                                        propose to remove the
                                                                                        reference to civil or
                                                                                        criminal issues (Sec.
                                                                                        250.191). That proposed
                                                                                        deletion does not change
                                                                                        MMS's commitment to
                                                                                        conduct investigations
                                                                                        as fact-finding
                                                                                        proceedings in a non-
                                                                                        adversarial manner.
                                                                                        However, MMS does retain
                                                                                        its right to pursue any
                                                                                        regulatory violations
                                                                                        that may come to light
                                                                                        as a result of the
                                                                                        incident investigation
                                                                                        in a separate penalty
                                                                                        proceeding. Procedural
                                                                                        safeguards to alleviate
                                                                                        the commenters' concerns
                                                                                        are already incorporated
                                                                                        into MMS regulations
                                                                                        (see 30 CFR 250, Subpart
                                                                                        N).
----------------------------------------------------------------------------------------------------------------

Appendices

    The following appendices will not appear in the Code of Federal 
Regulations. Appendix A is included for reference. We solicit your 
comments on the new MMS forms in Appendices B and C.

Appendix A--U.S. Coast Guard Form CG-2692, ``Report of Marine Accident, 
Injury or Death''

Appendix B--Department of the Interior Form MMS 142, ``Report of OCS 
Incident--Immediate and 12 Hour''

Appendix C--Department of the Interior Form MMS-143, ``Report of OCS 
Incident--15 Day''

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[[Page 40609]]

Procedural Matters

Public Comments Procedures

    Our practice is to make comments, including the 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 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 your 
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.

Regulatory Planning and Review (Executive Order 12866)

    According to the criteria in Executive Order 12866, this rule is 
not a significant regulatory action.
    (1) This proposed 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. Current incident reporting 
regulations require that MMS be notified of certain types of incidents. 
This proposed rule revises these requirements by providing more 
specific definitions and thresholds for which incidents must be 
reported and by requiring submission of written incident reports. It 
provides more consistency with USCG reporting requirements for 
incidents where the two agencies have mutual interest and 
responsibility. Written reports must be submitted electronically. MMS 
and the USCG continue to work on changes to their procedures that would 
allow a report to be sent to both agencies in one submission. The 
proposed rule will have an economic effect, but it is much less than 
$100 million per year. Costs to comply with this proposed rule involve 
the cost of making the appropriate notifications and reports. These 
costs include some one-time set-up costs that we have estimated at 
$491,000 and an annual incremental reporting cost for making the oral 
notifications and submitting the written reports over and above the 
annual reporting cost in the current MMS regulations. The annual 
incremental reporting cost is estimated at $64,512. These costs are 
explained in the following Regulatory Flexibility Act section.
    (2) This proposed rule will not create inconsistencies with other 
agencies' actions. The only agency affected is the USCG. As noted, MMS 
and the USCG have worked together on this proposed rule to minimize 
incident reporting inconsistencies between the two agencies and are 
working to develop a single point electronic reporting system to 
streamline the reporting process between the two agencies.
    (3) This proposed rule will not materially affect entitlements, 
grants, user fees, loan programs, or the rights and obligations of 
their recipients. It only deals with incident reporting requirements 
for OCS lessees/operators and pipeline right-of-way holders.
    (4) This proposed rule will not raise novel legal or policy issues. 
MMS worked with the USCG to make the requirements as consistent as 
possible with their requirements and is working with them to develop an 
electronic reporting system that would allow written reports to be 
submitted through a single point to both agencies. This proposed rule 
does have a unique feature--it lists USCG reporting requirements for 
incidents where both agencies have mutual interest and responsibility. 
We included the USCG requirements so that both MMS and USCG 
requirements for these incidents can be found in one location. However, 
this is an MMS proposed rule. It does not require reporting to the 
USCG. Those requirements are found in the USCG regulations. The USCG 
will also need to take some action that allows the appropriate segments 
of their regulated community to report incidents electronically 
according to the MMS regulation.
    We will work closely with the USCG as we review the comments to the 
proposed rule and finalize the incident reporting regulation. As a 
result of this continued coordination, we anticipate that at an 
appropriate time, the USCG will issue a regulation, or other 
appropriate notice, that describes how electronic reporting under the 
MMS regulation can be used to satisfy USCG requirements. Once the USCG 
has issued this notice, submission of the required incident reports 
through the electronic system should satisfy both MMS and USCG 
requirements for incidents when both agencies have a mutual interest 
and responsibility. This should provide for continued coordination 
between the two agencies, while allowing each agency the flexibility to 
exercise its statutory responsibilities.

