[Federal Register Volume 70, Number 29 (Monday, February 14, 2005)]
[Rules and Regulations]
[Pages 7401-7403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2746]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC95


Oil and Gas and Sulphur Operations in the Outer Continental Shelf 
(OCS)--Document Incorporated by Reference--American Petroleum Institute 
(API) 510

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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SUMMARY: MMS is adding a document to be incorporated by reference into 
the regulations governing oil and gas and sulphur operations in the 
OCS. The new document, API 510, is titled ``Pressure Vessel Inspection 
Code: Maintenance Inspection, Rating, Repair, and Alteration.'' This 
incorporation will ensure that lessees use the best available and 
safest technologies while maintaining, repairing and altering pressure 
vessels in use on the OCS.

DATES: This rule is effective March 16, 2005. The incorporation by 
reference of the publication listed in the regulation is approved by 
the Director of the Federal Register as of March 16, 2005.

FOR FURTHER INFORMATION CONTACT: Richard Ensele, Regulations and 
Standards Branch, at (703) 787-1583.

SUPPLEMENTARY INFORMATION: MMS uses standards, specifications, and 
recommended practices developed by standard-setting organizations and 
the oil and gas industry for establishing requirements for activities 
on the OCS. This practice, known as incorporation by reference, allows 
us to incorporate the provisions of technical standards into the 
regulations without increasing the volume of the Code of Federal 
Regulations (CFR). The legal effect of incorporation by reference is 
that the material is treated as if it were published in the Federal 
Register. This material, like any other properly issued regulation, 
then has the force and effect of law. MMS holds lessees and operators 
accountable for complying with the documents incorporated by reference 
in our regulations. The regulations found at 1 CFR part 51 govern how 
MMS and other Federal agencies incorporate various documents by 
reference. Agencies can only incorporate by reference through 
publication in the Federal Register. Agencies must also obtain approval 
from the Director of the Federal Register for each publication 
incorporated by reference. Incorporation by reference of a document or 
publication is limited to the specific edition, or specific edition and 
supplement or addendum, cited in the regulations.
    The rule will incorporate by reference the provisions of the Eighth 
Edition of API 510 into MMS regulations. MMS has reviewed this document 
and has determined that the eighth edition should be incorporated into 
the regulations to ensure the use of the best available and safest 
technologies.
    The proposed rule was published on December 27, 2001 (66 FR 66848) 
with a 60-day comment period. We received comments from two parties 
concerning the proposed rule to incorporate API 510. One commenter felt 
that the National Board Inspection Code (NBIC) was a better document to 
incorporate for the inspection, repair, rating, and alteration of 
pressure vessels. MMS agrees that the NBIC is an excellent document. 
However, we have chosen to adopt the API document. As we stated in the 
proposed rule, it is the intention of both API and NBIC that their 
respective scopes not overlap. NBIC advises in its scope that ``It is 
recognized that an American Petroleum Institute Inspection Code, API-
510, exists covering the maintenance inspection, repair, alteration and 
re-rating procedures for pressure vessels used by the petroleum and 
chemical process industries, which is applicable in these special 
circumstances. It is the intent that this Inspection Code (NBIC) cover 
installations other than those covered by API-510 unless the 
jurisdiction rules otherwise.''
    The second commenter, an industry trade organization, recommended 
the incorporation of API 510 into the regulations, with the exception 
of sections 6 and 8.5. Section 6 of API 510 is entitled, ``Inspection 
and Testing of Pressure Vessels and Pressure Relieving Devices.'' 
Section 8 is entitled, ``Alternative Rules for Exploration and 
Production Pressure Vessels.'' Section 6.5 and section 8.5 are both 
entitled, ``Pressure Relieving Devices,'' with section 8.5 referring 
back to section 6.5 for specific procedures. The commenter pointed out 
that MMS has more stringent requirements for pressure relieving devices 
elsewhere in the regulations (Sec.  250.804(a)(2) and Sec.  
250.1630(a)(1)). MMS agrees. We will incorporate API 510 into the 
regulations except for sections 6.5 and 8.5, since those two sections 
pertain specifically to pressure relieving devices. The rest of section 
6 pertains to pressure vessels and should be incorporated into the 
regulations. We will also drop the reference to API 510 that appeared 
in the proposed rule in 30 CFR 250.803(b)(1)(i) and 30 CFR 
250.1629(b)(1)(i), covering pressure safety relief valves.

