[Federal Register Volume 75, Number 69 (Monday, April 12, 2010)]
[Rules and Regulations]
[Pages 18404-18407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-8207]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 147

[Docket No. USCG-2009-0955]
RIN 1625-AA00


Safety Zone; FRONTIER DISCOVERER, Outer Continental Shelf 
Drillship, Chukchi and Beaufort Sea, Alaska

AGENCY: Coast Guard, DHS.

ACTION: Final rule.

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SUMMARY: The Coast Guard is establishing a temporary safety zone around 
the DRILLSHIP FRONTIER DISCOVERER, while anchored or deploying and 
recovering moorings on location in order to drill exploratory wells at 
various prospects located in the Chukchi and Beaufort Sea Outer 
Continental Shelf, Alaska, during the 2010 drilling season. The purpose 
of the temporary safety zone is to protect the DRILLSHIP from vessels 
operating outside normal shipping channels and fairways. Placing a 
temporary safety zone around the DRILLSHIP will significantly reduce 
the threat of allisions, oil spills, and releases of natural gas, and 
thereby protect the safety of life, property, and the environment.

DATES: This rule is effective from 12:01 a.m. on July 1, 2010, to 11:59 
p.m. on November 30, 2010.

ADDRESSES: Comments and material received from the public, as well as 
documents mentioned in this preamble as being available in the docket, 
are part of docket USCG-2009-0955 and are available online by going to 
http://www.regulations.gov, inserting USCG-2009-0955 in the ``Keyword'' 
box, and then clicking ``Search.'' This material is also available for 
inspection or copying at the Docket Management Facility (M-30), U.S. 
Department of Transportation, West Building Ground Floor, Room W12-140, 
1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, 
call or e-mail LCDR Ken Phillips, U.S. Coast Guard, District Seventeen, 
Office of Prevention; telephone 907-463-2821, 
[email protected]. If you have questions on viewing or 
submitting material to the docket, call Renee V. Wright, Program 
Manager, Docket Operations, telephone 202-366-9826.

SUPPLEMENTARY INFORMATION:

Regulatory Information

    On January 6, 2010 we published a notice of proposed rulemaking 
(NPRM) entitled ``Safety Zone; FRONTIER DISCOVERER, Outer Continental 
Shelf Drillship, Chukchi and Beaufort Sea, Alaska'' in the Federal 
Register (75 FR 803). The NPRM included a 30-day comment period. We 
received 3 (three) submissions with comments on the proposed rule. No 
public meeting was requested, and none was held.

Background and Purpose

    The Coast Guard is establishing a temporary safety zone around the 
DRILLSHIP FRONTIER DISCOVERER while on location in order to drill 
exploratory wells approximately 60 to 124 miles off the northwest coast 
in the Chukchi Sea and 13 to 18 miles off the northern coast in the 
Beaufort Sea Outer Continental Shelf, Alaska, during the 2010 drilling 
season. This rule will be in effective from 12:01 a.m. on July 1,

[[Page 18405]]

2010, to 11:59 p.m. on November 30, 2010.
    Shell Exploration & Production Company requested that the Coast 
Guard establish a temporary safety zone around the DRILLSHIP FRONTIER 
DISCOVERER while on location in order to drill exploratory wells in the 
Chukchi and Beaufort Seas, Alaska. The request for the safety zone was 
due to safety concerns for both the personnel aboard the DRILLSHIP and 
the environment. Shell Exploration & Production Company indicated that 
it is highly likely that any allision or inability to identify, monitor 
or mitigate ice-related hazards that might be encountered could result 
in a catastrophic event. In evaluating this request, the Coast Guard 
explored relevant safety factors and considered several criteria, 
including but not limited to: (1) The level of shipping activity around 
the operation; (2) safety concerns for personnel aboard the vessel; (3) 
concerns for the environment, given the sensitivity of the 
environmental and subsistence importance to the indigenous population; 
(4) the likeliness that an allision could result in a catastrophic 
event based on a lack of established shipping fairways, fueling and 
supply storage/operations, and size of the crew; (5) the recent and 
potential future maritime traffic in the vicinity of the proposed 
areas; (6) the types of vessels navigating in the vicinity of the 
proposed area; and, (7) the structural configuration of the vessel. 
Navigation in the vicinity of the safety zone could consist of large 
commercial shipping vessels, fishing vessels, cruise ships, tugs with 
tows and the occasional recreational vessel.
    After conducting a comprehensive examination of the criteria, IMO 
guidelines, and existing regulations, we conclude that the risk of 
allision, the potential for loss of life, and damage to the environment 
warrants the establishment of this temporary safety zone. This rule 
would significantly reduce the threat of allisions, oil spills, and 
releases and increase the safety of life, property, and the environment 
in the Chukchi and Beaufort Seas by prohibiting entry into the zone 
unless specifically authorized by the Commander, Seventeenth Coast 
Guard District.
    The complete discussion of the background and purpose for this rule 
can be found in the preamble to the NPRM (75 FR 803).