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 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.
    This rule applies to all lessees/operators and pipeline right-of-
way holders operating on the OCS. Lessees/operators fall under the 
Small Business Administration's North American Industry Classification 
System (NAICS) code 211111, Crude Petroleum and Natural Gas Extraction. 
Under this NAICS code, companies with less than 500 employees are 
considered small businesses. MMS estimates that 130 lessees/operators 
explore for and produce oil and gas on the OCS; approximately 70 
percent of them (91 companies) fall into the small business category.
    A pipeline company (non-producer) is a small entity if it is a 
liquid pipeline company with fewer than 1,500 employees, or a natural 
gas pipeline company with gross annual receipts of $25 million or less. 
MMS's database indicates that there are 88 pipeline right-of-way 
holders who do not own an interest in any oil and gas leases on the 
OCS. Fifty-seven of these companies are either major energy companies 
(large oil and gas or pipeline transmission companies), or wholly owned 
subsidiaries of these companies. Another 13 entities were either formed 
by partnerships among major producers and transporters or have ``arms-
length'' contractual relationships with several major producers on the 
OCS for which they provide transportation services. It is our 
understanding that in such relationships one of the major partners 
usually serves as the ``managing partner'' of the entity so that the 
entity (whether a partnership or a corporation) is not actually 
independent in the usual sense. The remaining 18 entities could be 
categorized as small independent pipeline companies in the sense that 
they provide transportation services for several non-major oil or gas 
producers with which they have an ``arms-length'' but symbiotic 
business relationship. These companies are represented by NAICS code 
213112, ``Support Activities for Oil and Gas Operations.''
    Thus, there are 218 companies affected by this proposed rule, of 
which 109 would be considered small businesses. The costs to comply 
with the reporting requirements proposed in

[[Page 40610]]

this rule include: (1) some one-time set-up costs and, (2) an annual 
incremental reporting cost for making the required notifications and 
written reports over and above the reporting cost in the current MMS 
regulation. This proposed rule does not include any recordkeeping 
requirements.
    This proposed rule will affect both small and large businesses. All 
companies, large and small, will incur some one-time costs to modify 
their incident reporting systems to incorporate the new requirements. 
And all companies, both large and small, will have to notify MMS and 
submit the appropriate reports when they have an incident on the OCS 
that falls within the scope of the regulation.
    Although 109 of these companies are technically small, we believe 
that only those small businesses that do not have adequate computer 
equipment (one-time set-up costs) or Internet/email access (annual 
cost) at the location from where they will initiate or submit their 
written reports will incur some extra costs. We estimate that only 5 
percent of the small companies (or 11 companies) would incur these 
costs. These 11 companies might incur $5,000 per company for one-time 
set-up costs and $360 per company for annual Internet/email 
maintenance. The estimated cost to be paid only by the 11 small 
companies compared to the estimated total cost for all companies is 
shown below. These costs are based on the portion of the costs that are 
over and above costs of the current regulations.

------------------------------------------------------------------------
                                                            Total cost
                                                           that would be
                Cost type                  Total cost to   paid only by
                                           all companies     11 small
                                                             companies
------------------------------------------------------------------------
Total One Time Set-Up Costs.............        $491,000         $55,000
                                         =================
    Annual Costs:
        Internet/Email Cost.............           3,960           3,960
        Incremental Cost of Notification          60,552               0
         and submission of Reports......
            Total Annual Incremental              64,512           3,960
             Costs......................
------------------------------------------------------------------------

