[Federal Register Volume 72, Number 191 (Wednesday, October 3, 2007)]
[Proposed Rules]
[Pages 56442-56512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-4831]



[[Page 56441]]

-----------------------------------------------------------------------

Part II





Department of the Interior





-----------------------------------------------------------------------



Minerals Management Service



-----------------------------------------------------------------------



30 CFR Parts 250, 253, 254, and 256



 Oil and Gas and Sulphur Operations in the Outer Continental Shelf--
Pipelines and Pipeline Rights-of-Way; Proposed Rule

  Federal Register / Vol. 72, No. 191 / Wednesday, October 3, 2007 / 
Proposed Rules  

[[Page 56442]]


-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Parts 250, 253, 254, 256

RIN 1010-AD11


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Pipelines and Pipeline Rights-of-Way

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rulemaking completely revises the MMS Outer 
Continental Shelf pipeline and pipeline Rights-of-Way (ROW) 
regulations, and brings them up to date with current industry practices 
and technology. The proposed rule incorporates parts of several new and 
revised industry standards into the regulations. It also incorporates 
several conditions of approval for pipelines, plus guidance from 
various Notices to Lessees and Operators (NTLs) and one Letter to 
Lessees and Operators (LTL) into one set of comprehensive pipeline 
regulations. The proposed regulations would eliminate several NTLs and 
the LTL, and have been rewritten in plain language.

DATES: Submit comments by January 31, 2008. The MMS may not fully 
consider comments received after this date. Submit comments to the 
Office of Management and Budget on the information collection burden in 
this proposed rule by November 2, 2007.

ADDRESSES: You may submit comments on the proposed rulemaking by any of 
the following methods. Please use the Regulation Identifier Number 
(RIN) 1010-AD11 as an identifier in your message. See also Public 
Availability of Comments under Procedural Matters.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions on the Web site for submitting comments.
     E-mail MMS at [email protected]. Use RIN 1010-AD11 in 
the subject line.
     Fax: 703-787-1546. Identify with the RIN, 1010-AD11.
     Mail or hand-carry comments to the Department of the 
Interior; Minerals Management Service; Attention: Regulations and 
Standards Branch (RSB); 381 Elden Street, MS-4024; Herndon, Virginia 
20170-4817. Please reference ``Pipelines and Pipeline Rights-of-way, 
1010-AD11'' in your comments and include your name and return address.
     Send comments on the information collection in this rule 
to: Interior Desk Officer 1010-0050, Office of Management and Budget, 
202-395-6566 (fax); e-mail: [email protected]. Please also send 
a copy to MMS.

FOR FURTHER INFORMATION CONTACT: For comments or questions on 
procedural issues, contact Richard Ensele, Regulations and Standards 
Branch, 703-787-1583. For questions on technical issues, contact Alex 
Alvarado, Pipeline Section, Gulf of Mexico Outer Continental Shelf 
Region, 504-736-2547.

SUPPLEMENTARY INFORMATION: The proposed rule is a complete revision of 
the regulations regarding pipelines and pipeline ROWs on the Outer 
Continental Shelf (OCS). The current regulations were originally 
published on April 1, 1988; various sections have been updated, and MMS 
has issued several NTLs and one LTL to clarify the regulations and to 
provide guidance. In addition, MMS often uses ``conditions of 
approval'' when approving pipeline applications to ensure that 
pipelines are installed, operated, maintained, and repaired in a safe 
and environmentally sound manner. The proposed rule incorporates some 
of those conditions of approval, and the guidance from the following 
NTLs and LTL (these documents are available on the MMS Web site at 
http://www.mms.gov/ntls/):
     NTL No. 2007-G09, Air Emissions Information for 
Applications for Accessory Platforms to Pipeline Rights-of-way (would 
be eliminated by the proposed rule);
     NTL No. 98-09, Proposed and As-Built Pipeline Location 
Data (would be eliminated by the proposed rule);
     NTL No. 2007-G01, Shallow Hazards Requirements;
     NTL No. 2000-G20, Deepwater Chemosynthetic Communities;
     NTL No. 2002-G03, Supervisory Control and Data Acquisition 
(SCADA) Systems;
     NTL No. 2007-G20, Coastal Zone Management Program 
Requirements for OCS ROW Pipeline Applications (would be eliminated by 
the proposed rule);
     NTL No. 2004-G05, Biologically Sensitive Areas of the Gulf 
of Mexico;
     NTL No. 2005-G07, Archaeological Resource Surveys and 
Reports;
     NTL No. 2007-G14, Pipeline Risers Subject to the Platform 
Verification Program (would be eliminated by the proposed rule); and
     LTL dated April 18, 1991, Provide Clarification, 
Description, and Interpretation with Regard to Pipeline Requirements 
(would be eliminated by the proposed rule).
    One of the goals in the proposed rule is to minimize the use of 
conditions of approval and NTLs. By incorporating this information, we 
hope to eliminate most of the conditions of approval, the four NTLs as 
noted above, and the LTL listed above. The remaining five NTLs would 
remain in effect, since they apply to other operations in addition to 
pipelines. In most cases, the industry has complied with these 
conditions and followed the guidance in the NTLs for several years. 
Even though these requirements are new to the regulations, they are 
generally not new to the industry.
    Another goal of the proposed rule is to update several industry 
standards already incorporated by reference into the regulations, and 
to incorporate new standards which would give the industry more options 
in designing new pipelines.

Review of Proposed Rule

    The proposed revision of subpart J is much longer than the current 
regulations in subpart J. It is more comprehensive, clear, and 
detailed. Most of the changes are designed to enhance safety and 
protect the environment. Many of the changes are based on American 
Petroleum Institute (API), American National Standards Institute 
(ANSI), and American Society of Mechanical Engineers (ASME) recommended 
practices, as well as standard MMS and industry practices. MMS will 
discuss the more significant changes here.
    The proposed rule revises several of the definitions in Sec.  
250.105. The definitions in Sec.  250.105 that MMS proposes to revise 
appear in other subparts as well as subpart J. Terms used only in 
subpart J are defined in proposed Sec.  250.1000 if the term is used in 
more than one place in subpart J. If a term is used in only one place 
in subpart J, it is defined in place.
    The proposed rule uses standards incorporated by reference 
applicable to pipelines. In some cases, MMS decided to include only the 
applicable language from a standard in the rule, rather than 
incorporate the entire standard. In other instances, MMS incorporated 
the standard or updated the currently incorporated standard. MMS will 
address the specific standards as they appear in the proposed rule. 
Since all documents incorporated by reference are covered under 30 CFR 
250 subpart A at Sec.  250.198, MMS proposes to update this section to 
include any new or changed documents. This includes revising the 
citations listed for several currently incorporated documents to 
correspond to the proposed subpart J rulemaking. MMS also added and 
changed requirements that relate to OCS

[[Page 56443]]

pipelines contained in 30 CFR parts 253, Oil Spill Financial 
Responsibility; 254, Oil Spill Response Requirements for Facilities 
Located Seaward of the Coastline; and 256, Leasing of Sulphur or Oil or 
Gas in the Outer Continental Shelf.
    MMS has divided the proposed rule into several broad subject 
categories as follows:

 General
 Applications for New Pipelines
 Pipeline Application Contents
 Pipeline Design
 Pipeline Fabrication
 Pipeline Construction
 Pipeline Risers Connected to Floating Platforms
 Pipeline Pressure Testing
 Pipeline Safety Equipment
 Pipeline Leak Detection
 Pipeline Internal Corrosion Control and Flow Assurance
 Pipeline Operations and Maintenance
 Pipeline Modifications and Repairs
 Pipeline Surveying, Monitoring, and Inspection
 Pipeline Decommissioning
 Pipeline Right-of-way (ROW) Grants
 Accessories to Right-of-way (ROW) Pipelines

    The following is an overview of each category, and a discussion of 
the significant changes and requirements.

General

    The General category covers definitions, general requirements, 
types of pipelines, jurisdiction, and a table that summarizes required 
applications, notifications, plans, and reports. The definitions used 
in this rulemaking have been discussed above. MMS considered adding a 
listing or table of acronyms after the definitions section, but decided 
against that due to the length of this proposed subpart. Would it be 
helpful to include such a listing or table?
    The proposed rule provides the basic regulations for OCS pipelines. 
There are other laws, conditions, and stipulations that apply to 
pipelines on the OCS which are not mentioned in the current 
regulations, but are addressed in this proposed rule. They include:

 OCS Lands Act (OCSLA), as amended
 National Environmental Policy Act (NEPA)
 Coastal Zone Management Act (CZMA)
 Oil Pollution Act of 1990 (OPA 90)
 Federal Water Pollution Control Act (FWPCA)
 Applicable implementing regulations
 Approved applications
 Development Operations Coordination Documents (DOCD)
 Development and Production Plans (DPP)
 Lease provisions and stipulations

    The Department of the Interior (DOI), through MMS, is one of two 
Federal agencies with jurisdiction over OCS oil and gas pipelines. The 
other is the U.S. Department of Transportation (DOT). Jurisdictional 
issues between the two agencies are addressed in this category. The 
jurisdictional criteria are based on the December 1996 Memorandum of 
Understanding (MOU) between DOI and DOT. According to the MOU, 
producer-operated pipelines are generally under DOI jurisdiction, and 
transporter-operated pipelines are generally under DOT jurisdiction. 
The MOU includes the flexibility to cover situations that do not 
correspond to its general definition of the jurisdictional boundary as 
``the point at which operating responsibility transfers from a 
producing operator to a transporting operator.'' The MOU also provides 
that DOI and DOT may, through their enforcement agencies and in 
consultation with the affected parties, agree to exceptions to the MOU 
on a facility-by-facility or area-by-area basis. Operators may also 
petition DOI and DOT for exceptions to the MOU.
    This category includes a table that summarizes the various 
applications, notifications, plans, and reports that a company must 
submit to MMS, including the timing of the submittal or notification 
and the number of copies required.

Applications for New Pipelines

    MMS approval is required to install, maintain, and operate all new 
pipelines on the OCS. This category covers the responsibilities of the 
applicant and MMS in the pipeline application process. The conditions 
under which the Secretary of the Interior may cancel approval of a 
pipeline application are also addressed.
    The proposed rule covers:
     When the Regional Supervisor (RS) may require additional 
information;
     When the RS may limit the information needed;
     When an application may be withdrawn;
     Requirements for informing impacted lessees, lease 
operators, and pipeline ROW holders; and
     Information submitted to affected States.
    MMS added a section to allow the RS to require additional 
information for those situations where conditions or features may 
warrant further scrutiny. Additionally, MMS added a section to allow 
the RS to limit the information to be submitted, if that information 
was submitted previously or is otherwise available. MMS is also 
codifying the Coastal Zone Management information requirements for 
affected States for the first time in the pipeline regulations. 
Guidance on this subject is currently contained in an NTL which would 
be eliminated by this proposed rule.
    The proposed rule documents the current process that MMS follows in 
its standard review of applications. That process is not addressed in 
the current regulations. Steps in the process include:

 Initial review
 Compliance review
 Environmental impact evaluation
 Amendments
 Approval restrictions
 Objections to coastal zone consistency certifications

Pipeline Application Contents

    The information that the applicant must supply to MMS in a pipeline 
application is spelled out, in detail, in this category. The proposed 
rule consolidates current MMS application content and application 
process requirements, with related guidance from several NTLs and one 
LTL.
    Activities for lease term pipelines must be covered in DOCDs in the 
western Gulf of Mexico (GOM), and in DPPs in the eastern GOM and in the 
Pacific and Alaska OCS Regions. The requirements for these OCS plans 
are covered in 30 CFR 250, subpart B, Plans and Information. The 
proposed rule imposes similar requirements for information on ROW 
pipeline applications that must be addressed in the DOCD and DPP 
required by subpart B for lease term pipelines. Current pipeline ROW 
regulations do not impose these requirements. They are contained as 
guidance in an NTL. As stated earlier, this proposed rulemaking would 
eliminate four NTLs and one LTL.
    Proposed Sec.  250.1016 lists other agencies and entities with 
which an applicant must coordinate, and the information required by MMS 
documenting that the coordination has taken place. Proposed Sec. Sec.  
250.1017 and 1018 provide a detailed description of the information 
required regarding the location of the proposed pipeline. In addition, 
proposed Sec. Sec.  250.1019 and 1020 provide a detailed description of 
the information required in the application regarding horizontal 
components, risers, appurtenances, and schematic flow diagrams.
    Applicants currently provide much of the information required in 
proposed Sec. Sec.  250.1022, 1023, and 1025 regarding construction, 
support, and products under the guidance of the NTLs listed earlier. 
The information requirements in proposed Sec.  250.1026 regarding

[[Page 56444]]

biological and archaeological resources are also currently submitted 
under the guidance of the NTLs. The proposed rule codifies current 
procedures.
    The requirements in proposed Sec.  250.1028 regarding oil spill 
response plans, and those in proposed Sec.  250.1029 regarding oil 
spill financial responsibility for ROW pipelines, are both new to 
subpart J. However, the proposed regulations simply reference current 
requirements in 30 CFR parts 254 and 253, respectively.
    The information requirements in proposed Sec.  250.1030 regarding 
environmental impact analyses for ROW pipelines are new to the pipeline 
regulations, but are necessary for MMS to comply with NEPA.

Pipeline Design

    Section 250.1002 of the current regulations contains pipeline 
design requirements. The proposed rule expands the design requirements 
into Sec. Sec.  250.1031 through 250.1036. The proposed rule includes 
performance requirements for designing a pipeline to mitigate and 
withstand the detrimental effects of environmental factors such as 
currents, storm and ice scouring, mud slides, earthquakes, hurricanes, 
and load factors such as differential pressures, dynamic loads, 
expansion and contraction, corrosion, and hydrogen sulfide gas.
    The proposed rule includes the formula for internal design pressure 
for steel horizontal components and risers that is in the current 
regulations. However, the proposed rule allows the use of equations 
from sections 4.3.1, 4.3.1.1, or 4.3.1.2 of API Recommended Practice 
1111, Design, Construction, Operation, and Maintenance of Offshore 
Hydrocarbon Pipelines (Limit State Design) (API RP 1111), in lieu of 
the current formula. This may result in a cost savings to the pipeline 
company depending on the type of pipe required by the different 
equations. It gives the pipeline company a choice in designing the 
pipeline. In addition, the proposed rule incorporates the formulas in 
sections 4.3.2.1 and 4.3.2.2 of API RP 1111 for predicting the external 
design (collapse) pressure for steel pipe, and the formulas in sections 
4.5.4 and 4.1.6.2 of API RP 1111 for designing a catenary riser for a 
fixed structure. The proposed rule would incorporate these seven 
sections of API RP 1111 into the regulations.

Pipeline Fabrication

    MMS included new performance requirements for pipeline fabrication 
in the proposed rule. The requirements are general in nature, and cover 
quality control, design tolerances, recognized engineering practices, 
and compliance.

Pipeline Construction

    Many of the proposed requirements in this category are new to the 
regulations. These include the performance requirements in the proposed 
Sec.  250.1040, and the requirements for constructing a pipeline in or 
near a designated use area, and in or near a sensitive biological 
feature or archaeological resource. Also new in the proposed 
regulations are requirements for hazard mitigation and installing hot 
taps.
    MMS included in this proposed rule a requirement to notify the 
military when crossing established military warning and water test 
areas, and a recommendation to notify the U.S. Coast Guard (USCG) for 
the preparation of a Notice to Mariners.
    The proposed rule would require pipeline companies in the Alaska 
OCS Region (AKOCSR) and Pacific OCS Region (POCSR) to take cathodic 
protection readings on all pipelines during repairs and hot tap 
installations, not just on those pipelines that are over 20 years old. 
MMS added this requirement to ensure that the entire length of the 
pipeline remains protected from external corrosion. MMS also proposes 
requirements for protecting the coating on the horizontal component of 
the pipeline and the riser during construction, and we changed the 
requirements for protecting appurtenances and crossings so that all 
equipment must have protection or cover in water depths less than 500 
feet. The separation for pipeline crossings is changed from 18 inches 
to 12 inches. The reduction still provides adequate protection, and is 
compatible with industry standards and DOT requirements. However, MMS 
invites your specific comments on this proposed change.
    The U.S. Department of Defense (DOD) provided the requirements in 
proposed Sec.  250.1047(a) regarding military test and water test 
areas. They are currently part of the lease agreement and stipulations. 
The requirements in proposed Sec.  250.1048 regarding sensitive 
biological features and archaeological resources are taken from 
guidance contained in several of the previously listed NTLs. Pipeline 
companies have followed the guidance in these NTLs and their 
predecessors for several years.
    The proposed rule would require companies to submit construction 
reports within 45 days after completion of pipeline construction, 
instead of the current 90 days. This is a reasonable requirement with 
today's technology, and will allow for faster updating of maps.

Pipeline Risers Connected to Floating Platforms

    The proposed rule establishes a Pipeline Riser Verification Program 
for risers connected to floating platforms. The proposed rule at Sec.  
250.1052 requires that all such pipeline risers be subject to separate 
verification that necessitates the use of a Certified Verification 
Agent (CVA) specifically for the pipeline riser. This requirement would 
be in addition to the platform verification requirements in subpart I. 
MMS is proposing this requirement because pipeline risers from floating 
platforms are highly sophisticated and complicated components that 
require extensive specialized technical analysis and oversight. Also, 
riser failures could have high failure consequences, such as spills, 
explosions, fires and other major incidents. The proposed rulemaking 
would eliminate one NTL on this subject.

Pipeline Pressure Testing

    This category covers hydrostatic pressure testing and leak testing. 
The proposed rule provides a definition of a successful hydrostatic 
pressure test, including when to conduct these tests and how to report 
the results. Most of the proposed requirements are the same as the 
current regulations. However, there are some new requirements for 
pressure testing after a repair using a spool piece.
    The requirements for submitting test results are revised to include 
specific information in the report. The proposed rule lists the 
instances when a hydrostatic pressure test is required, and the 
pressure requirements for the test. MMS is also proposing specific 
requirements for leak tests. In addition, the proposed rule allows 
pretesting of a spool piece for a repair to conform to DOT regulations.

Pipeline Safety Equipment

    This category covers the required safety equipment for pipelines. 
This includes departing, incoming, crossing, and bi-directional 
pipelines and pipeline pumps. The proposed rule describes the types, 
location, and operation of the required equipment. It also addresses 
requirements for providing redundant safety devices and for dealing 
with safety equipment failure.
    This category begins with a general performance requirement. MMS 
proposes to expand the regulatory requirements for departing pipelines 
to include certain requirements currently

[[Page 56445]]

imposed as conditions of approval for various permits. These 
requirements include the settings of high/low pressure sensors (PSHLs), 
and methods to determine the settings. In addition, the RS may require 
the installation of a flow safety valve (FSV) or a shutdown valve (SDV) 
on departing pipelines. These requirements are currently common 
industry safety practices.
    On new incoming, crossing, and bidirectional pipelines, the 
proposed rule requires that companies install SDVs no more than 10 feet 
from the boarding pipeline riser and in an unclassified area. On new 
crossing pipelines, the proposed rule requires installation of an FSV 
on unmanned and non-production platforms to prevent backflow. MMS 
currently imposes these requirements as conditions of approval to 
prevent spills and decrease the likelihood of explosions and fires.
    If the safety equipment fails, the proposed rule requires that the 
company shut in all pipelines immediately to ensure safety and protect 
the environment. Pipeline companies may not resume operations until the 
equipment is repaired or replaced, unless an equivalent degree of 
protection is provided.

Pipeline Leak Detection

    The proposed rule allows the RS to require leak detection systems 
if MMS determines that they are necessary. The proposed rule recommends 
the use of current technology. This includes, but is not limited to, 
computational pipeline monitoring (CPM), including supervisory control 
and data acquisition (SCADA) systems.

Pipeline Internal Corrosion Control and Flow Assurance

    This category includes new requirements to prevent internal 
pipeline corrosion and to maintain adequate flow over the life of a 
pipeline. These proposed changes are based on current industry 
practices included in API RP 1111.

Pipeline Operations and Maintenance

    Proposed Sec.  250.1079 would require the preparation of an 
operations and maintenance manual, an integrity management program, an 
emergency plan, and a personnel qualification program. MMS is proposing 
these requirements to ensure that lessees, designated lease operators, 
and pipeline ROW holders maintain OCS pipelines in accordance with 
current industry practices, and that the personnel performing the 
maintenance are capable of that task. Recent pipeline leaks in onshore 
pipelines in the United States, and other integrity issues associated 
with those pipelines, have prompted MMS to address offshore pipeline 
integrity in this proposed rule. The new requirements in Sec.  250.1079 
are performance based. At a later time, MMS may propose more 
prescriptive regulations if research indicates the need for them.
    Proposed Sec.  250.1080 would require marking pipeline segment 
numbers on the pipeline at each platform. The proposed rule would 
require marking immediately for new pipelines, but allows 6 months to 
mark existing pipelines. The proposed rule allows for the use of the 
component identifier from API RP 14C, Recommended Practice for 
Analysis, Design, Installation, and Testing of Basic Surface Safety 
Systems for Offshore Production Platforms (incorporated by reference 
into the regulations at Sec.  250.198) using the MMS-assigned pipeline 
segment number as the unique identifier. In API RP 14C, pipelines are 
identified by the codes KAA (bi-directional), KAH (departing), and KAQ 
(incoming). Under the proposed rule, the MMS-assigned pipeline segment 
number could be added to the API code (e.g., KAH-1425, where 1425 is 
the MMS-assigned pipeline segment number).
    MMS included new requirements for the preparation of an 
H2S Contingency Plan for pipelines that transport products 
containing H2S in certain concentrations. Since such plans 
are required for all other OCS operations where H2S is 
present, this proposed requirement makes the pipeline regulations 
consistent with the rest of our regulations.
    Although the requirements in proposed Sec.  250.1083 regarding 
remote operations are also new to the regulations, they are based on 
guidance from a current NTL covering operations during storms or other 
emergencies requiring evacuation.
    The specific requirements in proposed Sec.  250.1084 covering 
testing of safety equipment are new to the pipeline regulations. The 
current regulation at Sec.  250.1004(a) is a performance based 
requirement for testing safety equipment. The proposed rule would 
require testing as outlined in API RP 14C. Pipeline safety equipment is 
currently tested in accordance with the requirements in subpart H, Oil 
and Gas Production Safety Systems. This revision places the 
requirements in subpart J. Prudent companies already follow these 
procedures in testing pipeline safety equipment.
    The proposed rule includes notification and reporting requirements 
for safety equipment and pipelines removed from service. In addition, 
MMS proposes testing requirements for resuming operations on pipelines 
that have been shut in. Proposed Sec.  250.1088 would require 
suspension of pipeline operations and notification to MMS if a pipeline 
leaks. The notification requirement is based on guidance in a current 
LTL (which would be eliminated by this proposed rule), and is also 
normally a condition of approval to reactivate a pipeline. We included 
the requirements in proposed Sec.  250.1089, covering flaring gas from 
a pipeline, to be consistent with the regulations in subpart K, Oil and 
Gas Production Rates.

Pipeline Modifications and Repairs

    MMS has completely revised the regulations covering pipeline 
modifications and pipeline repairs to more closely resemble the 
requirements covering new pipelines. The information required in a 
modification application is expanded to satisfy safety and 
environmental protection requirements. MMS incorporated guidance 
currently addressed in an NTL to satisfy Coastal Zone Management Act 
(CZMA) requirements if the modification affects any States. For those 
modifications that involve the installation of a hot tap, we proposed 
requirements covering the design, location, and description of the hot 
tap. In addition, the proposed rule would require the submission of a 
modification report within 30 days of completion.
    The new information proposed for a repair application is necessary 
for safety and the protection of the environment. The proposed rule 
would require that the company submit a repair report within 30 days of 
the completion of the repair. The report must include location 
information, confirmation of the damage, confirmation that the repair 
was completed as approved, the results of pressure tests, and the 
cathodic protection measurements.
    MMS revised the requirements (proposed Sec.  250.1096) for 
repairing a pipeline with a clamp to differentiate those repairs below 
the splash zone from those in or above the splash zone. If you use a 
clamp to repair the pipeline on the horizontal component or on the 
pipeline riser below the splash zone, the proposed rule allows for the 
use of a welded clamp or a mechanical clamp. The proposed rule would 
require an application for a permanent repair in or above the splash 
zone, if you temporarily repaired the pipeline with a mechanical clamp. 
The permanent repair would require the use of a welded clamp, a spool 
piece, or other method approved by the RS.

[[Page 56446]]

Pipeline Surveying, Monitoring, and Inspection

    The proposed rule would require visual surveys of all pipeline 
routes at least monthly, and gives several methods for conducting the 
surveys. In addition, the proposed rule would require annual 
inspections of each pipeline riser in and above the splash zone, and 
inspection of the underwater portions of the riser in conjunction with 
the platform inspection requirements in 30 CFR 250, subpart I, 
Platforms and Structures. MMS included proposed requirements, currently 
in effect as guidance in an NTL, for inspecting the pipeline after a 
storm or earthquake. These proposed requirements are considered 
critical to the safe operation of pipelines.
    MMS proposes to change the deadline for reporting anode system 
inspections from March 1 to October 31 of each year, with the 
inspections to be conducted no later than September 30 of each year. 
This synchronizes MMS requirements for these reports with the timing of 
industry, since the inspections are normally conducted during the 
summer months. Pipeline companies currently either submit reports for 
inspections that they performed the previous summer, which are almost a 
year old, or they conduct the inspections when the weather is not 
ideal. By changing the reporting deadline to October 31 of each year, 
MMS ensures that the companies submit current information. The proposed 
regulation also allows the company to conduct tests at anytime and 
submit the reports within 60 days of the test, but no later than 
October 31 of each year. This provides more flexibility to the company 
in the timing of the tests.
    The ultrasonic test inspections, in-line inspections, and trawling 
tests in proposed Sec.  250.1103(d), (e), and (f) are new to the 
regulations. The RS may require these inspections and tests if specific 
conditions indicate the need for them.

Pipeline Decommissioning

    The regulations for decommissioning a pipeline are mostly 
unchanged. MMS is proposing to relocate the pipeline decommissioning 
regulations from 30 CFR 250, subpart Q, Decommissioning Activities, to 
subpart J since these regulations are unique to pipeline operations. 
This would consolidate almost all pipeline specific regulations in one 
subpart. MMS requests your specific comments on this proposal, and 
comments on whether we should adopt this approach with other subparts 
within 30 CFR 250.
    MMS added one section (proposed Sec.  250.1113) covering the 
requirements for re-commissioning a decommissioned pipeline. This 
section refers the applicant to the pipeline application process in 
proposed Sec.  250.1007.

Pipeline Right-of-Way (ROW) Grants

    This category covers the terms and conditions for holding a 
pipeline ROW grant, including when a grant is needed, who may hold a 
grant, and how to apply for a grant. It also covers:

 Bonding
 Application submittal
 MMS review
 Compliance
 Environmental review
 State consistency review
 Modification
 Cessation of operations
 Assigning a grant
 Suspensions
 Relinquishing a grant
 Terminating a grant

    Because of certain administrative similarities between pipeline ROW 
grants and OCS leases, many of the proposed changes are based on or 
derived from the regulations in 30 CFR 256, which address OCS leasing. 
Each separate ROW pipeline requires a separate ROW grant. The proposed 
financial security requirements are more detailed than in the current 
regulations. Currently, pipeline companies must furnish an area bond in 
the amount of $300,000 to hold pipeline ROW grants in an MMS OCS 
Region. The proposed rule would allow a pipeline ROW holder the option 
of choosing to cover the pipeline ROW with either a $300,000 pipeline 
ROW grant individual bond or a $1,000,000 pipeline ROW grant area bond. 
The $1,000,000 area bond will cover all pipeline ROW grants held by a 
company in one MMS OCS Region. These requirements represent an increase 
from the current bonding amount, and will more accurately reflect the 
actual liabilities in decommissioning pipelines. The new proposed 
amounts would apply to all existing and future grants. Companies would 
be required to cover existing pipeline ROW grants by these increased 
amounts within 6 months after the rule becomes effective. The Regional 
Director may also require additional security based on an evaluation of 
a company's ability to carry out present and future financial 
obligations under the pipeline ROW grant. Companies have the 
opportunity to provide MMS with written or oral arguments during the 
evaluation. These securities are required primarily to ensure that the 
U.S. Government has sufficient funds available to properly decommission 
a pipeline in the event that the pipeline company is unable or 
unwilling to do so. The proposed rule includes language giving MMS the 
ability to reduce the amount required by a bond, to deal with lapses in 
bonds, and to determine bond forfeiture.
    The service fee for a pipeline ROW grant would remain unchanged. 
The proposed rule addresses pipeline ROW grant assignments. The 
conditions for when MMS will suspend a ROW grant are spelled out more 
clearly.
    The MMS is proposing to increase the annual rental fees for 
pipeline ROW grants to reflect the current rates established for new 
rights-of-use and easement (see 30 CFR 250.160(f) and (g)) and pipeline 
accessory structures (see 30 CFR 250.1012(b)). The amount established 
by these regulations are $5.00 per acre per year for sites in water 
depths less than 200 meters and $7.50 per acre per year for sites in 
water depths 200 meters or greater. The current rental rate for 
pipeline ROW grants is $15 per mile. A pipeline ROW grant is 200 feet 
wide. Therefore, the area of a pipeline ROW grant is 24.24 acres per 
mile. At $5.00 per acre, the rental rate would be approximately $125 
per mile (actually $121.20). Since raising the rental for pipeline ROW 
grants to $125 per mile from $15 per mile is a major increase, MMS is 
proposing to raise the rental in two steps. This proposed rule would 
increase the annual rental for pipeline ROW grants to $70 per mile. MMS 
will propose the second increase to $125 per mile in a future 
rulemaking. Although this is a large increase, MMS believes the higher 
fee is a fair and reasonable amount to pay for access to Federal lands.
    The terms and conditions for holding a pipeline ROW grant remain 
unchanged with respect to the OCS Lands Act provisions requiring ROW 
pipelines to transport oil and natural gas produced in the vicinity of 
the pipeline without discrimination, and to provide open access.
    The proposed rule (Sec.  250.1131(j)) would make compliance with 
Executive Order 11246, regarding non-discrimination in employment, a 
condition for holding a pipeline ROW grant. Therefore, the requirement 
(currently Sec.  250.1015(d)) for pipeline ROW grant applicants to 
include the ``Non-discrimination in Employment'' form (YN 3341-1) with 
their applications is eliminated.
    This category also covers relinquishing a pipeline ROW grant. It

[[Page 56447]]

addresses the application requirements, rental payments, delinquent 
payments, the effective date of relinquishment, and financial 
securities. Proposed Sec.  250.1137 covers cancellation, forfeiture, 
and expiration of pipeline ROW grants. One of the grounds for 
forfeiture in this proposed rule (Sec.  250.1137(b)(2)) concerns open 
and nondiscriminatory access to shippers. The MMS recently published in 
the Federal Register a proposed rule (72 FR 17047, April 6, 2007) which 
would establish 30 CFR part 291, Open and Nondiscriminatory Movement of 
Oil and Gas as Required by the Outer Continental Shelf Lands Act. Part 
291 will be referenced in this regulation when it (part 291) becomes 
final.
    The proposed rule covers the obligations of the pipeline ROW holder 
after a pipeline ROW grant is terminated for any reason. The pipeline 
ROW holder has 1 year after the grant terminates to decommission the 
associated ROW pipeline. Current regulations require that the company 
remove the pipeline. However, the proposed rule allows for ROW 
pipelines to be decommissioned in place if the RS approves. The 
proposed rule also provides requirements for re-commissioning of 
decommissioned pipelines.

Accessories to Right-of-Way (ROW) Pipelines

    The proposed rule expands the current subpart J regulations for 
accessories to ROW pipelines. However, there are very few new 
requirements. The proposed rule clarifies that accessories to ROW 
pipelines are subject to the requirements currently contained in 30 CFR 
250, subpart H, Oil and Gas Production Safety Systems, and 30 CFR 250, 
subpart I, Platforms and Structures, just like all other OCS 
structures. It also clarifies that applications for new accessories are 
subject to Coastal Zone Management Act consistency requirements. The 
proposed rule documents the internal MMS process for approving an 
accessory application.

Appendix

    The following appendix will not appear in the Code of Federal 
Regulations. Appendix A is included in this proposed rule so we may 
solicit your comments on a proposed new form for use in reporting some 
of the information required in subpart J.

Appendix A--Department of the Interior--Form MMS 153, ``Notification of 
Pipeline Installation/Relocation/Hydrotest''

BILLING CODE 4310-MR-P

[[Page 56448]]

[GRAPHIC] [TIFF OMITTED] TP03OC07.000


[[Page 56449]]



Procedural Matters

Public Availability of Comments

    Before including your address, phone number, email address, or 
other personal identifying information in your comment, you should be 
aware that your entire comment--including your personal identifying 
information--may be made publicly available at any time. While you can 
ask us in your comment to withhold your personal identifying 
information from public review, we cannot guarantee that we will be 
able to do so.

Regulatory Planning and Review (Executive Order (E.O.) 12866)

    This proposed rule is not a significant rule as determined by the 
Office of Management and Budget (OMB), and is not subject to review 
under E.O. 12866.
    (1) The proposed rule would not have an annual effect of $100 
million or more on the economy. It would 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. There will be an increase in administrative 
costs, mainly information submitted to MMS in applications, plans, 
requests, and reports. MMS estimates that this proposed rule would cost 
the industry approximately $11.8 million in administrative costs each 
year. For more detail about these costs, please see the Paperwork 
Reduction Act section in this preamble. We estimate that the current 
pipeline regulations cost the industry approximately $7 million in 
administrative costs each year. Therefore, this proposed rule increases 
the annual administrative cost to industry by $4.8 million. However, 
the industry is currently submitting most of the information which 
would be required by this proposed rule as a condition of approval for 
a pipeline or pipeline right-of-way, or as requested in the NTLs 
mentioned earlier in this preamble. In addition, we estimate that this 
proposed rule will add $10.2 million in one-time costs to industry to 
comply with the new requirements for pipeline integrity management 
plans and associated manuals. The increased rental rate for pipeline 
ROW grants would result in an additional annual cost of $1.2 million to 
the industry. See the Regulatory Flexibility Act section of this 
preamble for more information. The MMS estimates that increasing the 
area-wide pipeline ROW bond from $300,000 to $1,000,000 would result in 
an additional annual cost of $3.7 million to the industry. This 
estimate is based on 300 area-wide pipeline ROW bonds in the GOM. The 
increased amount per bond would be $700,000. The average annual cost 
per bond in the GOM is 1.75 percent of the bond amount. The average 
annual increase in pipeline ROW bonding costs would be: 300 x $700,000 
x 1.75% = $3,675,000. In summary, there would be an annual increase in 
costs to the industry of approximately $9.7 million plus a one time 
cost of $10.2 million. The overall impact would be less than $100 
million. Most of the changes in the proposed rule clarify existing 
requirements or incorporate standard practices. Most operations would 
continue without many changes. This proposed rule is designed to codify 
existing practices that MMS and industry have generally followed for 
many years.
    (2) The proposed rule would not create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency.
    Both DOI and DOT have jurisdiction over OCS oil and natural gas 
pipelines. These jurisdictional boundaries are defined in the proposed 
rule.
    The DOI and DOT have a MOU dated December 10, 1996. According to 
the MOU, producer-operated pipelines are generally under DOI 
jurisdiction and transporter-operated pipelines are generally under DOT 
jurisdiction. The MOU includes the flexibility to cover situations that 
do not correspond to the general definition of the jurisdictional 
boundary as ``the point at which operating responsibility transfers 
from a producing operator to a transporting operator.'' The DOI and DOT 
may, through their enforcement agencies and in consultation with the 
affected parties, agree to exceptions to this MOU on a facility-by-
facility or area-by-area basis. Companies may also petition DOI and DOT 
for exceptions to this MOU.
    (3) The proposed rule would not alter the budgetary effects of 
entitlements, grants, user fees, or loan programs, or the rights or 
obligations of their recipients. The proposed rule does not address 
entitlements, grants, user fees, or loan programs; and therefore, can 
have no effects on such programs. The proposed rule does increase the 
rental fees paid for pipeline ROW grants by the pipeline companies.
    (4) The proposed rule would not raise novel legal or policy issues. 
Most of the requirements in the proposed rule represent established MMS 
and industry practices, and are in accordance with the provisions of 
the DOT/DOI MOU dated December 10, 1996.

Regulatory Flexibility Act (RFA)

    The Department certifies that this proposed rule would not have a 
significant economic effect on a substantial number of small entities 
under the RFA (5 U.S.C. 601 et seq.). A regulatory flexibility analysis 
is not required.
    This proposed rule applies to all lessees, designated lease 
operators, and pipeline ROW holders operating on the OCS. Lessees/
operators are classified 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 fewer 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 ROW holder (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 ROW 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 
such 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. 
These companies are classified 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 of installing, operating, and maintaining pipelines on 
the OCS are high due to the operating environment, i.e., marine 
environment, water depth, distance from shore. The costs imposed by 
this proposed rule are mainly due to recordkeeping and reporting, and 
are therefore minor in comparison to the overall operation.

[[Page 56450]]

    The increase in annual rental fees for pipeline ROW grants appears 
to be substantial, going from $15 per mile to $70 per mile. The MMS 
initially intended on raising the rental to the same rate as paid by 
holders of rights-of-use and easement and operators of accessory 
structures on the OCS ($5.00 per acre per year). Increasing the rental 
to $5.00 per acre would result in an annual rental rate of 
approximately $125 per mile. This proposed rule would increase the 
annual rental for pipeline ROW grants to $70 per mile (\1/2\ of the 
increase). MMS will propose the second increase in a future rulemaking. 
This acreage is computed based on a pipeline ROW being 200 feet wide. 
Therefore, the area of a pipeline ROW grant is 24.24 acres per mile. At 
$5.00 per acre, the rental rate would be approximately $125 per mile 
(actually $121.20). The MMS estimates that there are currently 20,114 
miles of active ROW pipelines in the Gulf of Mexico comprised of 2,512 
pipeline segments. Since MMS collects rentals on fractions of a mile 
for each segment, we added a correction factor to more accurately 
represent the mileage for which pipeline ROW holders are charged for 
annual rentals. Assuming the average fraction is 0.5 mile, the 
additional mileage will be the number of segments times 0.5. Therefore, 
the total mileage for which MMS collects rental is 20,114 + 1,256 = 
21,370. At $15 per mile, the total annual rental comes to $320,550. At 
$70 per mile, the total annual rental amounts to $1,495,900. However, 
this approximately $1.2 million annual increase is spread over the 
total number of pipeline ROW holders, and it is a minor cost when 
compared to the costs of installing, operating, and maintaining ROW 
pipelines.
    Your comments are important. 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 1-888-734-
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 DOI.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This proposed rule is not a major rule under the SBREFA (5 U.S.C. 
804(2)). This proposed rule:
    a. Would not have an annual effect on the economy of $100 million 
or more. The proposed rule deals with OCS pipeline operations. It would 
ensure that safe and environmentally sound pipeline operations 
continue. The impacts of this proposed rule would not be economic. This 
proposed rule would not have a large impact on the costs of OCS 
pipeline operations, and would not have an impact on oil or natural gas 
prices. Oil and natural gas prices are driven more by market factors 
than by the cost of production.
    b. Would not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions. This proposed rule would not 
significantly increase the cost of pipeline operations on the OCS since 
most of the requirements are established practices that industry has 
followed for years. In general, doing business on the OCS (of any kind) 
is expensive. Any new costs imposed by this proposed rule would be 
minor.
    The proposed rule would not have a large impact on the costs of OCS 
pipeline operations, and will not have an impact on oil or natural gas 
prices. Oil and natural gas prices are driven more by market factors 
than by the cost of production.
    c. Would 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. 
Leasing on the OCS is limited to residents of the U.S. or companies 
incorporated in the U.S. This proposed rule would not change that 
requirement. The proposed rule would not interfere with competition and 
would not impact employment, investment, or productivity. The proposed 
rule encourages innovation since it allows for alternative methods of 
conducting pipeline operations.

Unfunded Mandate Reform Act (UMRA)

    This proposed rule would not impose an unfunded mandate on State, 
local, or tribal governments or the private sector of more than $100 
million per year. The proposed rule would 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. There are no mandates for State, 
local, or tribal governments. This proposed rule only impacts pipeline 
companies on the OCS; it does not affect State or local governments or 
tribal lands.

Takings Implication Assessment (Executive Order 12630)

    The proposed rule is not a governmental action capable of 
interference with constitutionally protected property rights. Thus, MMS 
did not need to prepare a Takings Implication Assessment according to 
E.O. 12630, Governmental Actions and Interference with Constitutionally 
Protected Property Rights. The proposed rule revises existing pipeline 
regulations. It would not prevent any lessee, designated lease 
operator, or pipeline ROW holder from performing operations on the OCS, 
as long as they complied with the regulations.

