[Federal Register Volume 73, Number 211 (Thursday, October 30, 2008)]
[Rules and Regulations]
[Pages 64541-64548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-25720]



[[Page 64541]]

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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

[Docket ID MMS-2008-OMM-0001]
RIN 1010-AD18


Revisions to Subpart A--General; Subpart I--Platforms and 
Structures; and Subpart J--Pipelines and Pipeline Rights-of-Way

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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

SUMMARY: The MMS is amending its regulations to require lessees, lease 
operators, and pipeline right-of-way holders to submit a report if a 
facility or pipeline is damaged by a hurricane or other natural 
phenomena. The final rule also requires operators to provide assessment 
information on the structural integrity of Outer Continental Shelf 
platforms; information on the use of unbonded flexible pipe for 
pipelines; and additional information when installing pipeline risers 
on floating platforms. The rule also incorporates an industry-developed 
standard concerning the in-service inspection of mooring hardware for 
floating drilling units. These changes will allow MMS to better 
regulate the safety of the oil and gas infrastructure, and to promptly 
assess damage resulting from hurricanes or other natural phenomena.

DATES: Effective Date: This rule becomes effective on December 1, 2008. 
The incorporation by reference of the publication listed in the 
regulation was approved by the Director of the Federal Register on 
December 1, 2008.

FOR FURTHER INFORMATION CONTACT: B.J. Kruse, Chief, Office of 
Structural and Technical Support at (504) 736-2634, or e-mail 
[email protected].

SUPPLEMENTARY INFORMATION: On July 19, 2005, MMS published a final rule 
(70 FR 41556) titled ``Fixed and Floating Platforms and Structures and 
Documents Incorporated by Reference'' in the Federal Register. That 
final rule expanded MMS regulations regarding the design, construction, 
and operation of Outer Continental Shelf (OCS) facilities to include 
coverage of floating oil and gas production platforms. The rule also 
incorporated by reference a number of industry-developed standards 
pertaining to floating platforms. During the process of developing and 
publishing that final rule, comments were received from both the public 
and inside MMS that suggested additional requirements. The MMS reviewed 
the suggested changes and developed a proposed rule that was published 
in the Federal Register on July 3, 2006 (71 FR 37874).
    The MMS received three comment letters from industry and one from a 
local government. Two of the industry letters were from trade 
organizations that represent numerous companies involved in the oil and 
gas industry in the Gulf of Mexico. These comment letters can be viewed 
on our Web site at: http://www.mms.gov/federalregister/PublicComments/RevisionsSubpartA.htm.

Discussion of Comments on the Proposed Rule

    The proposed rule included a new requirement at Sec.  250.192, that 
would require lessees, lease operators, and pipeline right-of-way (ROW) 
holders to submit reports to MMS if their facilities are damaged by a 
hurricane, earthquake, or other natural phenomenon. One commenter 
suggested that MMS change the wording of the proposed regulation to 
specifically require that operators submit platform abandonment 
statistics and reports when facilities are damaged by arctic hazards 
such as sea ice and subzero temperatures. The rule was not changed. The 
current wording contains the phrase ``other natural occurrences,'' 
which includes adverse arctic conditions.
    The MMS received several comments regarding electronic submission 
of hurricane/natural occurrence evacuation and damage statistics. 
Several commenters wanted the MMS to include the eWell Permitting and 
Reporting System as an approved method for submitting this data. The 
final rule was changed to state that electronic data will be acceptable 
when the MMS office is equipped to accept it. The eWell system, which 
we currently use for submission of electronic data, was not specified 
since the system could change in the future. Several changes were made 
to the final rule, however, to make reporting requirements more 
compatible with the eWell system.
    A new form (Form MMS-143, Facility/Equipment Damage Report) has 
been developed to assist lessees, lease operators, and pipeline ROW 
holders when reporting damage by a hurricane, earthquake, or other 
natural phenomenon. Adding this requirement to the regulations, with an 
Office of Management and Budget (OMB) approval for information 
collection (IC), will allow MMS to request damage information without 
the delay of obtaining OMB approval for each event. We received two 
comments that questioned whether submitting Form MMS-143 was required 
in addition to reports required by Notices to Lessees (NTL) such as NTL 
2005-G20, ``Damage Caused by Hurricanes Katrina and Rita.'' These 
reports are separate. The evacuation and production curtailment 
statistics required by the form are general status reports. The reports 
required by NTLs are detailed reports on the findings of any surveys, 
inspections, and damage assessments as well as remediation plans.
    One commenter felt that the requirement at proposed Sec.  
250.192(b)(1), that operators submit an initial damage report within 48 
hours using Form MMS-143, Facility/Equipment Damage Report, gave 
operators too little time to check into repair availability. With 
inadequate time to check on repair and equipment availability, the 
operator contended that the form could not be completed. The commenter 
also proposed that subsequent reports should be submitted only when new 
information is available or the status changes. We partially agree and 
have changed both the final rule and Form MMS-143. Both the rule and 
the form now make clear that the portion of the form requiring an 
operator to estimate the time needed to return the facility/equipment 
to service need not be completed until the availability of hardware and 
repair capability has been established. Operators must however, provide 
this information to the best of their availability within 30 days of 
submitting their initial damage report. Subsequent reports were also 
changed from weekly to monthly and when new information is available.
    The MMS made several changes to Sec.  250.900(c) that were not part 
of the proposed rule. These changes were made to clarify the intent of 
the existing rule and to bring the rule into line with current MMS 
procedures. First, a time limit of 120 days after an emergency event 
was added to clarify when operators could make repairs to primary 
structural elements without MMS approval. A further clarification was 
made that MMS must be notified of that primary structural damage within 
24 hours of its discovery, rather than within 24 hours of the damage 
occurrence. The rule was also changed to make clear that the 
notification of completed repairs to the MMS must be in writing. The 
report must now be submitted within one week after completion of 
repairs, rather than 24 hours.
    Commenters objected to the requirement in proposed Sec.  250.900(e) 
that platform approvals will be cancelled if the platform is not 
installed