    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.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This proposed rule is not a major rule under 5 U.S.C. 804(2), the 
SBREFA. This rule:
    (1) Does not have an annual effect on the economy of $100 million 
or more. Costs to comply with these revisions involve some one-time 
set-up costs and an annual incremental reporting cost (for making the 
oral notifications and submitting written reports) over and above the 
cost in the current MMS regulations. The total set-up costs were 
estimated at $491,000. The incremental annual reporting costs were 
estimated at $64,512.
    (2) Will not cause a major increase in costs or prices for 
consumers, individual industries, federal, state, or local government 
agencies, or geographic regions. The minor costs involved in complying 
with the revised MMS reporting requirements will not change the way the 
oil and gas industry conducts business, nor will it affect regional oil 
and gas prices. Therefore, it will not cause major cost increases for 
consumers, the oil and gas industry, or any government agencies.
    (3) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
United States based enterprises to compete with foreign-based 
enterprises. All lessees/operators and pipeline right-of-way holders, 
regardless of nationality, will have to comply with the reporting 
requirements of this rule. The rule will not affect competition, 
employment, investment, productivity, innovation, or the ability of the 
United States-based enterprises to compete with foreign-based 
enterprises.

Paperwork Reduction Act (PRA) of 1995

    The proposed rule requires information collection. According to 
section 3507(d) of the PRA we have submitted an information collection 
request (ICR) (form OMB 83-I) to the OMB for review and approval of the 
proposed MMS reporting requirements.
    The title of the MMS ICR for the proposed rule is ``Proposed 
Rulemaking--30 CFR 250, Subpart A--Incident Reporting Requirements.'' 
Potential respondents are approximately 130 Federal OCS lessees and 
operators, and 88 pipeline right-of-way holders who do not own an 
interest in any oil and gas leases on the OCS. Responses are mandatory. 
This collection of information does not include proprietary information 
and, for MMS reporting purposes, does not include questions of a 
sensitive nature.
    It should be noted that the proposed rule does refer to, but does 
not require, reporting to the USCG on form CG-2692. OMB has approved 
the USCG form CG-2692 information collection requirements under OMB 
Control Number 2115-0003, with a current expiration date of January 31, 
2005. To avoid duplicate reporting requirements as much as possible, 
the proposed rule allows respondents to use form CG-2692 to report 
certain incidents to MMS. Respondents would submit the form 
electronically to provide simultaneous transmission to both MMS and 
USCG. Our ICR to OMB includes the burden for completing this form when 
it is required by MMS. Although this might result in a small double 
counting of the burden hours, it would be very insignificant. The USCG 
estimates receiving 7,000 CG-2692/2692A forms each year, and we 
estimate only 124 of those 7,000 forms would apply to MMS reporting 
requirements.
    As explained earlier in the preamble, the CG-2692 form does not 
cover all of the incidents pertinent to MMS nor does it contain certain 
information that MMS needs. Therefore, we are proposing two new MMS 
forms that would be submitted only to MMS. The forms are designed to 
avoid, to the extent possible, duplicating information captured on form 
CG-2692. The proposed new forms are:
    Form MMS-142, Report of OCS Incident (Immediate and 12 Hour)
    Form MMS-143, Report of OCS Incident (15 Day)

[[Page 40611]]

    It also should be noted that the proposed rule does allow 
respondents to submit copies of internal reports in lieu of form MMS-
142 as their ``final report,'' if the company report covers all of the 
required information.
Hour Burden
    The information collected on form CG-2692 and the new MMS forms 
expand and add to the currently approved notification and reporting 
requirements in 30 CFR 250.191 on accidents (994 burden hours), Sec.  
250.490 on H2S releases (26 burden hours), and 30 CFR 254.46 
on oil spills (59 burden hours). We would reduce the respective 
reporting burdens for requirements in those sections in conjunction 
with final regulations becoming effective. The ICR submitted to OMB for 
this proposed rulemaking covers the total estimated burden for MMS 
reporting requirements. There are no proposed recordkeeping 
requirements. The following chart summarizes the estimated hour burden 
(column 4 has been rounded to the nearest hour) of the proposed rule.

----------------------------------------------------------------------------------------------------------------
                                                     Estimated
                                                     number of    Estimated hour    Annual hour     Annual hour
              Reporting requirement                 notices or        burden         (rounded)     burden cost @
                                                    reports per    calculated in      burden         $50/hour
                                                       year           minutes
----------------------------------------------------------------------------------------------------------------
Oral notification of incident...................             142              10              24          $1,200
``Immediate'' Category Follow-up Report using                124             220             455          22,750
 form CG-2692 and MMS-142, Sections 1-3.........
``Immediate'' Category Final Report using form                65             160             173           8,650
 MMS-142, Sections 1-4 (or company report)......
``12-Hour'' Category Initial Report using form                89             145             215          10,750
 CG-2692 and MMS-142, Sections 1-2..............
``12-Hour'' Category Follow-up Report using form              89             115             171           8,550
 MMS-142, Sections 1-3..........................
``15-Day'' Category Report using form MMS-143...             750              85           1,063          53,150
Submit additional information for clarification              186              60             186           9,300
 when requested by MMS..........................
                                                 -----------------
    Totals......................................           1,445  ..............           2,287       *114,350
----------------------------------------------------------------------------------------------------------------
*Due to ``rounding'' of hours, this cost is slightly lower than costs shown in other sections which were
  calculated in fractions of hours. OMB requires ICRs to be submitted in whole hours.

