[Federal Register Volume 77, Number 36 (Thursday, February 23, 2012)]
[Proposed Rules]
[Pages 10711-10714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-4025]


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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 147

[Docket No. USCG-2011-1143]
RIN 1625-AA00


Safety Zone; KULLUK, Outer Continental Shelf Mobile Offshore 
Drilling Unit (MODU), Beaufort Sea, AK

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Coast Guard proposes a 500-meter safety zone around the 
MODU KULLUK, while anchored or deploying and recovering moorings on 
location in order to drill exploratory wells at various prospects 
located in the Beaufort Sea Outer Continental Shelf, Alaska, from 12:01 
a.m. on July 1, 2012 through 11:59 p.m. on October 31, 2012. See TABLE 
1. The purpose of the temporary safety zones is to protect the MODU 
from vessels operating outside the normal shipping channels and 
fairways. Placing a safety zone around the MODU will significantly 
reduce the threat of allisions that could result in oil spills, and 
releases of natural gas, and thereby protect the safety of life, 
property, and the environment. Lawful demonstrations may be conducted 
outside of the safety zone.

DATES: Comments and related material must be received by the Coast 
Guard on or before March 26, 2012.

ADDRESSES: You may submit comments identified by docket number USCG-
2011-1143 using any one of the following methods:
    (1) Federal eRulemaking Portal: http://www.regulations.gov.
    (2) Fax: 202-493-2251.
    (3) Mail: Docket Management Facility (M-30), U.S. Department of 
Transportation, West Building Ground Floor, Room W12-140, 1200 New 
Jersey Avenue SE., Washington, DC 20590-0001.
    (4) Hand delivery: Same as mail address above, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays. The telephone 
number is 202-366-9329.
    To avoid duplication, please use only one of these four methods. 
See the ``Public Participation and Request for Comments'' portion of 
the SUPPLEMENTARY INFORMATION section below for instructions on 
submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed 
rule, call or email LT Jason Smilie, Seventeenth Coast Guard District 
(dpi); telephone 907-463-2809, [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:

Public Participation and Request for Comments

    We encourage you to participate in this rulemaking by submitting 
comments and related materials. All comments received will be posted 
without change to http://www.regulations.gov and will include any 
personal information you have provided.

Submitting Comments

    If you submit a comment, please include the docket number for this 
rulemaking (USCG-2011-1143), indicate the specific section of this 
document to which each comment applies, and provide a reason for each 
suggestion or recommendation. You may submit your comments and material 
online (via http://www.regulations.gov) or by fax, mail, or hand 
delivery, but please use only one of these means. If you submit a 
comment online via http://www.regulations.gov, it will be considered 
received by the Coast Guard when you successfully transmit the comment. 
If you fax, hand deliver, or mail your comment, it will be considered 
as having been received by the Coast Guard when it is received at the 
Docket Management Facility. We recommend that you include your name and 
a mailing address, an email address, or a telephone number in the body 
of your document so that we can contact you if we have questions 
regarding your submission.
    To submit your comment online, go to http://www.regulations.gov, 
click on the ``submit a comment'' box, which will then become 
highlighted in blue. In the ``Document Type'' drop down menu select 
``Proposed Rule'' and insert ``USCG-2011-1143'' in the ``Keyword'' box. 
Click ``Search'' then click on the balloon shape in the ``Actions'' 
column. If you submit your comments by mail or hand delivery, submit 
them in an unbound format, no larger than 8\1/2\ by 11 inches, suitable 
for copying and electronic filing. If you submit comments by mail and 
would like to know that they reached the Facility, please enclose a 
stamped, self-addressed postcard or envelope. We will consider all 
comments and material received during the comment period and may change 
the rule based on your comments.

Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble 
as being available in the docket, go to http://www.regulations.gov, 
click on the ``read comments'' box, which will then become highlighted 
in blue. In the ``Keyword'' box, insert USCG-2011-1143 and click 
``Search.'' Click the ``open Docket Folder'' in the ``Actions'' column.
    You may also visit the Docket Management Facility in Room W12-140 
on the ground floor of the Department of Transportation West Building, 
1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays. We have an 
agreement with the Department of Transportation to use the Docket 
Management Facility.