[[Page 64542]]

within 1 year of platform approval. In the final rule, the 1-year 
requirement applies only to standard design platforms installed in the 
shallow waters (less than 400 feet water depth) of the Gulf of Mexico. 
For platforms subject to the MMS Platform Verification Program, 
cancellation of an approval will be on an individual platform basis. 
For these platforms, MMS will identify the date when the installation 
approval will be cancelled (if installation has not occurred) during 
the application and approval process.
    The MMS received no comments on the proposed addition of API RP 
2I--In-Service Inspection of Mooring Hardware for Floating Drilling 
Units--to the list of incorporated industry standards in Sec.  250.901 
(also added to the list in Sec.  250.198). Similarly, no comments were 
received on the proposed requirement in Sec.  250.905 that design 
safety factors for platforms be submitted to MMS. Both of these 
proposed changes are in the final rule.
    One commenter suggested that wording be added to proposed Sec.  
250.911 that would obligate MMS to inform the lessee/applicant when 
approval to install a platform would be cancelled if installation had 
not occurred by that date. The MMS did not change the wording in the 
final rule based on this comment. However, wording similar to that 
proposed by this commenter was added in final Sec.  250.900(e).
    The MMS accepted a comment directed at proposed Sec. Sec.  250.916, 
250.917, and 250.918 that will reduce redundancy in the final Certified 
Verification Agent (CVA) report by no longer requiring recommendations 
that have already been communicated through earlier CVA reports.
    Two commenters requested that proposed Sec.  250.919 concerning in-
service inspections be re-written to clearly exclude pipelines. The 
section was not changed. The current wording specifies that the in-
service inspections apply to the above- and below-water structure of 
all platforms, as well as pertinent components of the mooring system 
for floating platforms.
    Subpart I currently requires that lessees and operators develop an 
in-service inspection plan for platforms (Sec.  250.919). The plan must 
show in detail the type, extent, and frequency of the inspections 
lessees and operators will conduct on platforms. The proposed rule 
required that the plan be submitted to the Regional Supervisor for 
approval each year by April 1. Commenters questioned the rationale for 
requiring a complete list of all the platforms (and supporting data) to 
be submitted annually, when in many cases the data does not change from 
year to year. One commenter also felt that it was overly burdensome to 
require an annual plan to be submitted in April and a report on the 
results of the plan to be submitted in November, as required currently 
by Sec.  250.919(b). The MMS agrees with these comments and has deleted 
the requirement and its burden hours for the April annual inspection 
plan. A slightly revised inspection report will still be required 
annually on November 1.
    One commenter objected to the proposed rule's requirement at Sec.  
250.920(d) that operators must obtain approval from MMS before 
initiating mitigation actions for platforms that do not pass an 
assessment. We have not changed this requirement in the final rule. 
Mitigation actions resulting from failed platform assessments usually 
result in repairs, modifications, or decommissioning, all of which 
require MMS approval. However, we have changed Sec.  250.900(c) in the 
final rule to make clear that under emergency conditions, you may make 
repairs to primary structural elements to restore an existing permitted 
condition without submitting an application or receiving prior MMS 
approval for up to 120-calendar days following an event.
    One commenter was confused by MMS requirements in proposed Sec.  
250.920 for assessment of platforms. The commenter noted that the 
requirements as proposed should only apply to fixed platforms and 
further noted a lack of direction for operators wishing to obtain 
approval for assessing their platform to either the medium (A-2) or low 
(A-3) consequence-of-failure exposure category. The MMS agrees with 
these comments and has modified the final rule accordingly. Under the 
final rule, Sec.  250.920 has been retitled and now refers only to 
fixed platforms. Also, the section was largely rewritten to make clear 
that operators will follow standards in documents incorporated by 
reference when determining the proper exposure categories for assessing 
their platforms, and do not need MMS approval before assessing their 
platforms at the A-2 or A-3 level. However, if MMS objects to the 
assessment level used, operators may be required to re-design or modify 
the platform. Changes were also made to the section to more closely 
track the wording of API RP 2A-WSD.
    One commenter objected to the proposed requirement in Sec.  
250.920(f) of submitting an annual list of all platforms and 
appropriate data to support their assessment category. The MMS agrees 
and has delayed the initial filing of this report until November 1, 
2009, with subsequent reports filed every 5 years.
    Several minor changes were made to Subpart I which were not in the 
proposed rule. These items are intended to (1) add clarity to the 
regulation; (2) allow operators more flexibility when initiating 
emergency repairs; (3) allow for more electronic submission of required 
documents; or (4) allow the rule to more closely follow the wording/
structure of a referenced industry document (e.g., API RP 2A-WSD).