Non-Hour Cost Burden
    As discussed in previous sections of the Preamble, in order to 
submit reports electronically, all companies may experience some one-
time set-up costs. A few of the smaller companies may incur additional 
set-up costs and new annual Internet/email access costs.
    Most companies already have reporting and data-gathering systems to 
investigate and report incidents internally. Most also have systems and 
procedures in place to notify MMS and the USCG of incidents and to 
submit required USCG written reports. These established systems may 
need to be modified and personnel trained to address the change in 
reporting thresholds and new MMS written report requirements. We 
estimate this may take 40 hours per company. At a cost of $50 per hour, 
the total cost for the 218 companies is estimated at $436,000 for one-
time set-up costs.
    Some of the approximately 109 small entities affected by the 
proposed rule may need to purchase additional computer equipment with 
Internet access at the location from where they will initiate or submit 
written reports. We estimate about 5 percent (11 companies) may 
experience an additional one-time investment of approximately $5,000 
for a total of $55,000 that would not be a ``usual and customary'' 
business expense for these companies.
    These same 11 companies would also incur a monthly Internet/email 
account expense of approximately $30 per month or $360 per year/company 
for a total recurring annual operation and maintenance cost of $3,960.
PRA Comments
    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 the proposed rule. You may 
submit your comments directly to the Office of Information and 
Regulatory Affairs, OMB. Send a copy of your comments to MMS. Refer to 
the ``Addresses'' section for mailing instructions. MMS will summarize 
written comments and address them in the final rule preamble. The PRA 
provides that an agency may not conduct or sponsor, and a person is not 
required to respond to, a collection of information unless it displays 
a currently valid OMB control number. OMB is required to make a 
decision concerning the collection of information contained in these 
proposed regulations between 30 to 60 days after publication of this 
document in the Federal Register. Therefore, a comment to OMB is best 
assured of having its full effect if OMB receives it by August 7, 2003. 
This does not affect the deadline for the public to comment to MMS on 
the proposed regulations.
    a. We specifically solicit comments on the following questions:
    (1) Is the proposed 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 proposed 
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. We solicit your comments on this 
item, including the accuracy of our estimates previously discussed or 
any others we have not identified. For reporting and recordkeeping 
only, your response should split the cost estimate into two components: 
(1) the total capital and start-up 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

[[Page 40612]]

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 customary 
and usual business or private practice.

Federalism (Executive Order 13132)

    According to Executive Order 13132, this rule does not have 
Federalism implications. It does not substantially and directly affect 
the relationship between the Federal and State governments. This rule 
applies to lessees/operators and pipeline right-of way holders on the 
OCS. It does not impose costs on States or localities. Any costs will 
be the responsibility of the lessees/operators and pipeline right-of 
way holders.

Takings Implication Assessment (Executive Order 12630)

    According to Executive Order 12630, this proposed rule does not 
have significant Takings implications. A Takings Implication Assessment 
is not required. This rule revises existing incident reporting 
regulations. It does not prevent any lessee, operator, or pipeline 
right-of-way holder from performing operations on the OCS, provided 
they follow the regulations.

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 does meet the requirements of sections 3(a) and 3(b)(2) of the 
Order.

National Environmental Policy Act of 1969

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. An environmental 
assessment is not required. This rule only revises reporting 
requirements for incidents on the OCS through oral notification and 
electronic submission of written reports. It does not require, promote, 
or modify the conduct of operations or activities on the OCS.