Procedural Matters

Regulatory Planning and Review (Executive Order 12866)

    This rule is not a significant rule under Executive Order 12866. 
The Office of Management and Budget (OMB) has determined that it is not 
a significant rule and will not review the rule.
    (1) This rule will not have an effect of $100 million or more on 
the economy. It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities. The rule would have no significant economic impact because 
the document does not contain any significant revisions that will cause 
lessees or operators to change their business practices. The document 
will not require the retrofitting of any facilities. The document may 
lead to minimal changes in operating practices, but the associated 
costs will be very minor.
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. The rule 
does not affect how lessees or operators interact with other agencies. 
Nor does this rule affect how MMS will interact with other agencies.
    (3) This rule does not alter the budgetary effects or entitlements, 
grants, user fees, or loan programs or the rights or obligations of 
their recipients. The rule only addresses the maintenance inspection, 
rating, repair, and alteration of pressure vessels in use on OCS 
facilities.

[[Page 7402]]

    (4) This rule does not raise novel legal or policy issues.

Regulatory Flexibility (RF) Act

    The Department of the Interior (DOI) certifies that this rule will 
not have a significant economic effect on a substantial number of small 
entities under the RF Act (5 U.S.C. 601 et seq.). This rule applies to 
all lessees and operators that conduct activities on the OCS. Small 
lessees and operators that conduct activities under this rule would 
fall under the Small Business Administration's (SBA) North American 
Industry Classification System codes 211111, Crude Petroleum and 
Natural Gas Extraction and 213111, Drilling Oil and Gas Wells. Under 
these codes, SBA considers all companies with fewer than 500 employees 
to be a small business. MMS estimates that of the 130 lessees and 
operators that explore for and produce oil and gas on the OCS, 
approximately 90 are small businesses (70 percent). However, because of 
the extremely high cost and technical complexity involved in 
exploration and development offshore, the vast majority of lessees and 
operators that will be affected will be companies with larger revenues.
    The API document proposed for incorporation into MMS regulations 
covers pressure vessels on offshore structures. Offshore structures can 
cost hundreds of millions of dollars to build and install. The document 
to be incorporated by this rule has been used by the industry for many 
years and the latest edition represents the current state-of-the-art 
industry practices. Boilers and pressure vessels currently being built 
are being constructed according to the requirements in the American 
Society of Mechanical Engineers Code. Existing pressure vessel 
equipment is being inspected and maintained to the requirements of API 
510. Additional costs, if any, are already accepted by the industry. As 
discussed above, MMS does not believe that this rule will have a 
significant impact on the lessees or operators who explore for and 
produce oil and gas on the OCS, including those that are classified as 
small businesses.
    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 1-888-REG-FAIR (1-888-734-3247). You may comment to the SBA 
without fear of retaliation. Disciplinary action for retaliation by an 
MMS employee may include suspension or termination from employment with 
the DOI.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This rule is not a major rule under 5 U.S.C. 804(2), SBREFA. This 
rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more. The proposed rule will not cause any significant costs to 
lessees or operators. The only costs will be the purchase of the new 
document and minor revisions to some operating and maintenance 
procedures. The minor revisions to operating and maintenance procedures 
may result in some minor costs.
    (b) 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 increase in cost 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.
    (c) Does not have significant adverse effect on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises. All 
lessees and operators, regardless of nationality, must comply with the 
requirements of this rule. The rule will not affect competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

Paperwork Reduction Act (PRA) of 1995

    There are no information collection requirements associated with 
this rule. DOI has determined that this regulation does not contain 
information collection requirements pursuant to PRA (44 U.S.C. 3501 et 
seq.) We will not be submitting an information collection request to 
OMB.

Federalism (Executive Order 13132)

    According to Executive Order 13132, the rule does not have 
federalism implications. This rule does not substantially and directly 
affect the relationship between the Federal and State Governments. This 
rule will simply add one additional document incorporated by reference 
to ensure that the industry uses the best and safest technologies. This 
rule does not impose costs on States or localities. Any costs will be 
the responsibility of the lessees and operators.

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

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

Takings Implication Assessment (TIA) (Executive Order 12630)

    According to Executive Order 12630, this rule does not have 
significant TIA implications. A TIA is not required. The rule revises 
existing operating regulations. It does not prevent any lessee or 
operator from performing operations on the OCS, providing they follow 
the regulations. Thus, MMS did not need to prepare a TIA according to 
Executive Order 12630, Governmental Actions and Interference with 
Constitutionally Protected Property Rights.

