[Federal Register Volume 71, Number 73 (Monday, April 17, 2006)]
[Rules and Regulations]
[Pages 19640-19646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-3611]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC57


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

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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SUMMARY: This final rule revises the MMS requirements for reporting 
incidents associated with Outer Continental Shelf (OCS) oil and gas and 
sulphur operations. The revisions will clarify the requirements, and 
provide more precise definitions and reporting timeframes. This will 
result in a more consistent incident reporting program and the 
collection of more reliable incident information.

DATES: Effective Date: This rule becomes effective on July 17, 2006.

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

SUPPLEMENTARY INFORMATION: On July 8, 2003, MMS published a Notice of 
Proposed Rulemaking (68 FR 40585), titled ``Oil and Gas and Sulphur 
Operations in the Outer Continental Shelf--Incident Reporting 
Requirements.'' The proposed rule had an initial 90-day comment period 
that was extended by 60 days (68 FR 44910, July 31, 2003) to December 
5, 2003. The proposed rule addressed amendments to MMS' regulations 
related to reporting accidents and other incidents on platforms and 
other facilities on oil and gas and sulphur leases and related rights-
of-way on the OCS.

Comments on the Proposed Rule

    We received 19 sets of comments on the proposed rule. Three of the 
commenters were industry trade organizations (Offshore Operators 
Committee (OOC), International Association of Drilling Contractors 
(IADC), and National Ocean Industries Association (NOIA)). We also 
received comments from one individual, two drilling contractors, ten 
operators, and one consultant. All of the comments received are 
available for review on the MMS Web site at: http://www.mms.gov/federalregister/PublicComments/rulecomm.htm.
    Most of the commenters stated that the proposed rule was overly 
prescriptive and burdensome to the industry and MMS. In addition, most 
commenters expressed concern that MMS and the U.S. Coast Guard (USCG) 
were not making a sufficient effort to coordinate incident reporting. 
First, in this final rule we have scaled back most of the requirements 
contained in the proposed rule that the commenters asserted were overly 
burdensome. With regard to the second issue raised in these comments, 
this final rule addresses only MMS' incident reporting requirements 
regarding incidents that occur during OCS oil and gas operations. 
However, MMS allows the operator to submit USCG forms where they 
contain all the information required in these regulations. In addition, 
we will continue to work with the USCG to coordinate our incident 
reporting requirements.
    In addition, the OOC commented that MMS does not say how the 
information collected by this rule will be used. Among other uses, the 
information required by the final rule will be used by MMS in:
     Considering regulatory changes,
     Determining research studies,
     Identifying unsafe procedures,
     Working with industry to develop standards,
     Compiling accident statistics and trend analyses,
     Deciding which incidents are serious enough to form an 