Unfunded Mandates Reform Act (UMRA)

    According to the UMRA (2 U.S.C. 1501 et seq.):
    (1) This rule will not ``significantly or uniquely'' affect small 
governments. A Small Government Agency Plan is not required. This rule 
revises reporting regulations for oil and gas operations and does not 
involve the activities of any small governments, so no small 
governments are affected.
    (2) This rule will not produce a Federal mandate of $100 million or 
greater in any year, i.e., it is not a ``significant regulatory 
action'' under the UMRA. This rule does not have any Federal mandates.

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 evaluated potential 
effects on federally recognized Indian tribes and have determined that 
there are no potential effects because the OCS operating regulations 
have no effect on any Indian tribe.

Clarity of the Regulation

    Executive Order 12866 requires each agency to write regulations 
that are easy to understand. We invite your comments on how to make 
this proposed rule easier to understand, including answers to 
questions, such as the following:
    (1) Are the requirements in the proposed rule clearly stated?
    (2) Does the proposed rule contain technical language or jargon 
that interfere with its clarity?
    (3) Is the description in the Supplementary Information section of 
this preamble helpful in understanding the proposed rule? What else can 
we do to make it easier to understand?
    Send a copy of any comments that concern how we could make this 
proposed rule easier to understand to: Office of Regulatory Affairs, 
Department of the Interior, Room 7229, 1849 C Street, NW., Washington, 
DC 20240. You may also e-mail the comments to this address: 
[email protected].

List of Subjects

30 CFR Part 250

    Continental shelf; Environmental impact statements; Environmental 
protection; Government contracts; 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.

30 CFR Part 254

    Continental shelf; Environmental protection; Oil and gas 
development and production; Oil and gas exploration; Pipelines; Public 
lands--mineral resources; Public lands--rights-of-way; Reporting and 
recordkeeping requirements.

    Dated: May 21, 2003.
Rebecca W. Watson,
Assistant Secretary, Land and Minerals Management.

    For the reasons stated in the preamble, the MMS proposes to amend 
30 CFR Part 250 and Part 254 as follows:

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

    1. The authority citation for 30 CFR Part 250 continues to read as 
follows:

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

    2. In Sec.  250.105 the following definitions are added in 
alphabetical order:


Sec.  250.105  Definitions

* * * * *
    Collision means the striking of:
    (1) An OCS facility by a vessel or helicopter; or
    (2) Two vessels together where at least one is engaged in OCS 
activities, regardless of whether one or both vessels are in motion.
* * * * *
    Fire means the phenomenon of combustion manifested in light, flame, 
and heat and has the same meaning as in the American Petroleum 
Institute, Recommended Practice 14G, Third Edition, December 1, 1993. 
In addition, the term fire as used in this part includes incidents of 
combustion that involve smoke with no visible flame.
    Gas release means any unintentional release of gas at an OCS 
facility that could, without corrective action, raise hydrocarbon or 
other gas concentrations to the lower flammable (explosive) limit. Gas 
releases do not include events where gas is successfully released 
through the vent or flare system.
* * * * *
    Incident means an accident or unexpected event occurring in the 
course of an OCS activity that affects or is likely to affect 
operational safety or environmental protection. ``Incident'' includes 
the term ``casualty'' and ``marine casualty'' used in United States 
Coast Guard (USCG) regulations.
* * * * *
    Loss of well control means either of the following:
    (1) Uncontrolled flow of formation or other well fluids. The flow 
may be

[[Page 40613]]