Procedural Matters

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

    This final rule is not a significant rule as determined by the 
Office of Management and Budget and is not subject to review under E.O. 
12866.
    (1) This final rule will not have an annual effect of $100 million 
or more on the economy. It will not adversely affect in a material way 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities.
    (2) This final rule will not create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency.
    (3) This final rule will not alter the budgetary effects of 
entitlements, grants, user fees, or loan programs or the rights or 
obligations of their recipients.
    (4) This final rule will not raise novel legal or policy issues.

Regulatory Flexibility Act

    The Department of the Interior certifies that this final rule will 
not have a significant economic effect on a substantial number of small 
entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
    This final rule will affect lessees and operators of leases and 
pipeline ROW holders in the OCS. This could include about 130 active 
Federal oil and gas lessees. Small lessees that operate under this rule 
fall under the Small Business Administration's (SBA) North American 
Industry Classification System (NAICS) codes 211111, Crude Petroleum 
and Natural Gas Extraction, and 213111, Drilling Oil and Gas Wells. For 
these NAICS code classifications, a small company is one with fewer 
than 500 employees. Based on these criteria, an estimated 70 percent of 
these companies are considered small. A pipeline company (non-producer) 
is a small entity if it is a liquid pipeline company with fewer than 
1,500 employees, or a natural gas pipeline company with gross annual 
receipts of $6.5 million or less.

[[Page 64543]]

There are approximately 20 pipeline companies operating on the OCS that 
meet these criteria. This rule, therefore, will affect a substantial 
number of small entities.
    This final rule will not have a significant economic effect on a 
substantial number of small entities because the additional costs 
associated with the final rule are small compared to the normal cost of 
doing business on the OCS. The new requirement to submit damage data 
after hurricanes merely places into the rule a requirement that MMS 
already requires on an ad hoc basis. The adoption of an industry-
developed standard concerning the inspection of mooring hardware simply 
codifies a set of practices developed by the industry. Requirements for 
assessment of platforms and to submit additional data for approval of 
unbonded flexible pipe have merely been changed slightly from existing 
requirements and will not have a significant economic effect.
    Most of the costs for complying with this rule will be IC costs. 
The total estimated annual burden hours for responding to the IC 
requirements in the rule are 49,987. At an estimated cost of $74 per 
hour, the industry-wide cost for the IC burden would be slightly more 
than $3.5 million.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
business. If you wish to comment on the 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

    The rule is not a major rule under 5 U.S.C. 804(2), the Small 
Business Regulatory Enforcement Fairness Act. This rule:
    a. Will not have an annual effect on the economy of $100 million or 
more.
    b. Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    c. Will 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.

Unfunded Mandates Reform Act

    This rule will not impose an unfunded mandate on State, local, or 
tribal governments or the private sector of more than $100 million per 
year. The rule will 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 Unfunded Mandates Reform Act 
(2 U.S.C. 1531 et seq.) is not required.

Takings Implication Assessment (E.O. 12630)

    Under the criteria in E.O. 12630, this rule does not have 
significant takings implications. The rule is not a governmental action 
capable of interference with constitutionally protected property 
rights. A Takings Implication Assessment is not required.

Federalism (E.O. 13132)

    Under the criteria in E.O. 13132, this rule does not have 
sufficient federalism implications to warrant the preparation of a 
Federalism Assessment. This rule will 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 rule will not affect that role. A Federalism 
Assessment is not required.

Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of E.O. 12988. 
Specifically, this rule:
    (a) Meets the criteria of section 3(a) requiring that all 
regulations be reviewed to eliminate errors and ambiguity and be 
written to minimize litigation; and
    (b) Meets the criteria of section 3(b)(2) requiring that all 
regulations be written in clear language and contain clear legal 
standards.

Consultation With Indian Tribes (E.O. 13175)

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

Paperwork Reduction Act (PRA)