accident investigation panel,
     Preparing operator performance statistics, and
     Evaluating Safety Award for Excellence (SAFE) candidates.
    One commenter stated that the proposed regulations did not go far 
enough in reporting information concerning occupational safety. This 
commenter recommended that MMS require all employers to report 
occupational injuries and illnesses in accordance with criteria 
identical to those of the Occupational Safety and Health Administration 
(OSHA). There are employers on the OCS other than lessees and 
operators. This regulation, however, applies only to lessees and 
operators on the OCS. The regulations require the lessees and operators 
to report all pertinent incidents, regardless of whose employees were 
involved. The OSHA reporting requirements contain information that MMS 
does not need to perform its mission. We are requiring the reporting of 
only the information we need to oversee the OCS program.
    Several commenters, including the OOC, objected to the multiple 
timeframes for verbal and written reporting of incidents as being too 
complicated and burdensome. We agree with these comments, and have 
revised the rule to require immediate reporting of certain incidents 
via oral communication, with a written follow-up within 15 calendar 
days. In addition, the rule requires written reporting of certain less 
severe incidents within 15 calendar days. We have also eliminated the 
reporting forms contained in the proposed rule. This final rule allows 
the reporting company to use its own format for the written report, or 
a form prepared for another agency, as long as the required information 
is included.
    The proposed rule required that written reports be submitted 
electronically. We have dropped that requirement. The final rule does 
not specify or mention any method. You may submit written reports in 
whatever manner (mail, courier, personal delivery, fax, or e-mail) you 
choose. MMS may consider electronic submittal of information in future 
rulemaking.
    Several commenters, including the OOC, stated that the personnel 
injury categories in the proposed rule were not realistic for reporting 
purposes, and that they were too subjective. We agree with these 
comments, and have simplified the categories. This rule requires the 
immediate reporting of all injuries that require the evacuation of the 
injured person(s) from the facility to shore or to another offshore 
facility. A written follow-up report within 15 calendar days is 
required for any injury that results in days away from work, restricted 
work, or job transfer.
    In addition, the OOC and others expressed concern that the proposed 
rule may conflict with the Health Insurance Portability and 
Accountability Act of 1996 (HIPAA) in that it may require employee 
health information to be disclosed. We agree with these concerns. This 
rule does not require that any employee identification information be 
reported to MMS. When a reportable injury occurs, this rule requires 
that the operator/lessee report the following:
     Date and time of occurrence,
     Operator and operator's representative name and telephone 
number,
     Contractor and contractor's representative name and 
telephone number,
     Lease number, OCS area, and block,
     Platform/facility name and number,
     Type of incident or injury/fatality,