between two or more exposed formations or it may be at or above the 
mudline. This includes uncontrolled flow resulting from failures of 
either surface or subsurface equipment or procedures.
    (2) Flow of formation or other well fluids through a diverter.
* * * * *
    Mobile Offshore Drilling Unit (MODU) means a vessel, other than a 
public vessel of the United States, that is capable of engaging in 
drilling operations for exploration or exploitation of subsea 
resources.
* * * * *
    OCS activity means any activity on the OCS associated with 
exploration, development, production, transporting, or processing of 
OCS mineral resources, including but not limited to, oil and gas.
    OCS facility means any artificial island, installation, pipeline, 
or other device permanently or temporarily attached to the seabed, 
erected for the purpose of exploring for, developing, producing, or 
transporting resources from the OCS. This term does not include ships 
or vessels for transporting produced hydrocarbons. A MODU is an OCS 
facility when it is located on the area covered by a lease, easement, 
right-of-way, or permit and is engaged in operations related to the 
exercise of rights under that lease, easement, right-of-way, or permit.
* * * * *
    Property damage means the cost of labor and material to restore all 
affected items, including, but not limited to, OCS facilities, vessels, 
or helicopters, to their condition before the damage. Property damage 
does not include the cost of salvage, cleaning, gas-freeing, 
drydocking, or demurrage of an OCS facility, vessel, or helicopter.
* * * * *
    Reportable releases of H2S gas means a gas release that 
results in a 15-minute time-weighted average atmospheric concentration 
of H2S of 20 ppm or more anywhere on the facility, as 
defined in 30 CFR 250.490(l).
* * * * *
    Vessel means any watercraft or other artificial contrivance used, 
or capable of being used, as a means of transportation on the water. 
The term ``vessel'' does not include atmospheric or pressure vessels 
used for containing liquids or gases.
    Vessel engaged in OCS activities means any vessel that is located 
within 500 meters of an OCS facility and is engaged in any OCS 
activity.
* * * * *
    3. Section 250.190 is redesignated Sec.  250.186.
    4. New Sec. Sec.  250.187 through 250.190 are added to read as set 
forth below:


Sec.  250.187  What is the scope of the incident reporting 
requirements?

    (a) The reporting requirements in Sec. Sec.  250.188 through 
250.190 apply to incidents that:
    (1) Occur on the area covered by your lease, easement, right-of-
way, or other permit; and
    (2) Are related to operations resulting from the exercise of your 
rights under your lease, easement, right-of-way, or permit. This 
includes incidents involving vessels engaged in OCS activities as 
defined in Sec.  250.105.
    (b) You may be required to report incidents described in Sec. Sec.  
250.188 and 250.190 to the USCG under USCG rules. You may use the 
notifications and reports that you make to MMS under those sections to 
satisfy USCG incident reporting requirements if and to the extent 
allowed by USCG regulations.
    (c) Nothing in this subpart relieves you from making notifications 
and reports of incidents that may be required by other regulatory 
agencies.


Sec.  250.188  What incidents must I immediately report to MMS, USCG, 
National Response Center (NRC), or the Responsible Party?

    (a) After aiding the injured and stabilizing the situation, you 
must immediately make the following oral notifications and written 
reports for any of the incidents indicated in the following table.

----------------------------------------------------------------------------------------------------------------
                                                               And provide the following written reports to:
                                                          ------------------------------------------------------
  If the following incident      You must make immediate   Follow-up report (within 5
           occurs:                oral notification to:       days unless otherwise     Final report (within 60
                                                                 specified) to:                days) to:
----------------------------------------------------------------------------------------------------------------
(1) All incidents resulting    MMS                         MMS                         MMS
 in death, except for deaths   USCG                        USCG
 due to natural causes.
(2) All incidents involving    MMS                         MMS                         MMS
 injuries that result in one   USCG                        USCG
 or more of the following:.
(i) Hospitalization of a
 person for more than 48
 hours within 5 days of the
 incident;
(ii) Fractured bone (other
 than in a finger, toe, or
 nose);
(iii) Loss of limb;
(iv) Severe hemorrhaging;
(v) Severe damage to a
 muscle, nerve, or tendon;
(vi) Damage to an internal
 organ; or
(vii) Evacuation to shore of
 three or more people
(3) All losses of well         MMS                         MMS                         MMS
 control
(4) All fires, explosions, or  MMS                         MMS                         MMS
 other incidents that result   USCG                        USCG
 in property damage greater
 than $100,000.
(5) All collisions resulting   MMS                         MMS                         No report.
 in property damage greater    USCG                        USCG
 than $100,000.
(6) Any incident that impairs  MMS                         MMS                         No report.
 the operation of any OCS      USCG                        USCG
 facility's primary:.
(i) Lifesaving equipment; or
(ii) Firefighting equipment.
(7) All reportable releases    MMS                         MMS                         No report.
 of H2S gas..
(8) All oil spills (per Sec.   NRC                         No report                   No report.
  254.46(a)) which includes:.
(i) A spill from your
 facility;
(ii) A spill from another
 offshore facility; or
(iii) An offshore spill of
 unknown origin.