    This rule contains new IC requirements; therefore, a submission to 
OMB under the PRA is required. The OMB has approved these revisions 
under OMB Control Number 1010-0168 (expiration October 31, 2011, for 
50,287 burden hours).
    The title of the collection of information for the rule is 
``Revisions to Subpart A--General; Subpart I--Platforms and Structures; 
and Subpart J--Pipelines and Pipeline Rights-of-Way.'' Respondents are 
approximately 130 Federal OCS lessees, operators, and their Independent 
Verification Agents or other third-party reviewers of production 
facilities, as well as 207 pipeline ROW holders. Responses to this 
collection are mandatory. The frequency of response is on occasion. The 
IC does not include questions of a sensitive nature. The MMS will 
protect proprietary information according to the Freedom of Information 
Act (5 U.S.C. 552) and its implementing regulations (43 CFR part 2), 
and 30 CFR 250.197, Data and information to be made available to the 
public or for limited inspection, and 30 CFR part 252, OCS Oil and Gas 
Information Program.
    The collection of information required by the current subparts A, 
I, and J of 30 CFR 250 are approved under OMB Control Numbers 1010-0114 
(expiration 11/30/10); 1010-0149 (expiration 06/30/2011); and 1010-0050 
(expiration 3/31/09), respectively.
    The changes between the proposed rule and the final rule are 
primarily based on comments received and they are as follows:
     Remove the burden hours for Sec.  250.192(a)(3). The 
proposed rule inadvertently stated that this was a new requirement, but 
the requirement and burden hours have always been covered in existing 
regulations (-100 hours).
     A reporting requirement for Sec.  250.192(b) was changed. 
The requirement in the proposed rule was for weekly submissions, it has 
now been changed to monthly submissions (-300 hours).
     The proposed burden hours under Sec.  250.919(a) for the 
annual April inspection plan were removed (-32,500 burden hours).
     In Sec.  250.920(e), the requirement was changed from 
annually to every 5 years or as directed by the Regional Supervisor (-
4,160 burden hours).
     Several of the section numbers in the final regulations 
have changed from the proposed rule and the IC requirements are now in 
different sections, but the burden hours remained the same.
    We estimate the total annual reporting hour burden for the final 
rule to be 50,287 hours. There are no paperwork non-hour cost burdens 
associated with this rulemaking. Following is a breakdown of the burden 
estimate.

[[Page 64544]]



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                                      Reporting and
  Citation 30 CFR 250 rule and        recordkeeping           Hour burden       Average No. of     Annual burden
             NTL(s)                    requirement                             annual  responses       hours
----------------------------------------------------------------------------------------------------------------
                                                    Subpart A
----------------------------------------------------------------------------------------------------------------
192; MMS-132...................  Daily report of          Burden approved under collection 1010-              0.
                                  evacuation statistics                    0114.
                                  for natural occurrence/
                                  hurricane (Form MMS-
                                  132 in the GOMR) when
                                  circumstances warrant;
                                  inform MMS when you
                                  resume production.
----------------------------------------------------------------------------------------------------------------
192(b).........................  Use Form MMS-143 to      4.................  100...............             400
                                  submit an initial
                                  damage report to the
                                  Regional Supervisor.
192(b).........................  Use Form MMS-143 to      1.................  100...............             100
                                  submit subsequent
                                  damage reports on a
                                  monthly basis until
                                  damaged structure or
                                  equipment is returned
                                  to service;
                                  immediately upon
                                  information in
                                  previous reports
                                  change; date item
                                  returned to service
                                  must be in final
                                  report.
----------------------------------------------------------------------------------------------------------------
                                                    Subpart I
----------------------------------------------------------------------------------------------------------------
900(c).........................  Notify MMS with a        Burden approved under collection 1010-              0.
                                  written report listing                   0149.
                                  damage and emergency
                                  repairs; request
                                  approval of repairs;
                                  notify USCG when
                                  appropriate.
----------------------------------------------------------------------------------------------------------------
900(e).........................  Re/Submit platform       .5................  140...............              70
                                  installation date and
                                  the final as-built
                                  location to the
                                  Regional Supervisor
                                  within 45 days after
                                  platform installation.
----------------------------------------------------------------------------------------------------------------
905(i).........................  Provide a summary of     .25...............  331...............              83
                                  safety factors
                                  utilized in the design
                                  of the platform.
----------------------------------------------------------------------------------------------------------------
911; 916; 917; 918.............  Submit complete          40................  15................             600
                                  schedule of all phases
                                  of design,
                                  fabrication, and
                                  installation with
                                  required information;
                                  also submit Gantt
                                  Chart with required
                                  information.
----------------------------------------------------------------------------------------------------------------
916(c).........................  Submit interim and       Burden approved under collection 1010-              0.
                                  final CVA reports and                    0149.
                                  recommendations on
                                  design phase.
----------------------------------------------------------------------------------------------------------------
917(a), (c)....................  Submit interim and       Burden approved under collection 1010-              0.
                                  final CVA reports and                    0149.
                                  recommendations on
                                  fabrication phase,
                                  including notice of
                                  fabrication procedure
                                  changes or design
                                  specification
                                  modifications.
----------------------------------------------------------------------------------------------------------------
918(c).........................  Submit interim and       Burden approved under collection 1010-               0
                                  final CVA reports and                    0149.
                                  recommendations on
                                  installation phase.
----------------------------------------------------------------------------------------------------------------
919............................  Submit annual (November  Burden approved under collection 1010-               0
                                  1 of each year) report                   0149.
                                  on inspection of
                                  platforms or floating
                                  production facilities,
                                  including summary of
                                  testing results.
----------------------------------------------------------------------------------------------------------------
919(b) NTL.....................  After an environmental   12 (initial)......  150...............           1,800
                                  event, submit to        12 (update).......  90................           1,080
                                  Regional Supervisor
                                  initial report
                                  followed by updates
                                  and supporting
                                  information.
----------------------------------------------------------------------------------------------------------------
919(c) NTL.....................  Submit results of        120...............  200...............          24,000
                                  inspections; obtain
                                  MMS approval before
                                  making major repairs.
----------------------------------------------------------------------------------------------------------------
920(a).........................  Demonstrate platform is  20................  400...............           8,000
                                  able to withstand
                                  environmental loadings
                                  for appropriate
                                  exposure category.
----------------------------------------------------------------------------------------------------------------
920(c).........................  Submit application and   40................  200...............           8,000
                                  obtain approval from
                                  the Regional
                                  Supervisor for
                                  mitigation actions
                                  (includes operational
                                  procedures).
----------------------------------------------------------------------------------------------------------------
920(e).........................  Submit a list of all     40................  130 operators/5              1,040
                                  platforms you operate,                       years = 26 per
                                  and appropriate                              year.
                                  supporting data, every
                                  5 years or as directed
                                  by the Regional
                                  Supervisor.
----------------------------------------------------------------------------------------------------------------
920(f).........................  Obtain approval from     40................  100...............           4,000
                                  the Regional
                                  Supervisor for any
                                  change in the platform.
----------------------------------------------------------------------------------------------------------------
                                                    Subpart J
----------------------------------------------------------------------------------------------------------------
1007(a)(4)(i)(A); (B); (C).....  Provide specified        4.................  6.................              24
                                  information in your
                                  pipeline application
                                  if using unbonded
                                  flexible pipe.
----------------------------------------------------------------------------------------------------------------