[[Page 19641]]

     Operation or activity at time of incident, and
     Description of the incident, damage, or injury/fatality.
    None of these items requires employee health information to be 
disclosed. MMS does not need any personal information, including the 
identification of any injured personnel.
    The OOC submitted comments concerning the definitions in the 
proposed rule. The definitions in the proposed rule were part of the 
reason for the complexity of that rule. By simplifying the rule, we 
have eliminated most of those definitions. The definitions in this rule 
are contained in the sections where the terms appear. We defined the 
terms ``loss of well control'', ``structural damage'', ``collision'', 
and ``property damage.'' The definition of ``loss of well control'' has 
been modified from the proposed rule to clarify that all flows through 
a diverter are to be reported. The definition of ``structural damage'' 
is new. The definition of ``collision'' was added so that only those 
collisions occurring at a facility be reported. We simplified the 
definition of ``property damage'' for those incidents requiring an 
estimate of the damage amount.
    The OOC suggested that the phrase ``issued by MMS'' be added after 
the term ``permit'' in proposed Sec.  250.187(a)(1) (Sec.  250.187(b) 
in the final rule) to clarify that the requirement applies only to 
operations conducted under MMS permitted activities. We agree with this 
suggestion and have inserted the phrase. In addition, the OOC suggested 
that MMS accept USCG reports when duplicative reports are required. MMS 
agrees that the operator may submit USCG forms to MMS if they contain 
all of the information required in these regulations. We have changed 
the rule accordingly.
    The OOC commented on the definition of Loss of Well Control. OOC 
indicated that planned well fluid flows through the diverter systems 
are not unexpected or uncontrolled flows. OOC does not consider these 
events to be a loss of well control and recommended that planned flows 
through the diverter not be reported. Planned flows through the 
diverter system are not authorized by Federal regulations. The use of 
the diverter system is for responding to unexpected well conditions and 
minimizing the risk of fires or wellbore cratering so that personnel 
can evacuate safely. A well that is flowing to the atmosphere is not 
``controlled.'' We have modified the definition to clarify that all 
incidents involving flow through a diverter are to be reported.
    The proposed rule maintained the current MMS requirement to report 
H2S releases that result in a 15-minute-time-weighted 
average atmospheric concentration of H2S of 20 parts per 
million (ppm) or more. The OOC commented that ``While we recognize that 
this is a current requirement in 30 CFR 250.490(l), it is unclear how 
the operator determines that a 15-minute time-weighted average 
atmospheric concentration of H2S of 20 ppm or more occurs.'' 
We did not make any changes to the rule as a result of this comment. 
Time weighted average is a recognized standard method for defining and 
measuring permissible exposure limits to ensure the safety of 
personnel. Because of the extreme toxicity of H2S, detection 
and monitoring equipment on a facility must be capable of alerting 
personnel of sustained atmospheric concentrations of 20 ppm. Operators 
who have further questions about determining H2S 
concentrations to meet this requirement may contact the appropriate 
District office for guidance.
    The requirement to report these H2S releases applies 
only to areas that have been classified ``H2S present'' or 
``H2S unknown'' as defined by the approved area 
classification required by Sec.  250.490(c). These areas are required 
to have H2S sensors for measuring atmospheric H2S 
concentrations.
    The proposed rule would have required the reporting of 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. 
The OOC commented that it would not be clear how the operator is to 
determine if an unintentional release could raise the concentration to 
the lower explosive limit. They went on to say that the gas detectors 
in certain areas of the platform would cause the system to shut-in if 
the lower explosive limit concentration was reached in those areas. 
They also said that those shut-in incidents could be reported to MMS, 
but that would be burdensome on both industry and MMS, and serve no 
purpose in improving safety on platforms. We have simplified the 
regulation to require the reporting of those gas releases resulting in 
equipment or process shut-in. We disagree that this information would 
serve no purpose in improving safety on platforms. OCS platforms have 
numerous sources of ignition, and there are many small fires reported 
on these facilities. Small fires have the potential to become major 
incidents that could cause serious injuries or deaths. By collecting 
the information on gas releases that result in equipment or process 
shut-in, we can track the trends, and possibly decrease the number of 
gas releases.
    The OOC commented on the proposed rule requirement to report 
incidents that involved personnel mustering for evacuation for reasons 
not related to weather. They indicated that in many cases, visitors or 
non essential personnel are required to report to the muster station 
whenever an alarm is sounded since they have no responsibilities in 
responding to the alarm. They recommended that a written report should 
only be required if personnel were actually evacuated. We agree that 
incidents where only visitors to the facility muster for evacuation 
should not be reported. We have reworded the requirement so that a 
written report is required when ``operations'' personnel muster for 
evacuation for reasons not related to weather and drills. This should 
eliminate the need to report incidents where visitors to the facility 
muster for evacuation or when personnel muster for non-emergency 
reasons.