[[Page 40614]]

 
(9) Oil spills from your       ..........................  ..........................  .........................
 facility of one barrel or     MMS NRC                     MMS Report due within 15    MMS For spills of 200
 more (per Sec.   254.46(b))                                days after the spillage     barrels or more only.
 includes:                                                  has been stopped
(i) Spills of one barrel or
 more;
(ii) Spills of unknown size
 but thought to be one barrel
 or more; or
(iii) Spills not originally
 reported, but subsequently
 found to be one barrel or
 more.
(10) Oil spills resulting      MMS and the                 No report                   No report.
 from operations at another    Responsible Party
 offshore facility (per Sec.
  254.46(c)).
(11) Vessels engaged in OCS    MMS USCG                    MMS USCG                    No report.
 activities that are involved
 in the incidents listed in
 46 CFR 4.05-(1)(a)(1)
 through 4.05-(1)(a)(4).
(12) All releases of           NRC                         No report                   No report.
 hazardous substances in
 reportable quantities as
 required by the
 Environmental Protection
 Agency regulations at 40 CFR
 Sec.   302.6. Hazardous
 Substances and reportable
 quantities are listed at 40
 CFR Sec.   302.4.
----------------------------------------------------------------------------------------------------------------
MMS = the appropriate Minerals Management Service District Supervisor
NRC = the National Response Center (NRC)--toll free number: 1-800-424-8802
USCG = the nearest United States Coast Guard Marine Safety Office, Marine Inspection Office, or Coast Guard
  Group Office

    (b) Notifications and written reports made by the owner, agent, 
master, operator, or person in charge of a vessel will satisfy the 
reporting requirements for that vessel.
    (c) Nothing in this subpart relieves the obligation for any vessel 
that is not engaged in OCS activities to provide notification and 
reports to the USCG as required by 46 CFR 4.05.


Sec.  250.189  What other incidents must I report to MMS?

    (a) You must submit the following written reports to MMS for any of 
the incidents indicated in the following table.

----------------------------------------------------------------------------------------------------------------
                                                                      Provide the following written reports:
                                                                 -----------------------------------------------
                If the following incident occurs:                 Initial report     Followup      15-day report
                                                                    (within 12    report (within    (within 15
                                                                      hours)          5 days)          days)
----------------------------------------------------------------------------------------------------------------
(1) All incidents not reported under Sec.   250.188(a) resulting              X               X   ..............
 in injuries or illnesses to more than one person that involve
 either:........................................................
(i) Days away from work; or
(ii) Restricted work or job transfer
(2) All explosions that result in property damage equal to or                 X               X   ..............
 less than $100,000.............................................
(3) All fires, collisions, and other incidents not reported in                X               X   ..............
 Sec.   250.188(a) that result in property damage equal to or
 less than $100,000 but greater than $25,000....................
(4) All fires not reported in Sec.   250.188(a) or paragraph (3)              X               X   ..............
 of this section resulting in injuries or illnesses that involve
 medical treatment beyond first aid to more than one person.....
(5) All incidents not reported under Sec.   250.188(a) or         ..............  ..............              X
 paragraphs (1)-(4) of this section resulting in an injury or
 illness to one person that involves either:....................
(i) Days away from work; or
(ii) Restricted work or job transfer.
(6) All other fires not reported under Sec.   250.188(a) or       ..............  ..............              X
 paragraphs (3)-(4) of this section, excluding those completely
 contained in the living quarters...............................
(7) Gas Releases................................................  ..............  ..............              X
(8) All non-weather-related incidents when personnel muster for   ..............  ..............              X
 evacuation.....................................................
----------------------------------------------------------------------------------------------------------------

    (b) To determine if an injury or illness involves ``days away from 
work,'' ``restricted work or job transfer,'' or ``medical treatment 
beyond first aid,'' you should use the recording criteria in the 
Occupational Health and Safety Administration's regulations at 29 CFR 
1904.7(b)(1)(ii), 1904.7(b)(1)(iii), and 1904.7(b)(1)(iv), 
respectively.


Sec.  250.190  What reporting procedures must I follow?

    (a) General procedures.
    (1) You must submit all written reports electronically.
    (2)(i) You must make an oral notification within 24 hours and 
submit the appropriate written reports for incidents that are not 
reported, but are later found to be reportable.
    (ii) You must make the appropriate oral notifications and submit 
the appropriate reports for incidents that have been reported but are 
later found to be reportable under a different section or paragraph.
    (3) MMS District Supervisor may require additional information on a 
case-by-case basis, if the District Supervisor concludes that the 
information is needed to determine the cause of the incident.