Discussion of Comments and Changes

    One comment was received that opined on the appropriateness of 
allowing any drilling to take place in the Chukchi or Bering Seas. 
While it is not within the jurisdiction of the Coast Guard to approve 
or authorize Outer Continental Shelf activity, we do have the 
responsibility to ensure, to the maximum extent practicable, that any 
activity is undertaken with the greatest reduction of risk of 
allisions, oil spills, and releases of natural gas, and thereby protect 
the safety of life, property, and the environment.
    One comment believed that having safety zones around all mobile 
drilling vessels is an excellent idea. The Coast Guard issues safety 
zones for Outer Continental Shelf activity consistent with the guidance 
in 33 CFR 147.10. In each case a safety zone is established only after 
evaluating all relevant safety factors and concluding that the 
regulation would significantly reduce the threat of an incident.
    One comment was received suggesting that the safety zone be issued 
for a multi-year period similar to safety zones in the Gulf of Mexico. 
The Coast Guard disagrees. While the Coast Guard understands that the 
underlying justifications for the safety zone are not likely to change 
from year to year, we find that there are several operational and 
permitting variables with respect to these activities to support not 
continuing the safety zones period beyond the current 2010 drilling 
season as originally requested. Many of these variables would be 
considered substantive changes. Some of the factors that dictate a 
season by season publication of the safety zone include change in the 
vessel being utilized for the exploratory wells; changes in the 
published prospect/drilling locations and corresponding latitude/
longitude coordinates; significant change in the future Outer 
Continental Shelf Lease Exploration Plans approved by Minerals 
Management Service; and the limited timeframe each year (approximately 
4 to 5 months) associated with actual on-sight activity. The nature of 
this activity as noted above is not currently comparative with the 
``manned production facility'' operations in the Gulf of Mexico in that 
those safety zones are established for year-round operations on 
``permanent'' structures that are engaged in the exploration, 
exploitation, and production of sub-sea resources. The Coast Guard will 
reconsider the temporary nature of these safety zones should the nature 
of the operations significantly change from solely exploratory drilling 
operations.
    One comment requested clarification on the involved parties as the 
NPRM did not elaborate on the specific parties under which the 
exploratory drilling operations will be undertaken. The Coast Guard 
notes for clarification that Shell Exploration & Production Company 
made the request for the safety zone on behalf of Shell Offshore Inc., 
operator in the Beaufort Sea and Shell Gulf of Mexico Inc., operator in 
the Chukchi Sea.
    One comment asked for a clarification with regard to the 
probability of a catastrophic event resulting from an incident. The 
Coast Guard has amended the ``Background and Purpose'' section of the 
Final Rule Federal Register by changing the word ``would'' to ``could'' 
as it relates to the outcome of an ``allision or inability to identify, 
monitor or mitigate ice-related hazards that might be encountered.''
    One comment asked for a correction to the Federal Register 
regarding the distances from shore for the exploratory wells in the 
Chukchi and Beaufort Seas to be consistent with the respective 2010 
Outer Continental Shelf Lease Exploration Plans. The Coast Guard has 
amended the ``Background and Purpose'' section of the Final Rule 
Federal Register by inserting the distances from shore to be consistent 
with the 2010 lease exploration plans.
    One comment requested that a clarification be made concerning the 
drilling of ``shallow holes.'' The Coast Guard understands that all 
wells will be drilled to the final depth objective or will not be 
commenced in the 2010 drilling season in accordance with the Minerals 
Management Service requirements.
    One comment requested flexibility with respect to the effective 
dates of the temporary safety zone to accommodate completion of non-
drilling activities to include plugging and abandonment operations, 
pulling drilling equipment, surveying and restoring the drill sight and 
moorings recovery. The Coast Guard understands the nature of the post 
drilling activity and agrees that the safety zone effective period 
should be extended to provide that needed flexibility until November 
30, 2010, but only while the vessel is on location as listed in Table 1 
of the rule to cover these activities to ensure the safety of the 
personnel aboard the DRILLSHIP and the environment. The Coast Guard has 
amended Sec.  147.T17.001(a) to reflect the new effective end date of 
November 30, 2010, so long as the vessel is on location.
    One comment requested the rule be amended to have the safety zone 
in effect once the vessels is ``on location'' while the mooring system 
is being deployed or recovered not only when the vessel is anchored. 
The Coast Guard agrees. The safety factors that were evaluated in 
determining that a safe