Federalism (Executive Order 13132)

    With respect to E.O. 13132, this proposed rule would not have 
federalism implications. This proposed rule would not substantially and 
directly affect the relationship between the Federal and State 
governments. To the extent that State and local governments have a role 
in OCS activities, this proposed rule would not affect that role.
    The OCS is under Federal jurisdiction seaward from the State's 
jurisdiction. There is no overlap between State and Federal 
jurisdiction. This proposed rule applies only to areas under Federal 
jurisdiction. None of the changes in this proposed rule would affect 
areas that are controlled by the States. It would not change the way 
that the States and the Federal government interact, or the way that 
States interact with private companies.

Civil Justice Reform (Executive Order 12988)

    With respect to E.O. 12988, the Office of the Solicitor has 
determined that the proposed 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)

    This proposed rule contains a collection of information that will 
be submitted to the Office of Management and Budget (OMB) for review 
and approval under Sec.  3507(d) of the PRA. The title of the 
collection of information for this rule is 30 CFR 250, Subpart J 
Pipelines and Pipeline Rights-of-Way (Proposed Rulemaking) (OMB Control 
Number 1010-0050, expiration 3/31/09). Respondents primarily are an 
estimated 130 Federal OCS lessees and

[[Page 56451]]

designated lease operators and 88 pipeline ROW holders. Other potential 
respondents are companies that submit letters of no objection to, or 
comments on, pipeline applications; certified verification agents 
(CVAs), independent certification agents (IVAs), or other third-party 
reviewers; and surety or other third-party guarantors. The frequency of 
response varies depending upon the requirement. Responses to this 
collection of information are mandatory or required to obtain or retain 
a benefit. MMS will protect proprietary information according to the 
Freedom of Information Act and 30 CFR 250.197, ``Data and information 
to be made available to the public or for limited inspection.''
    As discussed earlier in the preamble, the proposed rule is a 
complete revision of the current pipelines and pipeline rights-of-way 
regulations at 30 CFR 250, subpart J. It incorporates guidance from 
several NTLs and one LTL that respondents currently follow, and would 
codify various conditions that MMS imposes when approving pipeline 
applications to ensure that pipelines are installed and operated in a 
safe and environmentally sound manner. The OMB approved the information 
collection burden of the current 30 CFR 250, subpart J regulations 
under control number 1010-0050 (107,874 burden hours; and $2,369,400 
non-hour burden cost service fees). When the final revised subpart J 
regulations take effect, the information collection burden approved for 
this rulemaking will replace the collection under 1010-0050 in its 
entirety.
    A table at Sec.  250.198 lists all of the 30 CFR 250 incorporated 
documents. That table would be revised to include the new 30 CFR 250, 
subpart J, incorporated documents added or updated under this proposed 
regulation. There are also several proposed changes to 30 CFR parts 253 
and 254. However, these proposed changes do not affect the currently 
approved information collection burden of 30 CFR 250, subpart A (OMB 
Control Number 1010-0114) or 30 CFR parts 253 and 254 (OMB Control 
Numbers 1010-0106 and 1010-0091, respectively).
    The current regulations on pipeline decommissioning and associated 
information collection are located in 30 CFR 250, subpart Q. The rule 
proposes to relocate the pipeline decommissioning requirements into the 
revised 30 CFR 250, subpart J regulations. The OMB approved the 
information collection burden of the current subpart Q regulations 
under control number 1010-0142. When the new 30 CFR 250, subpart J 
final regulations take effect, the pertinent 30 CFR 250, subpart Q 
pipeline decommissioning paperwork burden (3,000 burden hours) and 
their associated non-hour cost fees ($417,000) will be removed from the 
1010-0142 collection of information.
    There is a new paragraph (g) proposed for 30 CFR 256.62 which does 
impose a new information collection requirement. The paperwork burden 
for this proposed regulation is included in the submission to OMB for 
approval of the proposed 30 CFR 250 subpart J information collection. 
When this regulation becomes final, the 30 CFR 256 paperwork burden 
would be removed from this collection of information and consolidated 
with the information collection burden for 30 CFR 256 under OMB Control 
Number 1010-0006.
    The following table provides a breakdown of the paperwork burden 
and fee estimates for this proposed rulemaking. For the current 
requirements retained in the proposed rule, we used the approved 
estimated hour burdens and the average number of annual responses where 
discernable. However, due to the vastly different structure of the 
proposed rule from current regulations, some adjustments (-4,874 hours) 
occurred. The proposed rule eliminates four currently approved 
information collection requirements in current regulations at 
Sec. Sec.  250.1000(c)(2), (4), (8); and 250.1016 for a minimal burden 
reduction (-9 hours). However, there are several new requirements in 
the proposed rule as follows:
     Most are procedures and practices that are currently being 
followed by respondents. However, their hour burdens are not 
identifiable in the OMB approval of current information collection 
estimates, and are therefore considered ``new'' information collection 
burdens (+67,293 hours).
     Although a new Form MMS-153 is proposed for notifying MMS 
of pipeline installations or relocations and hydrostatic pressure 
tests, it should be noted that the information reported on the form is 
not a new burden (0 hours).
     A proposed new section, Pipeline Risers Connected to 
Floating Platforms (Sec. Sec.  250.1053-1056) would add new burden 
requirements (+8,100 hours).
     When the rule takes effect, proposed Sec.  250.1079 will 
require an initial one-time burden (+141,700 hours) on current 
respondents to develop the operating procedures. In future years, this 
burden will be drastically reduced as only new respondents will have to 
develop their initial operating procedures. There will be a 
substantially lower ongoing burden to maintain and update the 
procedures annually (+15,260 hours).
     Current subpart J regulations have 107,874 hours approved 
by OMB. This revision to the collection requests a total of 337,884 
hours which is a burden hour net increase of 230,010 hours. The fee is 
unchanged.

[[Page 56452]]

[GRAPHIC] [TIFF OMITTED] TP03OC07.001


[[Page 56453]]


[GRAPHIC] [TIFF OMITTED] TP03OC07.002


[[Page 56454]]


[GRAPHIC] [TIFF OMITTED] TP03OC07.003


[[Page 56455]]


[GRAPHIC] [TIFF OMITTED] TP03OC07.004


[[Page 56456]]


[GRAPHIC] [TIFF OMITTED] TP03OC07.005


[[Page 56457]]


[GRAPHIC] [TIFF OMITTED] TP03OC07.006


[[Page 56458]]


[GRAPHIC] [TIFF OMITTED] TP03OC07.007


[[Page 56459]]


[GRAPHIC] [TIFF OMITTED] TP03OC07.008


[[Page 56460]]


[GRAPHIC] [TIFF OMITTED] TP03OC07.009

    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

[[Page 56461]]

your comments directly to the Office of Information and Regulatory 
Affairs, OMB. You should provide MMS with a copy of your comments so 
that we can summarize all written comments and address them in the 
final rule preamble. Refer to the ADDRESSEES section for instructions 
on submitting comments. You may obtain a copy of our submission to OMB 
to revise and extend the OMB approval for 1010-0050 by contacting the 
Bureau's Information Collection Clearance Officer at (202) 208-7744.
    The PRA provides that an agency may not conduct or sponsor a 
collection of information unless it displays a currently valid OMB 
control number. Until OMB approves this collection of information and 
assigns an OMB control number and the regulations become final, you are 
not required to respond. OMB is required to make a decision concerning 
the collection of information of this proposed regulation 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 November 2, 2007. This does not affect the 
deadline for the public to comment to MMS on the proposed regulations.
    MMS specifically solicits comments on the following questions:
    (a) Is the collection of information necessary for MMS to properly 
perform its functions, and will it be useful?
    (b) Are the estimates of the burden hours of the collection 
reasonable?
    (c) Do you have any suggestions that would enhance the quality, 
clarity, or usefulness of the information to be collected?
    (d) 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?
    In addition, the PRA requires agencies to estimate the total annual 
reporting and recordkeeping ``non-hour cost'' burden resulting from the 
collection of information. Other than the cost recovery fees listed in 
the table above, we have not identified any other costs, and we solicit 
your comments on this item. For reporting and recordkeeping only, your 
response should split the cost estimate into two components: (a) Total 
capital and start-up cost component, and (b) 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 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:
    (1) Before October 1, 1995;
    (2) To comply with requirements not associated with the information 
collection;
    (3) For reasons other than to provide information or keep records 
for the Government; or
    (4) As part of customary and usual business or private practices.

National Environmental Policy Act (NEPA) of 1969

    The MMS has determined that this proposed rule is categorically 
excluded under 516 Department Manual Chapter 2, Appendix 1, 1.10, which 
covers ``Policies, directives, regulations, and guidelines that are of 
an administrative, financial, legal, technical, or procedural nature 
and whose environmental effects are too broad, speculative, or 
conjectural to lend themselves to meaningful analysis and will later be 
subject to the NEPA process, either collectively or case-by-case.
    This proposed rule would revise MMS's regulations at 30 CFR parts 
250, 253, 254, and 256 and brings them up-to-date with current industry 
practices and technology. It also incorporates several conditions of 
approval for pipelines, plus guidance from various Notices to Lessees 
and Operators and one Letter to Lessees and Operators into one set of 
comprehensive pipeline regulations. The proposed regulations also have 
been written in plain language.
    The changes to be implemented by this proposed rule are 
administrative, technical, and procedural in nature. The environmental 
effects of the proposed changes are either indirect (e.g., revised 
monitoring and reporting requirements), or too broad and speculative to 
lend themselves to a meaningful NEPA analysis. Individual pipelines and 
pipeline rights-of-way approved and regulated under this proposed rule 
will be subjected to the NEPA process. In addition, this proposed rule 
does not involve extraordinary circumstances as outlined in 516 DM 2, 
Appendix 2 that would trigger further NEPA analysis.

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

    Executive Order 13211 requires the agency to prepare a Statement of 
Energy Effects when it takes a regulatory action that is identified as 
a significant energy action. This proposed rule is not a significant 
energy action, and therefore would not require a Statement of Energy 
Effects, because it:
    a. Is not a significant regulatory action under E.O. 12866,
    b. Is not likely to have a significant adverse effect on the 
supply, distribution, or use of energy, and
    c. Has not been designated by the Administrator of the Office of 
Information and Regulatory Affairs, Office of Management and Budget, as 
a significant energy action.

Consultation With Indian Tribes (Executive Order 13175)

    Under the criteria in E.O. 13175, we have evaluated this proposed 
rule and determined that it has no potential effects on federally 
recognized Indian tribes. There are no Indian or tribal lands on the 
OCS.

Clarity of This Regulation

    Executive Order 12866 requires each agency to write regulations 
that are easy to understand. MMS invites 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 interferes with its clarity?
    (3) Does the format of the proposed rule (grouping and order of 
sections, use of headings, paragraphing, etc.) aid or reduce its 
clarity?
    (4) Would the proposed rule be easier to understand if it were 
divided into more (but shorter) sections?
    (5) Is the description of the proposed rule in the SUPPLEMENTARY 
INFORMATION section of this preamble helpful in understanding the rule? 
What else can we do to make the rule easier to understand?
    Send a copy of any comments that concern how we could make this 
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

    Administrative practice and procedure, Continental shelf, 
Environmental impact statements, Environmental protection, Pipelines, 
Public lands--mineral resources, Public lands--rights-of-way, Reporting 
and recordkeeping requirements, Sulphur.

[[Page 56462]]

30 CFR Part 253

    Continental shelf, Environmental protection, Intergovernmental 
relations, Oil pollution, Pipelines, Public lands--mineral resources, 
Reporting and recordkeeping requirements.

30 CFR Part 254

    Continental shelf, Intergovernmental relations, Oil pollution, 
Pipelines, Public lands--mineral resources, Reporting and recordkeeping 
requirements.

30 CFR Part 256

    Administrative practice and procedure, Continental shelf, 
Environmental protection, Intergovernmental relations, Public lands--
mineral resources, Public lands--rights-of-way, Reporting and 
recordkeeping requirements, Surety bonds.

    Dated: August 3, 2007.
C. Stephen Allred,
Assistant Secretary--Land and Minerals Management.

    For the reasons stated in the preamble, Minerals Management Service 
(MMS) proposes to amend 30 CFR parts 250, 253, 254, and 256 as follows:

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

    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.

    2. Amend Sec.  250.105 as follows:
    A. Remove the definitions of ``Lease term pipelines,'' 
``Pipelines,'' and ``Right-of-way pipelines.''
    B. Amend the definition of the term ``Affected State'' by removing 
the word ``or'' at the end of paragraph (4), removing the period at the 
end of paragraph (5) and adding a semicolon in its place, and adding 
new paragraphs (6) and (7).
    C. Add the definitions of ``Chemosynthetic communities,'' ``Lease 
term pipeline,'' ``Pipeline,'' ``Pipeline right-of-way (ROW),'' 
``Pipeline ROW holder,'' and ``ROW pipeline'' in alphabetical order.
    The additions read as follows:


Sec.  250.105  Definitions.

* * * * *
    Affected State * * *
    (6) Which is directly adjacent to the proposed route of a ROW 
pipeline; or
    (7) Which contains the onshore base you will use to provide supply 
and service support for ROW pipeline operations.
* * * * *
    Chemosynthetic communities means assemblages of tubeworms, clams, 
mussels, bacterial mats, and a variety of associated organisms that 
obtain their energy from the oxidation of various organic compounds 
rather than from light (photosynthesis) and the sun-dependent 
photosynthetic food chain that supports all other life on earth.
* * * * *
    Lease term pipeline means a pipeline that is applied for by a 
lessee or designated lease operator, and that is completely contained 
within the boundaries of a single lease, unitized leases, or contiguous 
(not cornering) leases held by that lessee or operated by that 
designated lease operator.
* * * * *
    Pipeline means the horizontal components, risers, and appurtenances 
installed for transporting oil, gas, sulphur, and produced water. 
Piping confined to a production platform or structure, commonly 
referred to as a flowline, is regulated under subpart H of this part, 
Oil and Gas Production Safety Systems, and is excluded from this 
subpart.
    Pipeline right-of-way (ROW) means an authorization issued by MMS 
under the authority of section 5(e) of the OCSLA (43 U.S.C. 1334(e)) 
and section 8 of the OCSLA (43 U.S.C. 1337(p)(1)(B)) that allows for 
the construction and use of an associated ROW pipeline for the purpose 
of transporting oil, natural gas, or sulphur. The term also means the 
area covered by that authorization.
    Pipeline ROW holder means a person, association, or corporation 
that has been granted a pipeline ROW on the OCS by MMS under the 
authority of section 5(e) of the OCSLA (43 U.S.C 1334(e)) and section 8 
of the OCSLA (43 U.S.C. 1337(p)(1)(b)).
* * * * *
    ROW pipeline means a pipeline that is within:
    (1) An unleased OCS block(s), or which crosses any portion of an 
unleased OCS block;
    (2) An OCS lease or unit, or which crosses any portion of an OCS 
lease or unit, and the applicant is not a lessee or the designated 
lease operator of that lease, or the unit operator of that unit.
* * * * *
    3. Amend Sec.  250.125(a) as follows:
    A. Remove the paragraphs (a)(20) through (a)(26);
    B. Remove paragraphs (a)(35) and (a)(36);
    C. Redesignate paragraphs (a)(27) through (a)(34) as paragraphs 
(a)(29) through (a)(36), respectively; and
    D. Add paragraphs (a)(20) through (a)(28) as set forth below.


Sec.  250.125  Service fees.

    (a) * * *

----------------------------------------------------------------------------------------------------------------
     Service--processing of the following:         Fee amount                    30 CFR citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
(20) New Pipeline Application (Lease Term                $3,100  Sec.   250.1014(g).
 Pipeline).
(21) Pipeline Application-Modification (Lease            $1,800  Sec.   250.1093(b)(7).
 Term Pipeline).
(22) Pipeline Application-Modification (ROW              $3,650  Sec.   250.1093(b)(7);
 Pipeline) (includes the application to modify                   Sec.   250.1132(a).
 the associated Pipeline ROW Grant, if
 applicable).
(23) Pipeline Repair Application...............            $340  Sec.   250.1095(a)(9).
(24) Application to Decommission a Pipeline              $1,000  Sec.   250.1109(a)(1)(vii);
 (Lease Term Pipeline).                                          Sec.   250.1109(a)(2)(xii).
(25) Application for a New Pipeline ROW Grant            $2,350  Sec.   250.1125(b);
 (includes the application for the associated                    Sec.   250.1126(h).
 ROW pipeline and any application to install or
 establish an associated accessory).
(26) Application for a Pipeline ROW Grant (to              $200  Sec.   250.1125(b);
 convert a Lease Term Pipeline to an ROW                         Sec.   250.1126(h).
 Pipeline).
(27) Request to Assign a Pipeline ROW Grant....            $170  Sec.   250.1134(a)(5).
(28) Application to Relinquish a Pipeline ROW            $1,900  Sec.   250.1136(a)(6).
 Grant (includes the decommissioning
 application for the associated ROW pipeline
 and any application to decommission an
 associated accessory).
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------


[[Page 56463]]

* * * * *
    4. Amend Sec.  250.198 as follows:
    A. Redesignate paragraph (d)(7) as paragraph (a)(8) and add new 
paragraph (d)(7);
    B. In the table in paragraph (e), add entries in alphanumerical 
order for the following new documents incorporated by reference: API RP 
1111 and DNV RP B401; and
    C. In the table in paragraph (e), revise the entries for the 
following documents incorporated by reference: ANSI/ASME B16.5, ANSI/
ASME B31.8, API RP 2A-WSD, API RP 2RD, API RP 14C, API RP 500, API RP 
505, API Spec 6A, API Spec 6D/ISO 14313, API Spec 17J, and NACE MR0175.
    The additions and revisions read as follows:


Sec.  250.198  Documents incorporated by reference.

* * * * *
    (d) * * *

------------------------------------------------------------------------
                  For                                Write to
------------------------------------------------------------------------
 
                                * * * * *
(7) DNV Recommended Practice...........  Det Norske Veritas, 16340 Park
                                          Ten Place, Houston, TX 77084.
 
                                * * * * *
------------------------------------------------------------------------

    (e) * * *

------------------------------------------------------------------------
           Title of documents              Incorporated by reference at
------------------------------------------------------------------------
 
                              * * * * * * *
ANSI/ASME B16.5-2003 (including Errata)  Sec.   250.1034(b)(1).
 and B16.5a-2003 Addenda, Pipe Flanges
 and Flanged Fittings.
ANSI/ASME B31.8-2003, Gas Transmission   Sec.   250.1033(a).
 and Distribution Piping Systems.
 
                              * * * * * * *
API RP 2A-WSD, Recommended Practice for  Sec.   250.901(a)(4);
 Planning, Designing and Constructing    Sec.   250.908(a);
 Fixed Offshore Platforms-Working        Sec.   250.920(a), (b), (c),
 Stress Design; Twenty-first Edition,     (e);
 December 2002; Errata and Supplement    Sec.   250.1033(k);
 1, December 2002; Errata and            Sec.   250.1141(a)(1)(ii),
 Supplement 2, October 2005; API Stock    (iii);
 No. G2AWSD.                             Sec.   250.1146(d).
 
                              * * * * * * *
API RP 2RD, Design of Risers for         Sec.   250.800(b);
 Floating Production Systems (FPSs) and  Sec.   250.901(a)(6);
 Tension-Leg Platforms (TLPs), First     Sec.   250.1033(d).
 Edition, June 1998, API Stock No.
 G02RD1.
 
                              * * * * * * *
API RP 14C, Recommended Practice for     Sec.   250.802(b), (e)(2);
 Analysis, Design, Installation, and     Sec.   250.803(a), (b)(2)(i),
 Testing of Basic Surface Safety          (b)(4), (b)(5)(i), (b)(7),
 Systems for Offshore Production          (b)(9)(v), (c)(2);
 Platforms, Seventh Edition, March       Sec.   250.804(a), (a)(6);
 2001, API Stock No. G14C07.             Sec.   250.1068(a)(1);
                                         Sec.   250.1080(c);
                                         Sec.   250.1084(a)(1), (b)(1),
                                          (c)(1), (d)(1), (d)(2),
                                          (e)(1);
                                         Sec.   250.1628(c), (d)(2);
                                         Sec.   250.1629(b)(2),
                                          (b)(4)(v);
                                         Sec.   250.1630(a).
 
                              * * * * * * *
API RP 500, Recommended Practice for     Sec.   250.114(a);
 Classification of Locations for         Sec.   250.459;
 Electrical Installations at Petroleum   Sec.   250.802(e)(4)(i);
 Facilities, Classified as Class I,      Sec.   250.803(b)(9)(i);
 Division 1 and Division 2, Second       Sec.   250.1064(b)(2);
 Edition, November 1997, reaffirmed      Sec.   250.1065(b)(2);
 November 2002, API Stock No. C50002.    Sec.   250.1066(b)(2);
                                         Sec.   250.1628(b)(3),
                                          (d)(4)(i);
                                         Sec.   250.1629(b)(4)(i).
API RP 505, Recommended Practice for     Sec.   250.114(a);
 Classification of Locations for         Sec.   250.459;
 Electrical Installations at Petroleum   Sec.   250.802(e)(4)(i);
 Facilities, Classified as Class I,      Sec.   250.803(b)(9)(i);
 Zone 0, Zone 1, and Zone 2, First       Sec.   250.1064(b)(2);
 Edition, November 1997, reaffirmed      Sec.   250.1065(b)(2);
 November 2002, API Stock No. C50501.    Sec.   250.1066(b)(2);
                                         Sec.   250.1628(b)(3),
                                          (d)(4)(i);
                                         Sec.   250.1629(b)(4)(i).
API RP 1111, Design, Construction,       Sec.   250.1033(a), (b), (c).
 Operation, and Maintenance of Offshore
 Hydrocarbon Pipelines (Limit State
 Design), Third Edition, July 1999,
 Sections 4.1.6.2, 4.3.1, 4.3.1.1,
 4.3.1.2, 4.3.2.1, 4.3.2.2, and 4.5.4
 only, API Stock No. D11113.
 
                              * * * * * * *
API Spec 6A, Specification for Wellhead  Sec.   250.806(a)(3);
 and Christmas Tree Equipment,           Sec.   250.1034(a), (b)(1).
 Nineteenth Edition, July 2004, API
 Stock No. GX06A19.
 

[[Page 56464]]

 
                              * * * * * * *
API Spec 6D/ISO 14313, Specification     Sec.   250.1034(a).
 for Pipeline Valves, Twenty-second
 Edition, January 2002, effective date
 July 1, 2002, API Stock No. G0X6D22.
 
                              * * * * * * *
API Spec 17J, Specification for          Sec.   250.803(b)(2)(iii);
 Unbonded Flexible Pipe, Second          Sec.   250.1015(c)(5);
 Edition, November 1999, effective date  Sec.   250.1016(b)(5);
 July 1, 2000, API Stock No. G17J02.     Sec.   250.1033(e).
 
                              * * * * * * *
DNV RP B401, Recommended Practice for    Sec.   250.1034(d)(2).
 Cathodic Protection Design, 1993,
 Table 6.9.1 only.
 
                              * * * * * * *
NACE Standard MR0175, Metals for         Sec.   250.490(p)(2);
 Sulfide Stress Cracking and Stress      Sec.   250.901(a)(19);
 Corrosion Cracking Resistance in Sour   Sec.   250.1035.
 Oilfield Environments, January 17,
 2003, NACE Item No. 21302.
 
                              * * * * * * *
------------------------------------------------------------------------

    5. In Sec.  250.199, revise paragraph (e)(9) to read as follows:


Sec.  250.199  Paperwork Reduction Act statements--information 
collection.

* * * * *
    (e) * * *

------------------------------------------------------------------------
 
------------------------------------------------------------------------
 
                              * * * * * * *
(9) Subpart J, Pipelines and Pipeline    To provide MMS with information
 Rights-of-Way (1010-0050), including     regarding the design,
 Forms MMS-153, Notification of           installation, and operation of
 Pipeline Installation/Relocation/        pipelines on the OCS. To
 Hydrotest; MMS-2030, OCS Pipeline        ensure that pipeline
 Right-of-Way Grant Bond; MMS-149,        operations are safe and
 Assignment of Federal OCS Pipeline       protect the human, marine, and
 Right-of-Way Grant.                      coastal environment.
 
                              * * * * * * *
------------------------------------------------------------------------

Sec. Sec.  250.1100-1107  [REDESIGNATED]

    6. Redesignate Sec. Sec.  250.1100-1107 as Sec. Sec.  250.1150-
1157.
    7. Revise subpart J to read as follows.
Subpart J--Pipelines and Pipeline Rights-of-Way

General

250.1000 Definitions.
250.1001 What general performance and recordkeeping requirements 
apply to OCS pipelines?
250.1002 What are the types of OCS pipelines?
250.1003 Which departments have jurisdiction over OCS pipelines?
250.1004 What are the criteria for determining jurisdiction?
250.1005 What are the requirements regarding jurisdiction transfer 
points?
250.1006 When must I submit the applications, requests, plans and 
reports, and make the notifications required by this subpart?

Applications for New Pipelines

250.1007 How do I apply for approval of a new pipeline?
250.1008 Where must I send copies of my pipeline application?
250.1009 How does MMS process a pipeline application?
250.1010 What conditions must my pipeline application meet?
250.1011 What can I do if an affected State objects to my pipeline 
ROW application?
250.1012 How will the Regional Supervisor notify me of the decision 
on my pipeline application?
250.1013 When may the Secretary cancel approval of a pipeline 
application?

Pipeline Application Contents

250.1014 General information.
250.1015 Other general information.
250.1016 Information regarding other agencies and entities.
250.1017 Location information.
250.1018 Origination and termination information.
250.1019 Horizontal component and appurtenances information.
250.1020 Schematic flow diagram.
250.1021 Shallow hazards information.
250.1022 Construction information.
250.1023 Onshore support base, terminal, support vessels, and 
aircraft information.
250.1024 Operation information.
250.1025 Service and products information.
250.1026 Biological and archaeological information.
250.1027 Requests for alternative compliance or departure.
250.1028 Oil and hazardous substance spill response information.
250.1029 Oil Spill Financial Responsibility (OSFR) demonstration 
information.
250.1030 Environmental Impact Analysis (EIA) information.

Pipeline Design

250.1031 What are the general requirements for designing a pipeline?
250.1032 What must I do to avoid or mitigate hazards?
250.1033 What are the design requirements for horizontal components 
and risers?
250.1034 What are the design requirements for appurtenances?
250.1035 What are the design requirements for sewer service?
250.1036 When must I sectionalize a pipeline?

Pipeline Fabrication

250.1038 What are the general requirements for fabricating a 
pipeline?

Pipeline Construction

250.1040 What are the general requirements for constructing a 
pipeline?
250.1041 Who must I notify before I begin construction?
250.1042 What must I do to avoid or mitigate hazards during 
construction?
250.1043 What must I do to install a hot tap?
250.1044 What must I do to protect a horizontal component?
250.1045 What must I do to protect a riser?
250.1046 What must I do to protect an appurtenance and crossing?
250.1047 What must I do to construct a pipeline in or near a 
designated use area?

[[Page 56465]]

250.1048 What must I do to construct a pipeline in or near a 
sensitive biological feature or area?
250.1049 What must I do to construct a pipeline in or near an 
archaeological resource?
250.1050 When must I prepare and implement an H2S 
contingency plan for construction?
250.1051 What information must I submit after construction is 
completed?

Pipeline Risers Connected to Floating Platforms

250.1052 What are the requirements for pipeline risers connected to 
floating platforms?
250.1053 What are the requirements for pipeline riser verification 
plans?
250.1054 What must the CVA do to verify pipeline riser design?
250.1055 What must the CVA do to verify pipeline riser fabrication?
250.1056 What must the CVA do to verify pipeline riser installation?

Pipeline Pressure Testing

250.1057 What are the general requirements for pressure testing a 
pipeline?
250.1058 What are the requirements for conducting a hydrostatic 
pressure test for a pipeline?
250.1059 What are the requirements for leak testing a pipeline?
250.1060 When must I perform a pressure test on a pipeline?
250.1061 What information must I include in a pressure test report?

Pipeline Safety Equipment

250.1062 What are the general requirements for pipeline safety 
equipment?
250.1063 What are the safety equipment requirements for a departing 
pipeline?
250.1064 What are the safety equipment requirements for an incoming 
pipeline?
250.1065 What are the safety equipment requirements for a crossing 
pipeline?
250.1066 What are the safety equipment requirements for a bi-
directional pipeline?
250.1067 When must I provide redundant safety equipment?
250.1068 What are the safety equipment requirements for a pipeline 
pump?
250.1069 What must I do if safety equipment fails to operate as 
intended?

Pipeline Leak Detection

250.1071 When do I need to use a leak detection system?

Pipeline Internal Corrosion Control and Flow Assurance

250.1074 What are the general requirements for internal corrosion 
control?
250.1075 What are the general requirements for flow assurance?

Pipeline Operations and Maintenance

250.1078 What are the general requirements for operating and 
maintaining a pipeline?
250.1079 What written procedures must I establish before I operate 
an OCS pipeline?
250.1080 When must I mark the MMS-assigned pipeline segment number 
on a pipeline?
250.1081 How do I determine the MAOP of a pipeline?
250.1082 What must I do if the pipeline transports H2S?
250.1083 What are the requirements for conducting remote operations 
during a platform evacuation?
250.1084 What are the requirements for testing pipeline safety 
equipment?
250.1085 What must I do when safety equipment is removed from 
service?
250.1086 What must I do when a pipeline is taken out of service?
250.1087 What must I do if a pipeline is shut in?
250.1088 What must I do if a pipeline leaks?
250.1089 What must I do if I need to flare or vent gas from a 
pipeline?
250.1090 When must I provide impact protection for existing risers?
250.1091 When will MMS suspend or temporarily prohibit pipeline 
operations?

Pipeline Modifications and Repairs

250.1093 What must I do to modify an approved pipeline?
250.1094 What are the general requirements for repairing a pipeline?
250.1095 What must I do to commence and complete a repair?
250.1096 What must I do to repair a pipeline using a clamp?
250.1097 When do I need to submit a corrective action plan and 
report?

Pipeline Surveying, Monitoring, and Inspection

250.1100 What are the general requirements for surveying, 
monitoring, and inspecting a pipeline?
250.1101 What must I do to survey and monitor a pipeline or route?
250.1102 What inspections are required for my pipeline or route?
250.1103 What additional inspections or surveys may the Regional 
Supervisor require?

Pipeline Decommissioning

250.1105 When do I accrue pipeline decommissioning obligations?
250.1106 When must I decommission a pipeline?
250.1107 What must I do to decommission a pipeline in place?
250.1108 What must I do to decommission a pipeline by removal?
250.1109 How do I obtain approval to decommission a pipeline?
250.1110 How does MMS process a decommissioning application?
250.1111 After I decommission a pipeline, what information must I 
submit?
250.1112 When must I remove a pipeline decommissioned in place?
250.1113 What are the requirements for re-commissioning a 
decommissioned pipeline?

Pipeline Right-of-Way (ROW) Grants

250.1115 What is a pipeline ROW grant?
250.1116 When must I obtain a pipeline ROW grant?
250.1117 Who can be a pipeline ROW grant holder?
250.1118 What are the financial security requirements for holding a 
pipeline ROW grant?
250.1119 When will MMS terminate the period of liability of my 
financial security?
250.1120 When will MMS cancel my financial security?
250.1121 What happens if my financial security is reduced or lapses?
250.1122 How will MMS determine that my financial security is 
forfeited?
250.1123 What penalties can MMS assess if my financial security is 
not sufficient, is reduced or lapses, or is forfeited?
250.1124 What happens to my financial security after a pipeline ROW 
grant terminates?
250.1125 How do I submit an application for a pipeline ROW grant?
250.1126 What information must I include in an application for a 
pipeline ROW grant?
250.1127 How does MMS process an application for a pipeline ROW 
grant?
250.1128 When will MMS temporarily suspend or prohibit construction 
of an ROW pipeline?
250.1129 What must I do if the as-built location of the associated 
ROW pipeline deviates from the approved pipeline ROW grant?
250.1130 What rental fees and payment schedules apply to a pipeline 
ROW grant?
250.1131 What are the terms and conditions for holding a pipeline 
ROW grant?
250.1132 How do I modify a pipeline ROW grant?
250.1133 How does temporary cessation and cessation of pipeline 
operations affect a pipeline ROW grant?
250.1134 How do I assign a pipeline ROW grant?
250.1135 When may MMS suspend a pipeline ROW grant?
250.1136 How do I relinquish a pipeline ROW grant?
250.1137 When will a pipeline ROW grant be cancelled, be forfeited, 
or expire?
250.1138 What must I do after a pipeline ROW grant terminates?

Accessories to Right-of-Way (ROW) Pipelines

250.1140 What are the requirements for an accessory to an ROW 
pipeline?
250.1141 How do I obtain approval to install, operate, and maintain 
an accessory?
250.1142 How does MMS process an accessory application?
250.1143 Who do I need to notify before I install an accessory?
250.1144 What information must I submit after an accessory is 
installed?
250.1145 What accessory inspections must I conduct?
250.1146 What must I do to modify an accessory?
250.1147 When must I decommission an accessory?

[[Page 56466]]

Subpart J--Pipelines and Pipeline Rights-of-Way

General


Sec.  250.1000  Definitions

    Terms used in this subpart have the following meanings:
    Accessory means a platform, a major subsea manifold, or similar 
subsea structures attached to a ROW pipeline to support pump stations, 
compressors, manifolds, etc. The site used for an accessory is part of 
the pipeline ROW grant.
    Appurtenance means equipment, device, apparatus, or other object 
attached to or associated with a horizontal component or riser. 
Examples include anodes, valves, flanges, fittings, umbilicals, vortex-
induced vibration (VIV) devices, subsea manifolds, templates, pipeline 
end modules (PLEM's), pipeline end terminals (PLET's), anode sleds, 
other sleds, and jumpers (other than jumpers connecting subsea wells to 
manifolds).
    Failure, when applied to a pipeline or safety system, means any 
condition of the pipeline or a safety system component that prevents 
the complete performance of its design and function.
    Horizontal component means a horizontal pipe that connects a 
pipeline riser, subsea wellhead or template, or pipeline to a pipeline 
riser, subsea wellhead or template, or pipeline (synonymous with the 
term ``linepipe'').
    Leak means the release of product from a pipeline.
    Live bottoms (low relief features) means sea grass communities; 
areas that contain biological assemblages consisting of sessile 
invertebrates and/or algae living upon and attached to naturally 
occurring hard or rocky formations with rough, broken, or smooth 
topography; and areas where a hard substrate and vertical relief may 
favor the accumulation of turtles, fishes, or other fauna. These 
features occur throughout the POCSR, in the Eastern Planning Area of 
the Gulf of Mexico, and in the Beaufort Sea in Alaska.
    Live bottoms (pinnacle trend features or seamounts) means small, 
isolated, low to moderate relief carbonate reef features; outcrops of 
unknown origin; or hard substrates exposed by erosion that provide 
surface area for the growth of sessile invertebrates and/or algae, and 
attract large numbers of fish. These features occur in an area of 
topographic relief throughout the POCSR and AKOCSR, and in the 
northeastern portion of the western GOMR. In the POCSR and AKOCSR, 
these features include rocky reefs, rock outcrops, pinnacles or 
seamounts. In the GOMR, these features include pinnacle trend features.
    Maximum allowable operating pressure (MAOP) means the highest 
operating pressure allowable at any point in a pipeline.
    Military warning or water test area means an area on the OCS that 
is used by the U.S. Department of Defense for conducting various 
mission operations, including air-to-air gunnery, rocket and missile 
research and testing, sonar buoy operations, pilot training, and 
aircraft carrier operations.
    New or unusual technology means equipment or procedures that have:
    (1) Not been used previously or extensively in an MMS OCS Region;
    (2) Not been used previously under the anticipated operating 
conditions; or
    (3) Operating characteristics that are outside the performance 
parameters established by this subpart.
    Potentially sensitive biological features means those features not 
protected by an MMS biological lease stipulation that are of moderate 
to high relief (about 8 feet or higher), provide surface area for the 
growth of sessile invertebrates, and attract large numbers of fish. 
These features would be located outside any ``No Activity Zone'' of any 
of the named topographic features and would not be located on any live-
bottom (pinnacle trend) stipulated blocks.
    Production platform means a platform on the OCS that receives 
hydrocarbon or sulphur production either directly from wells or from 
other platforms that produce hydrocarbons or sulphur from wells. It may 
include processing equipment for treating the production or separating 
it into its various liquid and gaseous components.
    Riser means a vertical conducting pipe that connects a horizontal 
component of a pipeline to equipment on a platform.
    Splash zone means that portion of a pipeline riser that is located 
between 20 feet above the maximum tide and 20 feet below the minimum 
tide.
    Topographic features means identified isolated areas of moderate to 
high relief that provide habitat for hard-bottom communities and 
numerous plant and animal species, and support, either as shelter or 
food, large numbers of commercially and recreationally important 
fishes.


Sec.  250.1001  What general performance and recordkeeping requirements 
apply to OCS pipelines?

    (a) Performance. You must design, construct, operate, maintain, 
inspect, and decommission all OCS pipelines, appurtenances, 
accessories, and safety system components in a manner that:
    (1) Conforms to the OCSLA (43 U.S.C. 1331, et seq.), as amended, 
applicable implementing regulations, other applicable laws, approved 
applications, approved Development Operations Coordination Documents 
(DOCD) and Development and Production Plans (DPP), and lease provisions 
and stipulations;
    (2) Is safe;
    (3) Prevents unauthorized discharges;
    (4) Does not unreasonably interfere with other uses of the OCS, 
including those involved with national security or defense; and
    (5) Does not cause undue or serious harm or damage to the human, 
marine, or coastal environment.
    (b) Records. You must retain all records related to the design, 
construction, operation, maintenance, testing, inspections, repairs, 
failures, and decommissioning of an OCS pipeline for as long as the 
pipeline remains in place, unless otherwise specified by the Regional 
Supervisor or in these regulations, and make them available to MMS upon 
request.


Sec.  250.1002  What are the types of OCS pipelines?

    An OCS pipeline is either a lease term pipeline or an ROW pipeline.


Sec.  250.1003  Which departments have jurisdiction over OCS pipelines?

    An OCS pipeline is under the jurisdiction of either the Department 
of the Interior (DOI) or the Department of Transportation (DOT).


Sec.  250.1004  What are the criteria for determining jurisdiction?

    (a) DOI jurisdiction criteria. An OCS pipeline is under DOI 
jurisdiction if it is:
    (1) A lease term pipeline that is not subject to regulation under 
49 CFR, parts 192 and 195, and does not cross into State waters; or
    (2) An ROW pipeline that is operated by an identified pipeline 
operator (the person or entity identified by the pipeline ROW holder as 
authorized to control or manage the pipeline's operations), and that is 
either:
    (i) A producing pipeline operator (the identified pipeline operator 
of an ROW pipeline that is a lessee or designated lease operator of one 
or more OCS leases), unless it is subject to regulation under 49 CFR, 
parts 192 and 195, and crosses into State waters; or
    (ii) A transporting pipeline operator (the identified pipeline 
operator of an ROW pipeline that is not a lessee or a designated lease 
operator of an OCS lease), and the pipeline is not subject to 
regulation under 49 CFR, parts 192 and 195.

[[Page 56467]]

    (b) DOT jurisdiction criteria. An OCS pipeline that is not under 
DOI jurisdiction (see paragraph (a) of this section) is under DOT 
jurisdiction.
    (c) Jurisdiction transfer. You may request that a pipeline under 
DOI jurisdiction be transferred to DOT jurisdiction, or that a pipeline 
under DOT jurisdiction be transferred to DOI jurisdiction, by 
submitting a written petition for approval to the Regional Supervisor 
and the DOT Office of Pipeline Safety (OPS) Regional Director. In the 
petition, you must provide sufficient justification for the transfer. 
The Regional Supervisor and the DOT OPS Regional Director will decide 
jointly whether to approve the petition.


Sec.  250.1005  What are the requirements regarding jurisdiction 
transfer points?

    (a) Jurisdiction transfer point. For each applicable pipeline, you 
must meet the requirements of this paragraph (a).
    (1) You must identify the specific point at which regulatory 
jurisdiction transfers from DOI to DOT, or from DOT to DOI, by:
    (i) Durably marking an above-water jurisdiction transfer point or, 
if that is not practical, identifying the transfer point on a 
schematic; or
    (ii) Identifying an underwater jurisdiction transfer point on a 
schematic.
    (2) You must keep the schematics referenced in paragraph (a)(1) of 
this section at the nearest OCS facility and make them available to MMS 
upon request.
    (b) Jurisdiction transfer point disagreement. If the lessee(s), 
designated lease operator(s), or pipeline ROW holder(s) of connecting 
pipelines cannot agree upon a transfer point, the Regional Supervisor 
and the DOT OPS Regional Director will jointly determine the 
jurisdiction transfer point.


Sec.  250.1006  When must I submit the applications, requests, plans 
and reports, and make the notifications required by this subpart?