[[Page 64545]]

 
1007(a)(4)(i)(D)...............  Provide results of       40................  1.................              40
                                  third party IVA review
                                  in your pipeline
                                  application if using
                                  unbonded flexible pipe.
----------------------------------------------------------------------------------------------------------------
1007(a)(4)(ii).................  Provide specified        30................  35................           1,050
                                  information in your
                                  pipeline application.
----------------------------------------------------------------------------------------------------------------
    Total Burden............................................................  1,894.............          50,287
----------------------------------------------------------------------------------------------------------------

    When final regulations are promulgated, the new IC burdens for 30 
CFR part 250 subparts A, I, and J will be incorporated into their 
respective collections of information for those regulations. Also, this 
rule incorporates the hours and requirements already approved in 1010-
0164 (26,880 burden hours, expiration 2/28/09); therefore, that 
collection will be discontinued when the final regulations take effect.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. The public may comment, at any 
time, on the accuracy of the IC burden in this rule and may submit any 
comments to the Department of the Interior, Minerals Management 
Service; Attention: Regulations and Standards Branch; Mail Stop 4024; 
381 Elden Street; Herndon, Virginia 20170-4817.

National Environmental Policy Act

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. The MMS has analyzed 
this rule under the criteria of the National Environmental Policy Act, 
516 Departmental Manual (DM) 2.3, and 516 DM 2, Appendix 1, and 
determined that it falls within the categorical exclusion for 
``regulations * * * that are of an administrative, financial, legal, 
technical, or procedural nature.'' The MMS Categorical Exclusion Review 
concluded that the provisions of this rule are administrative, 
procedural, and technical. Furthermore, MMS concluded that the 
rulemaking does not involve an extraordinary circumstance set forth in 
516 DM 2, Appendix 2. For these reasons, preparation of an 
environmental assessment or environmental impact statement is not 
required.

Data Quality Act

    In developing this rule, we did not conduct or use a study, 
experiment, or survey requiring peer review under the Data Quality Act 
(Pub. L. 106-554, app. C section 515, 114 Stat. 2763, 2763A-153-154).

Effects on the Energy Supply (E.O. 13211)

    This rule is not a significant energy action under the definition 
in E.O. 13211. A Statement of Energy Effects is not required.

List of Subjects in 30 CFR Part 250

    Continental shelf, Environmental protection, Incorporation by 
reference, Oil and gas exploration, Pipelines, Public lands--rights-of-
way, Reporting and recordkeeping requirements.

    Dated: August 13, 2008.
Julie A. Jacobson,
Deputy Assistant Secretary--Land and Minerals Management.

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

PART 250--LEASING OF SULPHUR OR OIL AND GAS IN THE OUTER 
CONTINENTAL SHELF

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

    Authority: 31 U.S.C. 9701, 43 U.S.C. 1334


0
2. Revise Sec.  250.192 to read as follows:


Sec.  250.192  What reports and statistics must I submit relating to a 
hurricane, earthquake, or other natural occurrence?