[[Page 40615]]

    (4) You must submit written reports on the appropriate forms as 
indicated in the following table.

--------------------------------------------------------------------------------------------------------------------------------------------------------
        If you are reporting under           and making this type of report             for incidents reported to MMS or to MMS and USCG, use:
--------------------------------------------------------------------------------------------------------------------------------------------------------
(i) Sec.   250.188........................  Follow-up.......................  CG-2692 and MMS-142, Sections 1-3.
(ii) Sec.   250.188.......................  Final...........................  MMS-142, Sections 1-4; or company reports as indicated in Sec.
                                                                               250.190(b)(2).
(iii) Sec.   250.189(a)(l)-Sec.             Initial.........................  CG-2692 and MMS-142, Sections 1-2.
 250.189(a)(4).
(iv) Sec.   250.189(a)(l)-Sec.              Follow-up.......................  MMS-142, Sections 1-3.
 250.189(a)(4).
(v) Sec.   250.189(a)(5)-Sec.               15-Day..........................  MMS-143.
 250.189(a)(8).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: For incidents reported to the MMS and USCG under Sec.   250.188(a)(11), you need only submit a form CG-2692 for the Follow-up Report.

    (b) Reporting procedures for incidents listed in Sec.  250.188.
    (1) If you are submitting reports under Sec.  250.188 to fulfill 
USCG requirements, you must make a written report for each OCS facility 
and vessel involved in the incident.
    (2) You may submit copies of company incident reports to fulfill 
the Final Report requirement as long as all the information requested 
by form MMS-142 is included.
    (3) If you submit a Final Report within the timeframe listed for 
the Follow-up Report, no additional reporting is required.
    5. In Sec.  250.191, the following changes are made:
    A. The section heading is revised and new introductory text is 
added as set forth below.
    B. Paragraphs (a), (b), and (c)(2) are removed.
    C. Paragraphs (c)(1), (c)(3), and (c)(4) are redesignated 
paragraphs (a), (c), and (d), respectively.
    D. New paragraph (b) is added to read as set forth below.


Sec.  250.191  How does MMS conduct incident investigations?

    Any investigation that MMS conducts under the authority of sections 
22(d)(1) and (2) of the Act (43 U.S.C. 1348(d) (1) and (2)) is a fact-
finding proceeding with no adverse parties. The purpose of the 
investigation is to prepare a public report that determines the cause 
or causes of the incident. The investigation may involve panel meetings 
conducted by a chairperson appointed by MMS. The following requirements 
must be met for any panel meetings involving persons giving testimony.
* * * * *
    (b) Only panel members and any experts the panel deems necessary 
may address questions to any person giving testimony.
* * * * *
    6. In Sec.  250.490 the following changes are made:
    A. In paragraph (l), the last word ``facility'' is revised to read 
``OCS facility'.
    B. Two new sentences are added to the end of the paragraph to read 
as set forth below.


Sec.  250.490  Hydrogen sulfide.

* * * * *
    (l) * * *You must submit a written Follow-up Report for these gas 
releases. All notifications and reports required in this paragraph must 
be made according to Sec. Sec.  250.187 through 250.188 and Sec.  
250.190.
* * * * *

PART 254--OIL-SPILL RESPONSE REQUIREMENTS FOR FACILITIES LOCATED 
SEAWARD OF THE COAST LINE

    7. The authority citation for part 254 continues to read as 
follows:

    Authority: 33 U.S.C. 1321

    8. In Sec.  254.46, the following changes are made:
    A. In paragraphs (b), (b)(1), (b)(2) and (c), the word ``Regional'' 
is revised to read ``District''.
    B. New paragraphs (b)(3) and (d) are added to read as follows:


Sec.  254.46  Whom do I notify if an oil spill occurs?

* * * * *
    (b) * * *
    (3) You must submit a written final report for any spill from your 
facility of 200 barrels or more.
* * * * *
    (d) You must make all notifications and reports required in this 
section according to Sec. Sec.  250.187 through 250.188 and Sec.  
250.190 of this chapter.

[FR Doc. 03-16782 Filed 7-7-03; 8:45 am]
BILLING CODE 4310-MR-P