    (a) Applications and requests. For all OCS pipelines you must 
submit applications to MMS, and receive approvals, according to the 
following table:

----------------------------------------------------------------------------------------------------------------
       Application or request              Required by              When to submit        Total number of copies
----------------------------------------------------------------------------------------------------------------
(1) Transfer jurisdiction..........  Sec.   250.1004(c)....  Before jurisdiction can be   1 to MMS.
                                                              transferred from DOI to     1 to OPS.
                                                              DOT, or from DOT to DOI.
(2) New pipeline...................  Sec.   250.1007(a)....  Before you install,          3
                                                              maintain, or operate a new
                                                              pipeline.
(3) Modify a pipeline..............  Sec.   250.1093(a),     Before you conduct           3
                                      (b).                    operations to modify a
                                                              pipeline.
(4) Repair a pipeline..............  Sec.   250.1095(a)....  Before you conduct any       1
                                                              repair work on a pipeline.
(5) Decommission a pipeline in       Sec.   250.1109(a)(1).  Before you conduct           3
 place.                                                       operations to decommission
                                                              a pipeline in place.
(6) Decommission a pipeline by       Sec.   250.1109(a)(2).  Before you conduct           3
 removal.                                                     operations to decommission
                                                              a pipeline by removal.
(7) Re-commission a decommissioned   Sec.   250.1113(a)(1).  Before you re-commission a   1
 pipeline.                                                    decommissioned pipeline.
(8) Accessory......................  Sec.   250.1141(a)....  Before you install,          3
                                                              operate, and maintain an
                                                              accessory to an ROW
                                                              pipeline.
(9) Modify an accessory............  Sec.   250.1146.......  Before you conduct           3
                                                              operations to modify an
                                                              accessory.
(10) Decommission an accessory--     Sec.   250.1147 (see    In the POCSR and AKOCSR, at  1
 Initial.                             Sec.   250.1726).       least 2 years before you
                                                              decommission an accessory.
(11) Decommission an accessory--     Sec.   250.1147 (see    Before you decommission an   2
 Final.                               Sec.   250.1727).       accessory.
----------------------------------------------------------------------------------------------------------------

    (b) Pipeline ROW grant applications and requests. For ROW 
pipelines, you must submit the following applications and requests to 
MMS, and receive approvals, in addition to those listed in paragraph 
(a) of this section:

----------------------------------------------------------------------------------------------------------------
      Application or  request              Required by              When to submit        Total number of copies
----------------------------------------------------------------------------------------------------------------
(1) Obtain a pipeline ROW grant....  Sec.   250.1125(a)....  Before you install,          1 original and 2
                                                              maintain, or operate an      copies.
                                                              ROW pipeline.
(2) Modify a pipeline ROW grant....  Sec.   250.1132(a)....  Before you can modify a      1 original and 2
                                                              pipeline ROW grant.          copies.
(3) Assign a pipeline ROW grant....  Sec.   250.1134(a)....  Before you can assign a      2 executed originals.
                                                              pipeline ROW grant.
(4) Relinquish a pipeline ROW grant  Sec.   250.1136(a)....  Before you can relinquish a  1 original and 2
                                                              pipeline ROW grant.          copies.
----------------------------------------------------------------------------------------------------------------

    (c) Notifications. You must make notifications to MMS according to 
the following table:

------------------------------------------------------------------------
         Notification             Under section        When to notify
------------------------------------------------------------------------
(1) Pipeline construction.....  Sec.               At least 48 hours
                                 250.1041(a),       before you commence
                                 using Form MMS-    pipeline
                                 153.               construction.
(2) Discovery of                Sec.               Immediately.
 archaeological resource.        250.1049(d).
(3) Hydrostatic pressure test.  Sec.               At least 48 hours
                                 250.1058(b),       before you conduct a
                                 using Form MMS-    hydrostatic pressure
                                 153.               test on a pipeline.

[[Page 56468]]

 
(4) Safety equipment failure    Sec.  Sec.         In the GOMR, when the
 or removal.                     250.1069(b) and    safety equipment
                                 250.1085(a).       remains out of
                                                    service for 12
                                                    hours. Immediately
                                                    in the POCSR and
                                                    AKOCSR.
(5) Corrective action.........  Sec.               Immediately when you
                                 250.1069(d).       repair or replace
                                                    safety equipment and
                                                    resume operating the
                                                    pipeline, or when
                                                    you have provided an
                                                    equivalent degree of
                                                    protection and
                                                    resume operating the
                                                    pipeline.
(6) Return safety equipment to  Sec.               Immediately when you
 service.                        250.1085(c).       return out-of-
                                                    service safety
                                                    equipment to service
                                                    or when you provide
                                                    an equivalent degree
                                                    of protection.
(7) Pipeline leak.............  Sec.               Immediately or as
                                 250.1088(b).       soon as practicable
                                                    after you discover
                                                    that a pipeline has
                                                    leaked.
(8) Pipeline relocation.......  Sec.               At least 48 hours
                                 250.1093(e),       before you begin the
                                 using Form MMS-    work to relocate a
                                 153.               pipeline.
(9) Lapse of financial          Sec.               Within 72 hours after
 security for a pipeline ROW     250.1121(b).       the security lapses.
 grant.
(10) Sabotage or subversive     Sec.               Immediately upon
 activity.                       250.1131(k).       discovery.
------------------------------------------------------------------------

    (d) Plans and Reports. You or the Certified Verification Agent 
(CVA), as appropriate, must submit plans and reports to MMS according 
to the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                              Total number of
            Plan/Report                   Under section             When to submit                copies
----------------------------------------------------------------------------------------------------------------
(1) Pipeline construction,           Sec.   250.1051(a)....  Within 45 calendar days      3
 including pressure test results.                             after you complete
                                                              pipeline construction.
(2) Design verification plans for    Sec.   250.1053(a)....  At least 30 calendar days    1
 pipeline risers connected to                                 before you submit the
 floating platforms.                                          associated pipeline
                                                              application.
(3) Fabrication verification plans   Sec.   250.1053(b)....  At least 30 calendar days    1
 for pipeline risers connected to                             before you submit the
 floating platforms.                                          associated pipeline
                                                              application.
(4) Installation verification plans  Sec.   250.1053(c)....  At least 30 calendar days    1
 for pipeline risers connected to                             before you submit the
 floating platforms.                                          associated pipeline
                                                              application.
(5) Interim CVA reports for          Sec.   250.1054(c);     CVA submits during each      1
 pipeline risers connected to        Sec.   250.1055(d);...   verification phase.
 floating platforms.                 Sec.   250.1056(d)....
(6) Final CVA design reports for     Sec.   250.1054(d)....  CVA submits within 90        1
 pipeline risers connected to                                 calendar days of receipt
 floating platforms.                                          of the design data, or
                                                              within 90 calendar days
                                                              after MMS approval to act
                                                              as a CVA, whichever is
                                                              latest, and before
                                                              fabrication begins.
(7) Final CVA fabrication reports    Sec.   250.1055(e)....  CVA submits within 90        1
 for pipeline risers connected to                             calendar days after
 floating platforms.                                          completion of fabrication,
                                                              and before installation.
(8) Final CVA installation reports   Sec.   250.1056(e)....  CVA submits within 45        1
 for pipeline risers connected to                             calendar days after
 floating platforms.                                          pipeline installation.
(9) Directed pressure test.........  Sec.   250.1060(d)....  As directed by the Regional  As directed by the
                                                              Supervisor.                  Regional Supervisor.
(10) Out-of-service pipeline.......  Sec.   250.1086(d)....  Within 48 hours after a      1
                                                              pipeline is deemed to be
                                                              out of service.
(11) Out-of-service pipeline         Sec.   250.1086(g)....  Within 30 calendar days      1
 reactivation, including pressure                             after you reactivate a
 test results.                                                pipeline that has been out
                                                              of service.
(12) Flaring/venting operations....  Sec.   250.1089(b)....  Within 72 hours after        1
                                                              completing flaring or
                                                              venting operations.
(13) Pipeline modification,          Sec.   250.1093(f)....  Within 30 calendar days      1
 including pressure test results.                             after you complete the
                                                              pipeline modification.
(14) Pipeline repair, including      Sec.   250.1095(e)....  Within 30 calendar days      1
 pressure test results.                                       after you complete a
                                                              repair.
(15) Flexible joint inspections....  Sec.   250.1102(b)....  Within 30 calendar days      1
                                                              after you complete the
                                                              inspection.
(16) Pipe-to-electrolyte potential   Sec.   250.1102(d)....  No later than October 31 of  1
 measurements.                                                the same year, or within
                                                              60 calendar days of the
                                                              measurements, whichever is
                                                              earlier.
(17) Additional inspections and      Sec.   250.1103(a)      As directed by the Regional  1
 surveys.                             through (f).            Supervisor.
(18) Pipeline decommissioning......  Sec.   250.1111.......  Within 30 calendar days      1
                                                              after you complete the
                                                              decommissioning.
(19) Decommissioned pipeline re-     Sec.   250.1113(b)....  Within 30 calendar days      1
 commissioning, including pressure                            after you complete the re-
 test results.                                                commissioning.
(20) Accessory installation........  Sec.   250.1144.......  Within 45 calendar days      3
                                                              after you complete
                                                              accessory installation.
(21) Accessory inspections.........  Sec.   250.1145(a)(2).  By November 1 of each year.  1
(22) Accessory decommissioning.....  Sec.   250.1147 (see    Within 30 calendar days      2
                                      Sec.   250.1729).       after you decommission an
                                                              accessory.

[[Page 56469]]

 
(23) Accessory site clearance......  Sec.   250.1147 (see    Within 30 calendar days      2
                                      Sec.   250.1743(b)).    after you conduct site
                                                              clearance verification
                                                              operations.
----------------------------------------------------------------------------------------------------------------

Applications for New Pipelines


Sec.  250.1007  How do I apply for approval for a new pipeline?

    Before you install, maintain, or operate a new pipeline (including 
a jumper), or a pipeline you create with a combination of new pipe and 
existing pipe, you must submit three copies of a pipeline application 
to the Regional Supervisor for approval. If you prefer to submit all or 
part of your pipeline application electronically (see Sec.  
250.186(a)(3)), you should consult with the Regional Supervisor for 
further guidance.
    (a) Application contents. (1) Your application must include the 
information described in Sec. Sec.  250.1014 through 250.1030.
    (2) The Regional Supervisor may require you to include additional 
information, if necessary, to assist in evaluating your pipeline 
application.
    (3) The Regional Director may require less information or analysis 
than you otherwise must provide in your pipeline application when:
    (i) Sufficient information or analysis is readily available to MMS;
    (ii) Other coastal or marine resources are not present or affected; 
or
    (iii) Other factors, such as technological advances, affect 
information needs.
    (b) Where to submit the application. You must submit a pipeline 
application to one of the MMS Regional offices shown in the following 
table.

------------------------------------------------------------------------
                                          Submit your application to . .
  For OCS areas adjacent to the . . .                   .
------------------------------------------------------------------------
(1) State of Alaska....................  Minerals Management Service,
                                          Alaska OCS Region (AKOCSR),
                                          Regional Supervisor, Field
                                          Operations.
(2) Atlantic Coast States and in the     Minerals Management Service,
 Gulf of Mexico.                          Gulf of Mexico OCS Region
                                          (GOMR), Regional Supervisor,
                                          Field Operations.
(3) States of California, Oregon,        Minerals Management Service,
 Washington, or Hawaii.                   Pacific OCS Region (POCSR),
                                          Chief, Office of Facilities,
                                          Safety & Enforcement.
------------------------------------------------------------------------

    (c) Withdrawal after submission. You may withdraw your pipeline 
application at any time, and for any reason, by notifying the Regional 
Supervisor in writing.


Sec.  250.1008  Where must I send copies of my pipeline application?

    (a) Impacted leases and pipeline ROW grants. When you submit a 
pipeline application to MMS, you must provide a copy of the pipeline 
application to each lessee or designated lease operator of an existing 
lease, and to each holder of a pipeline ROW grant (active or 
terminated) that could be impacted by your proposed pipeline 
construction or towing operations.
    (b) Affected States. Unless the proposed operations described in 
your pipeline application are under a general concurrence from the 
affected State, when you submit a new ROW pipeline application to MMS 
you must provide each affected State with all of the following:
    (1) A copy of the pipeline application. Pursuant to 43 CFR part 2, 
Appendix E, MMS has determined that none of the information included in 
an ROW pipeline application is proprietary. Therefore, you must not 
exclude any information from the copies of the application you submit 
to affected States.
    (2) A consistency certification (see 15 CFR 930.57).
    (3) All necessary data and information (see 15 CFR 930.58).


Sec.  250.1009  How does MMS process a pipeline application?

    The Regional Supervisor determines whether the application is 
complete, accurate, and fulfills the requirements of this subpart. If 
the Regional Supervisor determines that your application does not meet 
these conditions, the Regional Supervisor will notify you of the 
problem or deficiency. The Regional Supervisor will not begin final 
review of your application until it is complete.
    (a) Compliance review. The Regional Supervisor will ensure that 
your proposed operations conform to the OCSLA (43 U.S.C.1331, et seq.), 
as amended; other applicable laws; and applicable MMS regulations.
    (b) Environmental impact evaluation. The Regional Supervisor will 
evaluate the environmental impacts of your proposed operations, and 
prepare environmental documentation under NEPA (42 U.S.C. 4321, et 
seq.) and its implementing regulations (40 CFR parts 1500 through 
1508).
    (c) Amendments. During the review of your pipeline application, the 
Regional Supervisor may require you, or you may elect, to change your 
pipeline application.


Sec.  250.1010  What conditions must my pipeline application meet?

    The Regional Supervisor will approve your pipeline application only 
if you satisfy all of the criteria in this section.
    (a) You must obtain the Regional Supervisor's approval of either a 
DOCD or DPP that covers the structure at the originating end of the 
pipeline (e.g., platform, well, subsea skid), if the proposed pipeline 
is a lease term pipeline (see Sec.  250.1015(b)).
    (b) You must provide the Regional Supervisor with a copy of your 
approved State permit (see Sec.  250.1016(c)), if the proposed pipeline 
will enter or cross any State submerged lands.
    (c) If the proposed pipeline will enter or cross any safety fairway 
or anchorage area, you must provide the Regional Supervisor with a copy 
of your approved U.S. Army Corps of Engineers permit (see Sec.  
250.1016(d)).
    (d) If an OCS lease or pipeline ROW grant could be impacted by your 
proposed pipeline construction or towing operations (see Sec.  
250.1016(e) and (f)), you must:
    (1) Provide the Regional Supervisor with a return receipt or letter 
of no objection from the lessee or designated lease operator of each 
impacted lease, or the holder of each impacted pipeline ROW grant 
(active or terminated); and
    (2) Ensure that each entity you notified under paragraph (d)(1) of 
this section had at least 30 days from the

[[Page 56470]]

date they received the pipeline application from you to submit comments 
to the Regional Supervisor.
    (e) If the proposed pipeline will terminate or originate at a new 
hot tap or other connection on the OCS, the lessee, designated lease 
operator, or pipeline ROW holder of the receiving or delivering 
pipeline must first obtain approval from the Regional Supervisor to 
modify their pipeline.
    (f) For ROW pipeline and new accessory installation applications, 
either:
    (1) All affected States with approved CZMA programs have concurred, 
or have been conclusively presumed to concur, with your coastal zone 
consistency certification in your pipeline application under section 
307(c)(3)(A) of the Coastal Zone Management Act (CZMA) (16 U.S.C. 
1456(c)(3)(A)); or
    (2) The Secretary of Commerce finds, under section 307(c)(3)(A) of 
the CZMA (16 U.S.C.1456(c)(3)(A)), that the proposed ROW pipeline 
operations or new accessory installation are consistent with the 
objectives of CZMA, or are otherwise necessary in the interest of 
national security.
    (g) For ROW pipeline applications, you must demonstrate oil spill 
financial responsibility (OSFR) as required by 30 CFR 253.13, if 
applicable (see Sec.  250.1029).


Sec.  250.1011  What can I do if an affected State objects to my ROW 
pipeline application?

    For ROW pipeline and new accessory installation applications, if an 
affected State objects to the coastal zone consistency certification in 
your application, you may follow the procedures in either paragraph (a) 
or (b) of this section.
    (a) You may amend your application to accommodate the State's 
objection, and submit the amendment to the Regional Supervisor for 
approval and to the affected State for its consistency determination. 
The amendment need only address information related to the State's 
objection.
    (b) You may appeal the State's objection to the Secretary of 
Commerce using the procedures in 15 CFR part 930, subpart H. The 
Secretary of Commerce will either:
    (1) Grant your appeal by finding, under section 307(c)(3)(B)(iii) 
of CZMA (16 U.S.C. 1456(c)(3)(B)(iii)) that the proposed operations are 
consistent with the objectives of CZMA, or are otherwise necessary in 
the interest of national security; or
    (2) Deny your appeal, in which case you may either amend your 
application under paragraph (a) of this section or withdraw your 
application and not conduct the proposed operations.


Sec.  250.1012  How will the Regional Supervisor notify me of the 
decision on my pipeline application?

    After review and evaluation, the Regional Supervisor will notify 
you in writing whether your pipeline application is approved or 
disapproved.
    (a) The Regional Supervisor will approve your pipeline application 
if it complies with all applicable requirements; and will inform you of 
any conditions that you may be required to meet. In the approval 
letter, the Regional Supervisor will assign a unique MMS pipeline 
segment number that you must use in all subsequent correspondence 
regarding the pipeline.
    (b) The Regional Supervisor will disapprove your pipeline 
application if the proposed operations would probably cause serious 
harm or damage (and you cannot amend the proposed pipeline operations 
to avoid such conditions) to life (including fish or other aquatic 
life), property, any mineral (in areas leased or not leased), the 
national security or defense, or the marine, coastal, or human 
environment. The Regional Supervisor will provide the reason(s) for 
disapproving your pipeline application in writing.


Sec.  250.1013  When may the Secretary cancel approval of a pipeline 
application?

    The Secretary may cancel approval of your pipeline application upon 
your request, or if pipeline operations under the application are in 
suspension or temporary prohibition (see Sec.  250.1091) for at least 5 
years (see section 5(a)(2) of the OCSLA (43 U.S.C. 1334(a)(2)). To 
cancel approval under this section, the Secretary must determine after 
a hearing that all of the following conditions are met:
    (a) Continued operation under the approved pipeline application 
would probably cause serious harm or damage to life (including fish and 
other aquatic life), property, mineral resources (in areas leased or 
not leased); the national security or defense, or the marine, coastal, 
or human environment;
    (b) The threat of harm or damage will not disappear or decrease to 
an acceptable extent within a reasonable period of time; and
    (c) The advantages of cancellation outweigh the advantages of 
continuing the pipeline application in force.

Pipeline Application Contents


Sec.  250.1014  General information.

    You must provide the following general information:

------------------------------------------------------------------------
 You must provide a(n). . .    That includes. . .         and. . .
------------------------------------------------------------------------
(a) Cover letter............  (1) The name of the
                               company and the
                               name, title, and
                               signature of the
                               company
                               representative
                               filing the
                               application; and.
                              (2) A statement that
                               you are applying
                               for approval of the
                               pipeline in
                               accordance with
                               Sec.   250.1007.
(b) List of contacts........  The name and MMS      For each contact,
                               operator number of    you must include
                               the company filing    the:
                               the application,     (1) Company name;
                               and the company's    (2) Business and
                               managerial,           postal address;
                               regulatory, and      (3) Telephone
                               technical             number;
                               representatives who  (4) Telefax number;
                               the Regional          and
                               Supervisor can       (5) E-mail address.
                               contact while
                               processing the
                               application.
(c) Indication of the         An indication
 pipeline type.                whether the
                               proposed pipeline
                               will be a lease
                               term pipeline type
                               or an ROW pipeline.
(d) Indication of the         An indication         If you wish petition
 pipeline jurisdiction.        whether the           to transfer
                               proposed pipeline     jurisdiction from
                               will be under the     DOI to DOT or to
                               jurisdiction of DOI   transfer
                               or DOT.               jurisdiction from
                                                     DOT to DOI (see
                                                     Sec.
                                                     250.1004(b)), you
                                                     may include the
                                                     request in your
                                                     pipeline
                                                     application.
(e) Tentative schedule for    The date your         The date you will
 conducting pipeline           installation          place the pipeline
 operations.                   operations will       into service.
                               begin and end.

[[Page 56471]]

 
(f) New or unusual            A statement whether   If you will use new
 technology statement.         you will or will      or unusual
                               not use a new or      technology, provide
                               unusual technology    a narrative
                               to carry out your     description of the
                               proposed pipeline     technology and the
                               operations.           rationale for its
                                                     selection.
(g) Payment.................  Payment of a          If the application
                               nonrefundable         is for a lease term
                               service fee (see      pipeline.
                               Sec.   250.125 for
                               amount).
------------------------------------------------------------------------

Sec.  250.1015  Other general information.

    If your proposed pipeline operations meet any of the criteria in 
the following table, you must provide the indicated information:

------------------------------------------------------------------------
                If. . .                       You must provide. . .
------------------------------------------------------------------------
(a) You are applying for an ROW          A statement that certifies that
 pipeline.                                you have an approved National
                                          Pollutant Discharge
                                          Elimination System (NPDES)
                                          permit, or that you have
                                          applied for an NPDES permit
                                          that covers your proposed
                                          pipeline operations.
(b) You are applying for lease term      The MMS assigned control number
 pipeline in the GOMR.                    for the DOCD or DPP that a
                                          covers or will cover your
                                          proposed pipeline operations.
                                          If you have not submitted the
                                          DOCD or DPP, you must provide
                                          the date you intend to submit
                                          the document or plan to the
                                          GOMR.
(c) You are applying for an ROW          A description of the additional
 pipeline and you propose to use          measures you will use.
 measures beyond those required by this
 part to minimize or mitigate
 environmental impacts.
(d) Your pipeline will operate in a      A certification that the
 sour environment.                        pipeline is designed in
                                          accordance with the
                                          requirements in Sec.
                                          250.1035.
(e) You will install a supervisory       A brief description of the
 control and data acquisition(SCADA)      system.
 system.
------------------------------------------------------------------------

Sec.  250.1016  Information regarding other agencies and entities.

    If your proposed pipeline operations meet any of the criteria in 
the following table, you must provide the indicated information:

------------------------------------------------------------------------
             For each . . .                   You must provide . . .
------------------------------------------------------------------------
(a) ROW pipeline and new accessory       (1) Coastal zone consistency
 installation.                            certification according to 15
                                          CFR 930.57 for each affected
                                          State; and
                                         (2) Evidence that you sent your
                                          pipeline or accessory
                                          application, consistency
                                          certification (see 15 CFR
                                          930.57), and all necessary
                                          data and information (see 15
                                          CFR 930.58) to each affected
                                          State for their CZMA
                                          consistency determination.
(b) ROW pipeline, if the routes of the   (1) An identification of the
 vessels and aircraft you will use to     warning and water test
 support your proposed pipeline           area(s); and
 operations are located in or could      (2) A certification that,
 traverse established military warning    before you begin pipeline
 or water test areas.                     construction operations, you
                                          will contact the military
                                          installation with jurisdiction
                                          over the area concerning the
                                          control of electromagnetic
                                          emissions and the use of
                                          vessels and aircraft in the
                                          area.
(c) Proposed pipeline that will enter    A copy of the approved permit
 into or cross State offshore waters.     from that State.\1\
(d) Proposed pipeline that will enter    A copy of the approved U.S.
 into or cross any safety fairway or      Army Corps of Engineers
 anchorage area.                          permit.\1\
(e) Proposed pipeline that will enter    OCS area and block
 into an existing OCS lease, or whose     designations, OCS lease
 construction operations could impact     number, and name of the lessee
 lease operations (e.g., placing          or designated lease operator
 anchors on the lease).                   for each impacted lease.
(f) Proposed pipeline that will cross,   OCS area and block designations
 or whose construction operations could   of the crossing or impact
 impact an existing ROW pipeline or a     point, and name of the
 decommissioned pipeline (i.e., placing   pipeline ROW holder.
 anchors or routing the pipeline across
 or within 500 feet of an existing ROW
 pipeline).
(g) Proposed pipeline that will          (1) OCS area and block
 originate or terminate at an existing    designations of the tie-in
 valve or hot tap assembly.               point(s); and
                                         (2) Name of the lessee or
                                          designated lease operator if a
                                          connecting pipeline is a lease
                                          term pipeline; or the name of
                                          the pipeline ROW holder if a
                                          connecting pipeline is an ROW
                                          pipeline.
(h) Proposed pipeline you identified     A photocopy of a return receipt
 pursuant to paragraphs (e), (f), and     or a letter of no objection
 (g) of this section.                     that indicates the date that
                                          the lessee, designated lease
                                          operator, or pipeline ROW
                                          holder received a copy of your
                                          pipeline application by
                                          registered or certified mail
                                          (or equivalent).\1\
------------------------------------------------------------------------
\1\ If this document is not available when you submit your application,
  you may submit the document later.


[[Page 56472]]

Sec.  250.1017  Location information.

    (a) You must provide the following location information:

------------------------------------------------------------------------
         You must provide . . .                  That must . . .
------------------------------------------------------------------------
(1) A location plat based on the North   Include the information listed
 American Datum of 1927 (NAD 27) for      in paragraph (b) of this
 the GOMR (Gulf) and POCSR, and the       section.
 North American Datum of 1983 (NAD 83)
 for the AKOCSR and GOMR (Atlantic),
 with a minimum scale of 1 inch = 2,000
 feet.
(2) An Electronic file of the digital    Be in decimal degree latitude
 coordinates of a sufficient number of    and longitude and based on NAD
 points to provide an accurate            27 for the GOMR (Gulf) and
 representation of the entire route of    POCSR, and NAD 83 for the
 the proposed pipeline, including turns   AKOCSR and GOMR (Atlantic).
 and umbilicals.                          The Regional Supervisor will
                                          specify the file format for
                                          providing this information.
(3) Information on the proposed          Include, if applicable, the OCS
 locations of the origin, termination,    area, block number, and lease
 and inclusive OCS blocks traversed by    number.
 the pipeline route.
(4) The total length (feet) of the
 proposed pipeline excluding risers,
 the length in Federal waters (feet),
 and the length in State waters (feet),
 if applicable.
------------------------------------------------------------------------

    (b) The location plat required by paragraph (a)(1) of this section 
must do all of the following:
    (1) Identify the lessee, designated lease operator, or pipeline ROW 
holder.
    (2) Show OCS area, block, and lease designations.
    (3) Show the pipeline route from origination to termination, 
including the plant or refinery, if applicable. It must also show flow 
direction and, if an ROW pipeline, the 200-foot pipeline ROW and any 
site for an accessory.
    (4) Show the routes and flow directions of all umbilicals.
    (5) Identify all platforms (including accessories) and pipelines 
(MMS-assigned segment numbers) that your proposed pipeline will connect 
to, cross, or otherwise impact.
    (6) Identify all safety fairways, anchorage areas, and military 
warning or water test areas that are within 500 feet of the center line 
of the proposed pipeline.
    (7) Show the burial depth (feet) of the pipeline along its entire 
length.
    (8) Show the water depth (feet) along the entire length of the 
pipeline.
    (9) Depict the water depth (feet), X-Y coordinates, and decimal 
degree latitude and longitude of each of the following key points:
    (i) Locations of the originating and terminating structures;
    (ii) Points where the proposed pipeline crosses a fairway, an 
anchorage area, or a lease or block boundary;
    (iii) Locations of subsea valves, flanges, hot taps, tie-ins, anode 
sleds, connecting sleds (including PLEM's and PLET's), manifolds 
(including those that are accessories), and other appurtenances;
    (iv) Locations of pipeline crossings;
    (v) Points throughout the curvature of a turn; and
    (vi) Point where the pipeline enters into State jurisdiction, if 
applicable.
    (10) Include a certification by a registered engineer or land 
surveyor that the information on the plat is accurately represented.
    (c) For each ROW pipeline, you must provide a map at an appropriate 
scale that shows the:
    (1) Proposed pipeline route relative to the shoreline, the onshore 
support base you will use, and the proposed primary transportation 
routes for your support vessels and aircraft; and
    (2) Distance to shore (miles) of the pipeline route origination and 
termination points.


Sec.  250.1018  Origination and termination information.

    You must provide origination and termination information as 
indicated in the following table:

------------------------------------------------------------------------
      Type of information         When required           Contents
------------------------------------------------------------------------
(a) General information on the  In all cases.....  (1) The type of
 facilities where the proposed                      structure (i.e.,
 pipeline will originate and                        platform, well
 terminate.                                         jacket or caisson,
                                                    subsea well,
                                                    manifold, tie-in, or
                                                    blind flange);
                                                   (2) MMS-assigned name
                                                    of the structure (if
                                                    applicable);
                                                   (3) OCS area and
                                                    block designations;
                                                   (4) OCS lease number
                                                    (if applicable);
                                                   (5) Distance to shore
                                                    (miles);
                                                   (6) Water depth
                                                    (feet);
                                                   (7) Whether the
                                                    structure is manned
                                                    or unmanned; and
                                                   (8) If the facility
                                                    is equipped with a
                                                    pig launcher/
                                                    receiver, a
                                                    description of its
                                                    major features and
                                                    rating.
(b) Riser design information    If the pipeline    (1) Design life
 for each pipe diameter.         will connect at    (years);
                                 a platform, well  (2) Outside diameter
                                 jacket, or         (inches);
                                 caisson.          (3) Wall thickness
                                                    (inches);
                                                   (4) Pipe grade;
                                                   (5) Hydrostatic test
                                                    pressure (psi) and
                                                    duration (hours);
                                                   (6) Type and
                                                    thickness (mils) of
                                                    the external
                                                    corrosion coating;
                                                   (7) Type and
                                                    thickness (mils) of
                                                    the external
                                                    corrosion coating in
                                                    the splash zone;
                                                   (8) Type and
                                                    thickness (mils) of
                                                    the internal
                                                    corrosion coating;
                                                   (9) Type of riser,
                                                    e.g., fixed,
                                                    catenary, top
                                                    tension, flexible;
                                                   (10) Type, pressure
                                                    rating (psi), and,
                                                    if applicable, the
                                                    de-rated pressure
                                                    rating (psi) of the
                                                    insulating flange;
                                                    and
                                                   (11) Whether the
                                                    riser can be
                                                    inspected using in-
                                                    line inspection
                                                    tools (e.g., smart
                                                    pigs).

[[Page 56473]]

 
(c) Non-traditional pipe......  If you plan to     (1) The name and a
                                 use any non-       description of the
                                 traditional pipe   non-traditional
                                 (e.g., flexible    pipe;
                                 pipe) to          (2) The
                                 construct the      manufacturer's
                                 riser.             design specification
                                                    sheet;
                                                   (3) The design
                                                    pressure (psi);
                                                   (4) An identification
                                                    of the design
                                                    standards you used;
                                                    and
                                                   (5) A review by a
                                                    third-party
                                                    verification agent
                                                    (specified in API
                                                    Spec 17J
                                                    (incorporated by
                                                    reference as
                                                    specified in Sec.
                                                    250.198), where
                                                    applicable) if you
                                                    intend to use any
                                                    unbonded flexible
                                                    pipe.
(d) Riser guard design........  In all cases.....  A drawing that shows
                                                    how you will protect
                                                    the riser(s) from
                                                    physical damage that
                                                    could result from
                                                    contact with
                                                    floating vessels.
(e) Catenary and other non-     If the riser will  (1) Design fatigue
 traditional riser.              be a catenary or   life (years) of the
                                 other non-         riser and the
                                 traditional        fatigue point at
                                 design.            which you would
                                                    replace the riser;
                                                   (2) Identification of
                                                    the design standards
                                                    you used; and
                                                   (3) Type and rating
                                                    of the connecting
                                                    device you will use;
(f) Subsea manifold...........  If the proposed    A diagram of the
                                 pipeline will      facility showing its
                                 originate or       major features
                                 terminate at a     including:
                                 subsea manifold.  (1) Pressure rating
                                                    (psi) of the
                                                    pressure limiting
                                                    component;
                                                   (2) Type of exterior
                                                    protective coating;
                                                    and
                                                   (3) Description of
                                                    the cathodic
                                                    protection system.
(g) Subsea tie-in.............  If the proposed    Information about the
                                 pipeline will      tie-in that
                                 originate or       includes:
                                 terminate at a    (1) Type of tie-in
                                 subsea tie-in.     assembly (existing
                                                    valve or new hot
                                                    tap);
                                                   (2) MMS-assigned
                                                    pipeline segment
                                                    number of the
                                                    delivering or
                                                    receiving pipeline;
                                                   (3) MAOP (psi) of the
                                                    delivering or
                                                    receiving pipeline;
                                                    and
                                                   (4) Schematic drawing
                                                    of the tie- in
                                                    assembly.
(h) Subsea blind flange.......  If the pipeline    Information about the
                                 will originate     blind flange that
                                 or terminate at    includes the:
                                 a subsea blind    (1) Type;
                                 flange.           (2) Pressure rating
                                                    (psi); and
                                                   (3) If applicable,
                                                    the de-rated
                                                    pressure rating
                                                    (psi).
(i) Other appurtenances and     If the pipeline    Information about the
 other accessories.              will include any   appurtenance that
                                 equipment,         includes:
                                 device,           (1) Description of
                                 apparatus, or      the appurtenance;
                                 other object not  (2) Schematic
                                 described in       drawings showing the
                                 paragraphs (e)     arrangement and
                                 through (h) of     orientation of the
                                 this section.      appurtenances; and
                                                   (3) For subsea
                                                    manifolds, pipeline
                                                    end modules
                                                    (PLEM's), and
                                                    pipeline end
                                                    terminals (PLET's),
                                                    a diagram of the
                                                    appurtenance showing
                                                    its major features
                                                    and dimensions,
                                                    pressure rating
                                                    (psi), and type of
                                                    exterior protective
                                                    coating, and a
                                                    description of the
                                                    cathodic protection
                                                    system.
------------------------------------------------------------------------

Sec.  250.1019  Horizontal component and appurtenances information.

    You must provide horizontal component and appurtenances information 
as indicated in the following table:

------------------------------------------------------------------------
                                                       Required data
      Type of information         When required           elements
------------------------------------------------------------------------
(a) Pipeline internal design    For all pipelines  (1) Internal design
 pressure.                                          pressure (psi) you
                                                    calculated;
                                                   (2) Formula you used
                                                    to calculate the
                                                    internal design
                                                    pressure;
                                                   (3) Design factors
                                                    you used in
                                                    calculating the
                                                    internal design
                                                    pressure; and
                                                   (4) Calculations you
                                                    performed to derive
                                                    the internal design
                                                    pressure for each
                                                    pipe diameter and
                                                    wall thickness.
(b) Pipeline collapse design    For all pipelines  (1) External pressure
 pressure.                       to be installed    on the pipe in
                                 in water depths    (psi);
                                 greater than      (2) Collapse design
                                 1000 feet.         pressure (psi) you
                                                    calculated;
                                                   (3) Formula you used
                                                    to calculate the
                                                    external design
                                                    pressure;
                                                   (4) Collapse factor
                                                    you used in
                                                    calculating the
                                                    external design
                                                    pressure;
                                                   (5) Calculations you
                                                    performed to derive
                                                    the external design
                                                    pressure for each
                                                    pipe diameter and
                                                    wall thickness; and
                                                   (6) Description of
                                                    any collapse
                                                    arrestors you intend
                                                    to install or other
                                                    mitigation you
                                                    intend to use.

[[Page 56474]]

 
(c) Horizontal component        For all            (1) Design life
 design.                         pipelines, for     (years);
                                 each pipe         (2) Pipe outside
                                 diameter           diameter (inches);
                                 incorporated in   (3) Pipe wall
                                 the horizontal     thickness (inches);
                                 component of the  (4) Pipe grade;
                                 pipeline.         (5) Bare pipe and
                                                    weighted pipe
                                                    specific gravities,
                                                    and a statement
                                                    (based on stability
                                                    analysis) that the
                                                    pipeline will remain
                                                    stable following
                                                    installation;
                                                   (6) Type of welds
                                                    (e.g., longitudinal,
                                                    electrical
                                                    resistance welded
                                                    (ERW), submerged arc
                                                    welded (SAW),
                                                    seamless);
                                                   (7) Hydrostatic test
                                                    pressure (psi) and
                                                    test duration
                                                    (hours);
                                                   (8) Type and
                                                    thickness (mils) of
                                                    the external
                                                    corrosion coating;
                                                   (9) Type and
                                                    thickness (mils) of
                                                    the internal
                                                    corrosion coating;
                                                   (10) Density (pounds/
                                                    cubic foot) and
                                                    thickness (inches)
                                                    of the concrete
                                                    weight coating; and
                                                   (11) Statement
                                                    indicating whether
                                                    or not the pipe can
                                                    be inspected using
                                                    in-line inspection
                                                    tools (e.g., smart
                                                    pigs).
(d) Non-traditional pipe......  If you plan to     (1) Name and a
                                 use any non-       description of the
                                 traditional pipe   non-traditional
                                 (e.g., coiled      pipe;
                                 tubing, flexible  (2) Manufacturer's
                                 pipe, unbonded     design specification
                                 flexible pipe)     sheet;
                                 to construct the  (3) Design pressure
                                 horizontal         (psi);
                                 component.        (4) Identification of
                                                    the design standards
                                                    you used; and
                                                   (5) Review by a third-
                                                    party independent
                                                    verification agent
                                                    (specified in API
                                                    Spec 17J
                                                    (incorporated by
                                                    reference as
                                                    specified in Sec.
                                                    250.198), where
                                                    applicable) if you
                                                    intend to use any
                                                    unbonded flexible
                                                    pipe.
(e) Pipeline cathodic           If you plan to     (1) Anode
 protection system.              install a          composition;
                                 cathodic          (2) Design anode life
                                 protection         expectancy (years);
                                 system that uses  (3) Formula and
                                 bracelet anodes.   calculations you
                                                    used to determine
                                                    the design life of
                                                    your anodes;
                                                   (4) Anode consumption
                                                    rate (pounds/amp/
                                                    year);
                                                   (5) Net weight per
                                                    anode (pounds);
                                                   (6) Anode interval
                                                    (feet); and
                                                   (7) Number of anodes.
(f) Non-traditional cathodic    If you plan to     (1) Specify and
 protection system.              install a          describe the system;
                                 cathodic           and
                                 protection        (2) Provide the
                                 system that does   applicable
                                 not use bracelet   information from
                                 anodes.            paragraph (e) of
                                                    this section, and
                                                    the information and
                                                    calculations you
                                                    used to show that
                                                    your pipeline is
                                                    cathodically
                                                    protected.
(g) Pipeline valves and         If you plan to     Information about
 flanges.                        install a valve    each valve or flange
                                 or flange on the   that includes the:
                                 horizontal        (1) Type;
                                 component (not    (2) Pressure rating
                                 at the             (psi); and
                                 originating or    (3) If applicable,
                                 terminating        the de-rated
                                 points) as an      pressure rating
                                 appurtenance to    (psi).
                                 the pipeline.
(h) Umbilicals................  If you plan to     A drawing that shows:
                                 install           (1) Types of
                                 umbilicals as      umbilicals (e.g.,
                                 appurtenances to   electrical,
                                 the pipeline.      hydraulic, chemical)
                                                    you plan to install;
                                                   (2) Configuration of
                                                    the umbilicals in
                                                    the bundle;
                                                   (3) Length (feet) and
                                                    outside diameter
                                                    (inches) of the
                                                    bundle; and
                                                   (4) Any associated
                                                    umbilical
                                                    termination
                                                    assemblies.
(i) Other appurtenances.......  If you plan to     Information about
                                 install any        each appurtenance
                                 equipment,         that includes:
                                 device,           (1) Description of
                                 apparatus, or      the appurtenance;
                                 other object not  (2) Schematic
                                 described in       drawings showing the
                                 paragraphs (e)     arrangement and
                                 through (h) of     orientation of the
                                 section.           appurtenances; and
                                                   (3) For subsea
                                                    manifolds, pipeline
                                                    end modules
                                                    (PLEM's), and
                                                    pipeline end
                                                    terminals (PLET's),
                                                    a diagram of the
                                                    appurtenance showing
                                                    its major features
                                                    and dimensions,
                                                    pressure rating
                                                    (psi), type of
                                                    exterior protective
                                                    coating, and a
                                                    description of the
                                                    cathodic protection
                                                    system.
(j) Pipeline crossings........  If the pipeline    (1) MMS-assigned
                                 will cross any     segment number of
                                 existing           the pipeline or
                                 pipeline,          umbilical (if
                                 umbilical, power   applicable) to be
                                 or communication   crossed;
                                 cable, or other   (2) OCS area and
                                 structure or       block designations
                                 object.            of the crossing
                                                    location;
                                                   (3) Description of
                                                    the method you will
                                                    use to separate the
                                                    pipeline from the
                                                    existing structure
                                                    or object and the
                                                    separation distance
                                                    (inches);
                                                   (4) Water depth
                                                    (feet) at the
                                                    pipeline crossing;
                                                   (5) Indication of the
                                                    presence or absence
                                                    of H2S in the
                                                    crossed pipeline;
                                                    and
                                                   (6) Diagram that
                                                    shows a profile of
                                                    the crossing that
                                                    includes the depth
                                                    of cover (feet).
------------------------------------------------------------------------

Sec.  250.1020  Schematic flow diagram.