    (a) You must submit evacuation statistics to the Regional 
Supervisor for a natural occurrence, such as a hurricane, a tropical 
storm, or an earthquake. Statistics include facilities and rigs 
evacuated and the amount of production shut-in for gas and oil. You 
must:
    (1) Submit the statistics by fax or e-mail (for activities in the 
MMS GOM OCS Region, use Form MMS-132) as soon as possible when 
evacuation occurs. In lieu of submitting your statistics by fax or e-
mail, you may submit them electronically in accordance with 30 CFR 
250.186(a)(3);
    (2) Submit the statistics on a daily basis by 11 a.m., as 
conditions allow, during the period of shut-in and evacuation;
    (3) Inform MMS when you resume production; and
    (4) Submit the statistics either by MMS district, or the total 
figures for your operations in an MMS region.
    (b) If your facility, production equipment, or pipeline is damaged 
by a natural occurrence, you must:
    (1) Submit an initial damage report to the Regional Supervisor 
within 48 hours after you complete your initial evaluation of the 
damage. You must use Form MMS-143, Facility/Equipment Damage Report, to 
make this and all subsequent reports. In lieu of submitting Form MMS-
143 by fax or e-mail, you may submit the damage report electronically 
in accordance with 30 CFR 250.186(a)(3). In the report, you must:
    (i) Name the items damaged (e.g., platform or other structure, 
production equipment, pipeline);
    (ii) Describe the damage and assess the extent of the damage 
(major, medium, minor); and
    (iii) Estimate the time it will take to replace or repair each 
damaged structure and piece of equipment and return it to service. The 
initial estimate need not be provided on the form until availability of 
hardware and repair capability has been established (not to exceed 30 
days from your initial report).
    (2) Submit subsequent reports monthly and immediately whenever 
information submitted in previous reports changes until the damaged 
structure or equipment is returned to service. In the final report, you 
must provide the date the item was returned to service.

0
3. Amend Sec.  250.198(e) by adding an entry in alphanumerical order in 
the table for API RP 2I, In-Service Inspection of Mooring Hardware for 
Floating Drilling Units, and revise the entry for API RP 2A-WSD to read 
as follows:


Sec.  250.198  Documents Incorporated by Reference.

* * * * *
    (e) * * *

[[Page 64546]]



------------------------------------------------------------------------
           Title of documents              Incorporated by reference at
------------------------------------------------------------------------
 
                              * * * * * * *
API RP 2A WSD, Recommended Practice for  Sec.   250.901(a), (d); Sec.
 Planning, Designing, and Constructing    250.908(a); Sec.
 Fixed Offshore Platforms--Working        250.919(b)(2); Sec.
 Stress Design; Twenty-first Edition,     250.920(a), (b), (c), (d),
 December 2000; Errata and Supplement     (e), (f).
 1, December 2002; Errata and
 Supplement 2, October 2005, API Stock
 No. G2AWSD.
 
                              * * * * * * *
API RP 2I, In-Service Inspection of      Sec.   250.901(a), (d).
 Mooring Hardware for Floating Drilling
 Units; Second Edition, November 1996,
 Reaffirmed May 2003, API Order No.
 G02102.
 
                              * * * * * * *
------------------------------------------------------------------------


0
4. Revise Sec.  250.199(e)(1) as follows:


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

* * * * *
    (e) * * *

------------------------------------------------------------------------
 30 CFR 250 subpart/title  (OMB control       Reasons for collecting
                  No.)                       information and how used
------------------------------------------------------------------------
 
                              * * * * * * *
(1) Subpart A, General (1010-0114),      To inform MMS of actions taken
 including Forms MMS-132, Evacuation      to comply with general
 Statistics; MMS-143, Facility/           operational requirements on
 Equipment Damage Report; MMS-1123,       the OCS. To ensure that
 Designation of Operator; MMS-1832,       operations on the OCS meet
 Notification of Incidents of             statutory and regulatory
 Noncompliance.                           requirements, are safe and
                                          protect the environment, and
                                          result in diligent
                                          exploration, development, and
                                          production on OCS leases. To
                                          support the unproved and
                                          proved reserve estimation,
                                          resource assessment, and fair
                                          market value determinations.
                                          To allow MMS to rapidly assess
                                          damage and project any
                                          disruption of oil and gas
                                          production from the OCS after
                                          a major natural occurrence.
 
                              * * * * * * *
------------------------------------------------------------------------


0
5. Revise Sec.  250.900(c) and (e) to read as follows:


Sec.  250.900  What general requirements apply to all platforms?

* * * * *
    (c) Under emergency conditions, you may make repairs to primary 
structural elements to restore an existing permitted condition without 
submitting an application or receiving prior MMS approval for up to 
120-calendar days following an event. You must notify the Regional 
Supervisor of the damage that occurred within 24 hours of its 
discovery, and you must provide a written completion report to the 
Regional Supervisor of the repairs that were made within 1 week after 
completing the repairs. If you make emergency repairs on a floating 
platform, you must also notify the USCG.
* * * * *
    (e) You must submit notification of the platform installation date 
and the final as-built location data to the Regional Supervisor within 
45-calendar days of completion of platform installation.
    (1) For platforms not subject to the Platform Verification Program 
(PVP), MMS will cancel the approved platform application 1 year after 
the approval has been granted if the platform has not been installed. 
If MMS cancels the approval, you must resubmit your platform 
application and receive MMS approval if you still plan to install the 
platform.
    (2) For platforms subject to the PVP, cancellation of an approval 
will be on an individual platform basis. For these platforms, MMS will 
identify the date when the installation approval will be cancelled (if 
installation has not occurred) during the application and approval 
process. If MMS cancels your installation approval, you must resubmit 
your platform application and receive MMS approval if you still plan to 
install the platform.