Comparison of this Final Rule to the Current Regulation

    The current regulation on accident reporting, Sec.  250.191, 
requires operators, lessees, easement holders, pipeline right-of-way 
holders, and other permit holders to report all serious accidents, any 
death or serious injury, and all fires, explosions, and blowouts. This 
final rule broadens the scope of serious accidents and serious injuries 
to include those incidents that had the potential to be serious. MMS is 
requiring reporting down to this level to learn more about the causes 
of all incidents. MMS considers these less serious incidents to be the 
``near misses'' that could have resulted in more serious consequences.
    This final rule still requires the reporting of all deaths, fires, 
explosions, and blowouts. MMS considers the following incidents to be 
serious accidents or accidents that had the potential to be serious:
     Injuries that require the evacuation of the injured 
person(s) from the facility to shore or to another offshore facility 
(oral notification),
     Injuries that resulted in days away from work, restricted 
work, or job transfer (written report),
     Reportable releases of hydrogen sulfide (H2S) 
gas, as defined in Sec.  250.490(l),
     Incidents in which a vessel or helicopter collides with an 
OCS facility or another vessel at an OCS facility that

[[Page 19642]]

result in property or equipment damage greater than $25,000,
     Incidents involving structural damage to an OCS facility,
     Incidents involving cranes, personnel handling, or 
materials handling equipment,
     Incidents that damage or disable safety systems or safety 
equipment,
     Incidents that require operational personnel to muster for 
evacuation for reasons not related to weather or drills,
     Gas releases that initiate equipment or process shutdown, 
and
     Other incidents resulting in property or equipment damage 
greater than $25,000.
    Some of the incidents described above are already reported by the 
industry. These incidents usually occur with other reportable incidents 
such as fatalities, injuries, fires, explosions, or blowouts. Our 
intent in requiring the reporting of all of these incidents is to catch 
the ``near misses'' that do not result in fatalities, injuries, fires, 
explosions, or blowouts, but that could have resulted in serious 
outcomes. We estimate that there could be an increase of up to 351 
reports per year due to the new requirement to report the incidents 
listed above. This is based on the results of the Safety and 
Environmental Management Program (SEMP) voluntary performance measures 
reporting during the years 1996 through 2003 for injuries, and internal 
estimates for the other incidents listed above. During that period, the 
industry reported an average of 337 lost workday injury incidents per 
year. Therefore, we estimate that the first two items listed above 
(injuries that required evacuation from the facility, and injuries that 
resulted in days away from work, restricted work, or job transfer) 
could require up to 291 additional injury reports. We estimate that the 
other eight items listed above could require an additional 60 incident 
reports, bringing the total increase to 351 reports per year.
    This final rule requires that injuries that resulted in days away 
from work, restricted work, or job transfer be reported to MMS. The 
current rule requires that only serious injuries be reported. This 
accounts for most of the increase in reportable incidents. Under the 
current regulation, industry has reported an average of 56 injuries per 
year over the past nine years. In many of the reported injuries there 
was insufficient information to assess the seriousness of the injury. 
This final rule requires a description of the injury so that MMS can 
assess the seriousness. In addition to the ten items listed above, this 
rule requires a written report of all injuries that resulted in time 
away from work, restricted work, or job transfer.
    We estimate that there will be a very minor increase in the number 
of loss of well control incidents (blowouts) reported due to this rule. 
The term had never been defined in the regulations before. There are 
very few of these incidents each year.

Procedural Matters

Regulatory Planning and Review (Executive Order 12866)

    This document is not a significant rule, and is not subject to 
review by the Office of Management and Budget under Executive Order 
12866.
    a. 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 
will require additional reporting of incidents by operators and 
pipeline right-of-way holders, but the financial effect will be well 
under the threshold listed above. In the proposed rule, we estimated 
that start up costs for electronic reporting of incidents would be 
approximately $491,000. We dropped that proposed provision, so that 
estimated cost no longer applies. See the analysis below under 
Regulatory Flexibility Act for specific information on estimated costs 
of compliance.
    b. This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. This rule 
addresses MMS' incident reporting requirements only. It will have no 
effect on any other agency. The MMS and the USCG attempted to 
coordinate overlapping incident reporting requirements, but were 
unsuccessful. We will continue efforts to coordinate with the USCG, and 
if successful, will propose new requirements at that time.
    c. 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 incident reporting for oil 
and gas and sulphur operations on the OCS.
    d. This rule does not raise novel legal or policy issues. Current 
regulations require the reporting of accidents that occur during oil 
and gas and sulphur operations on the OCS. This rule provides 
definition to and clarifies the current requirements. The current 
requirements overlap somewhat with USCG requirements for incident 
reporting. This rule will continue that overlap. The MMS will continue 
to work with the USCG to eliminate the duplicative reporting. This rule 
may be revised if the two agencies agree on a joint rulemaking to 
eliminate the overlap.