    You must provide a schematic flow diagram of the proposed pipeline 
that is consistent with the diagram(s) required by Sec.  250.802(e)(1) 
through (3), as appropriate, and that shows:
    (a) All pressure sensing devices and associated control lines;

[[Page 56475]]

    (b) All pressure safety valves (PSVs) and settings;
    (c) All shutdown valves (SDVs), flow safety valves (FSVs), and 
block valves;
    (d) All pressure-regulating devices (including back-pressure 
regulators);
    (e) Any subsea manifolds, PLEMs and PLETs, and other appurtenances;
    (f) Input source(s) (e.g., wells, pumps, compressors, and vessels) 
and the maximum source pressure (MSP) (psi) of each;
    (g) Flow direction (or predominate direction for bi-directional 
flow);
    (h) Safety equipment for the input source;
    (i) Rated working pressure (psi) of all valves and flanges;
    (j) Any specification (spec) breaks;
    (k) Initial receiving equipment, vessel, or pipeline, and its rated 
working pressure (psi) or MAOP (psi);
    (l) Pig launchers and receivers;
    (m) Calculated MAOP (psi) of the proposed pipeline;
    (n) MMS-assigned segment number and approved MAOP (psi) of any 
connecting pipeline; and
    (o) The transfer point where jurisdiction changes between DOI and 
DOT, if applicable.


Sec.  250.1021  Shallow hazards information.

    You must provide information on shallow hazards as indicated in the 
following table:

------------------------------------------------------------------------
      Type of information         When required           Contents
------------------------------------------------------------------------
(a) Shallow hazards survey      For ROW pipelines  Shallow hazards
 report.                         in the GOMR, and   survey report of the
                                 for all            proposed pipeline
                                 pipelines in the   route based on
                                 POCSR and AKOCSR.  information obtained
                                                    from the shallow
                                                    hazards survey (see
                                                    Sec.   250.1032(a)).
                                                    The Regional
                                                    Supervisor will
                                                    specify requirements
                                                    for preparing the
                                                    report.
(b) Shallow hazards analysis    In all cases.....  (1) Description of
 of any seafloor and                                the hazards along
 subsurface geologic features,                      the pipeline route;
 and any manmade features or                       (2) Discussion of any
 conditions, which may have an                      special safety
 adverse effect on the                              measures you will
 proposed pipeline.                                 take to minimize the
                                                    adverse effects of
                                                    shallow hazards on
                                                    the proposed
                                                    pipeline; and
                                                   (3) Discussion of how
                                                    you will comply with
                                                    the hazard
                                                    mitigation
                                                    requirements
                                                    specified in Sec.
                                                    250.1042.
------------------------------------------------------------------------

Sec.  250.1022  Construction information.

    You must provide pipeline construction information as indicated in 
the following table:

------------------------------------------------------------------------
      Type of information         When required           Contents
------------------------------------------------------------------------
(a) Installation method.......  In all cases.....  A brief description
                                                    of the method you
                                                    will use to install
                                                    the proposed
                                                    pipeline (e.g., S-
                                                    lay, J-lay, reeled
                                                    lay, towed lay).
(b) General information on the  In all cases.....  (1) Type of vessel
 vessel/equipment you will use                      (e.g., anchor
 to construct the proposed                          supported, dynamic
 pipeline.                                          positioning) or
                                                    equipment (e.g.,
                                                    trucks, bulldozers);
                                                   (2) Name of the
                                                    vessel (if known);
                                                   (3) Maximum anchor
                                                    radius (feet);
                                                   (4) Capacity of fuel
                                                    tanks (barrels); and
                                                   (5) Proposed anchor
                                                    location for
                                                    operations in the
                                                    POCSR.
(c) Tow route.................  If you plan to     (1) Plat that depicts
                                 install the        the entire tow route
                                 pipeline by        and indicates where
                                 towing or          the pipeline will be
                                 dragging it to     dragged on the
                                 the installation   seafloor, if
                                 site.              applicable.
                                                   (2) Electronic file
                                                    containing the the
                                                    digital coordinates
                                                    of sufficient points
                                                    to provide an
                                                    accurate
                                                    representation of
                                                    the proposed tow
                                                    route. In preparing
                                                    this file, you must:
                                                   (i) Use the file
                                                    format specified by
                                                    the Regional
                                                    Supervisor;
                                                   (ii) Include the data
                                                    for the entire tow
                                                    route; and
                                                   (iii) Present the
                                                    data in decimal
                                                    degree latitude and
                                                    longitude, based on
                                                    NAD 27 for the GOMR
                                                    (Gulf) and the
                                                    POCSR, and NAD 83
                                                    for AKOCSR and GOMR
                                                    (Atlantic).
                                                   (3) Shallow hazards
                                                    survey report for
                                                    the tow route (see
                                                    Sec.   250.1032(a)).
                                                   (4) Analysis of any
                                                    seafloor and
                                                    subsurface geologic
                                                    features, and any
                                                    manmade features or
                                                    conditions, which
                                                    may have an adverse
                                                    effect on the
                                                    pipeline if towed or
                                                    dragged. The
                                                    analysis must
                                                    include a:
                                                   (i) Discussion of the
                                                    hazards along the
                                                    pipeline tow route;
                                                   (ii) Description of
                                                    any special safety
                                                    measures you will
                                                    take to minimize the
                                                    adverse effects of
                                                    shallow hazards on
                                                    the towing
                                                    operations; and
                                                   (iii) Discussion of
                                                    how you will comply
                                                    with the hazard
                                                    mitigation
                                                    requirements
                                                    specified in Sec.
                                                    250.1042.

[[Page 56476]]

 
(d) Air emissions.............  For ROW pipelines  (1) Total rated
                                 in the GOMR, and   output (horsepower)
                                 for all            of each vessel/
                                 pipelines in the   equipment;
                                 POCSR and         (2) Rated output
                                 AKOCSR, you must   (horsepower) of each
                                 provide air        combustion emission
                                 emissions          source on the
                                 information for    vessel(s) and a
                                 all combustion     description of its
                                 sources used in    use (e.g., crane,
                                 pipeline           compressor,
                                 construction       generator,
                                 operations.        dehydrator);
                                                   (3) Run time (hours/
                                                    day and days/year)
                                                    for each emission
                                                    source;
                                                   (4) Documentation of
                                                    any emission control
                                                    technologies you
                                                    will employ; and
                                                   (5) Maximum hourly,
                                                    daily, and total
                                                    projected emissions
                                                    for all pipeline
                                                    installation-related
                                                    emission sources.
(e) Vessel discharges.........  For ROW pipelines  (1) Types and general
                                 in the GOMR, and   characteristics of
                                 for all            the wastes that will
                                 pipelines in the   be generated and
                                 POCSR and          discharged into the
                                 AKOCSR, you must   ocean during
                                 provide            construction
                                 information on     operations;
                                 discharges for    (2) Volume (gallons)
                                 all vessels        of waste that will
                                 associated with    be discharged;
                                 your pipeline     (3) Average and
                                 installation.      maximum discharge
                                                    rates (gallons/
                                                    hour);
                                                   (4) Description of
                                                    any treatment or
                                                    storage; and
                                                   (5) Discharge
                                                    location and method
                                                    for each type of
                                                    discharge.
(f) Pipeline burial...........  If you plan to     (1) Method you will
                                 bury the           use to bury the
                                 pipeline (see      pipeline (e.g., jet,
                                 Sec.               plow); and
                                 250.1044(c)).     (2) Depth of burial
                                                    (feet), including
                                                    the depths in safety
                                                    fairways and
                                                    anchorage areas.
(g) Pipeline self burial......  If you expect      (1) Appropriate site-
                                 that the           specific
                                 pipeline will      geotechnical data
                                 bury itself        (e.g., sediment
                                 naturally in the   compaction, shear
                                 sediment, you      strength) and other
                                 must provide a     information to
                                 request to use     verify sediment
                                 an alternative     conditions; and
                                 procedure under   (2) Information
                                 Sec.   250.141.    specified in Sec.
                                                    250.1027(a).
(h) Obstruction protection....  In all cases.....  Information
                                                    concerning any
                                                    covering (e.g.,
                                                    dome, cage,
                                                    sandbags, concrete
                                                    mats) you will use
                                                    to protect a
                                                    manifold, tie-in, or
                                                    blind flange at the
                                                    pipeline origination
                                                    and termination
                                                    points, and all
                                                    valves, flanges,
                                                    other appurtenances,
                                                    and pipeline
                                                    crossings along the
                                                    horizontal component
                                                    of the pipeline (see
                                                    Sec.   250.1046(a)).
                                                    The information you
                                                    provide must
                                                    include:
                                                   (1) A drawing that
                                                    shows the
                                                    specifications of
                                                    the protective
                                                    covering and the
                                                    equipment it will
                                                    protect;
                                                   (2) A drawing and a
                                                    description of the
                                                    relationship of the
                                                    protective covering
                                                    to the seafloor
                                                    (e.g., mat edges
                                                    buried);
                                                   (3) A discussion of
                                                    any anchor pins or
                                                    sandbags you will
                                                    use to hold the
                                                    protective covering
                                                    in place, if
                                                    applicable;
                                                   (4) A description of
                                                    the cathodic
                                                    protection system
                                                    for the protective
                                                    covering, if
                                                    appropriate; and
                                                   (5) A discussion of
                                                    your plans for
                                                    maintaining the
                                                    protective covering.
(i) Underwater vent pipelines.  If you plan to     A description of the
                                 install an         provisions you will
                                 underwater vent    make for anchoring
                                 pipeline.          the end of the
                                                    underwater vent
                                                    pipeline.
------------------------------------------------------------------------

Sec.  250.1023  Onshore support base, terminal, support vessels, and 
aircraft information.

    You must provide information on each onshore base you will use to 
provide supply and service support for your proposed pipeline 
operations as indicated in the following table:

------------------------------------------------------------------------
      Type of information         When required           Contents
------------------------------------------------------------------------
(a) Onshore support base......  In all cases.....  (1) Name and location
                                                    of the onshore
                                                    support base, and
                                                    whether it will be a
                                                    new or existing
                                                    facility;
                                                   (2) Description of
                                                    the necessary work,
                                                    if you plan to
                                                    construct a new
                                                    onshore support base
                                                    or make major
                                                    additions to an
                                                    existing one; and
                                                   (3) Timetable for
                                                    land acquisition
                                                    (including rights-of-
                                                    way and easements)
                                                    and construction or
                                                    expansion if you
                                                    plan to acquire land
                                                    to construct a new
                                                    facility or expand
                                                    an existing one.
(b) Onshore terminal..........   For pipelines     The name,
                                 that will          description, and
                                 transport          location of the
                                 product to shore.  primary onshore
                                                    terminal (including
                                                    any refinery, gas
                                                    plant, or compressor
                                                    station) that will
                                                    be built or undergo
                                                    expansion or major
                                                    modification as the
                                                    result of your
                                                    proposed pipeline
                                                    operations.
(c) Support vessels and         For ROW pipelines  Information for each
 aircraft (general).             in the GOMR, and   type of vessel/
                                 all pipelines in   equipment (e.g.,
                                 the POCSR and      anchor-handling
                                 AKOCSR.            boats, tug boats,
                                                    supply boats,
                                                    service boats, crew
                                                    boats) and aircraft
                                                    you will use to
                                                    support your
                                                    proposed pipeline
                                                    operations that
                                                    includes:
                                                   (1) Fuel tank storage
                                                    capacity (barrels);
                                                   (2) Maximum number of
                                                    vessels/equipment
                                                    that will be in the
                                                    area of operations
                                                    at any one time; and
                                                   (3) Trip frequency or
                                                    duration.

[[Page 56477]]

 
(d) Diesel oil supply vessel/   For ROW pipelines  Information on the
 equipment.                      in the GOMR, and   vessels you will use
                                 all pipelines in   to supply diesel oil
                                 the POCSR and      to your pipeline
                                 AKOCSR.            installation vessels/
                                                    equipment that
                                                    includes:
                                                   (1) Vessel length
                                                    (feet);
                                                   (2) Diesel oil
                                                    storage capacity
                                                    (barrels); and
                                                   (3) Frequency of fuel
                                                    transfers.
------------------------------------------------------------------------

Sec.  250.1024  Operation information.

    You must provide the following pipeline operation information:
    (a) Pipeline operating temperature. The anticipated maximum and 
minimum operating temperatures ([deg]F) of the proposed pipeline.
    (b) Proposed MAOP. Your proposed MAOP (psi) for the pipeline, and 
the method you used to determine the MAOP (see Sec.  250.1081).


Sec.  250.1025  Service and products information.

    You must indicate the primary service and, if applicable, the 
secondary service of the proposed pipeline (e.g., oil, bulk oil, 
natural gas, bulk gas, condensate, gas and condensate, gas lift, 
instrument, flare/vent, water, methanol, glycol, sulphur, or other 
chemicals). If the pipeline will be bidirectional, you must provide the 
service for each direction and indicate which one will predominate.

------------------------------------------------------------------------
                                                        The Regional
   If you will be primarily       Then you must     Supervisor may also
      transporting . . .          provide . . .        require . . .
------------------------------------------------------------------------
(a) Natural gas...............  (1) The            The chemical and
                                 anticipated        physical
                                 maximum flow       characteristics of
                                 rate (MMCFD);      the gas.
                                (2) The maximum
                                 design flow rate
                                 (MMCFD);.
                                (3) The specific
                                 gravity of the
                                 gas;.
                                (4) The carbon
                                 dioxide (CO2)
                                 and hydrogen
                                 sulfide (H2S)
                                 concentrations
                                 (ppm);.
                                (5) Your
                                 provisions for
                                 controlling
                                 internal
                                 corrosion; and.
                                (6) Your
                                 provisions for
                                 flow assurance.
(b) Liquid hydrocarbons.......  (1) The            The chemical and
                                 anticipated        physical
                                 maximum flow       characteristics of
                                 rate (BPD); and    the oils (see
                                (2) The maximum     definition under 30
                                 design flow rate   CFR 254.6).
                                 (BPD);.
                                (3) The API[deg]
                                 gravity of the
                                 liquid;.
                                (4) The
                                 anticipated CO2
                                 and H2S
                                 concentrations
                                 (ppm);.
                                (5) Your
                                 provisions for
                                 controlling
                                 internal
                                 corrosion; and.
                                (6) Your
                                 provisions for
                                 flow assurance.
(c) Chemicals.................  (1) The            The chemical and
                                 anticipated        physical
                                 maximum flow       characteristics of
                                 rate (BPD);        each chemical.
                                (2) The maximum
                                 design flow rate
                                 (BPD);.
                                (3) Your
                                 provisions for
                                 controlling
                                 internal
                                 corrosion.
(d) A product with an H2S       (1) An H2S
 concentration greater than 20   Contingency Plan
 ppm, or will cross a pipeline   prepared
 that transports a product       according to
 with an H2S concentration       Sec.
 greater than 20 ppm.            250.490(f);
                                (2) A reference
                                 to an approved
                                 or submitted H2S
                                 Contingency Plan
                                 that covers the
                                 operation of the
                                 proposed
                                 pipeline and/or
                                 the construction
                                 operations at
                                 the pipeline
                                 crossing; or.
                                (3) A statement
                                 that you will
                                 submit for
                                 approval to the
                                 appropriate
                                 District Manager
                                 either an H2S
                                 Contingency
                                 Plan(s) or an
                                 amendment to an
                                 approved H2S
                                 Contingency
                                 Plan(s) before
                                 you install the
                                 proposed
                                 pipeline..
(e) A product with an H2S       Two (2) copies of
 concentration greater than      an H2S
 500 ppm.                        dispersion
                                 modeling report
                                 or the modeling
                                 results (see
                                 Sec.
                                 250.1082(b)), or
                                 a reference to
                                 such report or
                                 results if
                                 already
                                 submitted to the
                                 Regional
                                 Supervisor.
------------------------------------------------------------------------


[[Page 56478]]

Sec.  250.1026  Biological and archaeological information.

    You must provide the biological and archaeological information 
indicated in the following table:

------------------------------------------------------------------------
      Type of information         When required           Contents
------------------------------------------------------------------------
(a) Chemosynthetic communities  If the proposed    Three copies of a
 report.                         pipeline, or the   high-density
                                 associated         chemosynthetic
                                 anchors or         communities report.
                                 chains of the      The Regional
                                 pipeline           Supervisor will
                                 construction       specify the contents
                                 vessel (or a       of this report.
                                 proposed
                                 accessory, or
                                 the associated
                                 anchors or
                                 chains of the
                                 construction
                                 barge) will be
                                 placed in water
                                 depths 1,312
                                 feet or greater.
(b) Sensitive biological        If the proposed    Plats, a photo
 features reports or             pipeline, or the   documentation survey
 documentation.                  associated         report, and/or a
                                 anchors or         high-resolution
                                 chains of the      geophysical data
                                 pipeline           survey report to
                                 construction       identify and locate
                                 vessel (or a       the features. The
                                 proposed           Regional Supervisor
                                 accessory          will specify when
                                 platform, or the   you must provide
                                 associated         these plats and
                                 anchors or         reports, and their
                                 chains of the      contents.
                                 construction
                                 barge) will be
                                 placed in the
                                 vicinity of any
                                 biologically-
                                 sensitive
                                 features,
                                 including but
                                 not limited to
                                 topographic
                                 features, live
                                 bottoms (low-
                                 relief
                                 features), live
                                 bottoms
                                 (pinnacle trend
                                 features or
                                 seamounts), and
                                 potentially
                                 sensitive
                                 biological
                                 features.
(c) Archaeological report.....  If you propose     Three copies of an
                                 bottom-            archaeological
                                 disturbing         report, or a
                                 operations in      reference to such a
                                 areas that are     report if it was
                                 identified as      already provided to
                                 high probability   the Regional
                                 shipwreck blocks   Supervisor. The
                                 or prehistoric     Regional Supervisor
                                 areas.             will specify the
                                                    contents of the
                                                    archaeological
                                                    report.
------------------------------------------------------------------------

Sec.  250.1027  Requests for alternative compliance or departure.

    You must provide any request for alternative compliance or 
departure as indicated in the following table:

------------------------------------------------------------------------
                                                      What your request
       Type of request            When required            must do
------------------------------------------------------------------------
(a) Alternative compliance..  You must request      (1) Identify the MMS
                               approval from the     regulation for
                               Regional Supervisor   which you are
                               if you plan to use    seeking alternative
                               any alternate         compliance;
                               procedures or        (2) Describe the
                               equipment (see Sec.   procedure, method,
                                 250.141).           or equipment you
                                                     plan to use;
                                                    (3) Explain the
                                                     reason you want to
                                                     use the procedure,
                                                     method, or
                                                     equipment; and
                                                    (4) Explain how you
                                                     will achieve a
                                                     level of safety and
                                                     environmental
                                                     protection that is
                                                     equal to or greater
                                                     than that
                                                     prescribed by the
                                                     MMS regulation.
(b) Departure...............  You must request      (1) Identify the MMS
                               approval from the     regulation for
                               Regional Supervisor   which you are
                               if you plan to        seeking to forego
                               depart from any       or delay
                               current MMS           compliance;
                               regulatory           (2) Describe the
                               requirements (see     procedure, method,
                               Sec.   250.142)       or equipment you
                               concerning the        plan to use, if
                               proposed pipeline.    applicable; and
                                                    (3) Explain the
                                                     reason you wish to
                                                     forego or delay
                                                     compliance with the
                                                     identified MMS
                                                     regulation.
------------------------------------------------------------------------
------------------------------------------------------------------------

Sec.  250.1028  Oil and hazardous substance spill response information.

    You must provide the following oil and hazardous substance spill 
response information:
    (a) Oil spill response planning. For ROW pipelines, you must 
provide either:
    (1) An Oil Spill Response Plan (OSRP) for the pipeline prepared 
according to the requirements of 30 CFR part 254; or
    (2) A reference to your approved regional or subregional OSRP (see 
30 CFR 254.3) that includes:
    (i) A discussion of your regional or subregional OSRP, and a 
statement that your proposed ROW pipeline operations will be covered by 
that OSRP;
    (ii) The locations of your primary oil spill equipment base and any 
preplanned equipment staging areas;
    (iii) The names of your oil spill removal organizations for both 
spill response equipment and personnel;

[[Page 56479]]

    (iv) The calculated volume (barrels) of your worst case discharge 
scenario (see 30 CFR 254.26(a)) for your proposed ROW pipeline;
    (v) A comparison of the above worst case discharge scenario with 
the applicable worst case discharge scenario in your approved regional 
or subregional OSRP; and
    (vi) A discussion of your worst case discharge scenario and your 
response in adverse weather conditions for your proposed operations 
(see 30 CFR 254.26(b), (c), (d) and (e)).
    (b) Modeling report. If you model a potential oil or hazardous 
substance spill, a modeling report, the modeling results, or a 
reference to such report or results if you already submitted it to the 
Regional Supervisor.
    (c) Flower Garden Banks National Marine Sanctuary (FGBNMS). If you 
propose to conduct operations within the protective zones of the 
FGBNMS, a description of your provisions for monitoring the impacts of 
an oil spill on the environmentally sensitive resources at the FGBNMS.


Sec.  250.1029  Oil Spill Financial Responsibility (OSFR) demonstration 
information.

    For ROW pipelines that will transport oil (see definition at 30 CFR 
253.3), you must provide a statement that you have demonstrated or will 
demonstrate OSFR coverage in the amount specified in 30 CFR 253.13(b) 
unless the static volume of the pipeline is 1,000 barrels, or less, or 
the calculated volume of your worst case discharge scenario is 1,000 
barrels or less.


Sec.  250.1030  Environmental Impact Analysis (EIA) information.

    For ROW pipelines, you must provide a project-specific EIA that 
identifies and analyzes the potential direct and indirect environmental 
impacts of your proposed ROW pipeline operations (including the 
installation and operation of any accessory) to assist the Regional 
Supervisor in complying with NEPA (42 U.S.C. 4321, et seq.) and other 
relevant Federal laws. Your EIA must include:

------------------------------------------------------------------------
     Type of information                 What must be included
------------------------------------------------------------------------
(a) Resources, conditions,     (1) Meteorology, oceanography, geology,
 and activities that could      and geological and/or manmade hazards;
 affect or be affected by      (2) Air and water quality;
 your proposed ROW pipeline    (3) Benthic communities, marine mammals,
 operations.                    sea turtles, coastal and marine birds,
                                fish and shellfish, and algal or plant
                                life;
                               (4) Threatened or endangered species, and
                                their critical habitat, as defined by
                                the Endangered Species Act (ESA) of 1973
                                (16 U.S.C. 1531, et seq.);
                               (5) Sensitive biological resources or
                                habitats such as essential fish habitat,
                                refuges, preserves, special management
                                areas identified in coastal management
                                programs, sanctuaries, coastal
                                monuments, national natural landmarks,
                                rookeries, and calving grounds;
                               (6) Archaeological resources;
                               (7) Socio-economic resources, as
                                specified in paragraph (b) of this
                                section;
                               (8) Coastal and marine uses, such as
                                military or commercial operations,
                                shipping, and mineral exploration or
                                development; and
                               (9) Other resources, conditions, and
                                operations identified by the Regional
                                Supervisor.
(b) Socio-economic resources.  (1) The approximate number, timing, and
                                duration of employment of persons
                                engaged in onshore support and
                                construction operations;
                               (2) Population (including the approximate
                                number of people and families added to
                                local onshore areas);
                               (3) Existing offshore and onshore
                                infrastructure (including major sources
                                of supplies, services, energy, and
                                water);
                               (4) Types of contractors or vendors that
                                may place a demand on local goods and
                                services;
                               (5) Land use;
                               (6) Subsistence resources and harvest
                                practices;
                               (7) Recreation and recreational and
                                commercial fishing (including seasons,
                                location, and type);
                               (8) Minority and lower income groups;
                               (9) Federally-recognized tribes in the
                                AKOCSR; and
                               (10) Coastal zone management programs.
(c) Impact producing factors   (1) Air emissions;
 (IPF) that can cause impacts  (2) Seafloor disturbance from anchoring
 to the environmental           and structure emplacement;
 resources you identified in   (3) Discharges;
 paragraph (a) of this         (4) Emissions of light and noise;
 section.                      (5) Water intakes and discharges;
                               (6) Use of service vessels and
                                helicopters;
                               (7) Construction or expansion of onshore
                                support facilities;
                               (8) Onshore waste disposal; and
                               (9) Accidental events, including oil or
                                chemical spills and hydrogen sulfide
                                (H2S) releases.
(d) Environmental impact       (1) Analysis of the direct and indirect
 analysis (EIA).                impacts (including those from accidents)
                                of the IPFs you identified in paragraph
                                (c) of this section on the environmental
                                resources, conditions, and activities
                                you identified in paragraph (a) of this
                                section;
                               (2) Analysis of the potential cumulative
                                impacts from other activities to those
                                environmental resources, conditions, and
                                activities you identified in paragraph
                                (a) of this section;
                               (3) Description of the type, severity,
                                and duration of the potential impacts,
                                and their biological, physical, and
                                other consequences and implications;
                               (4) Description of the potential measures
                                to minimize or mitigate the potential
                                impacts; and
                               (5) Description of the alternatives to
                                your proposed ROW pipeline operations
                                that you considered while developing
                                your pipeline application, and a
                                comparison of the potential
                                environmental impacts.
(e) Consultation.............  A list of agencies and persons that you
                                consulted or you will consult, regarding
                                potential impacts associated with your
                                proposed pipeline operations.
(f) References cited.........  A list of the references that you cite in
                                the EIA.
------------------------------------------------------------------------


[[Page 56480]]

Pipeline Design


Sec.  250.1031  What are the general requirements for designing a 
pipeline?

    You must design a pipeline, including the horizontal component, 
risers, valves, flanges, fittings, umbilicals, and all other 
appurtenances to do all of the following:
    (a) Mitigate any reasonably anticipated detrimental effects of 
water currents, storm or ice scouring, soft or hard bottoms, mud 
slides, earthquakes, hurricanes, subfreezing temperatures, and other 
environmental factors;
    (b) Withstand the anticipated maximum differential pressure to 
prevent both burst and collapse;
    (c) Withstand the static and dynamic loads that will be imposed on 
the pipe during construction and under operating conditions;
    (d) Mitigate the effects of thermal expansion and contraction; and
    (e) Mitigate the effects of internal and external corrosion.


Sec.  250.1032  What must I do to avoid or mitigate hazards?

    (a) Shallow hazards survey. You must conduct a shallow hazards 
survey using appropriate high-resolution geophysical survey techniques 
and other tools to locate potential hazards. The Regional Supervisor 
will specify the survey area, instrumentation, and methodology.
    (b) Route selection. You must use the results of the shallow 
hazards survey required by paragraph (a) of this section, charts, maps, 
and other sources of relevant information to:
    (1) Select a route that avoids surface and subsurface hazards as 
much as possible (e.g., in anchorage areas, existing pipelines, other 
manmade objects, active faults, rock outcrops, mudslide areas); and
    (2) Identify hazards that you cannot avoid, and design the pipeline 
to mitigate the effects of these hazards.


Sec.  250.1033  What are the design requirements for horizontal 
components and risers?

    (a) Internal design pressure. (1) You must determine the internal 
design pressure for steel horizontal components and risers using the 
following formula or the equations in section 4.3.1 of API RP 1111 and, 
if applicable, sections 4.3.1.1 and 4.3.1.2 of API RP 1111 
(incorporated by reference as specified in Sec.  250.198):
[GRAPHIC] [TIFF OMITTED] TP03OC07.010


------------------------------------------------------------------------
         Variable                           Description
------------------------------------------------------------------------
P........................  Internal design pressure (psi).
S........................  Specified minimum yield strength (psi),
                            stipulated in the specification under which
                            the pipe was purchased from the manufacturer
                            or determined in accordance with section
                            811.253(h) of ANSI/ASME B31.8 (incorporated
                            by reference as specified in Sec.
                            250.198).
T........................  Nominal wall thickness (inches).
D........................  Nominal outside diameter of pipe (inches).
F........................  Construction design factor (0.72 for the
                            horizontal component and 0.60 for risers).
E........................  Longitudinal joint factor from Table 841.1B
                            of ANSI/ASME B31.8 (incorporated by
                            reference as specified in Sec.   250.198)
                            (See also section 811.253(d) of this
                            standard).
T........................  Temperature derating factor obtained from
                            Table 841.1C of ANSI/ASME B31.8
                            (incorporated by reference as specified in
                            Sec.   250.198).
------------------------------------------------------------------------

    (2) For limitations, see section 841.121 of ANSI/ASME B.31.8 
(incorporated by reference as specified in Sec.  250.198). When 
calculating the internal design pressure for steel pipe, you may 
account for the effects of external hydrostatic pressure as shown in 
ANSI/ASME B.31.8, Chapter 8 (incorporated by reference as specified in 
Sec.  250.198).
    (b) External design pressure. You must predict the external 
(collapse) design pressure for steel pipe for pipelines to be installed 
in water depths greater than 1000 feet using the equations in sections 
4.3.2.1 and 4.3.2.2 of API RP 1111 (incorporated by reference as 
specified in Sec.  250.198).
    (c) Catenary riser for a fixed structure. You must design a 
catenary riser for a fixed structure according to sections 4.5.4 and 
4.1.6.2 of API RP 1111 (incorporated by reference as specified in Sec.  
250.198).
    (d) Riser for tension leg platform or a floating system. You must 
design a pipeline riser for a tension leg platform or a floating system 
according to API RP 2RD (incorporated by reference as specified in 
Sec.  250.198).
    (e) Unbonded flexible pipe. If you plan to install a pipeline using 
unbonded flexible pipe, you must design the pipeline according to the 
specifications and the review standards for a third-party independent 
verification agent specified in API Spec 17J (incorporated by reference 
as specified in Sec.  250.198).
    (f) External protective coating. You must design a pipeline to 
provide the:
    (1) Horizontal component and appurtenances with an external 
protective coating to minimize external corrosion;
    (2) Risers with an additional external coating to resist the 
detrimental effects of corrosion, sunlight, and wave action in the 
splash zone; and
    (3) Pipe and appurtenances exposed to the atmosphere with a 
suitable coating.
    (g) Internal corrosion control. You must design a pipeline to 
mitigate internal corrosion (e.g., the use of internal coatings, 
corrosion-resistant alloys) over its design life.
    (h) Flow assurance. You must design a pipeline to ensure that 
adequate flow can be sustained throughout its design life (e.g., using 
pipe-in-pipe, insulated pipe, electrically heated pipe, piggable pipe).
    (i) Pipeline on-bottom stability. You must design a pipeline so 
that it will be stable in the geologic and weather conditions for the 
area.
    (1) Your pipeline must remain stable during a storm. The stability 
must be determined using appropriate backfill rates and storm data for 
the area. If the pipeline is in a water depth less than 200 feet and is 
jetted at least 3 feet below the natural seabed, it must be stable 
during a 2-year storm (minimum). If you expect that the pipeline will 
bury itself naturally in the sediment in a water depth less than 200 
feet, it must remain stable during a 100-year storm (minimum). If the 
pipeline is in a water depth 200 feet or greater and is not buried, it 
must be stable during a 100-year storm (minimum).
    (2) The Regional Supervisor may require additional stability design 
measures based on the geologic or weather conditions for the area.
    (j) Underwater vent pipeline. You must design an underwater vent 
pipeline (any pipeline that transports natural gas that has been vented 
during upset or abnormal conditions or bleed

[[Page 56481]]

down operations to a location where the gas is discharged underwater or 
flared at a flare pile) to ensure that the discharge point is:
    (1) A minimum of 250 feet from the delivering structure; and
    (2) Anchored to the sea floor, unless the gas is flared at a flare 
pile.
    (k) Riser supports. When designing riser supports, you must 
consider the:
    (1) Loads induced by riser operations;
    (2) Environmental loads, taking into account 100-year return period 
storm criteria as set out in API RP 2A-WSD (incorporated by reference 
as specified in Sec.  250.198); and
    (3) Installation loads on risers that are pre-installed.


Sec.  250.1034  What are the design requirements for appurtenances?

    You must design pipeline appurtenances as set forth below:
    (a) Pipeline valve. You must design a pipeline valve to meet the 
minimum design requirements of API Spec 6A (incorporated by reference 
as specified in Sec.  250.198), API Spec 6D/ISO 14313 (incorporated by 
reference as specified in Sec.  250.198), or the equivalent. You may 
not use a valve under any operating conditions that exceed the 
applicable pressure or temperature ratings in those standards. The 
material of the valve must be compatible with the product being 
transported.
    (b) Pipeline flange. You must design a pipeline flange:
    (1) To meet the minimum design requirements of ANSI B16.5 
(incorporated by reference as specified in Sec.  250.198), API Spec 6A 
(incorporated by reference as specified in Sec.  250.198), or the 
equivalent;
    (2) To withstand the MAOP of the pipeline;
    (3) To maintain its physical and chemical properties at the maximum 
and minimum anticipated operating temperatures; and
    (4) Using material that is compatible with the product being 
transported.
    (c) Pipeline fittings. You must use pipeline fittings (couplings, 
elbows, unions, tees, swage nipples, buckle arrestors, gaskets, etc.) 
that:
    (1) Have pressure-temperature ratings based on stresses for pipe of 
the same or equivalent material;
    (2) Have a bursting strength greater than the computed bursting 
strength of the pipe; and
    (3) Use material that is compatible with the product being 
transported.
    (d) Anode cathodic protection system. You must:
    (1) Design your anode cathodic protection system to have a life 
expectancy of 30 years or for the design life of the pipeline, 
whichever is longer; and
    (2) Use the following equation, or another equation and/or method 
acceptable to the Regional Supervisor in accordance with the provisions 
of Sec.  250.141, to calculate anode design life:
[GRAPHIC] [TIFF OMITTED] TP03OC07.011


------------------------------------------------------------------------
             Variable                            Description
------------------------------------------------------------------------
T.................................  Time (years).
M.................................  Total net anode mass (pounds).
U.................................  Utilization factor.
v.................................  Electrochemical efficiency (amp x
                                     hour/pound).
I.................................  Current demand (amp).
------------------------------------------------------------------------

    (3) You can obtain values for the utilization factor (U) from DNV 
RP B401, Table 6.9.1 (incorporated by reference as specified in Sec.  
250.198). You can obtain values for electrochemical efficiency (v) from 
the anode manufacturer.


Sec.  250.1035  What are the design requirements for sour service?

    If your pipeline will operate in a sour environment (fluids 
containing water as liquid and H2S exceeding the limits 
defined in paragraphs 1.3.1.1 and 1.3.1.2 of NACE Standard MR0175 
(incorporated by reference as specified in Sec.  250.198)), you must 
design your pipeline in accordance with section 10.5 of NACE Standard 
MR0175.


Sec.  250.1036  When must I sectionalize a pipeline?

    The Regional Supervisor may require you to design your pipeline in 
sections to reduce the volume of your worst case discharge (see 30 CFR 
254.47).

Pipeline Fabrication


Sec.  250.1038  What are the general requirements for fabricating a 
pipeline?

    You must fabricate each pipeline in a manner that:
    (a) Adheres to a suitable quality control program that includes 
inspection, testing, spot checks, and evaluation by qualified 
personnel;
    (b) Adheres to the specified design tolerances;
    (c) Conforms to recognized engineering practices; and
    (d) Complies with applicable regulations, codes, guides, standards, 
and recommended practices.

Pipeline Construction


Sec.  250.1040  What are the general requirements for constructing a 
pipeline?

    You must construct each pipeline in accordance with your approved 
application, and in a manner that:
    (a) Minimizes construction stresses and strains;
    (b) Ensures that the pipeline is constructed on the approved route;
    (c) Avoids or mitigates geologic and manmade hazards, artificial 
reefs, archaeological resources, and biologically sensitive features;
    (d) Minimizes the length of unsupported spans; and
    (e) Protects the pipeline from damage.


Sec.  250.1041  Who must I notify before I begin construction?

    Before you begin pipeline construction, you must make the 
notifications in the following table:

------------------------------------------------------------------------
                                  When you must
      Who you must notify       make notification    Other requirements
------------------------------------------------------------------------
(a) U.S. Coast Guard (USCG)...  At least 30        You are encouraged to
                                 calendar days      notify the
                                 before you         applicable USCG
                                 conduct pipeline   Marine Safety Office
                                 construction       so that a Notice to
                                 operations.        Mariners can be
                                                    prepared.
(b) Military installations....  Before you         You must notify the
                                 conduct pipeline   commander of the
                                 construction       military
                                 operations in an   installation that
                                 established        exercises
                                 military warning   jurisdiction of the
                                 or water test      area concerning the
                                 area.              control of
                                                    electromagnetic
                                                    emissions and the
                                                    use of vessels,
                                                    equipment, and
                                                    aircraft in the
                                                    area.
(c) MMS, Regional Supervisor..  At least 48 hours  You must make this
                                 before you         notification by
                                 commence           telefax or email,
                                 construction       using Form MMS-153
                                 operations.        (Notification of
                                                    Pipeline
                                                    Installation/
                                                    Relocation/
                                                    Hydrotest).
------------------------------------------------------------------------


[[Page 56482]]

Sec.  250.1042  What must I do to avoid or mitigate hazards during 
construction?

    To avoid or mitigate hazards during pipeline construction, you must 
comply with the requirements in the following table:

------------------------------------------------------------------------
          Requirement            What you must do         Details
------------------------------------------------------------------------
(a) Buoying hazards...........  Before you         You must:
                                 perform pipeline  (1) Buoy all existing
                                 construction       pipelines and other
                                 operations or      potential hazards
                                 other bottom-      located within 500
                                 disturbing         feet of the
                                 activities.        operation (including
                                                    anchor patterns); or
                                  (2) In areas
                                congested with
                                pipelines or
                                debris, use buoys
                                to outline a safe
                                working area
                                large enough to
                                accommodate your
                                proposed pipeline
                                construction
                                operations.
(b) Navigation system.........  In lieu of         You may use a state-
                                 complying with     of-the-art, real-
                                 paragraph (a) of   time primary
                                 this section.      navigational
                                                    positioning
                                                    equipment (e.g.,
                                                    DGPS) on all vessels
                                                    (e.g., pipeline
                                                    construction
                                                    vessels, derrick
                                                    barges, anchor-
                                                    handling vessels)
                                                    associated with your
                                                    pipeline
                                                    construction
                                                    operations to depict
                                                    existing pipelines
                                                    and other potential
                                                    hazards.
(c) Location plat.............  Before you         You must:
                                 perform pipeline  (1) Prepare a plat
                                 construction       with a minimum scale
                                 operations.        of 1:12,000 oriented
                                                    to true north
                                                    depicting the
                                                    location of proposed
                                                    pipeline
                                                    construction
                                                    operations, all
                                                    associated anchor
                                                    patterns, existing
                                                    pipelines (both
                                                    active and
                                                    inactive), debris
                                                    fields, or other
                                                    potential hazards in
                                                    the area. The plat
                                                    must be dated,
                                                    accurate, and
                                                    indicative of
                                                    current conditions
                                                    (including post-
                                                    hurricane conditions
                                                    and recent
                                                    construction or
                                                    modification
                                                    activities0; and
                                                     (2) Provide copies
                                                   of the plat to key
                                                   personnel on all
                                                   vessels (e.g.,
                                                   pipeline construction
                                                   vessels, derrick
                                                   barges, and anchor-
                                                   handling vessels)
                                                   associated with your
                                                   pipeline construction
                                                   operations.
------------------------------------------------------------------------

Sec.  250.1043  What must I do to install a hot tap?

    To install a hot tap, you must comply with the requirements in the 
following table:

------------------------------------------------------------------------
         Requirement            What you must do           Details
------------------------------------------------------------------------
(a) Area inspection.........  If you plan to        (1) Notify the
                               install a hot tap     Regional Supervisor
                               on an existing        within 48 hours
                               pipeline located in   after you first
                               a water depth less    observe the
                               than 200 feet, you    problem; and
                               must first           (2) Submit a plan of
                               determine whether     corrective action
                               proper cover is       under Sec.
                               being maintained on   250.1097 to the
                               the portion of the    Regional Supervisor
                               pipeline in the       within 30 calendar
                               vicinity of the       days after you
                               proposed work. If     first observe the
                               you determine that    problem.
                               environmental or
                               other factors have
                               detrimentally
                               affected the burial
                               depth of the
                               pipeline.
(b) Cathodic protection       If your pipeline is   Take measurements of
 system measurements.          located in:           the pipe-to-
                              (1) The AKOCSR; or..   electrolyte
                              (2) The GOMR or        potential at
                               POCSR, and.           locations along
                              (i) The pipeline is    submerged sections
                               composed of any       of a pipeline when
                               pipe that is more     you conduct hot tap
                               than 20 years old;    operations on a
                               or.                   pipeline.
                              (ii) The life
                               expectancy of the
                               cathodic protection
                               system cannot be
                               calculated.
------------------------------------------------------------------------

Sec.  250.1044  What must I do to protect a horizontal component?