0
6. Amend Sec.  250.901 as follows:
0
A. Redesignate paragraphs (a)(9) through (a)(23) as (a)(10) through 
(a)(24), respectively,
0
B. Add new paragraph (a)(9),
0
C. Revise paragraph (d)(22),
0
D. Add new paragraph (d)(23) to read as follows:


Sec.  250.901  What industry standards must your platform meet?

    (a) * * *
    (9) API RP 2I, In-Service Inspection of Mooring Hardware for 
Floating Drilling Units (incorporated by reference as specified in 
Sec.  250.198);
* * * * *
    (d) * * *
    (22) API RP 2SM, RP for Design, Manufacture, Installation, and 
Maintenance of Synthetic Fiber Ropes for Offshore Mooring;
    (23) API RP 2I, In-Service Inspection of Mooring Hardware for 
Floating Drilling Units.

0
7. Amend Sec.  250.905 by:
0
A. Adding a second sentence to the introductory text;
0
B. Redesignating current paragraphs (i), (j), and (k), as paragraphs 
(j), (k), and (l) respectively; and
0
C. Adding new paragraph (i) to read as follows:


Sec.  250.905  How do I get approval for the installation, 
modification, or repair of my platform?

* * * * *
    In lieu of submitting the paper copies specified in the table, you 
may submit

[[Page 64547]]

your application electronically in accordance with 30 CFR 
250.186(a)(3).
* * * * *

------------------------------------------------------------------------
                                                              Other
      Required submittal           Required contents      requirements
------------------------------------------------------------------------
 
                              * * * * * * *
(i) Summary of safety factors   A summary of pertinent  You must submit
 utilized.                       derived factors of      one copy.
                                 safety against
                                 failure for major
                                 structural members,
                                 e.g., unity check
                                 ratios exceeding 0.85
                                 for steel-jacket
                                 platform members,
                                 indicated on ``line''
                                 sketches of jacket
                                 sections.
 
                              * * * * * * *
------------------------------------------------------------------------


0
8. Amend Sec.  250.911 by redesignating current paragraphs (d) through 
(g), as paragraphs (e) through (h), respectively, and adding new 
paragraph (d) to read as follows:


Sec.  250.911  If my platform is subject to the Platform Verification 
Program, what must I do?

* * * * *
    (d) Submit a complete schedule of all phases of design, 
fabrication, and installation for the Regional Supervisor's approval. 
You must include a project management timeline, Gantt Chart, that 
depicts when interim and final reports required by Sec. Sec.  250.916, 
250.917, and 250.918 will be submitted to the Regional Supervisor for 
each phase. On the timeline, you must break-out the specific scopes of 
work that inherently stand alone (e.g., deck, mooring systems, tendon 
systems, riser systems, turret systems).
* * * * *

0
9. Revise Sec.  250.916(c) to read as follows:


Sec.  250.916  What are the CVA's primary duties during the design 
phase?

* * * * *
    (c) The CVA must submit interim reports and a final report to the 
Regional Supervisor, and to you, during the design phase in accordance 
with the approved schedule required by Sec.  250.911(d). In each 
interim and final report the CVA must:
    (1) Provide a summary of the material reviewed and the CVA's 
findings;
    (2) In the final CVA report, make a recommendation that the 
Regional Supervisor either accept, request modifications, or reject the 
proposed design unless such a recommendation has been previously made 
in an interim report;
    (3) Describe the particulars of how, by whom, and when the 
independent review was conducted; and
    (4) Provide any additional comments the CVA deems necessary.

0
10. Revise Sec.  250.917(c) to read as follows:


Sec.  250.917  What are the CVA's primary duties during the fabrication 
phase?

* * * * *
    (c) The CVA must submit interim reports and a final report to the 
Regional Supervisor, and to you, during the fabrication phase in 
accordance with the approved schedule required by Sec.  250.911(d). In 
each interim and final report the CVA must:
    (1) Give details of how, by whom, and when the independent 
monitoring activities were conducted;
    (2) Describe the CVA's activities during the verification process;
    (3) Summarize the CVA's findings;
    (4) Confirm or deny compliance with the design specifications and 
the approved fabrication plan;
    (5) In the final CVA report, make a recommendation to accept or 
reject the fabrication unless such a recommendation has been previously 
made in an interim report; and
    (6) Provide any additional comments that the CVA deems necessary.

0
11. Revise Sec.  250.918(c) to read as follows:


Sec.  250.918  What are the CVA's primary duties during the 
installation phase?

* * * * *
    (c) The CVA must submit interim reports and a final report to the 
Regional Supervisor, and to you, during the installation phase in 
accordance with the approved schedule required by Sec.  250.911(d). In 
each interim and final report the CVA must:
    (1) Give details of how, by whom, and when the independent 
monitoring activities were conducted;
    (2) Describe the CVA's activities during the verification process;
    (3) Summarize the CVA's findings;
    (4) Confirm or deny compliance with the approved installation plan;
    (5) In the final report, make a recommendation to accept or reject 
the installation unless such a recommendation has been previously made 
in an interim report; and
    (6) Provide any additional comments that the CVA deems necessary.