[[Page 18406]]

zone was warranted while the vessel was anchored on location are 
substantially similar for when the vessel is on location and the 
mooring system is in the process of being deployed or recovered. This 
determination is consistent with extending the effective end date of 
the safety zone to November 30, 2010, to cover the mooring recovery. 
The Coast Guard has amended Sec.  147.T17.001(a) to read: ``The area 
within 500 meters (1,640.4 feet) from each point on the outer edge of 
the vessel while anchored or deploying and recovering moorings on 
location is a safety zone.''
    One comment recommended the three ``Burger'' prospects in Column 1 
of Table 1 in the rule be delineated as Burger ``C'', Burger ``F'', and 
Burger ``J'', respectively, to match the lease exploration plan. The 
Coast Guard agrees and has amended Table 1 accordingly.
    One comment supported the determination to prohibit all vessels, 
irrespective of size from the safety zone. The Coast Guard determined 
this to be the best course of action given the complexities of this 
Arctic operation to include ice management issues, Marine Mammal and 
Mitigation plan requirements, and a harsh and dynamic offshore 
environment to significantly reduce the threat of allisions, oil 
spills, and releases and increase the safety of life, property, and the 
environment in the Chukchi and Beaufort Seas, Alaska.

Regulatory Analyses

    We developed this rule after considering numerous statutes and 
executive orders related to rulemaking. Below we summarize our analyses 
based on 13 of these statutes or executive orders.

Regulatory Planning and Review

    This rule is not a significant regulatory action under section 3(f) 
of Executive Order 12866, Regulatory Planning and Review, and does not 
require an assessment of potential costs and benefits under section 
6(a)(3) of that Order. The Office of Management and Budget has not 
reviewed it under that Order.
    This rule is not a significant regulatory action due to the 
location of the FRONTIER DISCOVERER in the Chukchi and Beaufort Seas 
Outer Continental Shelf, Alaska, and its distance from both land and 
safety fairways. Vessels traversing waters near the temporary safety 
zone will be able to safely travel around the zone without incurring 
additional costs.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have 
considered whether this rule would have a significant economic impact 
on a substantial number of small entities. The term ``small entities'' 
comprises small businesses, not-for-profit organizations that are 
independently owned and operated and are not dominant in their fields, 
and governmental jurisdictions with populations of less than 50,000.
    The Coast Guard certifies under 5 U.S.C. 605(b) that this rule 
would not have a significant economic impact on a substantial number of 
small entities. This rule would affect the following entities, some of 
which might be small entities: The owners or operators of vessels 
intending to transit or anchor in the locations where the exploratory 
wells will be drilled.
    This temporary safety zone will not have a significant economic 
impact on a substantial number of small entities for the following 
reasons: This rule will enforce a temporary safety zone around the 
FRONTIER DISCOVERER while on location in order to drill exploratory 
wells in the Chukchi and Beaufort Seas. The location of the safety zone 
is not frequented by vessel traffic and is not in close proximity to a 
safety fairway. Further, vessel traffic can pass safely around the 
temporary safety zone without incurring additional costs.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121), in the NPRM we offered to 
assist small entities in understanding the rule so that they could 
better evaluate its effects on them and participate in the rulemaking 
process.
    Small businesses may send comments on the actions of Federal 
employees who enforce, or otherwise determine compliance with, Federal 
regulations to the Small Business and Agriculture Regulatory 
Enforcement Ombudsman and the Regional Small Business Regulatory 
Fairness Boards. The Ombudsman evaluates these actions annually and 
rates each agency's responsiveness to small business. If you wish to 
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR 
(1-888-734-3247). The Coast Guard will not retaliate against small 
entities that question or complain about this rule or any policy or 
action of the Coast Guard.

Collection of Information

    This rule would call for no new collection of information under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Federalism

    A rule has implications for federalism under Executive Order 13132, 
Federalism, if it has a substantial direct effect on State or local 
governments and would either preempt State law or impose a substantial 
direct cost of compliance on them. We have analyzed this rule under 
that Order and have determined that it does not have implications for 
federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government, in 
the aggregate, or by the private sector of $100,000,000 or more in any 
one year. Though this rule would not result in such an expenditure, we 
do discuss the effects of this rule elsewhere in this preamble.

Taking of Private Property

    This rule would not affect a taking of private property or 
otherwise have taking implications under Executive Order 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights.

Civil Justice Reform

    This rule meets applicable standards in sections 3(a) and 3(b)(2) 
of Executive Order 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this rule under Executive Order 13045, Protection 
of Children from Environmental Health Risks and Safety Risks. This rule 
is not an economically significant rule and would not create an 
environmental risk to health or risk to safety that might 
disproportionately affect children.