    To protect the horizontal component during construction, you must 
comply with the requirements in the following table:

------------------------------------------------------------------------
       Component or activity                     Requirement
------------------------------------------------------------------------
(a) External coating..............  You must protect the external
                                     coating of the horizontal component
                                     during construction.
(b) Cathodic protection system....  You must locate and install the
                                     components of the cathodic
                                     protection system in a manner that
                                     will minimize the possibility of
                                     damage.
(c) Burial........................  You must bury each pipeline you
                                     install in water depths less than
                                     200 feet to a depth of at least
                                     three feet below the mud line. On a
                                     case-by-case basis, the Regional
                                     Supervisor may:
                                      (1) Grant you approval to allow a
                                    pipeline to self bury, or allow you
                                    to use an alternative method of
                                    compliance in accordance with the
                                    provisions of Sec.   250.141; or

[[Page 56483]]

 
                                      (2) Require you to increase the
                                    burial depth of a pipeline that will
                                    transport a product containing H2S
                                    in highly congested or active areas.
(d) Other protective measures.....  The Regional Supervisor may require
                                     burial or other protection of the
                                     pipeline in any water depth if the
                                     Regional Supervisor determines that
                                     such measures will reduce the
                                     likelihood of environmental
                                     degradation, or mitigate a
                                     potential hazard to trawling
                                     operations or other uses of the
                                     OCS.
(e) Burial in fairways and          You must consult with the U.S. Army
 anchorage areas.                    Corps of Engineers as they may have
                                     more stringent burial requirements
                                     for pipelines that enter or cross
                                     safety fairways or anchorage areas.
(f) Spanning......................  You must provide sufficient
                                     supports, or use other mitigation
                                     measures (e.g., installing
                                     strakes), to avoid excessive loads
                                     or deformations and fatigue damage
                                     that could result from spanning.
------------------------------------------------------------------------

Sec.  250.1045  What must I do to protect a riser?

    To protect a riser during construction, you must comply with the 
requirements in the following table:

------------------------------------------------------------------------
        You must have . . .                  and you must . . .
------------------------------------------------------------------------
(a) External coating..............  Protect the external coating of the
                                     riser during construction.
(b) Cathodic protection system....  Locate and install the components of
                                     the cathodic protection system in a
                                     manner that will minimize the
                                     possibility of damage.
(c) Vortex induced vibration (VIV)  Protect any preinstalled VIV
 suppression devices.                suppression devices during
                                     construction.
(d) Impact protection.............  (1) Protect a pipeline riser from
                                     physical damage that could result
                                     from contact with floating vessels
                                     by using riser guards or other
                                     protection measures that are
                                     capable of transferring impact
                                     loads to the platform structure;
                                     and
                                    (2) Not use pipe-in-pipe
                                     configurations as riser impact
                                     protection.
------------------------------------------------------------------------

Sec.  250.1046  What must I do to protect an appurtenance and crossing?

    (a) Protection methods. You must protect all pipeline valves, taps, 
tie-in assemblies, capped pipelines, flanges, crossings, and repaired 
sections installed in water depths less than 500 feet with at least 3 
feet of cover or with a protective device (e.g., cement mats, cages) 
unless an alternate procedure is otherwise approved by the Regional 
Supervisor in accordance with the provisions of Sec.  250.141.

------------------------------------------------------------------------
           If you . . .                        You must . . .
------------------------------------------------------------------------
(1) Bury the appurtenance or        Maintain the three-foot burial depth
 crossing.                           throughout the life of the
                                     pipeline, including after the
                                     pipeline has been decommissioned in
                                     place.
(2) Use a protective device.......  Design it to be compatible with
                                     other uses of the OCS. The height
                                     and the slope of the device must
                                     allow for a smooth transition over
                                     the appurtenance or crossing.
------------------------------------------------------------------------

    (b) Separation. You must install the pipeline in a manner that:
    (1) Provides for a separation of at least 12 inches for the life of 
the pipeline at pipeline crossings, power cable crossings, etc.; and
    (2) Prevents physical contact with existing umbilicals and 
communication cables.
    (c) Existing pipelines. If you plan to install a pipeline that will 
tie into or cross an existing pipeline, you must examine the portion of 
the existing pipeline in the vicinity of the proposed tie-in or 
crossing. If you determine that environmental or other factors have 
detrimentally affected the burial depth of the pipe or any 
appurtenance, any protective cover of the pipe (in water depths less 
than 200 feet), or any protective cover for any appurtenance (in water 
depths less than 500 feet), you must notify the Regional Supervisor. 
The Regional Supervisor may require the responsible party to submit a 
plan of corrective action (under Sec.  250.1097) to remedy the problem.
    (d) Atmospheric zone. You must protect valves and fittings exposed 
to the atmosphere with a suitable coating.


Sec.  250.1047  What must I do to construct a pipeline in or near a 
designated use area?

    If you construct a pipeline in or near a designated use area, you 
must follow the requirements in the following table. Pipeline 
construction operations include the use of anchors, chains, and wire 
ropes.

------------------------------------------------------------------------
If your pipeline construction
       operations . . .                        Then . . .
------------------------------------------------------------------------
(a) Are conducted in or near   You must:
 a designated military         (1) Assume all risks of damage to
 warning or water test area.    property, or injury to persons you
                                employ or who are otherwise connected
                                with your pipeline construction
                                operations, that is caused by any act or
                                omission, regardless of negligence or
                                fault, resulting from the programs or
                                activities of the military installation
                                exercising jurisdiction over the
                                military warning or water test area;

[[Page 56484]]

 
                                 (2) Indemnify and hold harmless the
                               United States against all claims for
                               loss, damage, or injury sustained by
                               persons you employ, or who are otherwise
                               connected with your pipeline construction
                               operations, that are caused by any act or
                               omission, regardless of negligence or
                               fault, resulting from the programs or
                               activities of the military installation
                               exercising jurisdiction over the military
                               warning or water test area;
                                 (3) Control your electromagnetic
                               emissions in accordance with the
                               requirements specified by the commander
                               of the military installation that has
                               jurisdiction over the military warning or
                               water test area to the degree necessary
                               to prevent damage to, or interference
                               with, Department of Defense flight,
                               testing, or operations; and
                                 (4) Enter into an agreement with the
                               commander of the individual command
                               headquarters when you operate, or cause
                               to be operated on your behalf, a boat,
                               ship, or aircraft in a military warning
                               or water test area. Such an agreement
                               must provide for the positive control of
                               boats, ships, and aircraft operating in
                               the military warning or water test area
                               at all times.
(b) Will be in a designated    You must contact representatives of the
 lightering zone (see 33 CFR    Industry Taskforce on Offshore
 156.300) or traditional        Lightering to discuss potential
 lightering area in the Gulf    conflicts between your pipeline
 of Mexico.                     construction operations and the
                                lightering activities in these zones and
                                areas.
(c) Could be in a designated   The operations are subject to the
 safety fairway or anchorage    prohibitions, restrictions, procedures,
 area, in a safety or           and other requirements contained in
 security zone, or near a       applicable U.S. Coast Guard regulations
 deepwater port.                (see 33 CFR part 166 for fairways and
                                anchorage areas, 33 CFR part 165 for
                                safety and security zones, and 33 CFR
                                part 150 for deepwater ports).
(d) Are in the vicinity of a   You must:
 State-established artificial  (1) Contact the appropriate State natural
 reef.                          resource agency or artificial reef
                                coordinator; and
                                 (2) Ensure that the pipeline route is
                               not within 1000 feet, or other distance
                               specified by the Regional Supervisor,
                               from the perimeter of the artificial reef
                               area.
(e) Could disturb the sea      You must consider the area as potentially
 floor in or near an area       hazardous and take appropriate and
 that was used until 1970 by    necessary precautions.
 the Department of Defense as
 an ordnance dumping area.
(f) Are in the vicinity of     You must ensure that:
 any U.S. Air Force            (1) The construction vessel and any
 communication towers in the    support vessels do not move within:
 Gulf of Mexico.               (i) A 500-foot radius of the center of a
                                tower site; and
                               (ii) 100 feet of the centerline of a line
                                of sight between a master tower and a
                                remote tower; and
                               (2) Your electromagnetic transmissions do
                                not interfere with the operation of the
                                towers.
------------------------------------------------------------------------

Sec.  250.1048  What must I do to construct a pipeline in or near a 
sensitive biological feature or area?

    If you construct a pipeline in or near a biological feature or 
area, you must follow the requirements in the following table. Pipeline 
construction operations include the use of anchors, chains, and wire 
ropes.

------------------------------------------------------------------------
If your pipeline construction
    operations could . . .                     Then . . .
 
------------------------------------------------------------------------
(a) Disturb seafloor areas in  You must:
 water depths greater than     (1) If required by the Regional
 1,312 feet.                    Supervisor, obtain appropriate high-
                                resolution geophysical data of
                                chemosynthetic communities in the area
                                of pipeline construction operations to
                                accurately identify and locate the
                                features to prepare the required
                                submittals (e.g., bathymetry map, survey
                                report);
                                 (2) Locate all seafloor disturbances
                               (including those caused by anchors,
                               anchor chains, wire ropes, appurtenance
                               installation, and the pipeline) at least
                               250 feet from any identified features or
                               areas that could support high-density
                               chemosynthetic communities; and
                                 (3) Use a state-of-the-art primary
                               navigation system (e.g., DGPS) on your
                               pipeline construction vessel and anchor-
                               handling vessels to ensure that any
                               seafloor disturbances do not occur within
                               250 feet of such features of areas.
(b) Disturb the sensitive      You must:
 biological habitats (e.g.,    (1) Locate all seafloor disturbances
 coral reefs) associated with   (including those caused by anchors,
 an identified topographic      anchor chains, wire ropes, appurtenance
 feature.                       installation, and the pipeline) at least
                                500 feet outside the boundary of the
                                designated ``No Activity Zone'' of such
                                a feature; and
                               (2) Use a state-of-the-art primary
                                navigation system (e.g., DGPS) on your
                                pipeline construction vessel and anchor-
                                handling vessels to ensure that any
                                seafloor disturbances do not occur
                                within 500 feet of the boundary of the
                                designated ``No Activity Zone'' of such
                                a feature.
(c) Disturb live bottoms       You must:
 (pinnacle trend features or   (1) If required by the Regional
 seamounts) that likely         Supervisor, obtain appropriate high-
 provide habitat for high-      resolution geophysical data or photo-
 density biological             documentation of live bottoms (pinnacle
 assemblages.                   trend features or seamounts) in the area
                                of pipeline construction operations to
                                accurately identify and locate the
                                features and to prepare the required
                                submittals (e.g., bathymetry map, survey
                                report);
                                 (2) Locate all seafloor disturbances
                               (including those caused by anchors,
                               anchor chains, wire ropes, appurtenance
                               installation, and the pipeline) at least
                               100 feet from the identified live
                               bottoms; and

[[Page 56485]]

 
                                 (3) Use a state-of-the-art primary
                               navigation system (e.g., DGPS) on your
                               pipeline construction vessel and anchor-
                               handling vessels to ensure that any
                               seafloor disturbances do not occur within
                               100 feet of the live bottoms.
(d) Disturb live bottoms (low  You must:
 relief features) that likely  (1) If required by the Regional
 provides habitat for sea       Supervisor, obtain appropriate high-
 grasses; aggregated fishes,    resolution geophysical data or photo
 turtles, or other fauna; or    documentation of live bottoms (low
 coral community organisms.     relief features) in the area of
                                operations to accurately identify and
                                locate the features to prepare the
                                required submittals (e.g., bathymetry
                                map, survey report);
                                 (2) Locate all seafloor disturbances
                               (including those caused by anchors,
                               anchor chains, wire ropes, appurtenance
                               installation, and the pipeline) to avoid
                               impacting the identified live bottoms;
                               and
                                 (3) Use a state-of-the-art primary
                               navigation system (e.g., DGPS) on your
                               pipeline construction vessel and anchor-
                               handling vessels to ensure that you do
                               not adversely impact the live bottoms.
(e) Disturb potentially        You must:
 sensitive biological          (1) Locate all seafloor disturbances
 features, as determined from   (including those caused by anchors,
 your analysis or review of     anchor chains, wire ropes, appurtenance
 survey information.            installation, and the pipeline) to avoid
                                impacting the potentially biological
                                sensitive features; and
                                 (2) Use a state-of-the-art primary
                               navigation system (e.g., DGPS) on your
                               pipeline construction vessel and anchor-
                               handling vessels to ensure that you do
                               not adversely impact the potentially
                               sensitive biological features.
(f) Adversely affect a marine  Marine sanctuaries are subject to the
 sanctuary established by the   prohibitions, restrictions, procedures,
 Secretary of Commerce under    and other requirements contained in 15
 the authority of section 302   CFR part 922.
 of the Marine Protection,
 Research and Sanctuaries Act
 of 1972, as amended (16
 U.S.C. 1432).
------------------------------------------------------------------------

Sec.  250.1049  What must I do to construct a pipeline in or near an 
archaeological resource?

    If you construct a pipeline in or near an archaeological resource, 
you must follow the requirements in the following table. Pipeline 
construction operations include the use of anchors, chains, and wire 
ropes.

------------------------------------------------------------------------
                If . . .                          You must . . .
------------------------------------------------------------------------
(a) An archaeological resource is known  Obtain appropriate high-
 to exist, or the Regional Director has   resolution geophysical data in
 reason to believe that an                the area of operations to
 archaeological resource may exist, in    accurately identity and locate
 the area of the proposed pipeline        the existing or potential
 construction operations.                 archaeological resources to
                                          prepare a survey report. The
                                          Regional Supervisor will
                                          specify the survey area,
                                          instrumentation, and
                                          methodology.
(b) The review by the Regional           Either:
 Supervisor of the archaeological        (1) Locate the site of your
 report included with your pipeline       pipeline construction
 application (see Sec.   250.1026(c))     operations to avoid the
 concludes that an archaeological         potential archaeological
 resource may be present.                 resource by at least the
                                          distance specified by the
                                          Regional Supervisor; or
                                         (2) Establish to the
                                          satisfaction of the Regional
                                          Director that an
                                          archaeological resource either
                                          does not exist or will not be
                                          adversely affected by your
                                          pipeline construction
                                          operations. In making this
                                          determination, the Regional
                                          Director may require you to
                                          conduct further archaeological
                                          investigations, using
                                          personnel, equipment, and
                                          techniques the Regional
                                          Director considers
                                          appropriate. You must submit
                                          the investigation report to
                                          the Regional Director for
                                          review.
(c) Based on further archaeological      Not take any action that may
 investigations, the Regional Director    adversely affect the
 will notify you immediately if it's      archaeological resource until
 determined that the archaeological       the Regional Director has told
 resource exists and may be adversely     you how to protect it.
 affected by your pipeline construction
 operations.
(d) You discover a potential             Immediately halt all seafloor
 archaeological resource while            disturbing operations within
 conducting your pipeline surveys,        the area of the discovery and
 pipeline construction operations, or     notify the Regional Director
 any other activity related to the        of the discovery within 72
 pipeline.                                hours. If the site was
                                          impacted by your operations,
                                          or if impacts to the site or
                                          to the area cannot be avoided,
                                          the Regional Director will
                                          specify the additional
                                          investigations you must
                                          conduct to determine if the
                                          resource is potentially
                                          eligible for listing to the
                                          National Register of Historic
                                          Places under criteria
                                          established by 36 CFR 60.4. If
                                          these investigations determine
                                          that the resource is
                                          potentially eligible for
                                          listing in the National
                                          Register of Historic Places,
                                          the Regional Director will
                                          tell you how to protect the
                                          resource, or how to mitigate
                                          adverse impacts to the site.
------------------------------------------------------------------------


[[Page 56486]]

Sec.  250.1050  When must I prepare and implement an H2S contingency 
plan for construction?

    You must prepare an H2S Contingency Plan before you 
construct a pipeline (using an anchor-supported construction vessel) 
that crosses a pipeline which transports a product with an 
H2S concentration that, if released, could result in 
atmospheric concentrations of 20 ppm or more. The H2S 
Contingency Plan must be in accordance with Sec.  250.490(f) and cover 
your pipeline construction operations. You must:
    (a) Implement this H2S Contingency Plan before the 
leading construction vessel anchors are placed within 3,000 feet of the 
crossed pipeline, and maintain it in effect until no trailing 
construction vessel anchors are within 3,000 feet of the crossed 
pipeline; and
    (b) Keep a copy of the H2S Contingency Plan on the 
pipeline construction vessel.


Sec.  250.1051  What information must I submit after construction is 
completed?

    (a) Construction report. You must submit three copies of a pipeline 
construction report to the Regional Supervisor within 45 calendar days 
after you complete pipeline construction. The construction report must 
include:
    (1) The MMS-assigned pipeline segment number.
    (2) The dates you started and concluded pipeline construction 
operations.
    (3) An ``as built'' location plat, based on NAD 27 for the GOMR 
(Gulf) and POCSR, or NAD 83 for the AKOCSR and GOMR (Atlantic), drawn 
at a minimum scale of 1 inch = 2,000 feet that:
    (i) Depicts the same information you included with your pipeline 
application (see Sec.  250.1017(a) and (b));
    (ii) Includes a list of the latitude and longitude coordinates in 
both NAD 27 and NAD 83, and the X-Y coordinates in NAD 27 for the GOMR 
(Gulf) and POCSR, or NAD 83 for AKOCSR and GOMR (Atlantic), of all key 
points;
    (iii) Depicts the boundaries of the pipeline ROW, as granted, if 
applicable; and
    (iv) Includes a certification by a registered engineer or land 
surveyor that attests to the accuracy of the ``as-built'' locations of 
the pipeline and appurtenances.
    (4) An electronic file containing the digital coordinates of the 
key points of the ``as-built'' pipeline and umbilical routes, including 
turns, and, if required by the Regional Supervisor, the position of lay 
barge anchors, chains, and cables. The digital data must be in decimal 
degrees latitude and longitude and based on NAD 83.
    (5) Discussion of the reasons for deviation if the pipeline route 
deviates from the route in your approved application by more than 200 
feet.
    (6) The type, size, weight, number, and spacing of any anodes that 
were installed on the pipeline, if the information differs 
substantially from the information you provided in your approved 
pipeline application.
    (7) A description of the protective covering, anchor pins, or sand 
bags you used to install or protect a valve, tap, subsea tie-in, capped 
line, or other appurtenance, if the installation differs substantially 
from the design you provided in your approved pipeline application.
    (8) The pipe-to-electrolyte potential readings for hot taps 
required by Sec.  250.1043(b).
    (9) A report of the hydrostatic pressure test (see Sec.  250.1061) 
required by Sec.  250.1060(a)(1).
    (10) A plat at a scale of 1 inch = 1,000 feet (or other scale 
required by the Regional Supervisor) that depicts bathymetry, any 
biologically-sensitive or archaeological feature (if applicable), and 
the position of all anchors, chains, and cables, if the pipeline or the 
associated anchors, chains, or cables are:
    (i) Located in the POCSR or AKOCSR; or
    (ii) Located in the GOMR, and if they are within:
    (A) 500 feet of the ``No Activity Zone'' of an identified 
topographic feature or other biologically-sensitive feature;
    (B) 100 feet of any live bottom (pinnacle trend feature or 
seamount) with a vertical relief of eight feet or more;
    (C) 100 feet of any live bottom (low relief feature); or
    (D) A distance specified by the Regional Supervisor of any 
potential archaeological resource.
    (b) MMS actions. The Regional Supervisor will review your pipeline 
construction report and inform you in writing of any deficiencies if 
the report is unacceptable.
    (c) National Ocean Service (NOS). You must submit a copy of the 
``as-built'' location plat required by paragraph (a)(3) of this section 
to the NOS within 45 calendar days after you complete pipeline 
construction.

Pipeline Risers Connected To Floating Platforms


Sec.  250.1052  What are the requirements for pipeline risers connected 
to floating platforms?

    (a) General. New pipeline risers and major modifications of, or 
repairs to, existing risers connected to floating platforms are subject 
to the Pipeline Riser Verification Program. A major modification or 
major repair to a pipeline riser means:
    (1) The replacement, removal, or repair of any material, component, 
or appurtenance;
    (2) Any reconfiguration or external event that could affect the 
design life of the riser; or
    (3) Any operation on the riser that involves welding.
    (b) Verification requirements. All pipeline risers subject to the 
Pipeline Riser Verification Program must undergo design verification, 
fabrication verification, and installation verification.
    (c) Certified Verification Agent (CVA). All pipeline risers subject 
to the Pipeline Riser Verification Program require separate 
verification that necessitates the use of a CVA specifically for the 
pipeline riser.
    (d) CVA qualifications. (1) Your design verification must be 
conducted by, or be under the direct supervision of, a registered 
professional civil or structural engineer or equivalent with previous 
experience in directing the design of similar risers.
    (2) Your fabrication verification must be conducted by qualified 
personnel with previous experience in third-party fabrication 
verification or experience in the fabrication of similar risers.
    (3) Your installation verification must be conducted by qualified 
personnel with previous experience in third-party installation 
verification or experience in the installation of similar risers.
    (e) CVA responsibilities. (1) The CVA must conduct the activities 
specified in Sec. Sec.  250.1054, 250.1055, and 250.1056.
    (2) The CVA must consider the provisions of applicable regulations, 
codes, guides, standards, recommended practices, approved plans, and 
the requirements of this subpart when performing riser verification.
    (3) Individuals or organizations acting as CVA's must not function 
in any capacity that would create a conflict of interest, or the 
appearance of a conflict of interest.
    (4) The CVA is the contact with the Regional Supervisor regarding 
all riser verification and reporting. The CVA is directly responsible 
for providing immediate reports to the Regional Supervisor of all 
incidents that affect the design, fabrication, and installation of 
pipeline risers.


Sec.  250.1053  What are the requirements for pipeline riser 
verification plans?

    (a) Design verification plan. You must submit a design verification 
plan to the Regional Supervisor for approval before

[[Page 56487]]

the design work is completed, before you start fabrication and 
installation, and at least 30 calendar days before you submit the 
associated pipeline application. You must submit a separate design 
verification plan for each pipeline riser. Your design verification 
plan must include:
    (1) Riser diameter, service, type, and designer(s);
    (2) A project management timeline (Gantt Chart) that depicts key 
design activities and when the CVA will submit the interim and final 
reports required by Sec.  250.1054(c) and (d);
    (3) Abstracts of the computer programs that will be used in design 
verification;
    (4) A summary of major design considerations and the approach that 
will be used to verify the validity of these design considerations; and
    (5) The CVA nomination information specified in paragraph (d) of 
this section.
    (b) Fabrication verification plan. You must submit a fabrication 
verification plan to the Regional Supervisor for approval before you 
start fabrication and at least 30 days before you submit the associated 
pipeline application. You must submit a separate fabrication 
verification plan for each pipeline riser. Your fabrication 
verification plan must include the following:
    (1) Riser diameter, service, and type;
    (2) A project management timeline (Gantt Chart) that depicts key 
fabrication activities and when the CVA will submit the interim and 
final reports required by Sec.  250.1055(d) and (e);
    (3) A summary of major fabrication considerations and the approach 
that will be used to verify the validity of these fabrication 
considerations; and
    (4) The CVA nomination information specified in paragraph (d) of 
this section.
    (c) Installation verification plan. You must submit an installation 
verification plan to the Regional Supervisor at least 30 days before 
you submit the associated pipeline application. You must submit a 
separate installation verification plan for each pipeline riser. Your 
installation verification plan must include the following:
    (1) Riser diameter, service, and type;
    (2) A project management timeline (Gantt Chart) that depicts key 
installation activities and when the CVA will submit the interim and 
final reports required by Sec.  250.1056(d) and (e);
    (3) Abstracts of the computer programs that will be used in 
installation verification;
    (4) A summary of major installation considerations and the approach 
to be used to verify the validity of these installation considerations; 
and
    (5) The CVA nomination information specified in paragraph (d) of 
this section.
    (d) CVA nomination information. (1) As part of your design 
verification, fabrication verification, and installation verification 
plans, you must include nominations for your proposed CVA's for the 
Regional Supervisor's approval.
    (2) For each nomination, you must provide a qualifications 
statement that includes the following information:
    (i) Whether the nomination is for the design, fabrication, or 
installation phase of verification, or for any combination of these 
phases;
    (ii) Experience in the design, fabrication, or installation of 
similar risers;
    (iii) Experience in third-party verification, inspection, or 
auditing of similar risers;
    (iv) Resumes of key personnel and their responsibilities;
    (v) Size and type of organization or corporation;
    (vi) In-house availability of, or access to, appropriate 
technology, including computer programs, hardware, and testing 
materials and equipment;
    (vii) Ability to perform the CVA functions for the specific project 
considering current commitments; and
    (viii) Previous experience with MMS requirements and procedures.
    (e) Modifications. Submit modifications to your verification plans, 
including changes in the CVA and key personnel, to the Regional 
Supervisor for approval.


Sec.  250.1054  What must the CVA do to verify pipeline riser design?

    The riser design CVA must use good engineering judgment and 
practices while conducting an independent verification of the design of 
the riser. The CVA must ensure that the riser is designed to withstand 
the environmental and functional load conditions appropriate for the 
intended design life of the riser at the proposed location. The 
pipeline riser design CVA must verify information, conduct analyses, 
and submit design reports as required by paragraphs (a) through (d) of 
this section.
    (a) The CVA must verify the following:
    (1) Planning criteria, including the design basis;
    (2) Operational requirements;
    (3) Environmental loading data;
    (4) Soil conditions;
    (5) Safety factors;
    (6) Material and component specifications;
    (7) Cathodic protection design and riser coating;
    (8) Interference analysis;
    (9) Input for the design of vendor components, such as specialty 
joints and connectors;
    (10) Vortex-induced vibration (VIV) suppression system to ensure 
that specifications for installation and design meet required 
suppression efficiency;
    (11) Welding specifications to ensure that they are appropriate and 
adequate for the design and inspection of the riser;
    (12) Preliminary installation analysis;
    (13) Provisions to account for marine growth and associated 
cleaning recommendations;
    (14) Recommendations on in-service inspection frequency; and
    (15) Other pertinent parameters of the proposed design.
    (b) The CVA must perform independent analyses of the following:
    (1) Riser design cases with appropriate load conditions, as 
specified in API RP 2RD (incorporated by reference as specified in 
Sec.  250.198), including, but not limited to, operation, shut-in, and 
extreme;
    (2) Riser stresses, including extreme storm response for critical 
design conditions; and
    (3) Riser fatigue of selected cases that consider VIV, wave 
frequency fatigue analysis, vortex-induced motion (VIM), thermal and 
pressure cycles, riser interaction with seabed (touchdown zone), 
fatigue due to internal corrosion (if sour service), and other 
applicable concerns and issues.
    (c) The CVA must submit interim design reports to the Regional 
Supervisor at intervals approved in your design verification plan. The 
CVA must include the following in each interim design report:
    (1) Details of how, by whom, and when the design verification 
activities were conducted to date;
    (2) Description of the CVA's activities during design verification 
to date;
    (3) Summary of the CVA's findings to date;
    (4) Description of any outstanding or notable issues found on the 
riser design to date; and
    (5) A Gantt chart showing project progress.
    (d) The CVA must submit a final design report to the Regional 
Supervisor before fabrication begins and either within 90 calendar days 
after receipt of the design data, or within 90 calendar days after MMS 
approves the design verification plan, whichever is later. The CVA must 
submit a separate final design report for each pipeline riser. The CVA 
must include the following in the final design report:

[[Page 56488]]

    (1) Riser diameter, service, type, and designer(s);
    (2) Details of how, by whom, and when the design verification 
activities;
    (3) Description of the CVA's activities during design verification;
    (4) Summary of the CVA's findings;
    (5) Confirmation of compliance with the design specifications;
    (6) Recommendation to accept or reject the riser design; and
    (7) Any additional information and comments that the CVA deems 
necessary including, but not limited to:
    (i) Design basis;
    (ii) Summary of design CVA scope;
    (iii) Key drawings;
    (iv) Summary of input and output from the independent analyses 
performed;
    (v) Comparison between results of the original design analyses and 
the CVA design analyses;
    (vi) In-service inspection frequency and inspection method 
recommendations; and
    (vii) Cleaning recommendations.


Sec.  250.1055  What must the CVA do to verify pipeline riser 
fabrication?

    The riser fabrication CVA must use good engineering judgment and 
practices while conducting an independent verification of the 
fabrication activities. The CVA must monitor the fabrication of the 
riser to ensure that it has been built according to the approved design 
and fabrication plans. If the CVA finds that fabrication procedures are 
changed or design specifications are modified, the CVA must inform you. 
If you accept the modifications, then the CVA must notify the Regional 
Supervisor. The pipeline riser fabrication CVA must make inspections, 
witness activities, perform spot checks and submit fabrication reports 
as required by paragraphs (a) through (e) of this section.
    (a) The CVA must make periodic onsite inspections while fabrication 
is in progress and verify the following fabrication items, as 
appropriate:
    (1) Quality assurance and quality control programs;
    (2) Adequacy of fabrication site facilities;
    (3) Material quality and identification methods;
    (4) Fabrication procedures specified in the approved plan, and 
adherence to such procedures;
    (5) Welder and welding procedures qualification and identification;
    (6) Dimensional tolerances specified, and adherence to those 
tolerances;
    (7) Nondestructive examination (NDE) requirements, and evaluation 
results of the specific examinations;
    (8) Destructive testing requirements and results;
    (9) Repair procedures;
    (10) Installation of corrosion protection systems and splash-zone 
protection; and
    (11) Status of quality assurance and quality control records at 
various stages of fabrication.
    (b) The CVA must witness:
    (1) Factory Acceptance Testing (FAT) of vendor components; and
    (2) Welding of specialty joint to riser material.
    (c) The CVA must perform spot checks as necessary to determine 
compliance with applicable regulations, codes, guides, standards, 
recommended practices, and approved plans.
    (d) The CVA must submit interim fabrication reports to the Regional 
Supervisor at intervals approved in your verification plan. The CVA 
must include the following in each interim fabrication report:
    (1) Details of how, by whom, when, and where the fabrication 
verification activities were conducted to date;
    (2) Description of the CVA's activities during fabrication 
verification to date;
    (3) Summary of the CVA's findings to date;
    (4) Description of any outstanding or notable riser design issues 
found to date; and
    (5) A Gantt chart showing project progress.
    (e) The CVA must submit a final fabrication report to the Regional 
Supervisor within 90 calendar days after completion fabrication, but 
before the beginning of pipeline installation. The CVA must submit a 
separate final fabrication report for each pipeline riser. The CVA must 
include the following in the final fabrication report;
    (1) Riser diameter, service, and type;
    (2) Details of how, by whom, when, and where the fabrication 
verification activities were conducted;
    (3) A description of the CVA's activities during fabrication 
verification;
    (4) A summary of the CVA's findings;
    (5) Confirmation of compliance with the design specifications and 
the approved fabrication plan;
    (6) Recommendations to accept or reject the fabrication; and
    (7) Any additional information and comments that the CVA deems 
necessary, including:
    (i) Summary of fabrication scope;
    (ii) Welding program details;
    (iii) NDE program details, including acceptance criteria and 
evaluation results;
    (i) Dimensional control adherence;
    (v) The inspection report of the FAT of vendor components; and
    (vi) Quality assurance and quality control program details.


Sec.  250.1056  What must the CVA do to verify pipeline riser 
installation?

    The pipeline riser CVA must use good engineering judgment and 
practice in conducting an independent verification of the installation 
activities. The CVA must monitor the installation of the riser to 
ensure that it has been built according to the approved design and 
installation plans. If the CVA finds that installation procedures are 
changed or design specifications are modified, the CVA must inform you. 
If you accept the modifications, the CVA must notify the Regional 
Supervisor. The pipeline riser installation CVA must verify compliance, 
perform spot checks, and submit fabrication reports as required by 
paragraphs (a) through (e) of this section.
    (a) The CVA must verify the:
    (1) Quality assurance and quality control program;
    (2) Adequacy of installation vessel(s) and equipment;
    (3) Material quality and identification methods;
    (4) Installation procedures specified in the approved installation 
plan, and adherence to such procedures;
    (5) Welder and welding procedures qualification and identification;
    (6) Dimensional tolerances specified, and adherence to those 
tolerances;
    (7) NDE requirements, and evaluation results of the specified 
examinations;
    (8) Repair procedures;
    (9) Installation test data;
    (10) Installation of corrosion protection systems and splash-zone 
protection;
    (11) Installation of VIV suppression devices as specified in the 
approved design, and adherence to such design; and
    (12) Status of quality assurance and quality control records at 
various stages of installation.
    (b) The CVA must perform spot checks as necessary to determine 
compliance with applicable regulations, codes, guides, standards, 
recommended practices, and approved plans.
    (c) The CVA must witness the:
    (1) Pipe load-out at the shore base; and
    (2) Riser installation operations.
    (d) The CVA must submit interim installation reports to the 
Regional Supervisor at intervals approved in your verification plan. 
The CVA must include the following in each interim installation report:
    (1) Details of how, by whom, when, and where the installation 
verification activities were conducted to date;

[[Page 56489]]

    (2) Description of the CVA's activities during installation 
verification to date;
    (3) Summary of the CVA's findings to date;
    (4) Description of any outstanding or notable riser design issues 
found to date; and
    (5) A Gantt chart showing project progress.
    (e) The CVA must submit a final installation report to the Regional 
Supervisor within 45 calendar days after installation of the pipeline. 
The CVA must submit a separate installation report for each pipeline 
riser. The CVA must include the following in the final installation 
report:
    (1) Riser diameter, service, and type;
    (2) Details of how, by whom, when, and where the installation 
verification activities were conducted;
    (3) A description of the CVA's activities during installation 
verification;
    (4) Summary of the CVA's findings;
    (5) Confirmation of compliance with the design specifications and 
the approved installation plan;
    (6) A recommendation to accept or reject the installation; and
    (7) Any additional information and comments that the CVA deems 
necessary, including:
    (i) Summary of installation scope;
    (ii) Welding program details, including weld maps;
    (iii) NDE program details, including acceptance criteria and 
evaluation results;
    (iv) Dimensional control adherence;
    (v) Quality assurance and quality control program details;
    (vi) Incidents that occurred during installation; and
    (vii) As-built drawings.

Pipeline Pressure Testing


Sec.  250.1057  What are the general requirements for pressure testing 
a pipeline?

    You must pressure test a pipeline in a manner that:
    (a) Verifies that the pipeline has the requisite structural 
integrity to withstand normal and maximum operating pressures, and is 
capable of product containment;
    (b) Ensures that the test equipment is properly selected and in 
good working order; and
    (c) Uses work practices and procedures that reduce hazards to 
personnel and equipment, and protect the environment.


Sec.  250.1058  What are the requirements for conducting a hydrostatic 
pressure test for a pipeline?

    (a) Purpose. A hydrostatic pressure test must test the tensile 
strength of a pipeline by pressuring up the pipeline with water.
    (b) Notification. You must notify the Regional Supervisor, using 
Form MMS-153 (Notification of Pipeline Installation/Relocation/
Hydrotest), at least 48 hours before you conduct a hydrostatic pressure 
test on a pipeline.
    (c) Equipment. During a hydrostatic pressure test, you must:
    (1) Measure the test fluid temperature and the test fluid pressure 
using synchronized temperature and pressure recorders; and
    (2) Use pressure gauges and recorders that are sufficiently 
accurate to determine whether the pipeline is leaking during the test.
    (d) Procedures. When you conduct a hydrostatic pressure test, you 
must:
    (1) Test the pipeline (including the riser(s)) at a minimum 
stabilized pressure of at least 125 percent of the MAOP for the length 
of time specified in Sec.  250.1060(a), (b), or (c);
    (2) Take deadweight test readings and record the reading, time, and 
reason for any pressure fluctuations at intervals no greater than 30 
minutes; and
    (3) Use a test pressure that will not produce a stress in the 
pipeline in excess of 95 percent of the specified minimum-yield 
strength of the pipe.
    (e) Successful test. A successful hydrostatic pressure test means 
that there was no observable leakage, and a stabilized pressure was 
maintained for the last 2 hours of the test.
    (f) Discharging test medium. You must dispose of the test medium in 
accordance with applicable laws and regulations.


Sec.  250.1059  What are the requirements for leak testing a pipeline?

    (a) Conducting a leak test. When you conduct a leak test, you must:
    (1) Use a stabilized pressure that is capable of detecting all 
leaks;
    (2) Use pressure gauges and recorders that are sufficiently 
accurate to determine whether the pipeline is leaking during the test; 
and
    (3) Conduct the test for at least two hours during daylight.
    (b) Successful leak test. A leak test must successfully test the 
integrity of a pipeline. A successful leak test means no observable 
leakage during the test period.


Sec.  250.1060  When must I perform a pressure test on a pipeline?

    (a) Hydrostatic pressure test. After you install the pipeline, you 
must successfully perform an 8-hour hydrostatic pressure test of a 
pipeline (including the riser(s)) before you:
    (1) Put a new pipeline into service;
    (2) Put a relocated pipeline into service;
    (3) Put a pipeline with an increased MAOP into service;
    (4) Reactivate a pipeline that was out of service for more than one 
year;
    (5) Re-commission a pipeline that was decommissioned; or
    (6) Re-activate a pipeline that was modified by adding new pipe 
(except in the case of a pipeline repair using a spool piece that 
complies with paragraph (c) of this section).
    (b) Pressure test after repair using a clamp. Before you return a 
pipeline to service following a repair using a clamp:

------------------------------------------------------------------------
 If you completed the repair
        using a . . .             You must successfully perform . . .
------------------------------------------------------------------------
(1) Mechanical clamp.........  A leak-test of the pipeline (including
                                riser(s)) or, if required by the
                                Regional Supervisor, an 8-hour
                                hydrostatic pressure test of the
                                pipeline (including riser(s)).
(2) Welded clamp.............  An 8-hour hydrostatic pressure test of
                                the pipeline (including riser(s)).
------------------------------------------------------------------------

    (c) Pressure test after repair using a spool piece. Before you 
return a pipeline to service following a repair using a spool piece you 
must meet the requirements in the following table:

------------------------------------------------------------------------
 After you install the spool
       piece, if . . .            You must successfully perform . . .
------------------------------------------------------------------------
(1) You connected the spool    A 4-hour hydrostatic pressure bench test
 piece using flanges.           of the spool piece, and a leak test of
                                the pipeline (including riser(s)).

[[Page 56490]]

 
(2) The spool piece is         A 4-hour hydrostatic pressure test of the
 visible during the test and    pipeline (including riser(s)), and a non-
 is not connected using         destructive test (i.e., x-rays) of the
 flanges.                       connections.
(3) The spool piece is not     An 8-hour hydrostatic pressure test of
 visible during the test.       the pipeline (including riser(s)).
------------------------------------------------------------------------

    (d) Directed pressure test. The Regional Supervisor may require you 
to pressure test a pipeline to verify its integrity whenever the 
Regional Supervisor determines that there is a reasonable likelihood 
that the pipeline was damaged or weakened by external or internal 
conditions. When so directed, you must submit the results of these 
tests to the Regional Supervisor (see Sec.  250.1061).


Sec.  250.1061  What information must I include in a pressure test 
report?

    (a) Hydrostatic pressure test. You must submit the results of the 
hydrostatic pressure test in conjunction with the reports required by 
Sec. Sec.  250.1051(a)(9), 250.1060(d), 250.1086(g)(5), 250.1093(g)(5), 
250.1095(e)(6), and 250.1113(b)(5). The pressure test report must 
include:
    (1) Test description;
    (2) Pressure and temperature charts;
    (3) Instrument calibration data;
    (4) Minimum and maximum pressure calculations;
    (5) Deadweight pressure test readings and temperature log;
    (6) Record of problems encountered during the test including their 
causes and corrective actions taken; and
    (7) Documentation of any factors that affected pressures or 
temperatures.
    (b) Leak test. You must submit the pressure and temperature charts 
of any required leak test in conjunction with the report required by 
Sec.  250.1095(e)(7).

Pipeline Safety Equipment


Sec.  250.1062  What are the general requirements for pipeline safety 
equipment?

    You must provide each pipeline with safety equipment that:
    (a) Prevents or minimizes the consequences of overpressure, leaks, 
and failures;
    (b) Protects personnel and the environment;
    (c) Considers the need to limit surge pressures and other 
deviations from normal operations; and
    (d) Is properly installed, operated, and maintained.


Sec.  250.1063  What are the safety equipment requirements for a 
departing pipeline?

