[Federal Register Volume 69, Number 33 (Thursday, February 19, 2004)]
[Rules and Regulations]
[Pages 7681-7682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3619]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 106

[USCG-2003-14759]


Outer Continental Shelf Facility Security

AGENCY: Coast Guard, DHS.

ACTION: Notice of agency policy.

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SUMMARY: On Wednesday, October 22, 2003, the Coast Guard published a 
series of final rules for maritime security requirements mandated by 
the Maritime Transportation Security Act of 2002, including provisions 
for mobile offshore drilling units (MODUs) not subject to the 
International Convention for the Safety of Life at Sea, 1974, and 
certain fixed and floating facilities on the Outer Continental Shelf 
(OCS) other than deepwater ports. This Notice of agency policy 
clarifies which fixed and floating OCS facilities are subject to 
regulation under Title 33 CFR part 106. This Notice also clarifies how 
the Coast Guard establishes applicability to Title 33 CFR part 106.

DATES: This policy is effective as of November 21, 2003.

FOR FURTHER INFORMATION CONTACT: For further information on the subject 
of this Notice, contact Lieutenant Commander Eric Walters (G-MOC) U.S. 
Coast Guard by telephone at (202) 267-0499 or by electronic mail at 
[email protected].

SUPPLEMENTARY INFORMATION: The requirements of 33 CFR part 106 apply to 
owners and operators of any fixed or floating facility, including MODUs 
not subject to 33 CFR part 104, operating on the Outer Continental 
Shelf (OCS) of the United States for the purposes of

[[Page 7682]]

engaging in the exploration, development, or production of oil, natural 
gas or mineral resources, that are regulated by 33 CFR Subchapter N, 
and that meet certain operating conditions of crewing or production. 
These regulations were developed under the authority the Maritime 
Transportation Security Act, which among other things, requires the 
development of security plans designed to deter, to the maximum extent 
practicable, transportation security incidents (TSIs). TSIs are 
security incidents resulting in a significant loss of life, 
environmental damage, transportation system disruption, or economic 
disruption in a particular area.
    The Coast Guard recognized that fixed and floating facilities come 
in a wide array of designs, and support a variety of activities, 
functions and processes that are intrinsic to the exploration, 
development or production of oil, natural gas, or mineral resources. 
Without the benefit of security measures, these facilities may be 
susceptible to a TSI. To ensure we included all relevant OCS 
facilities, we made our maritime security regulations applicable to 
those OCS facilities regulated under 33 CFR subchapter N (see 33 CFR 
106.105. Applicability). Subchapter N applies to a wide variety of OCS 
facilities, including facilities used to support drilling, extraction, 
and transmission. The security requirements of Title 33 CFR Part 106 
apply to those OCS facilities now regulated under subchapter N, as may 
be further limited by the ``consequence thresholds'' discussed below.
    The Coast Guard used the National Risk Assessment Tool (N-RAT) to 
determine ``consequence thresholds'' for various vessel and facility 
types to determine which vessels and facilities could be involved in a 
TSI. However, with regard to the facilities regulated by Title 33 part 
106, and as indicated in the Preamble to the temporary interim rules 
published on July 1, 2003 (68 FR 39250), we worked with the Minerals 
Management Service (MMS) to compare OCS facility production rates and 
operations to develop appropriate ``consequence thresholds.'' This is 
because the N-RAT was not able to provide sensitivity to the OCS 
facility size or production level that was sufficient for assessing the 
``significant loss of life'', ``economic disruption in a particular 
area'', ``transportation system disruption'', or ``environmental 
damage'', that is necessary for us to make a TSI determination.
    In Title 33 CFR 106.105, the Coast Guard identified three operating 
conditions to determine if the ``consequence threshold'' for a TSI was 
present on a particular OCS facility: the facility hosts more than 150 
persons for 12 hours or more in any 24 hour period continuously for 30 
days or more; the facility produces greater than 100,000 barrels of oil 
per day; or the facility produces greater than 200 million cubic feet 
of natural gas per day.
    These criteria have been developed solely to establish the 
``consequence thresholds'' for a TSI. Because a ``consequence 
threshold'' is applied as a metric, the particular activity, function 
or process that causes the threshold to be reached is irrelevant. 
Therefore, the Coast Guard uses the term ``production'' to include the 
handling, transfer or transmission of oil or natural gas by an OCS 
facility. In that regard, reference is made to the definition of 
``production'' used in 33 CFR subchapter N (140.10). Simply put, the 
Coast Guard finds that an OCS facility that supports a pipeline 
transmission junction transporting 100,000 barrels of oil per day 
presents the same TSI risks as an OCS facility that supports wells 
extracting 100,000 barrels of oil day from a down hole formation. 
Similarly, the Coast Guard finds that an OCS facility that supports 
both extraction and transportation activity, where neither the 
extraction nor the transportation components individually exceed the 
``consequence threshold'', but the aggregate of both activities exceeds 
the ``consequence threshold'', presents the same TSI risk.
    Policy: Title 33 CFR part 106 applies to those OCS facilities 
already regulated by 33 CFR subchapter N that meet the operating 
conditions of section 106.105 (a), (b) or (c). The Coast Guard uses the 
definition of the term ``production'' given in 33 CFR subchapter N 
(140.10) to include those activities, functions and processes that 
could render the OCS facility susceptible to a TSI. These activities, 
functions and processes may include, but are not necessarily limited 
to, the handling, transfer or transportation of oil or natural gas by 
an OCS facility supporting pipeline transmission junctions. The Coast 
Guard will continue to work with the Minerals Management Service (MMS) 
as necessary to refine and update the ``threshold characteristics'' 
upon which the applicability of 33 CFR part 106 is based.
    To this end, the MMS has provided the Coast Guard with a list of 
OCS facilities that, according to MMS data, meet or exceed the 
``threshold characteristics'' in 33 CFR part 106. The Coast Guard has 
sent letters to owners or operators of these facilities informing them 
that they must comply with the requirements of 33 CFR part 106. The 
Coast Guard intends to work closely with the MMS to identify all OCS 
facilities to which 33 CFR part 106 applies, and to inform the owners 
and operators of these facilities that they have been so identified. 
Owners and operators who believe their OCS facilities have been 
misidentified, or otherwise do not meet the ``threshold 
characteristics'' may appeal as prescribed in 33 CFR 101.420. While the 
Coast Guard will make a good faith effort to identify and notify the 
owners and operators of those OCS facilities subject to the 
requirements of 33 CFR part 106, ultimate responsibility for complying 
with 33 CFR part 106 rests with the cognizant OCS facility owner or 
operator.

    Dated: February 12, 2004.
T.H. Gilmour,
Assistant Commandant for Marine Safety, Security and Environmental 
Protection.
[FR Doc. 04-3619 Filed 2-18-04; 8:45 am]
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