[Federal Register Volume 68, Number 132 (Thursday, July 10, 2003)]
[Proposed Rules]
[Pages 41090-41091]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17422]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC83


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Procedures for Dealing With Sustained Casing Pressure

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Delay of final rulemaking.

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SUMMARY: The Minerals Management Service (MMS) published a Notice of 
Proposed Rulemaking (NPR) in the Federal Register titled ``Procedures 
for Dealing With Sustained Casing Pressure'' on November 9, 2001. Based 
on comments received, the MMS is delaying development of a final rule 
until after publication of a ``Recommended Practice'' document now 
being developed by the American Petroleum Institute (API). The document 
will provide procedures for dealing safely with sustained casing 
pressure in wells. MMS believes that incorporation of this 
``Recommended Practice'' document into MMS regulations will help ensure 
environmentally and operationally safe operations on the Outer 
Continental Shelf (OCS).

FOR FURTHER INFORMATION CONTACT: For regulatory information concerning 
this announcement: Larry Ake, Engineering and Operations Division, at 
(703) 787-

[[Page 41091]]

1600. For technical information concerning the current MMS sustained 
casing pressure program: Gulf of Mexico OCS Region: Jim Grant, 
Technical Assessment and Operations Support Section, at (504) 736-2843. 
Pacific OCS Region: Nabil Masri, Chief, Office of Facilities, Safety 
and Enforcement, at (805) 389-7581.

SUPPLEMENTARY INFORMATION: Sustained casing pressure (SCP) is pressure 
between the casing and the well's tubing, or between strings of casing, 
that rebuilds after being bled down. If left uncontrolled, this SCP can 
represent an ongoing safety hazard and can cause harm or damage to 
human life, the marine and coastal environment, and property.
    The MMS received 18 letters commenting on the NPR. Among these 
letters were comments from industry organizations that proposed a 
different method of regulating sustained casing pressure on the OCS.
    In their comments, the offshore oil and gas industry, through the 
Offshore Operator's Committee and the API, proposed working with MMS on 
the development of a ``Recommended Practice'' (RP) document for dealing 
with sustained casing pressure. During the development of this 
document, MMS and industry would jointly contract and administer a risk 
assessment of SCP. This risk assessment would help determine when SCP 
represents a significant risk and help ensure that regulatory 
requirements are applied when necessary. This is a goal that will help 
both industry and the MMS while ensuring protection of life, property, 
and the environment.
    These industry comments made a persuasive argument that an 
independent risk assessment, coupled with the development of the 
industry RP, would achieve the goals of safe and environmentally sound 
operations, while not being unduly burdensome on industry or government 
regulators. Consequently, MMS has decided to delay the development of a 
final rule and wait until the RP is developed and adopted by industry. 
MMS may then incorporate all, or portions of the RP, into the 
regulations.
    A revised notice of proposed rulemaking will be published when the 
RP is available for public review. MMS will re-open the comment period 
at that time prior to development of a final rule that incorporates the 
RP into MMS regulations.
    The RP is scheduled to be published in late 2004. Until the RP is 
incorporated into regulations, MMS will maintain its current SCP 
program.

List of Subjects in 30 CFR 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.

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

    Dated: July 2, 2003.
E.P. Danenberger,
Chief, Engineering and Operations Division.
[FR Doc. 03-17422 Filed 7-9-03; 8:45 am]
BILLING CODE 4310-MR-P