    (a) Departing pipeline means a pipeline that receives:
    (1) Production from a production, boosting, compressor, or manifold 
platform; a subsea well, manifold, or other facility; or an incoming 
pipeline;
    (2) Gas-lift gas;
    (3) Supply gas; or
    (4) Water, fuel, or chemicals.
    (b) You must comply with the safety requirements for a departing 
pipeline in the following table:

------------------------------------------------------------------------
       Safety equipment                       Requirements
------------------------------------------------------------------------
(1) Pressure safety high and   You must protect a departing pipeline
 low (PSHL) sensors.            with PSHL sensors that directly or
                                indirectly shut in all delivering
                                sources.
(2) PSHL sensor settings.....  (i) You must set the PSHL sensors
                                required by paragraph (a) of this
                                section to activate at pressures that
                                are no more than 15 percent above and
                                below the limits of the normal operating
                                pressure range of the pipeline.
                               (ii) For pipelines that transport a
                                product containing H2S, you must set the
                                pressure safety low (PSL) sensor to
                                activate at a pressure that is no more
                                than 10 percent below the lower limit of
                                the normal operating pressure range of
                                the pipeline.
                               (iii) For a departing pipeline that
                                receives production from a subsea well,
                                you may set the pressure safety high
                                (PSH) sensor to activate at a pressure
                                that is up to 5 percent above the latest
                                recorded wellhead shut-in tubing
                                pressure.
                               (iv) You must not set the PSH sensor to
                                activate at a pressure greater than the
                                MAOP of the pipeline.
                               (v) You must not set the PSH sensor to
                                activate at a pressure within 5 percent
                                of the pressure safety valve (PSV) set
                                point.
(3) PSHL sensor settings       (i) You must determine the sensor
 determination.                 settings required by paragraph (b) of
                                this section by using a pressure
                                recorder to establish the current normal
                                operating pressure range. You must keep
                                the most current pressure recorder
                                charts at the nearest OCS facility, and
                                make them available for inspection by
                                MMS upon request.
                               (ii) For a departing pipeline that
                                receives production from a subsea well,
                                you must use well test records to
                                determine the sensor settings. You must
                                keep the most recent well test records
                                at the nearest OCS facility, and make
                                them available for inspection by MMS
                                upon request.
(4) Flow safety valve (FSV)    The Regional Supervisor may require you
 and shutdown valve (SDV).      to equip or otherwise protect a
                                departing pipeline with an FSV and/or an
                                automatic SDV.
(5) Subsea tie-in............  You must equip the originating end of all
                                departing pipelines that receive
                                production from a connecting pipeline at
                                a subsea tie-in with a block valve and
                                an FSV.
------------------------------------------------------------------------

Sec.  250.1064  What are the safety equipment requirements for an 
incoming pipeline?

    (a) Incoming pipeline means a pipeline that delivers:
    (1) Production to a production, booster, or compressor platform;
    (2) Gas-lift gas to a well, manifold platform, or to another 
pipeline at a subsea tie-in;
    (3) Supply gas; or
    (4) Water, fuel, or chemicals.
    (b) You must comply with the safety equipment requirements for an 
incoming pipeline in the following table:

------------------------------------------------------------------------
       Safety equipment                       Requirements
------------------------------------------------------------------------
(1) FSV......................  You must protect an incoming pipeline
                                with an FSV to prevent backflow.

[[Page 56491]]

 
(2) SDV......................  You must equip an incoming pipeline,
                                except a water pipeline, that boards a
                                production platform or manned platform
                                (a platform that has personnel on board
                                24 hours per day, or on which personnel
                                are quartered overnight) with an
                                automatic SDV that:
                               (i) Is actuated by the platform's
                                automatic- and remote-emergency shut-in
                                systems;
                               (ii) Is located immediately upon boarding
                                the platform. If the SDV is on a
                                horizontal section, you must locate it
                                in an unclassified area (classified area
                                is defined in API RP 500 and API RP 505;
                                both documents are incorporated by
                                reference in Sec.   250.198) and no more
                                than 10 feet from the boarding pipeline
                                riser. This requirement applies only to
                                pipelines installed or modified after
                                [INSERT THE EFFECTIVE DATE OF THE RULE];
                                and
                               (iii) Closes within 45 seconds after it
                                is actuated.
(3) Gas-lift pipeline........  This paragraph applies to an existing
                                incoming gas-lift pipeline installed
                                before [INSERT THE DATE SIX MONTHS AFTER
                                THE EFFECTIVE DATE OF THE RULE] to an
                                unmanned minor platform. (A minor
                                platform is one that contains fewer than
                                six well completions or fewer than two
                                pieces of production equipment). In lieu
                                of complying with paragraphs (b)(1) and
                                (b)(2) of this section, you may protect
                                the pipeline with an FSV located either:
                               (i) Immediately upstream of each casing
                                annulus; or
                               (ii) Immediately upstream of the first
                                inlet valve on the wellhead.
(4) Subsea tie-in............  You must equip the terminating end of an
                                incoming pipeline that delivers
                                production to a connecting pipeline at a
                                subsea tie-in with a block valve and an
                                FSV.
------------------------------------------------------------------------

Sec.  250.1065  What are the safety equipment requirements for a 
crossing pipeline?

    (a) A crossing pipeline means a pipeline that crosses a platform 
but does not receive or deliver production to that platform. A crossing 
pipeline includes both the incoming and departing pipeline segments.
    (b) You must comply with the safety requirements for a crossing 
pipeline in the following table:

------------------------------------------------------------------------
       Safety equipment                       Requirements
------------------------------------------------------------------------
(1) FSV......................  You must protect a crossing pipeline
                                installed after [INSERT THE EFFECTIVE
                                DATE OF THE RULE] that crosses an
                                unmanned or non-production platform with
                                an FSV to prevent backflow.
(2) SDV......................  You must equip the terminating end of the
                                incoming segment(s) of a crossing
                                pipeline (except a water pipeline) that
                                crosses a production platform or manned
                                platform (a platform that has personnel
                                on board 24 hours per day, or on which
                                personnel are quartered overnight) with
                                an automatic SDV that:
                               (i) Is operated by a PSHL sensor to
                                protect the departing segment(s) of the
                                crossing pipeline;
                               (ii) Is actuated by the platform's
                                automatic- and remote-emergency shut-in
                                systems;
                               (iii) Is located immediately upon
                                boarding the platform. If the SDV is on
                                a horizontal section, you must locate it
                                in an unclassified area (a classified
                                area is defined in API RP 500 and API RP
                                505; both documents are incorporated by
                                reference in Sec.   250.198) and no more
                                than 10 feet from the boarding pipeline
                                riser. This requirement applies only to
                                pipelines installed or modified after
                                [INSERT THE EFFECTIVE DATE OF THE RULE];
                                and
                               (iv) Closes within 45 seconds after it is
                                actuated.
------------------------------------------------------------------------

Sec.  250.1066  What are the safety equipment requirements for a bi-
directional pipeline?

    (a) Bidirectional pipeline means a pipeline designed and configured 
to transport fluids in either direction.
    (b) You must comply with the safety equipment requirements for a 
bi-directional pipeline in the following table:

------------------------------------------------------------------------
       Safety equipment                       Requirements
------------------------------------------------------------------------
(1) PSHL sensors.............  You must protect both ends of a bi-
                                directional pipeline with PSHL sensors
                                that directly or indirectly shut in all
                                delivering sources. Requirements for the
                                setting levels of the PSHL sensors are
                                specified at Sec.  Sec.   250.1063(b)(2)
                                and (3).
(2) Automatic SDV............  You must equip both ends of a bi-
                                directional pipeline with an automatic
                                SDV that:
                               (i) Is actuated by the platform's
                                automatic- and remote-emergency shut-in
                                systems;
                               (ii) Is located immediately upon boarding
                                the platform. If the SDV is on a
                                horizontal section, you must locate it
                                in an unclassified area (a classified
                                area is defined in API RP 500 and API RP
                                505, both documents incorporated by
                                reference as specified in Sec.
                                250.198) and no more than 10 feet from
                                the boarding pipeline riser. This
                                requirement applies only to pipelines
                                installed or modified after [INSERT THE
                                EFFECTIVE DATE OF THE RULE]; and
                               (iii) Closes within 45 seconds after it
                                is actuated.
(3) Block valve..............  You must equip a bi-directional pipeline
                                that connects to a pipeline at a subsea
                                tie-in with a block valve at the tie-in
                                assembly.
------------------------------------------------------------------------

Sec.  250.1067  When must I provide redundant safety equipment?

    (a) If the maximum source pressure (MSP) is from a well, and it 
exceeds the MAOP of the pipeline, you must protect the pipeline by 
using either:
    (1) One surface safety valve (SSV) controlled by a PSH sensor, and 
a PSV that relieves in a safe and pollution-free manner; or
    (2) Two SSV's controlled by independent PSH sensors connected to 
separate relays and sensing points.
    (b) For pipelines installed after [INSERT THE EFFECTIVE DATE OF THE 
RULE], if the MSP is from a well, and it is more than 1\1/2\ times the 
MAOP of the pipeline, you must protect the pipeline by using two SSV's 
controlled by independent PSH sensors connected

[[Page 56492]]

to separate relays and sensing points, and one PSV that relieves in a 
safe and pollution-free manner.
    (c) If the maximum source pressure (MSP) is not from a well, and it 
exceeds the MAOP of the pipeline, you must protect the pipeline by 
using either:
    (1) One shutdown valve (SDV) controlled by a PSH sensor, and a PSV 
that relieves in a safe and pollution-free manner; or
    (2) Two SDV's controlled by independent PSH sensors connected to 
separate relays and sensing points.
    (d) If you use the configuration specified in paragraph (c)(1) 
above, you must set the PSV to activate at a pressure between 5 and 10 
percent above the MAOP.


Sec.  250.1068  What are the safety equipment requirements for a 
pipeline pump?

    (a) General. You must do both of the following:
    (1) Protect a pipeline pump according to section A7 of API RP 14C 
(incorporated by reference as specified in Sec.  250.198). Requirements 
for setting the levels of the PSHL sensors are specified at Sec.  
250.1063(b)(2) and (3).
    (2) Set any PSV you installed on the pipeline to protect the pump 
to activate at a pressure less than the MAOP of the pipeline.
    (b) Time delays for pumps. During startup and idle operations, you 
may apply industry standard Class B, Class C, and Class B/C logic to 
all PSL sensors installed on pipeline pumps. You do not need a 
departure approval to use these types of time delay circuitry if the 
time delay does not exceed 45 seconds. You must obtain a departure 
approval under the provisions of Sec.  250.142 from the appropriate 
District Manager before you use a time delay greater than 45 seconds.
    (1) Class B logic allows for a PSL sensor on pipeline pumps to be 
bypassed for a fixed time period (typically less than 15 seconds, but 
not more than 45 seconds).
    (2) Class C logic allows for a PSL sensor to be bypassed until the 
component comes into full service.
    (3) Class B/C logic allows for a PSL sensor to incorporate a 
combination of Class B and Class C circuitry. This device is used to 
ensure that a PSL sensor is not unnecessarily bypassed during start-up 
and idle operations (e.g., Class B/C bypass circuitry activates when a 
pump is shut down during normal operations). The PSL sensor remains 
bypassed until the pump start circuitry is activated and either:
    (i) The Class B timer expires after 45 seconds from start 
activation; or
    (ii) The Class C bypass is initiated until the pump builds up 
pressure above the PSL set point and the PSL comes into full service.
    (c) PSL Sensors and bypass circuits. When the PSL sensor comes into 
full service, the PSL sensor is fully active. If the PSL sensor should 
trip while the pump is running, the pump will shut down and the Class 
B/C bypass circuit will remain inactive until the safety system devices 
are cleared and reset.


Sec.  250.1069  What must I do if safety equipment fails to operate as 
intended?

    If any safety equipment required by this subpart experiences a 
failure you must follow the requirements of paragraphs (a) through (e) 
of this section.
    (a) Suspending operations. You must shut in the pipeline 
immediately.
    (b) Out-of-service notification. You must notify the Regional 
Supervisor:
    (1) If the safety equipment remains out of service for more than 12 
hours in the GOMR; and
    (2) Immediately after the safety equipment is out of service in the 
POCSR and AKOCSR.
    (c) Resuming operations. You may resume operation of the pipeline 
after you:
    (1) Repair the failed safety equipment (see Sec. Sec.  250.1094 
through 1096);
    (2) Replace the failed safety equipment (see Sec.  250.1093); or
    (3) Provide an equivalent degree of protection and place an 
appropriate warning sign on the failed safety equipment.
    (d) Corrective action notification. If you shut in your pipeline 
because of a safety equipment failure and were required by paragraph 
(b) of this section to notify the Regional Supervisor, you must also 
notify the Regional Supervisor immediately when you repair the safety 
equipment and resume operating the pipeline, or when you have provided 
an equivalent degree of protection and resume operating the pipeline.
    (e) Repair application. If the corrective action you take to 
address a safety equipment failure necessitates a repair (see Sec.  
250.1094), you must submit a repair application in accordance with 
Sec.  250.1095(a) and receive approval from the Regional Supervisor 
before you perform the work.

Pipeline Leak Detection


Sec.  250.1071  When do I need to use a leak detection system?

    If your pipeline transports liquid hydrocarbons to shore, or if the 
Regional Supervisor otherwise requires it, you must use a computational 
pipeline monitoring (CPM) system or equivalent methodology to detect 
leaks by continuously determining or calculating the imbalance between 
the incoming (receipt) and outgoing (delivery) volumes of a pipeline. A 
CPM system means an algorithmic monitoring tool that allows you to 
respond to a pipeline operating anomaly that may indicate a release of 
liquid hydrocarbons. You must:
    (a) Equip your CPM system with an alarm that signals when the 
imbalance exceeds a predetermined threshold for a selected time 
interval; and
    (b) Use SCADA technology to gather, process, and display the data 
you use in your CPM system. SCADA is an acronym for supervisory control 
and data acquisition, the technology that makes it possible to monitor 
and control pipelines remotely.

Pipeline Internal Corrosion Control and Flow Assurance


Sec.  250.1074  What are the general requirements for internal 
corrosion control?

    You must establish and implement internal corrosion control 
measures (e.g., running pipeline scrapers; dehydrating; using corrosion 
inhibitors, bactericides, or oxygen scavengers) to protect the pipeline 
over its service life.


Sec.  250.1075  What are the general requirements for flow assurance?

    You must establish and implement measures (e.g., chemical 
additives, routine pigging) to ensure that adequate flow can be 
sustained throughout the service life of a pipeline under all expected 
flow conditions for the range of pressures, temperatures, fluid 
properties, and phase conditions expected during start up, normal, shut 
down, and emergency operations.

Pipeline Operations and Maintenance


Sec.  250.1078  What are the general requirements for operating and 
maintaining a pipeline?

    You must operate and maintain a pipeline in a manner that:
    (a) Protects life, property, and the environment for the service 
life of the pipeline;
    (b) Ensures that all pipelines, appurtenances, and safety equipment 
are not subjected to operating conditions that exceed applicable design 
parameters and the MAOP;
    (c) Anticipates the detrimental effects of corrosion; product 
composition; thermal cycling; pressure fluctuations; hydrate, 
asphaltene, or paraffin formation; sediment transfer or scour (due to 
wave action and currents); storm or ice scouring; gross seafloor 
movement (such as mudslides, faults, and subsidence); hurricanes; 
earthquakes; subfreezing temperatures; and other natural or manmade 
phenomena;

[[Page 56493]]

    (d) Maintains the approved burial depth throughout the life of the 
pipeline including after the pipeline is decommissioned in place; and
    (e) Does not interfere with other uses of the OCS.


Sec.  250.1079  What written procedures must I establish before I 
operate an OCS pipeline?

    (a) Operations and maintenance manual. You must prepare a written 
operations and maintenance manual for your OCS pipelines that complies 
with the regulations in this subpart and includes provisions for all of 
the following:
    (1) Conducting normal operations;
    (2) Conducting periodic surveillance and inspections;
    (3) Performing systematic and routine preventive maintenance;
    (4) Ensuring that safety system components are functioning 
properly;
    (5) Resuming operations after a storm;
    (6) Monitoring and mitigating the effects of internal and external 
corrosion and erosion;
    (7) Monitoring and mitigating the effects of paraffin, wax, and 
hydrate formation;
    (8) Responding to foreseeable abnormal operating conditions, 
malfunctions, failures, or personnel error; and
    (9) Identifying and responding to conditions that could affect safe 
operations.
    (b) Integrity management program. You must have a written pipeline 
integrity management program for your OCS pipelines that includes the 
seven elements listed in this paragraph.
    (1) Baseline integrity assessment. A plan and a risk-based schedule 
for obtaining baseline information on the integrity of each pipeline by 
either:
    (i) Using an in-line inspection tool (e.g., smart pig) to detect 
corrosion or deformation anomalies;
    (ii) Performing hydrostatic pressure tests (see Sec.  250.1058) to 
test tensile strength; or
    (iii) Using other technology that can provide an equivalent 
understanding of the condition of your pipelines.
    (2) Information analysis. An analysis that integrates all other 
available information (e.g., inspections, tests, surveys, and 
monitoring results) about pipeline integrity.
    (3) Review. Provisions to review the integrity assessment results 
and information analysis by a qualified person.
    (4) Remedial actions. Criteria for performing prompt remedial 
actions to address anomalous conditions you discover through integrity 
assessment or information analysis.
    (5) Periodic assessment and evaluation. Provisions for periodically 
reassessing and re-evaluating the integrity of the pipeline at a 
frequency based on specific risk factors such as proximity to 
environmentally sensitive areas, product being transported, previous 
failure history, and water depth.
    (6) Preventive and mitigation measures. Provisions for identifying 
and taking preventive and mitigation measures to enhance safety and 
environmental protection such as SCADA systems, cathodic protection 
monitoring, and shorter inspection intervals.
    (7) Program effectiveness. Provisions for measuring the 
effectiveness of your integrity management program.
    (c) Emergency plan. You must prepare a written emergency plan that 
you will immediately implement in the event of a pipeline failure, 
accident, or other emergency that includes provisions for:
    (1) Training personnel responsible for executing emergency actions;
    (2) Establishing an effective communication system;
    (3) Conducting periodic drills;
    (4) Ensuring personnel safety;
    (5) Evacuating platforms;
    (6) Limiting property damage;
    (7) Minimizing pollution and protecting the environment;
    (8) Conducting remote operations, if applicable;
    (9) Making construction information and operating history available 
to appropriate personnel;
    (10) Notifying appropriate government agencies;
    (11) Investigating failures; and
    (12) Reviewing performance during drills and actual emergencies.
    (d) Personnel qualification program. You must have a written 
qualification program for individuals who perform pipeline operation, 
maintenance, and repair duties for you that may affect the safe 
operation or integrity of a pipeline. This program must include 
provisions for:
    (1) Identifying covered tasks;
    (2) Ensuring through periodic evaluation that the individuals who 
perform covered tasks are qualified;
    (3) Evaluating an individual if you have reason to believe that the 
individual's performance of a covered task contributed to an incident;
    (4) Evaluating an individual if you have reason to believe that the 
individual is no longer qualified to perform a covered task;
    (5) Communicating changes that affect covered tasks to individuals 
performing those tasks; and
    (6) Complying with 30 CFR 250, Subpart O--Well Control and 
Production Safety Training, as applicable.
    (e) Implementation procedures. You must establish procedures to 
make sure that your personnel implement and follow the provisions of 
your operations and maintenance manual, integrity management program, 
emergency plan, and personnel qualification program.
    (f) Annual review. You must review your operations and maintenance 
manual, integrity management program, emergency plan, and personnel 
qualification program at least annually and make any necessary changes 
to ensure that they remain effective.
    (g) Inspection. You must make copies of your operations and 
maintenance manual, integrity management program, emergency plan, and 
personnel qualification program available to MMS personnel at the 
nearest OCS facility upon request.


Sec.  250.1080  When must I mark the MMS-assigned pipeline segment 
number on a pipeline?

    You must comply with the marking requirements indicated in the 
following table:

------------------------------------------------------------------------
                                When you must mark the pipeline segment
       Type of pipeline                          number
------------------------------------------------------------------------
(a) New pipeline.............  Before you operate a pipeline you
                                construct after [INSERT THE EFFECTIVE
                                DATE OF THE REGULATION], you must
                                durably mark the MMS-assigned pipeline
                                segment number on the pipeline at each
                                platform.
(b) Existing pipeline........  If you constructed a pipeline before
                                [INSERT THE EFFECTIVE DATE OF THE
                                REGULATION], you must durably mark the
                                MMS-assigned pipeline segment number on
                                the pipeline at each platform no later
                                than [INSERT THE DATE 6 MONTHS AFTER THE
                                EFFECTIVE DATE OF THE REGULATION].

[[Page 56494]]

 
(c) Exception................  You are not required to separately mark
                                the MMS-assigned pipeline segment number
                                on a pipeline to comply with paragraphs
                                (a) or (b) of this section if you
                                durably mark the component
                                identification (see API RP14C, section
                                2.4 (incorporated by reference as
                                specified in Sec.   250.198)) on the
                                pipeline using the MMS-assigned pipeline
                                segment number as the unique identifier
                                (e.g., KAH-1425, where 1425 is the MMS-
                                assigned pipeline segment number).
------------------------------------------------------------------------

Sec.  250.1081  How do I determine the MAOP of a pipeline?

    The MAOP of a pipeline must not exceed the lowest of the following:
    (a) The internal design pressure of the horizontal component and 
risers;
    (b) The pressure ratings of appurtenances;
    (c) Eighty percent of the hydrostatic test pressure of the 
pipeline; or
    (d) If applicable, the MAOP of a connecting pipeline.


Sec.  250.1082   What must I do if the pipeline transports H2S?

    (a) H2S Contingency Plan for operations. Before you operate a 
pipeline which transports a product with an H2S 
concentration that, if released, could result in atmospheric 
concentrations of 20 ppm or more, you must prepare an H2S 
Contingency Plan in accordance with Sec.  250.490(f) that covers your 
pipeline operations. You do not need to prepare an H2S 
Contingency Plan if the pipeline is covered under an appropriate 
facility plan.
    (b) H2S dispersion modeling report. Before you operate a pipeline 
which transports a product with an H2S concentration greater 
than 500 ppm, you must model a potential worst-case accidental 
H2S release from the pipeline and prepare a report. The 
modeling report must include:
    (1) The data you used in the model (e.g., meteorological data) in 
an electronic format acceptable to the Regional Supervisor;
    (2) A site-specific analysis of your pipeline operation that 
considers any nearby human-occupied OCS platforms, shipping lanes, 
fishery areas, and other points where humans may be subject to 
potential exposure from an accidental H2S release; and
    (3) If the accidental release could result in an H2S 
concentration of 10 ppm or greater at an onshore area, an analysis 
consistent with the risk management plan (RMP) methodologies of the EPA 
as outlined in 40 CFR part 68.
    (c) Batch treatment. The Regional Supervisor may require that you 
batch treat your pipeline if there are indications that H2S 
could be detrimentally affecting the pipeline.


Sec.  250.1083   What are the requirements for conducting remote 
operations during a platform evacuation?

    (a) Pipeline shut-in. When you evacuate your personnel from an OCS 
platform due to an impending storm or other emergency, you must shut in 
any connecting pipeline unless you have remote operations capability.
    (b) Remote operations. You may conduct remote operations on the 
pipeline during an evacuation only if:
    (1) The Regional Supervisor grants you prior approval;
    (2) Your pipeline has remote monitoring and remote shut-in 
capabilities;
    (3) You immediately shut in any pipeline that transports liquid 
hydrocarbons or H2S, or any pipeline that transports natural 
gas (if the pipeline experiences an upset condition) when the sustained 
wind speeds of any storm reach 74 mph over any part of the pipeline; 
and
    (4) You design time-delay circuitry (local storm timers) to shut in 
a pipeline no more than 4 hours after the capability to monitor and 
control a process is lost, and include this circuitry in the SCADA 
logic.
    (c) Resuming operations. You may not remotely resume operation of a 
shut-in pipeline if any part of the pipeline was within 25 miles (or 
other distance specified by the Regional Supervisor) of the eye center 
path of a major storm (74 mph or greater).


Sec.  250.1084  What are the requirements for testing pipeline safety 
equipment?

    (a) You must periodically test your pipeline safety equipment to 
ensure that it is in good mechanical condition, properly installed, and 
able to perform safety functions in accordance with the requirements in 
the following table. You must conduct all tests using the test 
procedure specified in the appropriate subsection of API RP 14C, 
appendix D, section D4, table D2 (incorporated by reference as 
specified in Sec.  250.198).

----------------------------------------------------------------------------------------------------------------
        Safety equipment               Frequency          Subsection              If             Then you must
----------------------------------------------------------------------------------------------------------------
(1) FSV. You must test each       At least annually,  d.................  The FSV does not    Repair or replae
 required FSV, except those        with no more than                       operate properly,   the FSV.
 installed underwater, for         13 months between                       or if the flow
 leakage.                          tests.                                  rate exceeds 200
                                                                           cubic centimeters/
                                                                           minute for liquid
                                                                           flow or 5 cubic
                                                                           feet/minute for
                                                                           natural gas flow.
(2) PSHL sensors. You must        At least monthly,   g.................  (i) The PSHL        Repair or reglace
 conduct an external pressure      with no more than                       sensor does not     the PSHL sensor.
 test of each required PSHL        6 weeks between                         operate properly.  Adjust the set
 sensor.                           tests.                                 (ii) The PSHL        point(s) of the
                                                                           sensor set          PSHL sensor.
                                                                           pressure
                                                                           tolerance is plus
                                                                           or minus 5
                                                                           percent or five
                                                                           psi, whichever is
                                                                           greater.

[[Page 56495]]

 
(3) PSV. You must conduct an      At least annually,  i.................  (i) The PSV does    Repair or replace
 external pressure test of each    with no more than                       not operate         the PSV.
 required PSV.                     13 months between                       properly.          Adjust the set
                                   tests.                                 (ii) The PSV set     point of the PSV.
                                                                           pressure
                                                                           tolerance is plus
                                                                           or minus two psi
                                                                           for pressures up
                                                                           to and including
                                                                           70 psi, or plus
                                                                           or minus 3
                                                                           percent for
                                                                           pressures above
                                                                           70 psi.
(4) SDV. For each required SDV,                                                               ..................
 you must conduct a(an):
    (i) Operations test.........  At least monthly,   k (option 1)......  The SDV does not    Repair or replace
                                   with no more than                       operate properly.   the SDV.
                                   6 weeks between
                                   tests.
    (ii) Full valve closure test  At least annually,  k (option 2)......  The SDV does not    Repair or replace
                                   with no more than                       operate properly,   the SDV.
                                   13 months between                       or if the flow
                                   tests.                                  rate exceeds 200
                                                                           cubic centimeters/
                                                                           minute for liquid
                                                                           flow or 5 cubic
                                                                           feet/minute for
                                                                           natural gas flow.
    (iii) Pressure holding test.  If required by the  Not addressed.....  To be determined    To be determined
                                   Regional                                by the Regional     by the Regional
                                   Supervisor.                             Supervisor.         Supervisor.
(5) SSV. You must conduct a       At least monthly,   m.................  The SSV does not    Repair or replace
 pressure holding test of each     with no more than                       operate properly,   the SSV.
 required SSV.                     6 weeks between                         or if any fluid
                                   tests.                                  flow is observed
                                                                           during the test.
----------------------------------------------------------------------------------------------------------------

    (b) Recordkeeping. You must retain the records of the results of 
the tests required by paragraph (a) of this section at the nearest OCS 
facility for at least 2 years, and make them available to MMS upon 
request.


Sec.  250.1085  What must I do when safety equipment is removed from 
service?

    (a) Removal from service notification. You must notify the Regional 
Supervisor:
    (1) If the safety equipment remains removed from service for more 
than 12 hours in the GOMR; or
    (2) Immediately after the safety equipment is removed from service 
in the POCSR and AKOCSR.
    (b) Equivalent degree of protection. You may continue to operate 
the pipeline only if you:
    (1) Provide an equivalent degree of protection; and
    (2) Place an appropriate warning sign on the equipment removed from 
service.
    (c) Follow-up notification. If you are required by paragraph (a) of 
this section to notify the Regional Supervisor immediately that safety 
equipment is out of service, you must also notify the Regional 
Supervisor immediately in the POCSR and AKOCSR, and within 12 hours in 
the GOMR, when you return the safety equipment to service, or when you 
provide an equivalent degree of protection.


Sec.  250.1086  What must I do when a pipeline is taken out of service?

    (a) Definition. Out-of-service pipeline means a pipeline that has 
not been used to transport oil, natural gas, sulphur, or produced water 
for more than 30 consecutive days. The out-of-service period begins on 
the 31st day of inactivity.
    (b) Isolation. You must immediately equip an out-of-service 
pipeline with either a blind flange or a block valve locked in the 
closed position at each end.
    (c) Safety equipment. During the 30-day period of inactivity 
preceding the date that a pipeline attains out-of-service status, you 
must maintain and test all required pipeline safety equipment.
    (d) Out-of-service report. You must submit a written report to the 
Regional Supervisor within 48 hours after a pipeline attains out-of-
service status. In the out-of-service report, you must include:
    (1) The name of the company submitting the report;
    (2) The name and telephone number of your contact;
    (3) The MMS-assigned pipeline segment number;
    (4) The reason you took the pipeline out of service;
    (5) An estimate of the time that the pipeline will remain out of 
service; and
    (6) Confirmation that you have isolated the pipeline as required by 
paragraph (a) of this section.
    (e) Flush and fill. When a pipeline is out of service for one year, 
you must:
    (1) Immediately flush the pipeline with seawater until the returns 
comply with appropriate EPA NPDES standards;
    (2) Fill the pipeline with inhibited seawater;
    (3) Retain the records of your flush and fill activities at your 
nearest OCS facility until the pipeline is reactivated;
    (4) Make the records available to MMS upon request; and
    (5) If you discharge any returns into the water column, dispose of 
them in accordance with applicable laws and regulations.
    (f) Reactivation. Before you reactivate an out-of-service pipeline, 
you must test all required safety equipment in accordance with the 
procedures in Sec.  250.1084.
    (g) Reactivation report. Within 30 calendar days after you 
reactivate an out-of-service pipeline, you must submit a written report 
to the Regional Supervisor. In the reactivation report, you must 
include the:
    (1) Name of the company preparing the report;
    (2) Name and telephone number of your contact;
    (3) MMS-assigned pipeline segment number;
    (4) Date you returned the pipeline to service; and
    (5) Report of the hydrostatic pressure test (see Sec.  
250.1061(a)), if required by Sec.  250.1060(a)(4).

[[Page 56496]]

    (h) Decommissioning an out-of-service pipeline. You must 
decommission (see Sec. Sec.  250.1105 through 250.1113) a pipeline 
within 1 year after:
    (1) It has been out of service for 5 years; or
    (2) You determine that it will be out of service for 5 years or 
more.


Sec.  250.1087  What must I do if a pipeline is shut in?

    Before you resume operations after your pipeline was shut in, you 
must determine that the pipeline does not leak by conducting a visual 
survey of the pipeline route (see Sec.  250.1103(a)) and a leak test 
(see Sec.  250.1059). These requirements are applicable if your 
pipeline was shut in because:
    (a) The eye center path of a major storm (winds 74 mph or greater) 
passed within 25 miles (or other distance specified by the Regional 
Supervisor) of any part of the pipeline;
    (b) You had indications that pipeline integrity may have been 
compromised; or
    (c) Your pipeline had an unexplained automatic shut-in (e.g., a PSL 
shut-in).


Sec.  250.1088  What must I do if a pipeline leaks?

    If your pipeline experiences an accidental leak, you must:
    (a) Immediately suspend operations and not resume operations until 
the pipeline is repaired in accordance with Sec. Sec.  250.1094 through 
250.1096; and
    (b) Notify the Regional Supervisor immediately, or as soon as 
practicable, after you discover that a pipeline is leaking.


Sec.  250.1089  What must I do if I need to flare or vent gas from a 
pipeline?

    (a) Approval. You must receive approval from the Regional 
Supervisor to flare or vent natural gas from your pipeline during 
blowdown, unless the blowdown discharge point is downstream of the 
royalty meter (see subpart K, redesignated Sec.  250.1155).
    (b) Report. You must submit a written report to the Regional 
Supervisor that includes the location, time, flare or vent volume, and 
the reason for flaring or venting, within 72 hours after you complete 
the flaring or venting operations (see subpart K, redesignated Sec.  
250.1155).
    (c) Extended flaring or venting. If you need to flare or vent 
natural gas from a pipeline for 48 continuous hours or more, you must 
adhere to the requirements in subpart K, redesignated Sec.  250.1155.


Sec.  250.1090  When must I provide impact protection for existing 
risers?

    You must provide impact protection to all pipeline risers installed 
prior to April 1, 1988, and that are outside of the platform structure, 
whenever:
    (a) The Regional Supervisor determines that significant damage 
potential exists;
    (b) You perform maintenance or repair operations on any existing 
pipeline riser that is protected by a pipe-in-pipe configuration; or
    (c) You perform major repairs or modifications on any pipeline 
riser that is not protected.


Sec.  250.1091  When will MMS suspend or temporarily prohibit pipeline 
operations?

    The Regional Supervisor may suspend or temporarily prohibit any 
pipeline operation if:
    (a) The Regional Supervisor determines that continued activity 
would threaten or result in serious, irreparable, or immediate harm or 
damage to life (including fish and other aquatic life); property; 
mineral resources; or the marine, coastal, or human environment;
    (b) The Regional Supervisor determines that you have failed to 
comply with a provision of the OCSLA or any other applicable law, a 
provision of this part or other applicable regulations, or a condition 
of a pipeline application approval or a pipeline ROW grant; or
    (c) Prohibiting the pipeline operation is in the interest of 
national security or defense.

Pipeline Modifications and Repairs


Sec.  250.1093  What must I do to modify an approved pipeline?

    (a) Definition. Modifying a pipeline means significantly changing 
an approved pipeline. Modifications include changing a pipeline route; 
installing, modifying, or replacing a subsea tie-in valve assembly; 
adding, modifying, or replacing safety equipment; changing service; 
changing flow direction; installing or replacing a pig receiving/
launching assembly; changing a pipeline riser configuration; changing 
the MAOP; replacing or adding anodes; and adding a hot-tap. 
Modifications do not include routine operations such as performing a 
hydrostatic pressure test; pigging; injecting chemicals; flushing and 
filling a pipeline; installing a blind flange on an out-of-service 
pipeline; installing a clamp, sleeve, or wrap to mitigate pipe wall 
loss; and performing other routine operations or preventive 
maintenance.
    (b) Modification application. Before you conduct any operations to 
modify a pipeline, you must submit three copies of a modification 
application to the Regional Supervisor for approval. In the 
modification application, you must include each of the elements 
required by the following paragraphs (b)(1) through (b)(7) of this 
section.
    (1) The MMS-assigned pipeline segment number.
    (2) Those items in your approved pipeline application (see 
Sec. Sec.  250.1014 through 250.1030) affected by the proposed 
modification.
    (3) The step-by-step procedures you will follow in making the 
modification, including the measures you will take to:
    (i) Ensure safety;
    (ii) Minimize pollution;
    (iii) Comply with burial and covering requirements; and
    (iv) Perform any required hydrostatic pressure or leak test.
    (4) If required by the Regional Supervisor, a work plan that 
describes the specific measures you intend to take, and the specific 
procedures you intend to follow, to ensure the safety of offshore 
workers and to prevent pollution. The work plan must include or 
consider:
    (i) The operating history of the pipeline you plan to modify, 
including past modifications or repairs, and the operating conditions 
peculiar to the pipeline;
    (ii) Reasonable measures to ensure that pressure in the pipeline is 
equal to the external pressure;
    (iii) Reasonable measures to ensure that you purge combustibles and 
H2S from the pipeline immediately before you conduct the 
modification;
    (iv) Advance notification to facility workers (both company and 
contract) concerning significant aspects of the upcoming modification;
    (v) Re-notification of all facility workers immediately before you 
attempt to de-pressurize, cut into, or open the pipeline to perform the 
modification;
    (vi) Onsite supervision during the entire modification operation; 
and
    (vii) Safeguards to ensure that the pipeline remains isolated 
during the entire modification operation so that facility workers are 
not endangered by pressure, H2S, or explosive or combustible 
products.
    (5) Requests for alternative compliance (see Sec.  250.141) 
necessitated by the modification.
    (6) If applicable, an electronic file containing the digital 
coordinates of sufficient points to provide an accurate representation 
of the proposed modified route, including turns, for both the pipeline 
and umbilicals.
    (7) Payment of a nonrefundable service fee (see Sec.  250.125 for 
amount).
    (c) Hot tap modification application. If you plan to modify a 
pipeline by installing a hot tap, your modification application must 
include, in addition to

[[Page 56497]]

the requirements in paragraph (b) of this section:
    (1) The design specifications for the hot tap;
    (2) A drawing of the proposed hot tap assembly;
    (3) A plat that shows the location of the hot tap, specifies its 
location in both X-Y coordinates and latitude and longitude in NAD 27 
for the GOMR (Gulf) and POCSR, or NAD 83 for AKOCSR and GOMR 
(Atlantic), and shows the water depth (feet); and
    (4) A description of the hot tapping operations.
    (d) Affected States. Unless each affected State has given general 
concurrence, or the Regional Director determines that a State is not an 
affected State, you must provide the information required by Sec.  
250.1016(a) if your planned modification of an approved ROW pipeline 
involves:
    (1) Installation of additional pipe (except those modifications 
that involve only minor reconfiguration of existing pipelines);
    (2) Installation of a new accessory platform; or
    (3) Changing the product from natural gas to oil.
    (e) MMS review. A pipeline modification application is subject to 
the same review requirements as those for a new pipeline application 
(see Sec.  250.1009).
    (f) Relocation notification. If the approved pipeline modification 
involves the relocation of a pipeline, you must notify the Regional 
Supervisor at least 48 hours before you begin the work, using Form MMS-
153 (Notification of Pipeline Installation/Relocation/Hydrotest).
    (g) Modification report. Within 30 calendar days after you complete 
any pipeline modification that changed the location plat, or that 
required a hydrostatic pressure test, you must submit a written 
modification report to the Regional Supervisor. In the modification 
report you must include all of the following:
    (1) The MMS-assigned pipeline segment number.
    (2) If applicable, a location plat based on the NAD 27 for the GOMR 
(Gulf) and POCSR, or NAD 83 for AKOCSR and GOMR (Atlantic), at a 
minimum scale of 1 inch = 2,000 feet that:
    (i) Depicts the actual location of the modification;
    (ii) Includes the latitude and longitude coordinates in both NAD 27 
and NAD 83, and the X-Y coordinates in NAD 27 for the GOMR (Gulf) and 
POCSR, or NAD 83 for the AKOCSR and GOMR (Atlantic), of the key points 
of the modification; and
    (iii) Includes a certification by a registered engineer or land 
surveyor that attests to the accuracy of the ``as-built'' locations of 
the pipeline as modified.
    (3) If applicable, an electronic file containing the digital 
coordinates of the key points of the ``as-built'' pipeline and 
umbilical routes, including turns, as modified. You must report the 
digital data in decimal degrees latitude and longitude, based on NAD 
83.
    (4) Confirmation that the modification was accomplished as approved 
by the Regional Supervisor.
    (5) If applicable, a report of the hydrostatic pressure test (see 
Sec.  250.1061) required by Sec.  250.1060(a)(2), (3), or (6).
    (6) If applicable, the pipe-to-electrolyte potential measurements 
required by Sec.  250.1043(b).


Sec.  250.1094  What are the general requirements for repairing a 
pipeline?

    Repairing a pipeline means performing remedial work as a result of 
a failure and/or the leaking of a pipeline or associated equipment, or 
a reduction in wall thickness that would have required a reduction in 
the MAOP. You must repair a pipeline in a manner that:
    (a) Meets or exceeds the original design specifications of the 
pipeline, appurtenances, and safety system components;
    (b) Prevents unauthorized discharges;
    (c) Does not unreasonably interfere with other uses of the OCS; and
    (d) Does not cause undue or serious harm or damage to the human, 
marine, or coastal environment.


Sec.  250.1095  What must I do to commence and complete a repair?