Energy Supply, Distribution, or Use (Executive Order 13211)

    The rule does not have a significant effect on energy supply, 
distribution, or use because it merely adds a new standard to be 
incorporated by reference that will provide for uniform maintenance and 
inspection practices. Thus, a Statement of Energy Supply, Distribution, 
or Use is not required.

Civil Justice Reform (Executive Order 12988)

    According to Executive Order 12988, the Office of the Solicitor has 
determined that this rule does not unduly burden the judicial system 
and meets the requirements of Sections 3(a) and 3(b)(2) of the Order.

National Environmental Policy Act (NEPA)

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. An environmental impact 
statement is not required.

Unfunded Mandates Reform Act (UMRA) of 1995

    This rule does not impose an unfunded mandate on State, local, and 
tribal governments or the private sector of more than $100 million per 
year. The rule does not have a significant or unique effect on State, 
local, or tribal governments or the private sector. A statement, 
containing the information required by the UMRA (2 U.S.C. 1531 et 
seq.), is not required.

List of Subjects in 30 CFR Part 250

    Environmental impact statements, Environmental protection, 
Government

[[Page 7403]]

contracts, Incorporation by reference, Investigations, Mineral 
royalties, Oil and gas development and production, Oil and gas 
exploration, Oil and gas reserves, Outer continental shelf, Penalties, 
Pipelines, Public lands--mineral resources, Public lands--rights-of-
way, Reporting and recordkeeping requirements, Sulphur development and 
production, Sulphur exploration, Surety bonds.

    Dated: February 2, 2005.
Rebecca W. Watson,
Assistant Secretary--Land and Minerals Management.

0
For the reasons stated in the preamble, the Minerals Management Service 
amends 30 CFR Part 250 as follows:

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

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

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


0
2. In Sec.  250.198, in the table in paragraph (e), a new entry for 
document API 510 is added in alphanumeric order to read as follows:


Sec.  250.198  Documents incorporated by reference.

* * * * *
    (e) * * *

------------------------------------------------------------------------
          Title of document               Incorporated by reference at
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                                * * * * *
API 510, Pressure Vessel Inspection    Sec.   250.803(b)(1).
 Code: Maintenance Inspection,         Sec.   250.1629(b)(1).
 Rating, Repair, and Alteration,
 except for Sections 6.5 and 8.5,
 Eighth Edition, June 1997, API Stock
 No. C51008.
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0
3. In Sec.  250.803, paragraph (b)(1) introductory text is revised to 
read as follows:


Sec.  250.803  Additional production system requirements.

* * * * *
    (b) * * *
    (1) Pressure and fired vessels. Pressure and fired vessels must be 
designed, fabricated, and code stamped in accordance with the 
applicable provisions of Sections I, IV, and VIII of the American 
Society of Mechanical Engineers (ASME) Boiler and Pressure Vessel Code. 
Pressure and fired vessels must have maintenance inspection, rating, 
repair, and alteration performed in accordance with the applicable 
provisions of the American Petroleum Institute's Pressure Vessel 
Inspection Code: Maintenance Inspection, Rating, Repair, and Alteration 
API 510 (except Sections 6.5 and 8.5), which is incorporated by 
reference in Sec.  250.198
* * * * *

0
4. In Sec.  250.1629, paragraph (b)(1) introductory text is revised to 
read as follows:


Sec.  250.1629  Additional production and fuel gas system requirements.

* * * * *
    (b) * * *
    (1) Pressure and fired vessels must be designed, fabricated, and 
code stamped in accordance with the applicable provisions of sections 
I, IV, and VIII of the American Society of Mechanical Engineers (ASME) 
Boiler and Pressure Vessel Code. Pressure and fired vessels must have 
maintenance inspection, rating, repair, and alteration performed in 
accordance with the provisions of the American Petroleum Institute's 
Pressure Vessel Inspection Code: Maintenance Inspection, Rating, 
Repair, and Alteration, API 510 (except Sections 6.5 and 8.5), which is 
incorporated by reference in Sec.  250.198.
* * * * *
[FR Doc. 05-2746 Filed 2-11-05; 8:45 am]
BILLING CODE 4310-MR-P