0
12. Revise Sec.  250.919 to read as follows:


Sec.  250.919  What in-service inspection requirements must I meet?

    (a) You must submit a comprehensive in-service inspection report 
annually by November 1 to the Regional Supervisor that must include:
    (1) A list of fixed and floating platforms you inspected in the 
preceding 12 months;
    (2) The extent and area of inspection for both the above-water and 
underwater portions of the platform and the pertinent components of the 
mooring system for floating platforms;
    (3) The type of inspection employed (e.g., visual, magnetic 
particle, ultrasonic testing);
    (4) The overall structural condition of each platform, including a 
corrosion protection evaluation; and
    (5) A summary of the inspection results indicating what repairs, if 
any, were needed.
    (b) If any of your structures have been exposed to a natural 
occurrence (e.g., hurricane, earthquake, or tropical storm), the 
Regional Supervisor may require you to submit an initial report of all 
structural damage, followed by subsequent updates, which include the 
following:
    (1) A list of affected structures;
    (2) A timetable for conducting the inspections described in section 
14.4.3 of API RP 2A-WSD (incorporated by reference as specified in 
Sec.  250.198); and
    (3) An inspection plan for each structure that describes the work 
you will perform to determine the condition of the structure.
    (c) The Regional Supervisor may also require you to submit the 
results of the inspections referred to in paragraph (b)(2) of this 
section, including a description of any detected damage that may 
adversely affect structural integrity, an assessment of the structure's 
ability to withstand any anticipated environmental conditions, and any 
remediation plans. Under Sec. Sec.  250.900(b)(3) and 250.905, you must

[[Page 64548]]

obtain approval from MMS before you make major repairs of any damage 
unless you meet the requirements of Sec.  250.900(c).

0
13. Revise Sec.  250.920 to read as follows:


Sec.  250.920  What are the MMS requirements for assessment of fixed 
platforms?

    (a) You must document all wells, equipment, and pipelines supported 
by the platform if you intend to use either the A-2 or A-3 assessment 
category. Assessment categories are defined in API RP 2A-WSD, Section 
17.3. If MMS objects to the assessment category you used for your 
assessment, you may need to redesign and/or modify the platform to 
adequately demonstrate that the platform is able to withstand the 
environmental loadings for the appropriate assessment category.
    (b) You must perform an analysis check when your platform will have 
additional personnel, additional topside facilities, increased 
environmental or operational loading, or inadequate deck height your 
platform suffered significant damage (e.g., experienced damage to 
primary structural members or conductor guide trays or global 
structural integrity is adversely affected); or the exposure category 
changes to a more restrictive level (see Sections 17.2.1 through 17.2.5 
of API RP 2A-WSD for a description of assessment initiators).
    (c) You must initiate mitigation actions for platforms that do not 
pass the assessment process of API RP 2A-WSD. You must submit 
applications for your mitigation actions (e.g., repair, modification, 
decommissioning) to the Regional Supervisor for approval before you 
conduct the work.
    (d) The MMS may require you to conduct a platform design basis 
check when the reduced environmental loading criteria contained in API 
RP 2A-WSD Section 17.6 are not applicable.
    (e) By November 1, 2009, you must submit a complete list of all the 
platforms you operate, together with all the appropriate data to 
support the assessment category you assign to each platform and the 
platform assessment initiators (as defined in API RP 2A-WSD) to the 
Regional Supervisor. You must submit subsequent complete lists and the 
appropriate data to support the consequence-of-failure category every 5 
years thereafter, or as directed by the Regional Supervisor.
    (f) The use of Section 17, Assessment of Existing Platforms, of API 
RP 2A-WSD is limited to existing fixed structures that are serving 
their original approved purpose. You must obtain approval from the 
Regional Supervisor for any change in purpose of the platform, 
following the provisions of API RP 2A-WSD, Section 15, Re-use.

0
14. Amend Sec.  250.1007 by revising paragraph (a)(4) to read as 
follows:


Sec.  250.1007  What to include in applications.

    (a) * * *
    (4) A description of any additional design precautions you took to 
enable the pipeline to withstand the effects of water currents, storm 
or ice scouring, soft bottoms, mudslides, earthquakes, permafrost, and 
other environmental factors.
    (i) If you propose to use unbonded flexible pipe, your application 
must include:
    (A) The manufacturer's design specification sheet;
    (B) The design pressure (psi);
    (C) An identification of the design standards you used; and
    (D) A review by a third-party independent verification agent (IVA) 
according to API Spec 17J (incorporated by reference as specified in 
Sec.  250.198), if applicable.
    (ii) If you propose to use one or more pipeline risers for a 
tension leg platform or other floating platform, your application must 
include:
    (A) The design fatigue life of the riser, with calculations, and 
the fatigue point at which you would replace the riser;
    (B) The results of your vortex-induced vibration (VIV) analysis;
    (C) An identification of the design standards you used; and
    (D) A description of any necessary mitigation measures such as the 
use of helical strakes or anchoring devices.
* * * * *

[FR Doc. E8-25720 Filed 10-29-08; 8:45 am]
BILLING CODE 4310-MR-P