    (a) Repair application. Before you conduct any repair work on a 
pipeline, you must submit one copy of an application to the Regional 
Supervisor for approval. You may submit this repair application at the 
same time as, or after, you make the notification required by Sec.  
250.1088(b). The repair application must include all of the elements 
required by the following paragraphs (a)(1) through (a)(9) of this 
section.
    (1) The MMS-assigned pipeline segment number.
    (2) The location (latitude and longitude in NAD 27 for the GOMR 
(Gulf) and POCSR, and in NAD 83 for AKOCSR and GOMR (Atlantic)) and 
water depth (feet) of the repair.
    (3) A description of the damaged component, and the reason for the 
repair.
    (4) For pipelines that transport liquids, an estimate of the volume 
spilled (barrels), including slick size and appearance, if applicable.
    (5) For pipelines that transport natural gas, an estimate of the 
volume of gas leaked (MMCF), including sheen/boil size and appearance, 
if applicable.
    (6) Specifications of any new pipe, spool piece, clamps, or other 
materials you will use in making the repair.
    (7) The step-by-step procedures you will follow to make the repair, 
including the measures you will take to:
    (i) Ensure safety;
    (ii) Minimize pollution;
    (iii) Comply with burial and covering requirements; and
    (iv) Conduct any required hydrostatic pressure or leak test.
    (8) If required by the Regional Supervisor, a work plan that 
describes the specific measures you intend to take, and the specific 
procedures you intend to follow, to ensure the safety of offshore 
workers and to prevent pollution. The work plan must include or 
consider:
    (i) The operating history of the pipeline you plan to repair, 
including past modifications or repairs, and the operating conditions 
peculiar to the pipeline;
    (ii) Reasonable measures to ensure that pressure in the pipeline is 
equal to the external pressure;
    (iii) Reasonable measures to ensure that you purge combustibles and 
H2S from the pipeline immediately before you commence the 
repair work;
    (iv) Advance notification to all facility workers concerning 
significant aspects of the upcoming repair work;
    (v) Re-notification of all facility workers immediately before you 
attempt to de-pressurize, cut into, or open the pipeline to perform the 
repair work;
    (vi) Onsite supervision during the entire repair operation; and
    (vii) Safeguards to ensure that the pipeline remains isolated 
during the entire repair operation so that facility workers are not 
endangered by the release of pressure, H2S, or explosive or 
combustible products.
    (9) Payment of a nonrefundable service fee (see Sec.  250.125 for 
amount).
    (b) MMS review. The Regional Supervisor will review the pipeline 
repair application to ensure that the proposed operations conform to 
the regulations in this subpart.
    (c) Pressure testing. You must comply with the pressure testing 
requirements in Sec.  250.1060(b) and (c).
    (d) Cathodic protection system measurements. When you conduct 
underwater repairs, you must measure the pipe-to-electrolyte potential 
at the location of the repair site if your pipeline:
    (1) Is located in the AKOCSR; or
    (2) Is located in either the GOMR or POCSR and either:

[[Page 56498]]

    (i) The pipeline is composed of any pipe that is more than 20 years 
old; or
    (ii) The life expectancy of the cathodic protection system cannot 
be calculated.
    (e) Repair report. You must submit a written repair report to the 
Regional Supervisor within 30 calendar days after you complete a 
repair. In the repair report, you must include:
    (1) The MMS-assigned pipeline segment number;
    (2) The actual location of the repair (latitude and longitude in 
NAD 27 for the GOMR (Gulf) and POCSR, and in NAD 83 for the AKOCSR and 
GOMR (Atlantic)) and water depth (feet);
    (3) Confirmation of the failure or damage to the pipeline as 
originally reported to the Regional Supervisor;
    (4) Confirmation that the repair was accomplished as approved by 
the Regional Supervisor;
    (5) For pipelines that transport liquids, an estimate of the volume 
that spilled (barrels), if any, while you performed the repair work;
    (6) A report of any hydrostatic pressure test (see Sec.  
250.1061(a)) required by Sec.  250.1060(b) and (c);
    (7) The results of any leak test (see Sec.  250.1061(b)) required 
by Sec.  250.1060(b)(1) or (c)(1); and
    (8) The pipe-to-electrolyte potential measurements required by 
paragraph (d) of this section.
    (f) Failure analysis and examination. The Regional Supervisor may 
require you to analyze a pipeline failure, and examine samples of a 
failed pipe or associated equipment in a laboratory to determine the 
cause of failure. When so directed, you must submit a comprehensive 
written report of your findings to the Regional Supervisor.


Sec.  250.1096  What must I do to repair a pipeline using a clamp?

    When repairing a pipeline using a clamp, you must comply with the 
requirements in the following table:

------------------------------------------------------------------------
       If you use . . .                        Then . . .
------------------------------------------------------------------------
(a) A clamp to make a repair   You must use a full encirclement clamp
 on a pipeline.                 with a rated working pressure equal to
                                or greater than the MAOP of the
                                pipeline.
(b) A clamp on the horizontal  You may use a welded clamp or a
 component or on the riser      mechanical clamp.
 below the splash zone.
(c) A mechanical clamp to      You must:
 temporarily repair a riser    (1) Submit a repair application (see Sec.
 in or above the splash zone.     250.1095(a)) to the Regional
                                Supervisor for approval to make a
                                permanent repair.
                               (2) Within 30 calendar days after you
                                install the mechanical clamp, complete
                                the permanent repair using a welded
                                clamp, spool piece, or other method
                                approved by the Regional Supervisor.
------------------------------------------------------------------------

Sec.  250.1097  When do I need to submit a corrective action plan and 
report?

    (a) Plan. The Regional Supervisor may require you to submit a 
corrective action plan for approval if there are internal or external 
conditions that could detrimentally affect a pipeline including, but 
not limited to:
    (1) Conditions that might affect the performance or integrity of 
pipeline valves and fittings at a subsea tie-in;
    (2) Conditions that could cause interference with navigation or 
other uses of the OCS;
    (3) Riser or riser clamp damage;
    (4) Pipeline exposure or displacement; or
    (5) Anomalies and metal loss.
    (b) Submittal. You must submit the corrective action plan required 
by paragraph (a) of this section to the Regional Supervisor. If the 
remedial work under the corrective action plan requires MMS approval of 
a modification application (see Sec.  250.1093(a)) or a repair 
application (see Sec.  250.1095(a)), you may include the appropriate 
application in your corrective action plan.
    (c) Report. The Regional Supervisor may require you to submit a 
written report, within 30 calendar days after you complete the 
corrective action, confirming that you carried out your corrective 
action plan as approved.

Pipeline Surveying, Monitoring and Inspection


Sec.  250.1100  What are the general requirements for surveying, 
monitoring, and inspecting a pipeline?

    You must survey, monitor, and inspect all pipelines, including shut 
in pipelines, in a manner that:
    (a) Periodically verifies the integrity of the pipeline and risers;
    (b) Prevents unauthorized discharges;
    (c) Does not unreasonably interfere with other uses of the OCS; and
    (d) Does not cause undue or serious harm or damage to the human, 
marine, or coastal environment.


Sec.  250.1101  What must I do to survey and monitor a pipeline or 
route?

    (a) Surveying. You must conduct a visual survey of each of your 
pipeline routes at least monthly (or at a frequency specified by the 
Regional Supervisor) for indication of pipeline leaks. You may conduct 
this visual survey from a helicopter, marine vessel, or vehicle; by 
walking on ice; or by other means approved by the Regional Supervisor. 
The survey must be conducted during daylight hours (except in the 
AKOCSR). You must retain the results of the visual survey for at least 
2 years, and make them available to MMS upon request.
    (b) Product monitoring. You must monitor the products transported 
in the pipeline to ensure that your internal corrosion and flow 
assurance measures remain effective.


Sec.  250.1102  What inspections are required for my pipeline or route?

    You must conduct the inspections in the following table:

[[Page 56499]]



------------------------------------------------------------------------
                                                        Reporting and
Component and conditions for       Inspection           recordkeeping
         inspection               requirements          requirements
------------------------------------------------------------------------
(a) All risers..............  You must:             You must retain the
                              (1) Conduct a visual   records of the
                               inspection of each    riser inspections
                               pipeline riser in     for at least 2
                               and above the         years on the
                               splash zone at        nearest OCS
                               least annually for    facility, and make
                               indications of        them available to
                               damage or corrosion.  MMS upon request.
                              (2) In conjunction
                               with the platform
                               inspections
                               required by Sec.
                               250.919, inspect
                               the underwater
                               portions of each
                               pipeline riser for
                               indications of
                               corrosion, soil
                               erosion, or damage.
(b) All flexible joints on    You must:             You must submit the
 risers.                      (1) Conduct a visual   results of each
                               inspection of the     flexible joint
                               flexible joints on    inspection to the
                               each riser at least   Regional Supervisor
                               annually.             within 30 calendar
                              (2) If the results     days after you
                               of an inspection      complete the
                               required by item      inspection.
                               (1) of this
                               paragraph indicate
                               that a flexible
                               joint shows signs
                               of deterioration,
                               conduct the
                               required
                               inspections at
                               least every 6
                               months.
(c) Impressed current         You must inspect the  You must retain the
 sources if your pipeline is   impressed current     records of the
 protected by rectifiers or    sources at least      impressed current
 other impressed current       six times each year   source inspections
 sources.                      (with no more than    for at least 2
                               10 weeks between      years on the
                               inspections) to       nearest OCS
                               determine if the      facility, and make
                               pipeline is           them available to
                               adequately            MMS upon request.
                               protected.
(d) Anode systems if your     You must measure the  You must submit the
 pipeline is cathodically      pipe-to-electrolyte   pipe-to-electrolyte
 protected by anodes and if    potential annually    potential
 your pipeline is:             by September 30 of    measurements to the
                               each year.            Regional Supervisor
                                                     no later than
                                                     October 31 of the
                                                     same year, or
                                                     within 60 calendar
                                                     days of the
                                                     measurements,
                                                     whichever is
                                                     earlier.
    (1) Located in the POCSR
     or AKOCSR; or
    (2) Located in the GOMR
     and either:
        (i) The pipeline is
         composed of any
         pipe that is more
         than 20 years old;
         or
        (ii) The life
         expectancy of the
         cathodic protection
         system cannot be
         calculated.
------------------------------------------------------------------------

Sec.  250.1103  What additional inspections or surveys may the Regional 
Supervisor require?

    The Regional Supervisor may require you to conduct the inspections 
or surveys in the following table:

------------------------------------------------------------------------
   Type of inspection the
   regional supervisor may         Inspection       Reporting and record
           require                requirements      keeping requirements
------------------------------------------------------------------------
(a) Horizontal components     Conduct a visual or   Submit a report on
 inspection.                   remote inspection     the results of the
                               of the horizontal     horizontal
                               component of your     component
                               pipeline.             inspection to the
                                                     Regional
                                                     Supervisor. The
                                                     Regional Supervisor
                                                     will specify the
                                                     contents and
                                                     submittal deadline
                                                     of the report.
(b) Pipeline inspection       (1) Survey the        Submit a report of
 after a storm. If any         pipeline route.       the results of the
 portion of your pipeline     (2) Conduct a visual   post-storm
 within 25 miles (or other     inspection of the     inspection(s)
 distance specified by         above-water portion   listed in this
 Regional Supervisor) of the   of the pipeline       paragraph to the
 eye (central path) of a       riser for damage to   Regional
 major storm (74 mph or        the riser and         Supervisor. The
 greater).                     clamps.               Regional Supervisor
                              (3) Inspect the        will specify the
                               underwater portion    contents and
                               of the pipeline       submittal deadline
                               riser (including      of the report.
                               clamps, VIV
                               suppression, and
                               connection devices)
                               for evidence of
                               displacement or
                               exposure.
                              (4) Inspect the
                               horizontal
                               component from the
                               base of the riser
                               to a point at least
                               200 feet away from
                               the base of the
                               riser for evidence
                               of displacement or
                               exposure.
                              (5) Conduct an
                               underwater visual
                               inspection by
                               divers or ROV of
                               each of your
                               pipeline valves,
                               crossings, and tie-
                               ins to determine:
                                (i) Whether or not
                              any valves or
                              fittings became
                              exposed; and

[[Page 56500]]

 
                                (ii) The extent of
                              any damage,
                              including damage to
                              protective devices,
                              mats, and sandbags
(c) Pipeline Inspection       Conduct               Submit a report on
 after an earthquake. If any   surveillance,         the results of the
 portion of your pipeline      inspection, and       post-earthquake
 mayhave been affected by an   monitoring of the     surveillance,
 earthquake.                   pipeline.             inspections, or
                                                     monitoring to the
                                                     Regional
                                                     Supervisor. The
                                                     Regional Supervisor
                                                     will specify the
                                                     contents and
                                                     submittal deadline
                                                     of the report.
(d) Ultrasonic test (UT)      Conduct a UT          Submit a report on
 inspection.                   inspection of your    the UT inspection
                               pipeline.             results to the
                                                     Regional
                                                     Supervisor. The
                                                     Regional Supervisor
                                                     will specify the
                                                     contents and
                                                     submittal deadline
                                                     of the report.
(e) In-line inspection......  Conduct an in-line    Submit a report on
                               inspection of your    results of the in-
                               pipeline using        line inspection to
                               smart pigs.           the Regional
                                                     Supervisor. The
                                                     Regional Supervisor
                                                     will specify the
                                                     contents and
                                                     submittal deadline
                                                     of the report.
(f) Trawl test or other       Conduct a trawl       Submit a report on
 survey.                       test, diver survey,   the results of the
                               or ROV survey, or     trawl test, diver
                               use another method    survey, or ROV
                               approved by the       survey to the
                               Regional              Regional
                               Supervisor, to        Supervisor. The
                               determine whether     Regional Supervisor
                               the pipeline          will specify the
                               interferes with       contents and
                               other uses of the     submittal deadline
                               OCS.                  of the report.
------------------------------------------------------------------------

Pipeline Decommissioning


Sec.  250.1105  When do I accrue pipeline decommissioning obligations?

    You accrue pipeline decommissioning obligations when you are, or 
become:
    (a) A lessee, or the owner of operating rights, of a lease on which 
there is a lease term pipeline; or
    (b) The holder of a pipeline ROW on which there is a pipeline, 
accessory, or appurtenance (including umbilicals).


Sec.  250.1106  When must I decommission a pipeline?

    You must decommission your pipeline within 1 year after:
    (a) The pipeline has been out of service for 5 years (see Sec.  
250.1086(h)(1));
    (b) You determine that a pipeline will be out of service for 5 
years or more (see Sec.  250.1086(h)(2));
    (c) For ROW pipelines, your pipeline ROW grant terminates (see 
Sec.  250.1138(b)); or
    (d) For lease term pipelines, your OCS lease terminates.


Sec.  250.1107  What must I do to decommission a pipeline in place?

    You may decommission a pipeline in place when the Regional 
Supervisor determines that the pipeline does not constitute a hazard or 
obstruction to navigation and commercial fishing operations, unduly 
interfere with other uses of the OCS, or have adverse environmental 
effects. To decommission a pipeline in place you must meet the 
requirements in the following table.

------------------------------------------------------------------------
         Requirement            What you must do to meet the requirement
------------------------------------------------------------------------
(a) Application..............  Submit a pipeline decommissioning
                                application to the Regional Supervisor
                                in accordance with Sec.
                                250.1109(a)(1), and receive approval
                                from the Regional Supervisor before you
                                begin the work.
(b) Purging and flushing.....  (1) You must either:
                               (i) Pig the pipeline, including risers,
                                using a pig that will displace the
                                entire contents of the pipeline; or
                               (ii) Flush the pipeline, including
                                risers, with seawater until the returns
                                comply with appropriate EPA NPDES
                                standards.
                               (2) If you discharge any flushed returns
                                into the water column, you must dispose
                                of them in accordance with applicable
                                laws and regulations.
(c) Filling..................  Fill the pipeline, including risers, with
                                seawater.
(d) Records..................  For each pipeline decommissioned in place
                                after (INSERT THE EFFECTIVE DATE OF THE
                                REGULATION), retain the records of your
                                flushing and filling activities and make
                                them available to MMS upon request for
                                the life of the pipeline.
(e) Disconnecting............  Disconnect the pipeline from connecting
                                platforms, pipelines, and subsea
                                manifolds.
(f) Cutting and plugging.....  Cut and plug each end of the pipeline.
(g) Protecting ends..........  Protect the ends of the pipeline as
                                follows:
                               (1) If the pipeline end is in a water
                                depth less than 200 feet, bury the end
                                to a depth at least 3 feet below the
                                seafloor, and cover it with either sand
                                bags or a concrete mat. If you use sand
                                bags, they must have a slope above the
                                seafloor of 1:3 (rise:run). If you use a
                                concrete mat, the edges of the mat must
                                be below the seafloor.
                               (2) If the pipeline end is in a water
                                depth 200 feet or greater but less than
                                500 feet, you may either bury the end to
                                a depth at least 3 feet below the
                                seafloor, or cover the end with a
                                concrete mat. If you use a concrete mat,
                                the edges of the mat must be below the
                                seafloor.
                               (3) If the pipeline end is in a water
                                depth 500 feet or greater, you may
                                forego burial and covering if the
                                Regional Supervisor determines that the
                                pipeline end is not an obstruction to
                                other uses of the seafloor or area.
(h) Removing appurtenances...  Remove all pipeline appurtenances unless:
                               (1) The Regional Supervisor determines
                                that the appurtenance would not unduly
                                interfere with other uses of the
                                seafloor or area; or
                               (2) The water depth is greater than 2,624
                                feet.
(i) Decommission umbilicals    Decommissioning all umbilicals in place
 in place.                      in accordance with the requirements of
                                paragraphs (a) through (g) of this
                                section.
------------------------------------------------------------------------


[[Page 56501]]

Sec.  250.1108  What must I do to decommission a pipeline by removal?

    To decommission a pipeline by removal, you must:

------------------------------------------------------------------------
         Requirement            What you must do to meet the requirement
------------------------------------------------------------------------
(a) Application..............  Submit a pipeline decommissioning
                                application to the Regional Supervisor
                                in accordance with Sec.
                                250.1109(a)(2), and receive approval
                                from the Regional Supervisor before you
                                begin the work.
(b) Purging and flushing.....  (1) You must either:
                               (i) Pig the pipeline, including risers,
                                using a pig that will displace the
                                entire contents of the pipeline; or
                               (ii) Flush the pipeline, including
                                risers, with seawater until the returns
                                comply with appropriate EPA NPDES
                                standards.
                               (2) If you discharge any flushed returns
                                into the water column, you must dispose
                                of them in accordance with applicable
                                laws and regulations.
(c) Removing umbilicals......  Remove all umbilicals in accordance with
                                the requirements of paragraphs (a) and
                                (b) of this section.
(d) Removing the pipeline....  Physically remove the pipeline.
------------------------------------------------------------------------

Sec.  250.1109  How do I obtain approval to decommission a pipeline?

    (a) To obtain approval to decommission a pipeline, you must:

------------------------------------------------------------------------
        What to submit                    Application contents
------------------------------------------------------------------------
(1) Submit three copies of a   (i)The MMS-assigned pipeline segment
 pipeline decommissioning       number;
 application to the Regional   (ii) Reason for the decommissioning;
 Supervisor for approval.      (iii) Proposed decommissioning
                                procedures, including those to comply
                                with the requirements of Sec.
                                250.1107;
                               (iv) Length (feet) of pipe to be
                                decommissioned;
                               (v) Length (feet) of pipe that will
                                remain in place;
                               (vi) Requests for alternative compliance
                                or a departure under Sec.  Sec.
                                250.141 or 250.142; and
                               (vii) If the application is to
                                decommission a lease term pipeline,
                                payment of a nonrefundable service fee
                                (see Sec.   250.125 for amount).
(2) Submit three copies of a   (i) The MMS-assigned pipeline segment
 pipeline decommissioning       number;
 application to the Regional   (ii) The reason for the decommissioning;
 Supervisor for approval.       (iii) Your proposed removal procedures,
                                including decommissioning those to
                                comply with the requirements of Sec.
                                250.1108;
                               (iv) A description of the vessel(s) you
                                will use to remove the pipeline,
                                including anchor pattern(s), if required
                                by the Regional Supervisor.
                               (v) The length (feet) of pipe to be
                                removed;
                               (vi) The length (feet) of pipe that will
                                remain in place;
                               (vii) Plans for transportation of removed
                                pipe for disposal or salvage;
                               (viii) Plans to protect archaeological
                                and sensitive biological features during
                                removal operations;
                               (ix) An assessment of the environmental
                                impacts of the removal operations, and
                                the procedures and mitigation measures
                                that you will take to minimize such
                                impacts;
                                (x) A projected pipeline removal
                                schedule;
                               (xi) If the application is to
                                decommission an ROW pipeline by removal:
                               (A) A coastal zone consistency
                                certification according to 15 CFR
                                930.57, for each affected State; and
                               (B) Evidence that you have sent your
                                decommissioning application, consistency
                                certification (see 15 CFR 930.57), and
                                all necessary data and information (see
                                15 CFR 930.58) to each affected State
                                for their consistency determination
                                under the CZMA; and
                               (xii) If the application is to
                                decommission a lease term pipeline,
                                payment of a nonrefundable service fee
                                (see Sec.   250.125 for amount).
------------------------------------------------------------------------

    (b) Electronic submission. You may submit part or all of your 
decommissioning application electronically (see Sec.  250.186(a)(3)). 
If you prefer to submit your application electronically, you should 
consult with the Regional Supervisor for further guidance.
    (c) Withdrawal of application. You may withdraw your 
decommissioning application at any time, for any reason, by notifying 
the Regional Supervisor in writing.


Sec.  250.1110  How does MMS process a decommissioning application?

    After you submit a decommissioning application, the Regional 
Supervisor will process it as shown in the following table.

------------------------------------------------------------------------
       Processing step            What the Regional Supervisor will do
------------------------------------------------------------------------
(a) Completeness review......  Determine whether your decommissioning
                                application (either in place or by
                                removal) is complete, and will notify
                                you in writing of any problem or
                                deficiency. The Regional Supervisor will
                                not begin processing your application
                                until it is complete.
(b) Compliance review........  Review the proposed operations described
                                in your decommissioning application to
                                ensure that they conform to the OCSLA
                                (43 U.S.C.1331, et seq.), other
                                applicable laws, and MMS regulations.

[[Page 56502]]

 
(c) Environmental impact       Evaluate the environmental impacts of the
 evaluation.                    operations described in your
                                decommissioning application, and prepare
                                environmental documentation under NEPA
                                (42 U.S.C. 4321, et seq.) and the
                                implementing regulations (40 CFR parts
                                1500 through 1508).
(d) Amendments...............  During the review of your decommissioning
                                application, the Regional Supervisor may
                                require you, or you may elect, to change
                                the application.
(e) MMS decision.............  Review your decommissioning application,
                                notify you in writing of the decision,
                                and either:
                               (1) Approve the application, if it
                                complies with all applicable
                                requirements, and inform you of any
                                conditions of approval; or
                               (2) Require you to amend the application,
                                and inform you of the reasons for
                                requiring the amendment, if the proposed
                                decommissioning operations would
                                probably cause serious harm or damage to
                                life (including fish or other aquatic
                                life); property; mineral resources (in
                                areas leased or not leased); the
                                national security or defense; or the
                                marine, coastal, or human environment.
------------------------------------------------------------------------

Sec.  250.1111  After I decommission a pipeline, what information must 
I submit?

    Within 30 calendar days after you decommission a pipeline, you must 
submit a written decommissioning report to the Regional Supervisor that 
includes:
    (a) The MMS-assigned pipeline segment number;
    (b) A summary of the decommissioning operation, including the date 
the work was completed;
    (c) A description of any mitigation measures you took; and
    (d) A statement signed by your authorized representative which 
certifies that the pipeline was decommissioned according to the 
approved application.


Sec.  250.1112  When must I remove a pipeline decommissioned in place?

    If the Regional Supervisor subsequently determines that the 
pipeline decommissioned in place is an obstruction to other uses of the 
OCS, you must remove the pipeline in accordance with the requirements 
in Sec. Sec.  250.1108, 1109(a)(2), and 1111.


Sec.  250.1113  What are the requirements for re-commissioning a 
decommissioned pipeline?

    (a) Re-commissioning. Before re-commissioning a decommissioned 
pipeline, the current lessee, current designated lease operator, or 
former pipeline ROW holder, as applicable, must:
    (1) Submit an application under Sec.  250.1007(a), including the 
MMS-assigned pipeline segment number, and receive approval from the 
Regional Supervisor.
    (2) If the application is to re-commission a pipeline as an ROW 
pipeline, include:
    (i) An application for a pipeline ROW grant, if applicable (see 
Sec.  250.1125(a)), and receive approval from the Regional Supervisor; 
and
    (3) Hydrostatically pressure test the pipeline in accordance with 
Sec.  250.1060(a)(5).
    (4) Conduct all inspections required by the Regional Supervisor, 
including those in Sec.  250.1102(b), (c), and (d) and Sec.  
250.1103(a), (d), and (e).
    (b) Re-commissioning report. Within 30 calendar days after you re-
commission a decommissioned pipeline, you must submit a written re-
commissioning report to the Regional Supervisor that includes all of 
the following:
    (1) The MMS-assigned pipeline segment number.
    (2) A location plat based on the NAD 27 for the GOMR (Gulf) and 
POCSR, or NAD 83 for AKOCSR and GOMR (Atlantic), at a minimum scale of 
1 inch = 2,000 feet. The location plat must depict the actual location 
of the re-commissioned pipeline.
    (3) An electronic file of the digital coordinates of the key points 
of your ``as-built'' pipeline route, as re-commissioned. You must 
report the digital data in decimal degrees latitude and longitude, 
based on NAD 83.
    (4) Confirmation that the re-commissioning was accomplished as 
approved by the Regional Supervisor.
    (5) A report of the hydrostatic pressure test (see Sec.  250.1061) 
required by Sec.  250.1060(a)(5).

Pipeline Right-of-Way (ROW) Grants


Sec.  250.1115  What is a pipeline ROW grant?

    A pipeline ROW grant is an authorization issued by MMS for the use 
of submerged lands for the construction and operation of an associated 
ROW pipeline to transport oil, natural gas, sulphur, or other 
associated products.
    (a) Authority. MMS grants a pipeline ROW pursuant to section 5(e) 
of the OCSLA (43 U.S.C. 1334(e)).
    (b) Term. A pipeline ROW granted by MMS under the provisions of 
this subpart remains in effect until it is relinquished, cancelled, or 
forfeited, or until it expires.
    (c) Dimensions. A pipeline ROW includes the site on which the 
pipeline, and any associated appurtenances and accessories, are or will 
be situated.
    (1) The width of the pipeline ROW is 200 feet centered on the 
pipeline.
    (2) The site of an accessory includes the areal extent of anchor 
chains, pipeline risers, and other facilities and devices associated 
with the accessory.
    (d) Conveyed rights. If the Regional Supervisor approves a pipeline 
ROW grant, you have the:
    (1) Exclusive right and privilege to construct, maintain, and 
operate the associated pipeline for the purpose of transporting oil, 
natural gas, sulphur, or other associated products; and
    (2) Right to be notified and consulted if any proposed OCS 
operations will cross or otherwise impact your pipeline ROW.


Sec.  250.1116  When must I obtain a pipeline ROW grant?

    Before you may construct an ROW pipeline, or use an existing 
pipeline that qualifies as a ROW pipeline, the Regional Supervisor must 
grant you a pipeline ROW in accordance with the provisions of this 
subpart. You must receive a separate pipeline ROW grant for each ROW 
pipeline, even if the new pipeline ROW grant would overlap another 
pipeline ROW grant.


Sec.  250.1117  Who can be a pipeline ROW grant holder?

    (a) Entities. A pipeline ROW holder must be one of the following:
    (1) A citizen or national of the United States;
    (2) An alien lawfully admitted for permanent residence in the 
United States as defined in 8 U.S.C. 1101(a)(20);
    (3) A private, public, or municipal corporation recognized by the 
United States and organized under the laws of the United States or a 
territory thereof, the District of Columbia, or any State; or
    (4) An association (including a partnership) of such citizens, 
nationals, resident aliens, or private, public, or municipal 
corporations.
    (b) Qualification file. In the pipeline ROW grant application 
required by Sec.  250.1125(a), you may reference statements and records 
you previously

[[Page 56503]]

submitted to an MMS OCS Region regarding incorporation, and the 
person(s) authorized to act on behalf of your corporation or 
association (see Sec.  250.1126(b) and (c)) and to receive process and 
notifications. The Regional Supervisor will maintain this information 
in a qualification file. If you choose to establish a qualification 
file, you must ensure that it contains accurate and up-to-date 
information to avoid delays in reviewing your pipeline ROW grant 
application.
    (c) Disqualification. The Director may disqualify you from 
acquiring any new pipeline ROW grants, or from holding any existing 
pipeline ROW grants, if your operating performance is unacceptable. The 
Director will give you notice and an opportunity for a review by MMS 
before disqualifying you.


Sec.  250.1118  What are the financial security requirements for 
holding a pipeline ROW grant?

    (a) ROW grant financial security. You (the applicant) must furnish 
the Regional Director with a bond or other security in the sum of 
$300,000 for each pipeline ROW grant you hold. This security is in 
addition to any security required of a lessee by 30 CFR 256, subpart I, 
Bonding.
    (b) ROW grant area financial security. In lieu of providing the 
security required by paragraph (a) of this section, you may maintain 
with the Regional Director, or furnish to the Regional Director, a bond 
or other security in the sum of $1 million that covers all of the 
pipeline ROW grants you hold in an MMS OCS Region. The following table 
shows MMS regions and the areas they encompass.

------------------------------------------------------------------------
                                         For OCS areas adjacent to the .
       MMS OCS regions are . . .                       . .
------------------------------------------------------------------------
(1) Alaska OCS Region (AKOCSR).........  State of Alaska.
(2) Gulf of Mexico OCS Region (GOMR)...  Atlantic Coast States or in the
                                          Gulf of Mexico.
(3) Pacific OCS Region (POCSR).........  States of California, Oregon,
                                          Washington, or Hawaii.
------------------------------------------------------------------------

    (c) Additional financial security. The Regional Director may 
require you to provide additional security (i.e., security above the 
sum of $300,000 specified in paragraph (a) of this section, or the sum 
of $1 million specified in paragraph (b) of this section).
    (1) The Regional Director will base the determination and the 
amount of additional security on an evaluation of your ability to carry 
out present and future financial obligations under the pipeline ROW 
grant, including your obligation to maintain and remove an accessory to 
the ROW pipeline.
    (2) During the evaluation, the Regional Director will give you an 
opportunity to submit written or oral statements.
    (3) If the Regional Director requires additional security, you may 
either increase the amount of your existing bond or other security, or 
provide a supplemental bond(s) or other security.
    (d) General requirements. Any bond or other security you provide 
under this section must:
    (1) Be submitted on Form MMS-2030 (Outer Continental Shelf (OCS) 
Pipeline Right-of-Way Grant Bond);
    (2) Be payable upon demand to the Regional Director;
    (3) Guarantee your compliance with the terms and conditions of the 
pipeline ROW grant, your obligations under the grant, the OCSLA (43 
U.S.C.1331, et seq.), other laws, and applicable MMS regulations;
    (4) If the security is a bond, be issued by a surety that the U.S. 
Department of the Treasury certifies as an approved surety on Federal 
bonds and that is listed in the current Treasury Circular No. 570;
    (5) If the security is a bond, be executed by authorized officials 
representing you and the surety;
    (6) If the surety is a corporation, be signed by an authorized 
corporate officer and attested to with its embossed corporate seal; and
    (7) Be non-cancelable, except as provided in Sec. Sec.  250.1120 
and 250.1124.
    (e) State law. If the security is a bond, the bond must continue in 
full force and effect even if the surety's obligation has been 
diminished, terminated, or canceled under State law.


Sec.  250.1119  When will MMS terminate the period of liability of my 
financial security?

    The Regional Director will not terminate the period of liability of 
your bond or other security for a pipeline ROW grant except under the 
conditions in this section.
    (a) If your surety requests termination of liability from the 
Regional Director, the Regional Director will approve the request and 
terminate that period of liability within 90 calendar days after 
receipt of the request.
    (b) If you intend to maintain the pipeline ROW grant, or have not 
fulfilled all decommissioning or other obligations, you must provide 
the Regional Director with a replacement bond or other security of 
equivalent value.
    (c) When the Regional Director terminates the period of liability 
of a bond or other security, the period during which obligations 
continue to accrue ends. This termination does not relieve the surety 
of the responsibility for obligations and responsibilities that accrued 
during the period of liability and before the date of termination. The 
obligations and responsibilities that accrue during a period of 
liability also include those that began accruing before the beginning 
of the period of liability and have not been fulfilled.
    (d) If the Regional Director terminates the period of liability, 
but the bond or other security is not cancelled, the surety that 
provided the bond will continue to be liable for accrued obligations 
until they have been fulfilled.


Sec.  250.1120  When will MMS cancel my financial security?

    The Regional Director will cancel your bond or other security, and 
thus relieve the surety of accrued obligations, only if you request 
cancellation from the Regional Director and either:
    (a) The Regional Director determines that there are no outstanding 
obligations; or
    (b) You provide the Regional Director with a replacement bond or 
other security of equivalent value in which:
    (1) The new surety agrees to assume all outstanding liabilities 
under the bond or other security to be cancelled; and
    (2) The new bond or other security is in an amount equal to or 
greater than the bond or other security to be cancelled.


Sec.  250.1121  What happens if my financial security is reduced or 
lapses?

    (a) Reduced financial security value. If the value of a required 
pipeline ROW grant bond or other security is reduced because of a 
default, or for any other reason, you must provide the Regional 
Director with additional coverage sufficient to meet the security 
required by Sec.  250.1118(a) or (b) and, if applicable, Sec.  
250.1118(c). You must provide this additional coverage within 30 
calendar days, or within a shorter period if required by the Regional

[[Page 56504]]

Director, after the value of your security coverage is reduced.
    (b) Lapse of financial security. If your surety is decertified by 
the Department of the Treasury, becomes bankrupt or insolvent, or has 
its charter or license suspended or revoked, your security coverage 
terminates immediately. In that event, you must:
    (1) Notify the Regional Director within 72 hours; and
    (2) Provide the Regional Director with a new bond or other security 
sufficient to meet the security required by Sec.  250.1118(a) or (b) 
and, if applicable, Sec.  250.1118(c) You must do this within 15 
calendar days after your security coverage terminates, or within a 
shorter period if required by the Regional Director.


Sec.  250.1122  How will MMS determine that my financial security is 
forfeited?

    (a) The Regional Director will pursue forfeiture of all or part of 
your bond(s) or other security if the Regional Director finds that 
either:
    (1) You refuse, or are unable, to comply with the terms and 
conditions of the pipeline ROW grant, your obligations under the grant, 
the OCSLA (43 U.S.C. 1331, et seq.), other laws, or applicable MMS 
regulations; or
    (2) You have otherwise defaulted under any condition imposed when 
the Regional Director accepted the bond or other security.
    (b) The Regional Director may pursue forfeiture of your bond(s) or 
other security without first making demands for performance against 
you.
    (c) In pursuing forfeiture of your bond(s) or other security, the 
Regional Director will:
    (1) Notify you and your surety in writing that the forfeiture 
process has begun, and include the reasons for the forfeiture and the 
amount to be forfeited;
    (2) Base the amount to be forfeited on an estimate of the total 
cost to bring your pipeline ROW grant into compliance, or to correct 
any default; and
    (3) Advise you and your surety in writing that you may avoid 
forfeiture if, within 5 working days either:
    (i) You agree to, and demonstrate that you will, bring your 
pipeline ROW grant into compliance or correct any default within a 
timeframe prescribed by the Regional Director; or
    (ii) Your surety agrees to, and demonstrates that it will, bring 
your pipeline ROW grant into compliance or correct any default within a 
timeframe prescribed by the Regional Director, even if the cost of 
compliance or correcting the default exceeds the amount of your bond or 
other security.
    (d) If you or your surety refuse, or are unable, to comply with the 
conditions in paragraph (c)(3) of this section, the Regional Director 
will determine that your bond or other security is forfeited, and will:
    (1) Collect the forfeited amount;
    (2) Use the collected funds to bring your pipeline ROW grant into 
compliance, or to correct any default;
    (3) Initiate proceedings to recover from you all costs in excess of 
the amount the Regional Director collected from your forfeited bond or 
other security, if the collected funds are insufficient to bring your 
pipeline ROW grant into compliance or to correct any default; and
    (4) Return any funds collected from the forfeited bond or other 
security that were not used to bring your pipeline ROW grant into 
compliance or to correct any default.
    (e) If your bond or other security is forfeited, you must furnish 
the Regional Director with a new bond or other security sufficient to 
meet the security required by Sec.  250.1118(a) or (b) and, if 
applicable, Sec.  250.1118(c). You must do this within 15 calendar days 
after your bond or other security was forfeited, or within a shorter 
period if required by the Regional Director.


Sec.  250.1123  What penalties can MMS assess if my financial security 
is not sufficient, is reduced or lapses, or is forfeited?

    If you fail to provide any additional security required by the 
Regional Director (under Sec.  250.1118(c)), replace or provide 
additional coverage for a devalued bond or other security (under Sec.  
250.1121(a)), or replace a lapsed or forfeited bond or other security 
(under Sec.  250.1121(b) or Sec.  250.1122), then:
    (a) The Regional Director may assess penalties under 30 CFR 250, 
subpart N, Outer Continental Shelf (OCS) Civil Penalties;
    (b) The Regional Supervisor may suspend the pipeline ROW grant in 
accordance with Sec.  250.1135(b); and
    (c) The Secretary may cancel the pipeline ROW grant in accordance 
with Sec.  250.1137(a)(4).


Sec.  250.1124  What happens to my financial security after a pipeline 
ROW grant terminates?

    When your pipeline ROW grant terminates (either by relinquishment, 
cancellation, forfeiture, or expiration), your surety(s) remains 
responsible, and the Regional Director will retain your bond or other 
financial security as shown in the following table:

------------------------------------------------------------------------
                                  the period of
           For . . .             liability ends .        and . . .
                                       . .
------------------------------------------------------------------------
(a) Securities provided under   When the Regional  (1) The Regional
 Sec.   250.1118(a) or (b).      Director           Director will cancel
                                 determines that    your financial
                                 you have           security 7 years
                                 fulfilled all of   after the pipeline
                                 your obligations   ROW grant
                                 under the          terminates; 6 years
                                 pipeline ROW       after you complete
                                 grant.             all secured
                                                    obligations; or at
                                                    the conclusion of
                                                    any appeals or
                                                    litigation related
                                                    to your secured
                                                    obligation,
                                                    whichever is the
                                                    latest.
                                                   (2) The Regional
                                                    Director will reduce
                                                    the amount or return
                                                    a portion of your
                                                    bond or other
                                                    security if the
                                                    Regional Director
                                                    determines that a
                                                    lesser amount is
                                                    required to cover
                                                    any unforeseen
                                                    events under your
                                                    accrued obligations.
(b) Additional securities       When the Regional  The Regional Director
 provided under Sec.             Director           will cancel your
 250.1118(c).                    determines that    financial security
                                 you have           either:
                                 fulfilled all of  (1) When you meet
                                 your obligations   your secured
                                 covered by the     obligations; or
                                 additional        (2) Seven years after
                                 security.          the pipeline ROW
                                                    grant terminates; if
                                                    the Regional
                                                    Director determines
                                                    that the amount
                                                    required to cover
                                                    unforeseen events
                                                    under your accrued
                                                    obligations is
                                                    greater than the
                                                    amount of the
                                                    security you
                                                    provided under Sec.
                                                     250.1118(a) or (b);
                                                    or
                                                   (3) At the conclusion
                                                    of any appeals or
                                                    litigation related
                                                    to your secured
                                                    obligation;
                                                    whichever is the
                                                    latest.
------------------------------------------------------------------------


[[Page 56505]]

Sec.  250.1125  How do I submit an application for a pipeline ROW 
grant?

    (a) Application. You must submit one original and two copies of an 
application for a pipeline ROW grant to the Regional Supervisor. You 
must attach the ROW grant application to the application for the 
associated ROW pipeline (see Sec.  250.1007(a)), and include the 
information required by Sec.  250.1126 in your ROW grant application.
    (b) Service fee. With each pipeline ROW grant application you 
submit, including an application for a pipeline ROW grant to convert an 
existing lease term pipeline to an ROW pipeline or an application to 
for an ROW grant for an existing pipeline, you must include payment of 
the applicable nonrefundable service fee (see Sec.  250.125 for the 
amount).
    (c) Submitting additional information. The Regional Supervisor may 
require your ROW grant application to include information in addition 
to that required by Sec.  250.1126, if the Regional Supervisor 
determines that it is necessary to evaluate the application.
    (d) Electronic submission. You may submit part or all of your 
pipeline ROW grant application electronically (see Sec.  
250.186(a)(3)). If you prefer to submit your pipeline ROW grant 
application electronically, you should consult with the Regional 
Supervisor for further guidance.
    (e) Withdrawal of application. You may withdraw your pipeline ROW 
grant application at any time, and for any reason, by notifying the 
Regional Supervisor in writing.


Sec.  250.1126  What information must I include in an application for a 
pipeline ROW grant?