Regulatory Flexibility Act (RFA)

    The Department of the Interior certifies that this rule will not 
have a significant economic effect on a substantial number of small 
entities as defined under the RFA (5 U.S.C. 601 et seq.). A regulatory 
flexibility 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

[[Page 19643]]

by this final rule, of which 109 would be considered small businesses. 
This final rule does not include any recordkeeping requirements.
    Under current incident reporting rules, the industry reported 411 
incidents during the two-year period 2003 through 2004. That works out 
to fewer than 18 incidents reported each month by the entire industry. 
During that two-year period, the highest number of incidents reported 
by one company was 47, or approximately 2 per month. That company is a 
major oil and gas producer, not a small business.
    As a result of requiring the reporting of less serious incidents in 
this final rule we estimate that an additional 351 incidents could be 
reported each year. This would result in an additional 30 incidents 
reported each month by the entire industry. Spread over the entire 
industry, the increase is not significant. Based on these numbers, 
incident reporting requirements do not impose much of a burden on the 
industry. Therefore, this rule will not have a significant economic 
impact.
    Comments from the public are important to us. The Small Business 
and Agriculture Regulatory Enforcement Ombudsman and 10 Regional 
Fairness Boards were established to receive comments from small 
business about Federal agency enforcement actions. The Ombudsman will 
annually evaluate the enforcement activities and rate each agency's 
responsiveness to small business. If you wish to comment on the actions 
of MMS, call 1-888-REG-FAIR (1-888-734-3247). You may comment to the 
Small Business Administration without fear of retaliation. Disciplinary 
action for retaliation by an MMS employee may include suspension or 
termination from employment with the Department of the Interior.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This rule is not a major rule under (5 U.S.C. 804(2)) the SBREFA. 
This rule:
    a. Does not have an annual effect on the economy of $100 million or 
more. Costs to comply with this rule involve oral notifications of 
incidents with follow-up written reports. These costs are minor in 
comparison with the costs to conduct operations on the OCS. This rule 
will result in an increase in the number of notifications and reports. 
See the discussions above under ``Regulatory Planning and Review'' and 
``Regulatory Flexibility Act.''
    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 costs involved in complying 
with these revised reporting requirements will not change the way the 
oil and gas industry conducts business, nor will it affect regional oil 
and gas prices.
    c. Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-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.

Unfunded Mandates Reform Act (UMRA) of 1995

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

Takings Implications Assessment (Executive Order 12630)

    According to Executive Order 12630, the rule does not have 
significant Takings Implications. A Takings Implication Assessment is 
not required. 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.

Federalism (Executive Order 13132)

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

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.

Paperwork Reduction Act (PRA) of 1995

    This rulemaking contains information collection (IC) requirements 
that were submitted to OMB during the proposed rulemaking according to 
section 3507(d) of the PRA. OMB did not assign a control number to the 
requirements at that time. The final regulations do contain minor 
changes in the collection of information from what was proposed. The 
proposed rulemaking had two (2) new forms associated with it. Due to 
comments received, which strongly opposed these two forms and their 
complicated requirements, this final rule completely restructures the 
requirements that were proposed and eliminates the forms. We now ask 
that respondents submit oral or written reports, depending on the 
requirement. The rule allows respondents to choose the format for 
transmission of the information. We also discussed in the notice of 
proposed rulemaking one-time costs to modify respondents' incident 
reporting systems to incorporate the new requirements. Since those 
requirements have been dropped, the non-hour cost burdens no longer 
apply. We received no comments on the burden hours. Therefore, we 
resubmitted the information collection to OMB and received approval 
under OMB Control Number 1010-0165, expiration March 31, 2009.
    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 and recordkeeping burden. You may submit 
your comments on the information collection aspects of this rule 
directly to the Rules Processing Team (RPT), Attn: Comments; 381 Elden 
Street, MS-4024; Herndon, Virginia 20170-4817. Please reference 
``Incident Reporting Requirements--AC57'' in your comments. You may 
obtain a copy of the supporting statement for the new collection of 
information by contacting the Bureau's Information Collection Clearance 
Officer at (202) 208-7744.
    The PRA (44 U.S.C. 3501, et seq.) 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.
    The title of the collection of information for this final rule is 
``30 CFR part 250, Oil and Gas and Sulphur Operations in the Outer 
Continental Shelf--Incident Reporting Requirements.'' Respondents 
include approximately 218 Federal OCS oil and gas or sulphur lessees 
and pipeline rights-of-way holders. The frequency of response depends 
upon the requirement. The information collection (IC) does not include 
questions of a sensitive nature. Responses to this