Indian Tribal Governments

    This rule does not have tribal implications under Executive Order 
13175, Consultation and Coordination with Indian Tribal Governments, 
because it would not have a substantial direct effect on one or more 
Indian tribes, on the relationship between the Federal Government and 
Indian tribes, or on the distribution of power and responsibilities 
between the Federal Government and Indian tribes.

[[Page 18407]]

Energy Effects

    We have analyzed this rule under Executive Order 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. We have determined that it is not a ``significant 
energy action'' under that order because it is not a ``significant 
regulatory action'' under Executive Order 12866 and is not likely to 
have a significant adverse effect on the supply, distribution, or use 
of energy. The Administrator of the Office of Information and 
Regulatory Affairs has not designated it as a significant energy 
action. Therefore, it does not require a Statement of Energy Effects 
under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15 
U.S.C. 272 note) directs agencies to use voluntary consensus standards 
in their regulatory activities unless the agency provides Congress, 
through the Office of Management and Budget, with an explanation of why 
using these standards would be inconsistent with applicable law or 
otherwise impractical. Voluntary consensus standards are technical 
standards (e.g., specifications of materials, performance, design, or 
operation; test methods; sampling procedures; and related management 
systems practices) that are developed or adopted by voluntary consensus 
standards bodies.
    This rule does not use technical standards. Therefore, we did not 
consider the use of voluntary consensus standards.

Environment

    We have analyzed this rule under Department of Homeland Security 
Management Directive 023-01 and Commandant Instruction M16475.lD, which 
guide the Coast Guard in complying with the National Environmental 
Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and have concluded 
this action is one of a category of actions which do not individually 
or cumulatively have a significant effect on the human environment. 
This rule is categorically excluded, under figure 2-1, paragraph 34(g), 
of the Instruction. This rule involves establishing regulations for 
safety zones. An environmental analysis checklist and a categorical 
exclusion determination are available in the docket where indicated 
under ADDRESSES.

List of Subjects in 33 CFR Part 147

    Continental shelf, Marine safety, Navigation (water).

0
For the reasons discussed in the preamble, the Coast Guard amends 33 
CFR part 147 as follows:

PART 147--SAFETY ZONES

0
1. The authority citation for part 147 continues to read as follows:

    Authority:  14 U.S.C. 85; 43 U.S.C. 1333; Department of Homeland 
Security Delegation No. 0170.1.


0
2. Add Sec.  147.T001 to read as follows:


Sec.  147.T001  DRILLSHIP FRONTIER DISCOVERER Safety Zone.

    (a) Description. The FRONTIER DISCOVERER will be engaged in 
exploratory drilling operations at various locations in the Chukchi and 
Beaufort Sea from July 1, 2010, through November 30, 2010. The 
DRILLSHIP will be anchored while conducting exploratory drilling 
operations with the center point of the vessel located at the 
coordinates listed in Table 1. These coordinates are based upon [NAD 
83] UTM Zone 3.

                                                               Table 1--Prospect Locations
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              Prospect                        Area               Block         Lease no.               Latitude                      Longitude
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Burger C...........................  Posey................            6764      OCS-Y-2280  N71[deg]18' 17.2739''          W163[deg]12' 45.9891''
Burger F...........................  Posey................            6714      OCS-Y-2267  N71[deg]20' 13.9640''          W163[deg]12' 21.7460''
Burger J...........................  Posey................            6912      OCS-Y-2321  N71[deg]10' 24.0292''          W163[deg]28' 18.5219''
Crackerjack........................  Karo.................            6864      OCS-Y-2111  N71[deg]13' 58.9211''          W166[deg]14' 10.7889''
SW Shoebill........................  Karo.................            7007      OCS-Y-2142  N71[deg]04' 24.4163''          W167[deg]13' 38.0886''
Sivulliq...........................  Flaxman Is...........            6658      OCS-Y 1805  N70[ordm]23' 29.5814''         W145[ordm]58' 52.5284''
Torpedo............................  Flaxman Is...........            6610      OCS-Y-1941  N70[ordm]27' 01.6193''         W145[ordm]49' 32.0650''
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    The area within 500 meters (1,640.4 feet) from each point on the 
outer edge of the vessel while anchored or deploying and recovering 
moorings on location is a safety zone.
    (b) Regulation. No vessel may enter or remain in this safety zone 
except the following:
    (1) An attending vessel;
    (2) A vessel authorized by the Commander, Seventeenth Coast Guard 
District.

    Dated: March 12, 2010.
C.C. Colvin,
Rear Admiral, U.S. Coast Guard, Commander, Seventeenth Coast Guard 
District.
[FR Doc. 2010-8207 Filed 4-9-10; 8:45 am]
BILLING CODE 9110-04-P