    (a) Cover letter. You must provide a cover letter that states:
    (1) You are submitting the pipeline ROW grant application pursuant 
to section 5 of the OCSLA (43 U.S.C. 1334(e)) or section 8 of the OCSLA 
(43 U.S.C. 1337(p)(1)(B)) and the regulations contained in 30 CFR 250, 
subpart J;
    (2) You consent to be bound by the provisions of the OCSLA (43 
U.S.C. 1331, et seq.) and other applicable laws, MMS regulations, and 
the terms and conditions of the pipeline ROW grant;
    (3) The purpose(s) for which you will use the pipeline ROW grant; 
and
    (4) The name, title, and signature of your authorizing official. 
This information must be the same as the information you provide or 
reference in your MMS qualification records (see Sec.  250.1117(b)).
    (b) Qualification. You must provide information regarding your 
qualification to be a pipeline ROW holder as follows:

------------------------------------------------------------------------
            If you are . . .                  You must provide . . .
------------------------------------------------------------------------
(1) An individual......................  A statement of citizenship or
                                          nationality.
(2) An alien lawfully admitted for       Evidence of such status.
 permanent residence in the United
 States.
(3) A corporation......................  (i) A statement certified by
                                          the Secretary or Assistant
                                          Secretary of the corporation
                                          with the corporate seal
                                          showing the State where it is
                                          incorporated; and
                                         (ii) The name(s), title(s), and
                                          signature(s) of the person(s)
                                          authorized to act on behalf of
                                          the corporation.
(4) An association (including a          (i) A certified copy of the
 partnership).                            articles of association; and
                                         (ii) The name(s), title(s), and
                                          signature(s) of the person(s)
                                          authorized to act on behalf of
                                          the association.
------------------------------------------------------------------------

    (c) Reference to qualification records. In lieu of providing the 
information required by paragraphs (b)(3) and (4) of this section, you 
may reference statements and records you previously submitted to MMS 
regarding the corporation or association, and the persons authorized to 
act on behalf of the corporation or association (see Sec.  
250.1117(b)). If you choose this alternative, you must state that the 
company official who signed the cover letter has the authority to:
    (1) Submit the pipeline ROW grant application;
    (2) Bind the corporation or association to compliance with the 
terms and conditions of the pipeline ROW grant; and
    (3) Bind the corporation or association to compliance with the 
various statements and certifications made in your pipeline ROW grant 
application.
    (d) Identified ROW pipeline operator. If the pipeline ROW grant 
holder will not be the operator of the associated pipeline, you must 
identify the operator and provide its MMS company number, if any.
    (e) Bond or other financial security. You must describe your bond 
or other security coverage for the proposed pipeline ROW (see Sec.  
250.1118(a) or (b)).
    (f) Additional financial security. If the Regional Director 
determines that you must provide additional security, you must describe 
such security (see Sec.  250.1118(c)).
    (g) Accessory footprint. If your pipeline ROW will include a site 
for an accessory, you must provide the size of the affected area 
(acres), and information that shows how you determined the size (see 
Sec.  250.1130(a)(2)) and the maximum water depth.
    (h) Payments. You must include your service fee and rental 
payments, made payable to the Minerals Management Service. If you pay 
by credit card, follow the instructions in Sec.  250.125(b)(1). If you 
pay by check, your check must identify the check number, date, and name 
of the financial institution upon which the check is written. You must 
provide additional information that includes:
    (1) Total amount of the service fee (see Sec.  250.125(b));
    (2) Total amount of the pipeline rental, and the time period it 
covers (see Sec.  250.1130(a)(1));
    (3) Total amount of rental for an accessory site (if applicable), 
and the time period it covers (see Sec.  250.1130(a)(2)); and
    (4) Total payment amount.


Sec.  250.1127  How does MMS process an application for a pipeline ROW 
grant?

    (a) Compliance review. The Regional Supervisor will review your 
pipeline ROW grant application to ensure that it complies with the 
OCSLA (43 U.S.C.1331, et seq.), other applicable laws, and MMS 
regulations.
    (b) Amendments. During the review of your pipeline ROW grant 
application, the Regional Supervisor may require you, or you may elect, 
to change the application.
    (c) Decision. The Regional Supervisor will review your pipeline ROW 
grant application, and take one of the following actions:

[[Page 56506]]



------------------------------------------------------------------------
                                                      And the Regional
The Regional Supervisor will        If . . .         Supervisor also . .
            . . .                                             .
------------------------------------------------------------------------
(1) Approve your application  It complies with all  (i) Will
 for a pipeline ROW grant in   applicable            simultaneously
 writing.                      requirements.         approve the
                                                     associated pipeline
                                                     (see Sec.
                                                     250.1012(a)) and,
                                                     if applicable, any
                                                     associated
                                                     accessory (see Sec.
                                                       250.1142(e)(1));
                                                     and
                                                    (ii) May require you
                                                     to meet certain
                                                     conditions.
(2) Require you amend your    The Regional          Will notify you in
 application for a pipeline    Supervisor            writing of the
 ROW grant.                    determines that it    decision, and
                               is inconsistent       describe the
                               with the OCSLA (43    changes you must
                               U.S.C. 1331, et       make to your
                               seq.), applicable     pipeline ROW grant
                               MMS regulations, or   application to
                               other Federal laws.   ensure it complies
                                                     with all applicable
                                                     requirements.
(3) Deny your application...  (i) The application   Will issue the
                               for the associated    decision to you in
                               pipeline is           writing, and state
                               disapproved under     the reasons for the
                               Sec.   250.1012(b);   denial.
                              (ii) You do not
                               qualify to hold a
                               pipeline ROW grant,
                               or are unable to
                               post the required
                               bonds or other
                               security;.
                              (iii) You do not
                               comply with
                               applicable
                               requirements, and
                               are unable to amend
                               the application to
                               achieve compliance;
                               or.
                              (iv) The proposed
                               pipeline ROW will
                               cross any OCS lands
                               (e.g., fairways or
                               anchorage areas)
                               that are under the
                               jurisdiction of
                               another Federal
                               agency and that
                               agency does not
                               consent to the
                               pipeline ROW grant.
------------------------------------------------------------------------

Sec.  250.1128  When will MMS temporarily suspend or prohibit 
construction of an ROW pipeline?

    The Regional Supervisor may suspend or temporarily prohibit 
construction operations if the Regional Supervisor determines that a 
significant change in conditions occurred after the Regional Supervisor 
granted a pipeline ROW, but before you complete construction of the 
associated ROW pipeline.


Sec.  250.1129  What must I do if the as-built location of the 
associated ROW pipeline deviates from the approved pipeline ROW grant?

    The Regional Supervisor will notify you in writing if the Regional 
Supervisor determines that the as-built location of the associated ROW 
pipeline deviates from the approved pipeline ROW grant. Within 60 
calendar days after the date you submitted the pipeline construction 
report to the Regional Supervisor (see Sec.  250.1050(a)), you must:
    (a) Notify the lessee or designated lease operator of each lease, 
and the pipeline ROW holder of each pipeline ROW, that is crossed or 
could be affected by the associated pipeline as constructed;
    (b) Provide the Regional Supervisor with evidence of such 
notification; and
    (c) Submit an application under Sec.  250.1132(a)(3) to the 
Regional Supervisor for approval to modify the pipeline ROW grant.


Sec.  250.1130  What rental fees and payment schedules apply to a 
pipeline ROW grant?

    (a) Rental fees. For the first calendar year, or fraction thereof, 
that you hold a pipeline ROW grant, and for each calendar year 
thereafter that the grant remains in effect, you must pay MMS an annual 
rental as follows:
    (1) You must pay $70.00 for each statute mile, or part of a statute 
mile, of the OCS that your pipeline ROW crosses; and
    (2) If you hold a pipeline ROW grant that includes a site for an 
accessory to your pipeline, you must pay MMS an additional annual 
rental according to the following table:

------------------------------------------------------------------------
  If your accessory site is or will be    You must pay MMS an additional
     located in water depths . . .            annual rental of . . .
------------------------------------------------------------------------
(i) Less than 656 feet.................  $5.00 per acre, with a minimum
                                          of $450 for use of the
                                          affected area.
(ii) 656 feet or greater...............  $7.50 per acre, with a minimum
                                          of $675 for use of the
                                          affected area.
------------------------------------------------------------------------

    (b) Affected area. For purposes of this section, the affected area 
includes the areal extent of anchor chains, risers, appurtenances, and 
other devices associated with the accessory.
    (c) Payment schedule and deadline. You may make the rental payments 
required by paragraph (a) of this section to MMS on an annual basis, 
for a 5-year period, or for multiples of 5 years. All payment periods 
begin on January 1. You must pay all rental fees in advance and before 
the beginning of the payment period.
    (d) Late rental payments. You will be subject to an interest charge 
if you do not make a rental payment by the deadline specified in 
paragraph (c) of this section.
    (1) MMS will assess interest on a late payment on unpaid and 
underpaid amounts from the date the amounts are due.
    (2) MMS will assess interest only on the amount not received.
    (3) MMS will assess interest only for the number of days the 
payment is late.
    (4) The interest charge on a late rental payment will be at the 
underpayment rate established by the Internal Revenue Service Code, 26 
U.S.C. 6621(a)(2) (Supp. 1987).
    (5) MMS may offset an overpayment you made on the rental for a 
pipeline ROW grant that you hold against an underpayment you made on a 
different pipeline ROW grant that you hold to determine the net 
underpayment for which interest is due.


Sec.  250.1131  What are the terms and conditions for holding a 
pipeline ROW grant?

    (a) Compliance. You must comply with the OCSLA (43 U.S.C. 1331, et 
seq.), as amended, other applicable laws, and MMS regulations.
    (b) Address changes. You must update your qualification file (see 
Sec.  250.1117(b)) within 30 calendar days after a change of address as 
follows:

[[Page 56507]]



------------------------------------------------------------------------
       If you are . . .                  You must provide . . .
------------------------------------------------------------------------
(1) An individual............  Your change of address.
(2) A corporation or           Address of your principal place of
 association.                   business, or name and address of the
                                officer or agent authorized to act on
                                your behalf and to be served with
                                process.
------------------------------------------------------------------------

    (c) Non-interference. Your pipeline ROW grant does not allow you to 
prevent or interfere in any way with the management, administration, or 
the granting of other rights by the United States, either before or 
after the pipeline ROW is granted by MMS.
    (d) Occupancy and use. You must allow the occupancy and use by the 
United States, its lessees or designated lease operators, or other 
pipeline ROW holders of any part of the pipeline ROW grant not actually 
occupied, or necessarily incident to its use, for any necessary 
operations involved in the management, administration, or the enjoyment 
of other granted rights.
    (e) Compensation and indemnification. You must:
    (1) Compensate the United States, its lessees, or other pipeline 
ROW holders, as the case may be, for the full value of all damages to 
the property of the United States or of its lessees or pipeline ROW 
holders; and
    (2) Indemnify the United States against any and all liability for 
damages to life, person, or property arising from the occupation and 
use of the area covered by the pipeline ROW grant.
    (f) Federal Energy Regulatory Commission (FERC) determination. The 
pipeline associated with the pipeline ROW grant must transport, or you 
must purchase, oil or natural gas produced from submerged lands of the 
OCS in the vicinity of the pipeline in such proportionate amounts as 
FERC may determine to be reasonable. The FERC will make this 
determination only after a full hearing with due notice thereof to the 
interested parties, taking into account, among other things, 
conservation and the prevention of waste.
    (g) Open and nondiscriminatory access. (1) Unless otherwise 
exempted by FERC under section 5(f)(2) of the OCSLA (43 U.S.C. 
1334(f)(2)), you must provide open and nondiscriminatory access to the 
associated ROW pipeline to both owner and non-owner shippers.
    (2) The express condition that ROW oil and natural gas pipelines 
must transport or purchase without discrimination is within MMS's 
delegated authority to enforce, even when those pipelines are also 
under FERC jurisdiction by separate authority. To the extent that the 
oil or natural gas pipelines are subject to FERC's jurisdiction, MMS 
intends to defer to FERC its authority to decide whether those 
pipelines have complied with the open and nondiscriminatory access 
requirements. For pipelines not under FERC jurisdiction, MMS will 
decide whether those pipelines have complied with the open and 
nondiscriminatory access requirements of the OCSLA. All complaints by 
shippers alleging that pipelines have not complied with the open and 
nondiscriminatory access requirements are subject to the regulations in 
30 CFR part 291.
    (h) Expansion of throughput capacity. You must comply with the 
provisions of section 5(f)(1)(B) of the OCSLA (43 U.S.C. 
1334(f)(1)(B)), under which FERC may order expansion of the throughput 
capacity of an associated ROW pipeline that was approved after 
September 18, 1978, and that is not located in the Gulf of Mexico or 
the Santa Barbara Channel.
    (i) Open for inspection. You must keep the area covered by the 
pipeline ROW grant, and all improvements thereon, open for inspection 
by MMS.
    (j) Nondiscrimination in employment. You must comply fully with 
Executive Order 11246, section 202, paragraphs (1) through (7), as 
amended (reprinted in 41 CFR 60-1.4(a)), and must not discriminate 
against any employee or applicant for employment on the basis of race, 
color, religion, sex, or national origin.
    (k) Sabotage or subversive activity. You must immediately notify 
the Regional Supervisor, by the fastest possible means of 
communication, if you discover any evidence of sabotage or subversive 
activity involving or endangering any pipeline, accessory, vessel, 
aircraft, or any operation conducted under the pipeline ROW grant.


Sec.  250.1132   How do I modify a pipeline ROW grant?

    (a) Application. You must submit one executed original and two 
copies of an application to modify a pipeline ROW grant to the Regional 
Supervisor for approval if you plan to:
    (1) Cease pipeline operations, and need to maintain the pipeline 
ROW grant in effect;
    (2) Change the purpose(s) for which the grant was made;
    (3) Change the route of the associated ROW pipeline; or
    (4) Establish a site for an accessory, or change the footprint of 
an accessory.
    (b) Associated pipeline application. For those applications 
specified in paragraphs (a)(2), (a)(3), and (a)(4) of this section, you 
must attach the application to modify the pipeline ROW grant to the 
application to modify the associated ROW pipeline (see Sec.  
250.1093(a)).
    (c) Application contents. Your application to modify a pipeline ROW 
grant must include:
    (1) Company name;
    (2) Contact name, telephone number, telefax number, and e-mail 
address;
    (3) Reason for the modification, and a description of the proposed 
modification to the pipeline ROW grant;
    (4) MMS-assigned pipeline ROW number, the segment number of the 
associated pipeline, and, if applicable, the name of any accessory;
    (5) Name, title, and signature of your authorizing official. This 
information must be the same as the information you provided or 
referenced in the MMS qualification records;
    (6) If you propose to cease pipeline operations:
    (i) Date that you stopped using the pipeline;
    (ii) Steps you will take to resume operations under the pipeline 
ROW grant;
    (iii) The approximate date you intend to resume operations; and
    (iv) Plans for maintaining the associated ROW pipeline in the 
interim;
    (7) If the modification results in additional rental (see Sec.  
250.1130), payment for the increase in the manner prescribed in Sec.  
250.1126(h); and
    (d) MMS actions. The Regional Supervisor will review your 
application to modify a pipeline ROW grant, along with your application 
to modify the associated ROW pipeline (see Sec.  250.1093(a)), to 
ensure that it complies with the OCSLA (43 U.S.C. 1331, et seq.), other 
applicable laws, and applicable MMS regulations, and will take one of 
the actions prescribed in Sec.  250.1127(c).


Sec.  250.1133  How does temporary cessation and cessation of pipeline 
operations affect a pipeline ROW grant?

    (a) Definitions--(1) Temporary cessation of pipeline operations 
means the use of a pipeline associated with a pipeline ROW grant for a 
purpose other than that for which the grant was made for a period of 
180 consecutive calendar days or less.

[[Page 56508]]

    (2) Cessation of pipeline operations means the use of a pipeline 
associated with a pipeline ROW grant for a purpose other than that for 
which the grant was made for a period of more than 180 consecutive 
calendar days. Simply maintaining pressure on the pipeline is not using 
the pipeline for the purpose for which the grant was made.
    (b) Temporary cessation of pipeline operations. Temporary cessation 
of pipeline operations will not cause the associated pipeline ROW grant 
to expire.
    (c) Cessation of pipeline operations. Cessation of pipeline 
operations, whether voluntary or resulting from a suspension or 
temporary prohibition of operations directed by MMS, will cause the 
associated pipeline ROW grant to expire unless the Regional Supervisor 
approves an application to modify the pipeline ROW grant (see Sec.  
250.1132(a)(1)) to allow for a cessation of operations for a specified 
time period.
    (d) Obligations. If MMS approves your application to modify the 
pipeline ROW grant to cease operations, you must:
    (1) Continue to pay the annual rentals required by Sec.  
250.1130(a);
    (2) Adhere to the requirements for out-of-service pipelines in 
Sec.  250.1086; and
    (3) If, at any time, you determine that cessation of pipeline 
operations will continue for 5 years or more, or for a shorter period 
as specified by the Regional Supervisor, you must submit to the 
Regional Supervisor, within 60 days:
    (i) A request to relinquish the pipeline ROW grant (see Sec.  
250.1136(a)); and
    (ii) An application to decommission the associated pipeline (see 
Sec. Sec.  250.1107 or 1108).


Sec.  250.1134  How do I assign a pipeline ROW grant?

    (a) Assignment request. You may assign a pipeline ROW grant by 
submitting two originals of Form MMS-149 (Assignment of Federal OCS 
Pipeline Right-of-Way Grant) to the Regional Supervisor for approval. 
The assignment must transfer the pipeline ROW grant in its entirety and 
to only one assignee. Your assignment request must include:
    (1) The MMS-assigned pipeline ROW number, the segment number of the 
associated pipeline, and, if applicable, the name of any accessory;
    (2) The names and MMS company numbers for both the assignor and the 
assignee;
    (3) The names and telephone numbers of the contacts for both the 
assignor and the assignee;
    (4) The names, titles, and signatures of the authorizing officials 
for both the assignor and the assignee;
    (5) Payment of a nonrefundable service fee (see Sec.  250.125 for 
the amount);
    (6) A statement from the assignee that the assignee agrees to 
comply with, and to be bound by, the terms and conditions of the 
pipeline ROW grant;
    (7) The same showing of qualifications of the assignee as is 
required of an applicant for a pipeline ROW grant in Sec.  250.1117;
    (8) A statement describing how the assignee will comply with the 
financial security requirements of Sec.  250.1118;
    (9) The name of the identified operator, if the company that will 
operate the associated pipeline will not be the assignee;
    (10) A revised safety flow schematic that shows the new transfer 
point, if the assignment will result in a change of the jurisdictional 
transfer point of the associated pipeline; and
    (11) The information required by Sec. Sec.  250.1028 and 250.1029.
    (b) Rental payments for a pipeline ROW grant pending assignment. If 
you have submitted a request to assign a pipeline ROW grant, you (the 
assignor) will be billed for the annual pipeline ROW rental payment if 
the payment is due (see Sec.  250.1130(c)) and the Regional Supervisor 
has not yet approved the assignment. MMS will not mediate any financial 
disputes between an assignor and an assignee.
    (c) Effective date. The assignment takes effect on the date the 
Regional Supervisor approves it.
    (d) Assignor obligations. The assignor is liable for all 
obligations that accrue under a pipeline ROW grant before the date the 
Regional Supervisor approves the assignment. An assignment approval by 
MMS does not relieve the assignor of liability for accrued obligations 
that the assignee, or a subsequent assignee, fails to fulfill.
    (e) Assignee obligations. The assignee and each subsequent 
assignee:
    (1) Agrees to be bound by the terms and conditions of the pipeline 
ROW grant; and
    (2) Is liable for all obligations that accrue under a pipeline ROW 
grant after the date the Regional Supervisor approves the assignment.
    (f) Disqualification. The Director may disqualify you from 
acquiring any pipeline ROW grants by assignment if your operating 
performance is unacceptable. The Director will give you adequate 
notice, and an opportunity to have your case reviewed, before 
disqualification.
    (g) Financial securities. After the Regional Supervisor approves an 
assignment of a pipeline ROW grant, you may request that the Regional 
Director approve a ``Termination of the Period of Liability'' for your 
pipeline ROW area bond or other security and any additional securities 
(see Sec.  250.1119) if you:
    (1) No longer hold any pipeline ROW grants in an MMS OCS Region; 
and
    (2) Do not plan to become a pipeline ROW grant holder in the near 
future in that MMS OCS Region.


Sec.  250.1135  When may MMS suspend a pipeline ROW grant?

    The Regional Supervisor may suspend a pipeline ROW grant if:
    (a) The Regional Supervisor suspends or temporarily prohibits 
operation of the associated ROW pipeline under Sec.  250.1091;
    (b) You fail to provide any additional security required by the 
Regional Director (see Sec.  250.1118(c)), replace or provide 
additional coverage for a de-valued bond or other security (see Sec.  
250.1121(a)), or replace a lapsed or forfeited bond or other security 
(see Sec. Sec.  250.1121(b) and 1122) within the prescribed time 
period; or
    (c) The Regional Supervisor determines that you have failed to 
comply with a provision of the OCSLA (43 U.S.C.1331, et seq.) or any 
other applicable law, a provision of applicable regulations, or a 
stipulation, term, or condition of the pipeline ROW grant.


Sec.  250.1136  How do I relinquish a pipeline ROW grant?

    (a) Relinquishment request. You may voluntarily surrender a 
pipeline ROW grant, or a portion of a pipeline ROW grant, by filing one 
original and two copies of a relinquishment request with the Regional 
Supervisor for approval. You must attach the relinquishment request to 
the application required by Sec. Sec.  250.1107 or 250.1108 to 
decommission the associated ROW pipeline and, if applicable, the 
application required by Sec.  250.1727 to decommission an associated 
accessory. Your relinquishment request must include:
    (1) Company name;
    (2) Contact name, telephone number, telefax number, and e-mail 
address;
    (3) Reason you are requesting relinquishment of the pipeline ROW 
grant;
    (4) MMS-assigned pipeline ROW number, the segment number of the 
associated pipeline, and, if applicable, the name of any accessory;
    (5) Name, title, and signature of your authorizing official which 
must be the

[[Page 56509]]

same as the information you provide or reference in your MMS 
qualification records;
    (6) Payment of a nonrefundable service fee (see Sec.  250.125 for 
the amount); and
    (7) A statement that you will adhere to the requirements of Sec.  
250.1138(a) and (b).
    (b) Rental payment for a pipeline ROW grant pending relinquishment. 
If you have submitted a request to relinquish a pipeline ROW grant, you 
will be billed for the annual pipeline ROW rental payment if the 
payment is due (see Sec.  250.1130(c)) and the Regional Supervisor has 
not yet approved the relinquishment.
    (c) Delinquent payments. The Regional Supervisor will not approve 
your relinquishment request until you have paid all outstanding rentals 
and fines.
    (d) Effective date. The relinquishment takes effect on the date the 
Regional Supervisor approves it.
    (e) Financial securities. After the Regional Supervisor approves 
the relinquishment of a pipeline ROW grant you may request that the 
Regional Director approve a ``Termination of the Period of Liability'' 
for your pipeline ROW area bond or other security and any additional 
securities (see Sec.  250.1119) if you:
    (1) No longer hold any pipeline ROW grants in an MMS OCS Region; 
and
    (2) Do not plan to become a pipeline ROW grant holder in the near 
future in that MMS OCS Region.


Sec.  250.1137  When will a pipeline ROW grant be cancelled, be 
forfeited, or expire?

    Your ROW grant will be cancelled, be forfeited, or expire as shown 
in the following table.

------------------------------------------------------------------------
       Termination type               When termination will occur
------------------------------------------------------------------------
(a) Cancellation.............  The Secretary may cancel a pipeline ROW
                                grant if:
                                 (1) The Secretary cancels MMS approval
                               of the application for the associated ROW
                               pipeline pursuant to Sec.   250.1013;
                                 (2) You no longer qualify to hold a
                               pipeline ROW grant;
                                 (3) You are disqualified from holding
                               pipeline ROW grants according to Sec.
                               250.1117(c); or
                                 (4) You fail to provide any additional
                               security required by the Regional
                               Director (see Sec.   250.1118(c)),
                               replace or provide additional coverage
                               for a de-valued bond or other security
                               (see Sec.   250.1121(a)), or replace a
                               lapsed or forfeited bond or other
                               security (see Sec.  Sec.   250.1121(b)
                               and 1122) within the prescribed time
                               period.
(b) Forfeiture...............  You may forfeit a pipeline ROW grant, in
                                an appropriate judicial proceeding
                                instituted by the United States, in
                                accordance with the provisions of Sec.
                                23 of the OCSLA (43 U.S.C. 1349) if:
                                 (1) You fail to comply with the
                               provisions of Sec.   5(e) of the OCSLA
                               (43 U.S.C. 1334(e)), or the regulations
                               prescribed in this subpart;
                                 (2) The Director determines that you
                               have not provided open access or
                               nondiscriminatory access to a shipper; or
                                 (3) There is substantial deviation of
                               an associated ROW pipeline (as
                               constructed) from the pipeline ROW grant,
                               and the Regional Supervisor has not
                               approved a modification to the pipeline
                               ROW grant.
(c) Expiration...............  A pipeline ROW grant expires if:
                                 (1) You do not construct the associated
                               pipeline within 5 years after the grant
                               was approved by the Regional Supervisor;
                                 (2) You ceased pipeline operations and
                               did not obtain approval from the Regional
                               Supervisor pursuant to Sec.
                               250.1132(a)(1);
                                 (3) You permanently discontinue using
                               the associated ROW pipeline for any
                               reason; or
                                 (4) You cease operations for 5 years.
------------------------------------------------------------------------

Sec.  250.1138  What must I do after a pipeline ROW grant terminates?

    (a) Pipeline operation. After a pipeline ROW grant terminates, for 
any reason (relinquishment, cancellation, forfeiture, or expiration), 
you must no longer use the associated pipeline.
    (b) Decommissioning. Within 1 year after a pipeline ROW grant 
terminates, you must decommission:
    (1) The associated ROW pipeline in accordance with the requirements 
of Sec. Sec.  250.1106 through 1109 and Sec.  250.1111; and
    (2) Any associated accessory in accordance with the requirements of 
Sec. Sec.  250.1725 through 1730 and Sec. Sec.  250.1741 through 1743.
    (c) Failure to comply. If you fail to decommission the associated 
pipeline and any accessory within the prescribed time period:
    (1) You remain liable for decommissioning costs, and responsible 
for accidents or damages that might result from such failure; and
    (2) The violation may be subject to a civil penalty under 30 CFR 
250, subpart N, Outer Continental Shelf (OCS) Civil Penalties.
    (d) Obligations. You remain liable for all obligations that accrued 
under a pipeline ROW grant before the date the pipeline ROW grant 
terminated.

Accessories to Right-of-Way (ROW) Pipelines


Sec.  250.1140  What are the requirements for an accessory to an ROW 
pipeline?

    (a) General. You must design, fabricate, install, and maintain an 
accessory to an ROW pipeline in accordance with the requirements of 30 
CFR 250, subpart I, Platforms and Structures.
    (b) Surface safety system. You must protect personnel, the 
environment, and the accessory with a basic and ancillary surface 
safety system. You must design, analyze, install, test, operate, and 
maintain the surface safety system in accordance with the applicable 
requirements of subpart H of this part, Oil and Gas Production Safety 
Systems.
    (c) Existing OCS platforms. If you plan to convert an existing OCS 
platform to an accessory, you must decommission all wells on the 
platform in accordance with the requirements of Sec. Sec.  250.1715 and 
250.1716 before the Regional Supervisor will approve the accessory 
application (see Sec.  250.1141(a)).


Sec.  250.1141  How do I obtain approval to install, operate, and 
maintain an accessory?

    (a) Accessory application. Before you install, operate, and 
maintain an accessory to a ROW pipeline, you must submit three copies 
of an application to the Regional Supervisor for approval. You must 
attach the accessory application to the application for the associated 
ROW pipeline. Your accessory application must include all of the 
following:
    (1) The following information, based on the type of platform:

[[Page 56510]]



------------------------------------------------------------------------
                                 Your application
           For . . .             must include . .        and . . .
                                        .
------------------------------------------------------------------------
(i) New platforms.............  the information
                                 required by Sec.
                                  Sec.   250.905
                                 and 912, if
                                 applicable.
(ii) Existing platforms that    the information    the results of your
 are being converted for a       required by Sec.   platform assessment
 different use.                    250.905.         in accordance with
                                                    API RP 2A-WSD,
                                                    section 15, Reuse
                                                    (incorporated by
                                                    reference as
                                                    specified in Sec.
                                                    250.198).
(iii) Existing platforms that   the information    the results of your
 are completing ongoing          required by Sec.   platform assessment
 activity.                         250.905.         in accordance with
                                                    API RP 2A-WSD,
                                                    section 17,
                                                    Assessment of
                                                    Existing Platforms
                                                    (incorporated by
                                                    reference as
                                                    specified in Sec.
                                                    250.198.
------------------------------------------------------------------------

    (2) The MMS-assigned pipeline ROW number and the segment number of 
the associated pipeline, if the accessory will be under an existing 
pipeline ROW grant.
    (3) The maximum anchor radius (feet) of the construction vessel you 
will use to install the accessory.
    (4) Information on air emission sources that includes:
    (i) The rated output (horsepower) of each tug, construction vessel, 
and service vessel or equipment;
    (ii) An estimate of the number of vessel or equipment trips per 
year;
    (iii) An estimate of the time (days) that each vessel/equipment 
will be within 25 miles of the accessory;
    (iv) An estimate of the number of component connections (e.g., 
valves, flanges) on the accessory;
    (v) The contents and capacity (gallons) of hydrocarbon storage 
tanks, and their average daily and annual throughput (gallons/day and 
gallons/year); and
    (vi) Documentation of any emission control technologies you will 
employ.
    (5) Information on combustion emission sources that includes:
    (i) The rated output (horsepower) of each emission source (e.g., 
crane, compressor, generator, dehydrator);
    (ii) The run time (hours/day and days/year) for each emission 
source; and
    (iii) The average hourly and annual throughput of gas through 
glycol dehydrators.
    (6) Information on wastes generated at the accessory that includes, 
as appropriate:
    (i) The type and general characteristic of the wastes that will be 
generated by operations at the accessory and released (locally) into 
the ocean;
    (ii) The amount of waste to be discharged (gallons);
    (iii) The average maximum discharge rates (gallons/day);
    (iv) A description of any waste treatment or storage; and
    (v) The discharge location and method for each type of discharge.
    (7) The safety system design and installation information required 
by Sec.  250.802(e).
    (b) Electronic submission. You may submit part or all of your 
accessory application electronically (see Sec.  250.186(a)(3)). If you 
prefer to submit your application electronically, you should consult 
with the Regional Supervisor for further guidance.
    (c) Withdrawal of application. You may withdraw your accessory 
application, at any time, and for any reason, by notifying the Regional 
Supervisor in writing.


Sec.  250.1142  How does MMS process an accessory application?

    (a) Completeness review. The Regional Supervisor will determine 
whether your accessory application is complete, and will notify you in 
writing of any problem or deficiency. The Regional Supervisor will not 
begin processing your application until it is complete.
    (b) Compliance review. The Regional Supervisor will review the 
proposed operations described in your accessory application to ensure 
that they conform to the OCSLA (43 U.S.C. 1331, et seq.), other 
applicable laws, and MMS regulations.
    (c) Environmental impact evaluation. The Regional Supervisor will 
evaluate the environmental impacts of the operations described in your 
accessory application, and prepare environmental documentation under 
NEPA (42 U.S.C. 4321, et seq.) and the implementing regulations (40 CFR 
parts 1500 through 1508).
    (d) Amendments. During the review of your accessory application, 
the Regional Supervisor may require you, or you may elect, to change 
the application.
    (e) MMS decision. The Regional Supervisor will review your 
accessory application and will notify you in writing of the decision. 
The Regional Supervisor will either:
    (1) Approve the application if it complies with all applicable 
requirements, and inform you of any conditions you may be required to 
meet; or
    (2) Disapprove the application, and inform you of the reasons for 
disapproval if the:
    (i) Proposed accessory operations would probably cause serious harm 
or damage to life (including fish or other aquatic life); property; 
mineral resources (in areas leased or not leased); the national 
security or defense; or the marine, coastal, or human environment; and 
you cannot amend the proposed accessory operations to avoid such 
condition(s); or
    (ii) Regional Supervisor has disapproved your application for a 
connecting ROW pipeline (see Sec.  250.1012(b)) or denied your 
application for the associated pipeline ROW grant (see Sec.  
250.1127(c)(3)).


Sec.  250.1143  Who do I need to notify before I install an accessory?

    (a) Military installations. Before you install an accessory in an 
established military warning area or water test area, you must notify 
the commander of the military installation that exercises jurisdiction 
of the area concerning the control of electromagnetic emissions and the 
use of vessels, equipment, and aircraft in the area.
    (b) U.S. Coast Guard (USCG). You are encouraged to notify the 
applicable USCG Marine Safety Office at least 30 calendar days before 
you conduct accessory installation operations so that a Notice to 
Mariners can be prepared.
    (c) National Geospatial-Intelligence Agency (NGA). You must notify 
the NGA in Bethesda, Maryland before you begin accessory installation 
operations.


Sec.  250.1144  What information must I submit after an accessory is 
installed?

    You must submit three copies of an accessory installation report to 
the Regional Supervisor within 45 calendar days after you complete 
accessory installation. The installation report must include:
    (a) The MMS-assigned pipeline ROW number and the segment number of 
the associated pipeline;
    (b) The dates you started and concluded accessory installation 
operations; and
    (c) An ``as built'' location plat that depicts the accessory, based 
on the NAD 27 for the GOMR (Gulf) and POCSR, or on the NAD 83 for the 
AKOCSR and

[[Page 56511]]

GOMR (Atlantic), drawn at a minimum scale of 1 inch = 2,000 feet.


Sec.  250.1145  What accessory inspections must I conduct?

    You must conduct structural and pollution inspections on your 
accessory as required by this section.
    (a) Structural inspections. If the accessory is a platform, you 
must do all of the following:
    (1) Periodically inspect the platform in accordance with a 
comprehensive in-service inspection plan as required by Sec.  
250.919(a).
    (2) As required by Sec.  250.919(b), submit a written report, by 
November 1 of each year, of the inspections that you conducted during 
the preceding 12 months. The report must include:
    (i) The MMS-assigned pipeline ROW number and the segment number of 
the associated pipeline, and the MMS complex identification number for 
the platform;
    (ii) The extent and area of each inspection;
    (iii) The type of inspection conducted (i.e., visual, magnetic 
particle, ultrasonic);
    (iv) The results of the inspection;
    (v) A discussion of the overall condition of the platform; and
    (vi) A description of any necessary repairs.
    (b) Pollution inspections. If the accessory is a compressor or 
booster platform, you must inspect the accessory daily in accordance 
with Sec.  250.301 for evidence of pollution. You must retain the 
inspection records for at least two years, and make them available to 
MMS upon request.


Sec.  250.1146  What must I do to modify an accessory?

    Before you conduct any operations to modify an approved accessory, 
you must submit three copies of a modification application to the 
Regional Supervisor for approval. In the accessory modification 
application, you must include:
    (a) The MMS-assigned pipeline ROW number and the segment number of 
the associated pipeline;
    (b) Those items in your approved application affected by the 
proposed modification;
    (c) If required by the Regional Supervisor, the step-by-step 
procedures you will follow to modify the accessory; and
    (d) If the accessory is a platform, the results of your platform 
assessment, based on platform assessment initiators listed in sections 
17.2.1 through 17.2.5 of API RP 2A-WSD (incorporated by reference as 
specified in Sec.  250.198).


Sec.  250.1147  When must I decommission an accessory?

    Within 1 year after an accessory has not been used for 5 years, or 
within 1 year after you determine that an accessory will not be used 
for 5 years or more, you must decommission the accessory (see 
Sec. Sec.  250.1725 through 1730 and Sec. Sec.  250.1740 through 1743).


Sec.  250.1700  [AMENDED]

    8. In Sec.  250.1700(a)(2), remove the phrase ``or pipeline right-
of-way.''


Sec.  250.1701  [AMENDED]

    9. Amend Sec.  250.1701 as follows:
    A. Remove paragraph (b);
    B. Redesignate paragraph (c) as paragraph (b);
    C. Remove the phrase ``and to right-of-way holders as to facilities 
installed under the authority of a right-of-way'' in newly redesignated 
paragraph (b); and
    D. Remove the comma after the word ``lease'' and add in its place a 
period.
    10. In Sec.  250.1702, revise paragraphs (b) and (d), remove 
paragraph (e), and redesignate paragraph (f) as paragraph (e). The 
revisions read as follows:


Sec.  250.1702  When do I accrue decommissioning obligations?

* * * * *
    (b) Install a platform or other facility;
* * * * *
    (d) Are or become a lessee or the owner of operating rights of a 
lease on which there is a well that has not been permanently plugged 
according to this subpart, a platform, or other facility, or an 
obstruction; or
* * * * *


Sec.  250.1703  [Amended]

    11. In Sec.  250.1703, remove paragraph (d) and redesignate 
paragraphs (e) and (f) as paragraphs (d) and (e).


Sec.  250.1704  [Amended]

    12. In Sec.  250.1704, remove paragraphs (d) and (e) and 
redesignate paragraphs (f) and (g) as paragraphs (d) and (e).


Sec. Sec.  250.1750 through 250.1754  [Removed]

    13. Remove Sec. Sec.  250.1750 through 250.1754 and the 
undesignated center heading ``Pipeline Decommissioning'' before Sec.  
250.1750.

PART 253--OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE 
FACILITIES

    14. The authority citation for part 253 continues to read as 
follows:

    Authority: 33 U.S.C. 2701 et seq.

    15. In Sec.  253.3, revise the definitions of the terms 
``Designated applicant,'' ``Pipeline,'' ``Responsible party,'' and 
``Right of use and easement (RUE)'' to read as follows:


Sec.  253.3  How are the terms used in this regulation defined?

* * * * *
    Designated applicant means the responsible party or, if there is 
more than one responsible party, a person that the responsible parties 
designate to demonstrate OSFR for a COF on a lease, permit, pipeline 
right-of-way (ROW), or right-of-use and easement (RUE).
* * * * *
    Pipeline means the horizontal component, risers, and appurtenances 
installed for the purpose of transporting oil, gas, sulphur, and 
produced water.
    Responsible Party has the following meanings:
    (1) For a COF that is an ROW pipeline, responsible party means the 
pipeline ROW holder.
    (2) For a COF that is not an ROW pipeline, responsible party means 
either a lessee or permittee of the area on which the COF is located; 
or the holder of an RUE granted under applicable State law, or under 
the OCSLA (43 U.S.C. 1331 et seq.) for the area in which the COF is 
located (if the holder is a different person than the lessee or 
permittee). A Federal agency, State, municipality, commission, or 
political subdivision of a State, or any interstate body that as owner 
transfers possession and right to use the property to another person by 
lease, assignment, or permit is not a responsible party.
    (3) For a decommissioned COF, responsible party means any person 
who would have been a responsible party for the COF immediately before 
decommissioning.
    Right-of-use and easement (RUE) means an authorization granted by 
MMS to use the OCS to construct and maintain platforms, artificial 
islands, and installations and other devices at an OCS site other than 
an OCS lease you own. This does not include pipeline ROWs.
* * * * *
    16. Revise Sec.  253.10 to read as follows:


Sec.  253.10  What facilities does this part cover?

    (a) This part applies to any COF that is on any lease or permit 
issued, any ROW pipeline (see definition at Sec.  250.105 of this 
chapter), or on any RUE granted under the OCSLA (43 U.S.C. 1331, et 
seq.) or applicable State law.
    (b) For a COF that is an ROW pipeline which extends onto land, this 
part applies to the portion of the pipeline lying seaward of the first 
accessible flow shut-off device on land.

[[Page 56512]]

    17. Amend Sec.  253.11 as follows:
    A. Redesignate paragraphs (d), (e), and (f) as paragraphs (e), (f), 
and (g), respectively.
    B. Add new paragraph (d), and revise newly redesignated paragraphs 
(e) and (f) as follows:


Sec.  253.11  Who must demonstrate OSFR?

* * * * *
    (d) The designated applicant for a ROW pipeline must be the 
pipeline ROW holder.
    (e) The designated applicant for a COF on a RUE must be the holder 
of the RUE.
    (f) MMS may require the designated applicant for a lease, permit, 
pipeline ROW, or RUE to be a person other than the person identified in 
paragraphs (b) through (e) of this section if MMS determines that the 
person identified in paragraphs (b) through (e) of this section cannot 
adequately demonstrate OSFR.
* * * * *
    18. Revise Sec.  253.15(a) as follows:


Sec.  253.15  What are my general OSFR compliance responsibilities?

    (a) You must maintain continuous coverage for all your leases, 
permits, pipeline ROWs, and RUEs with COFs for which you are the 
designated applicant.
* * * * *

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

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

    Authority: 33 U.S.C. 1321


Sec.  254.6  [Amended]

    20. In Sec.  254.6, revise the definition of ``Owner or operator'' 
to read as follows:
* * * * *
    Owner or operator means, in the case of an offshore facility, any 
person owning or operating such a facility. If the facility is a right-
of-way (ROW) pipeline (see definition at Sec.  250.105), the owner or 
operator is the pipeline ROW holder. In the case of a decommissioned 
offshore facility, it means the person who owned such facility 
immediately prior to such decommissioning.
* * * * *

PART 256--LEASING OF SULPHUR OR OIL AND GAS IN THE OUTER 
CONTINENTAL SHELF

    21. The authority citation for part 256 continues to read as 
follows:

    Authority: 43 U.S.C. 1331, et seq., 42 U.S.C. 6213, 31 U.S.C. 
9701.

    22. In Sec.  256.62, add a new paragraph (g) to read as follows:

Sec.  256.62  Assignment of lease or interest in lease.

* * * * *
    (g) Within 30 calendar days after MMS approves an assignment of a 
lease, or approves a new designation of operator for a lease under 
Sec.  250.143 or Sec.  250.144, you (the new lessee or designated lease 
operator) must submit a report to the Regional Supervisor that:
    (1) Lists every lease term pipeline (see definition at Sec.  
250.105), including decommissioned pipelines on the lease; and
    (2) Indicates which pipelines remained as lease term pipelines 
after the lease assignment was approved by MMS.

[FR Doc. 07-4831 Filed 10-2-07; 8:45 am]
BILLING CODE 4310-MR-C