[[Page 19644]]

collection of information are mandatory. MMS will protect proprietary 
information according to the Freedom of Information Act (5 U.S.C. 552) 
and requirements under 30 CFR 250.196, ``Data and information to be 
made available to the public.''
    The final regulations convert into plain language and restructure 
the requirements for Incident Reporting in the OCS. The approved 
information collection for this final rule will incorporate two new 
information collection burdens pertaining to notification requirements 
into the primary collection of 30 part CFR part 250 subpart A (OMB 
Control Number 1010-0114), and one new information collection burden 
pertaining to H2S release that will be merged into the 
primary collection for 30 CFR part 250 subpart D (OMB Control Number 
1010-0141), when the final regulations take effect. MMS will collect 
the information to obtain knowledge of equipment, procedures, and 
circumstances involved in OCS incidents. MMS will use the information 
to identify OCS incident causes and trends in order to improve safety 
on the OCS through regulation, performance standards, research, and 
cooperative initiatives with industry.
    We estimate the total annual paperwork ``hour'' burden for the 
final rule to be 2,443 hours. Following is a breakdown of the hour 
burden estimate.

----------------------------------------------------------------------------------------------------------------
                                                                            Average number of    Annual burden
    Citation 30 CFR part 250      Reporting requirement     Hour burden     annual  responses        hours
----------------------------------------------------------------------------------------------------------------
Subpart A
    250.187....................  Report all spills of       Burden covered under 1010-0091.    0 \
                                  oil or other liquid
                                  pollutants.
    187; 188(a); 189; 190(c)...  Report to the District  Oral 0.2.........  491..............  99 (rounded)
                                  Manager immediately    Written 4........  491..............  1,964
                                  via oral
                                  communication and
                                  written follow-up
                                  within 15 calendar
                                  days, incidents
                                  pertaining to:
                                  fatalities; injuries;
                                  loss of well control;
                                  fires; explosions;
                                  all collisions
                                  resulting in property
                                  or equipment damage
                                  >$25K; structural
                                  damage to an OCS
                                  facility; cranes;
                                  incidents that damage
                                  or disable safety
                                  systems or equipment
                                  (including
                                  firefighting systems).
    250.188(a)(5)..............  Report to District      Oral burden covered under 1010-0141.  0
                                  Manager hydrogen
                                  sulfide (H2S) gas
                                  releases immediately
                                  by oral communication.
    188(b); 190(a), (b);.......  Provide written report  4................  35...............  140
                                  to the District
                                  Manager within 15
                                  calendar days after
                                  incidents relating
                                  to: injuries that
                                  result in 1 or more
                                  days away from work,
                                  on restricted work,
                                  or job transfer; gas
                                  releases that
                                  initiate equipment or
                                  process shutdown;
                                  property or equipment
                                  damage >$25K;
                                  operations personnel
                                  to muster for
                                  evacuation not
                                  related to weather or
                                  drills; any
                                  additional
                                  information required.
Subpart D
    250.490(l).................  Report to the District  Oral burden covered under 1010-0141.  0
                                  Manager hydrogen
                                  sulfide (H2S) gas
                                  releases immediately
                                  by oral communication
                                  and follow-up within
                                  15 days with a
                                  written report.
                                 ......................  Written 4........  60...............  240
----------------------------------------------------------------------------------------------------------------
        Total Reporting........  ......................  .................  1,077............  2,443
----------------------------------------------------------------------------------------------------------------

National Environmental Policy Act (NEPA) of 1969

    MMS analyzed this rule using the criteria of the NEPA and 516 
Department Manual, Chapter 2, and concluded that the preparation of an 
environmental analysis which would result in the issuance of a Finding 
of No Significant Impact or the preparation of an environmental impact 
statement is not required.

List of Subjects in 30 CFR Part 250

    Continental shelf; Environmental impact statements; Government 
contracts; Investigations; Oil and gas exploration; Penalties; 
Pipelines; Public lands--mineral resources; Public lands--rights-of-
way; Reporting and recordkeeping requirements; Sulphur.

    Dated: October 28, 2005.
Chad Calvert,
Acting Assistant Secretary--Land and Minerals Management.


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

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

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

    Authority: 43 U.S.C. 1331 et seq.; 31 U.S.C. 9701.


Sec.  250.190  [Redesignated]

0
2. Section 250.190 is redesignated as Sec.  250.186.
0
3. New Sec. Sec.  250.187 through 250.190 are added to read as set 
forth below:


Sec.  250.187  What are MMS' incident reporting requirements?

    (a) You must report all incidents listed in Sec.  250.188(a) and 
(b) to the District Manager. The specific reporting requirements for 
these incidents are contained in Sec. Sec.  250.189 and 250.190.
    (b) These reporting requirements apply to incidents that occur on 
the area covered by your lease, right-of-use and easement, pipeline 
right-of-way, or other permit issued by MMS, and that are related to 
operations resulting from the exercise of your rights under your lease, 
right-of-use and easement, pipeline right-of-way, or permit.
    (c) Nothing in this subpart relieves you from making notifications 
and reports of incidents that may be required by other regulatory 
agencies.
    (d) You must report all spills of oil or other liquid pollutants in 
accordance with 30 CFR 254.46.

[[Page 19645]]

Sec.  250.188  What incidents must I report to MMS and when must I 
report them?

    (a) You must report the following incidents to the District Manager 
immediately via oral communication, and provide a written follow-up 
report (hard copy or electronically transmitted) within 15 calendar 
days after the incident:
    (1) All fatalities.
    (2) All injuries that require the evacuation of the injured 
person(s) from the facility to shore or to another offshore facility.
    (3) All losses of well control. ``Loss of well control'' means:
    (i) Uncontrolled flow of formation or other fluids. The flow may be 
to an exposed formation (an underground blowout) or at the surface (a 
surface blowout):
    (ii) Flow through a diverter; or
    (iii) Uncontrolled flow resulting from a failure of surface 
equipment or procedures.
    (4) All fires and explosions.
    (5) All reportable releases of hydrogen sulfide (H2S) 
gas, as defined in Sec.  250.490(l).
    (6) All collisions that result in property or equipment damage 
greater than $25,000. ``Collision'' means the act of a moving vessel 
(including an aircraft) striking another vessel, or striking a 
stationary vessel or object (e.g., a boat striking a drilling rig or 
platform). ``Property or equipment damage'' means the cost of labor and 
material to restore all affected items to their condition before the 
damage, including, but not limited to, the OCS facility, a vessel, 
helicopter, or equipment. It does not include the cost of salvage, 
cleaning, gas-freeing, dry docking, or demurrage.
    (7) All incidents involving structural damage to an OCS facility. 
``Structural damage'' means damage severe enough so that operations on 
the facility cannot continue until repairs are made.
    (8) All incidents involving crane or personnel/material handling 
operations.
    (9) All incidents that damage or disable safety systems or 
equipment (including firefighting systems).
    (b) You must provide a written report of the following incidents to 
the District Manager within 15 calendar days after the incident:
    (1) Any injuries that result in one or more days away from work or 
one or more days on restricted work or job transfer. One or more days 
means the injured person was not able to return to work or to all of 
their normal duties the day after the injury occurred;
    (2) All gas releases that initiate equipment or process shutdown;
    (3) All incidents that require operations personnel on the facility 
to muster for evacuation for reasons not related to weather or drills;
    (4) All other incidents, not listed in paragraph (a) of this 
section, resulting in property or equipment damage greater than 
$25,000.


Sec.  250.189  Reporting requirements for incidents requiring immediate 
notification.

    For an incident requiring immediate notification under Sec.  
250.188(a), you must notify the District Manager via oral communication 
immediately after aiding the injured and stabilizing the situation. 
Your oral communication must provide the following information:
    (a) Date and time of occurrence;
    (b) Operator, and operator representative's, name and telephone 
number;
    (c) Contractor, and contractor representative's name and telephone 
number (if a contractor is involved in the incident or injury/
fatality);
    (d) Lease number, OCS area, and block;
    (e) Platform/facility name and number, or pipeline segment number;
    (f) Type of incident or injury/fatality;
    (g) Operation or activity at time of incident (i.e., drilling, 
production, workover, completion, pipeline, crane, etc.); and
    (h) Description of the incident, damage, or injury/fatality.


Sec.  250.190  Reporting requirements for incidents requiring written 
notification.

    (a) For any incident covered under Sec.  250.188, you must submit a 
written report within 15 calendar days after the incident to the 
District Manager. The report must contain the following information:
    (1) Date and time of occurrence;
    (2) Operator, and operator representative's name and telephone 
number;
    (3) Contractor, and contractor representative's name and telephone 
number (if a contractor is involved in the incident or injury);
    (4) Lease number, OCS area, and block;
    (5) Platform/facility name and number, or pipeline segment number;
    (6) Type of incident or injury;
    (7) Operation or activity at time of incident (i.e., drilling, 
production, workover, completion, pipeline, crane etc.);
    (8) Description of incident, damage, or injury (including days away 
from work, restricted work or job transfer), and any corrective action 
taken; and
    (9) Property or equipment damage estimate (in U.S. dollars).
    (b) You may submit a report or form prepared for another agency in 
lieu of the written report required by paragraph (a) of this section, 
provided the report or form contains all required information.
    (c) The District Manager may require you to submit additional 
information about an incident on a case-by-case basis.

0
4. Section 250.191 is revised 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 
apply to any panel meetings involving persons giving testimony:
    (a) A person giving testimony may have legal or other 
representative(s) present to provide advice or counsel while the person 
is giving testimony. The chairperson may require a verbatim transcript 
to be made of all oral testimony. The chairperson also may accept a 
sworn written statement in lieu of oral testimony.
    (b) Only panel members, and any experts the panel deems necessary, 
may address questions to any person giving testimony.
    (c) The chairperson may issue subpoenas to persons to appear and 
provide testimony or documents at a panel meeting. A subpoena may not 
require a person to attend a panel meeting held at a location more than 
100 miles from where a subpoena is served.
    (d) Any person giving testimony may request compensation for 
mileage, and fees for services, within 90 days after the panel meeting. 
The compensated expenses must be similar to mileage and fees the U.S. 
District Courts allow.


0
5. Section 250.490(l) is revised to read as set forth below.


Sec.  250.490  Hydrogen Sulfide

* * * * *
    (l) Do I need to notify MMS in the event of an H2S release? You 
must notify MMS without delay in the event of a gas release which 
results in a 15-minute time-weighted average atmospheric concentration 
of H2S of 20 ppm or more anywhere on the OCS facility. You 
must report these gas releases to the District Manager immediately by 
oral communication, with a written follow-up report within

[[Page 19646]]

15 days, pursuant to Sec. Sec.  250.188 through 250.190.
* * * * *


Sec.  250.513  [Amended]

0
6. In Sec.  250.513(d) remove the reference to ``Sec.  250.190'' and 
add in its place ``Sec.  250.186.''

Sec.  250.1102  [Amended]

0
7. In Sec.  250.1102(a)(9), (b)(8), and (b)(9), remove the reference to 
``Sec.  250.190'' each time it appears and add in its place ``Sec.  
250.186.''


Sec.  250.1617  [Amended]

0
8. In Sec.  250.1617(d) remove the reference to ``Sec.  250.190'' and 
add in its place ``Sec.  250.186.''
[FR Doc. 06-3611 Filed 4-14-06; 8:45 am]
BILLING CODE 4310-MR-P