Privacy Act

    Anyone can search the electronic form of comments received into any 
of our dockets by the name of the individual submitting the comment (or 
signing the comment, if submitted on behalf of an association, 
business, labor union, etc.). You may review a Privacy Act notice 
regarding our public dockets in the January 17, 2008 issue of the 
Federal Register (73 FR 3316).

Public Meeting

    The Coast Guard does not plan to hold a public meeting. But you may 
submit a request for one by using one of the four methods specified 
under ADDRESSES. Please explain why you believe a public meeting would 
be beneficial. If we determine that one would aid this rulemaking, we 
will hold one at a time and place announced by a later notice in the 
Federal Register.

[[Page 10712]]

Basis and Purpose

    The Coast Guard proposes the establishment of a temporary safety 
zone around the MODU KULLUK while anchored or deploying and recovering 
moorings on location in order to drill exploratory wells in several 
prospects located in the Beaufort Sea during the 2012 drilling season.
    The request for the temporary safety zone was made by Shell 
Exploration & Production Company due to safety concerns for both the 
personnel aboard the KULLUK and the environment. Shell Exploration & 
Production Company indicated that it is highly likely that any allision 
or inability to identify, monitor or mitigate any risks or threats, 
including ice-related hazards that might be encountered, would result 
in a catastrophic event. Incursions into the safety zone by unapproved 
vessels could degrade the ability to monitor and mitigate such risks. 
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 lack of any 
established shipping fairways, fueling and supply storage/operations, 
and size of the crew increase the likelihood that an allision would 
result in a catastrophic event; (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; (7) the 
structural configuration of the vessel, and (8) the need to allow for 
lawful demonstrations without endangering the safe operation of the 
rig. 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. For any group 
intending to conduct lawful demonstrations in the vicinity of the rig, 
these demonstrations must be conducted outside the safety zone.
    Results from a thorough and comprehensive examination of the 
criteria, IMO guidelines, and existing regulations warrant the 
establishment of the proposed temporary safety zone. The proposed 
regulation would significantly reduce the threat of allisions that 
could result in oil spills, and releases. Furthermore, the proposed 
regulation would increase the safety of life, property, and the 
environment in the Beaufort Sea by prohibiting entry into the zone 
unless specifically authorized by the Commander, Seventeenth Coast 
Guard District, or a designated representative. Due to the remote 
location and the need to protect the environment, the Coast Guard may 
use criminal sanctions to enforce the safety zone as appropriate.
    The proposed temporary safety zone will be around the KULLUK while 
anchored or deploying and recovering moorings on location in order to 
drill exploratory wells in various locations in the Beaufort Sea Outer 
Continental Shelf, Alaska during the 2012 timeframe.
    Shell Exploration & Production Company has four proposed drill 
sites within the Suvulliq and Torpedo prospects, Beaufort Sea, Alaska 
(See Table 1).

                                                               Table 1--Prospect Locations
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            NR06-04                        Surface location (NAD 83) *
                                                            Flaxman    ------------------------------------------------------------------   Distance to
             Drill site                Lease File No.    Island Lease                                                                     mainland shore
                                                           Block No.              Latitude (N)                    Longitude (W)               mi (km)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sivulliq G..........................        OCS-Y 1805            6658  70[deg]23'46.82''                146[deg]01'03.46''                  16.6 (26.7)
Sivulliq N..........................        OCS-Y 1805            6658  70[deg]23'29.58''                145[deg]58'52.53''                  16.2 (26.1)
Torpedo H...........................        OCS-Y 1941            6610  70[deg]27'01.62''                145[deg]49'32.07''                  20.8 (33.5)
Torpedo J...........................        OCS-Y 1936            6559  70[deg]28'56.94''                145[deg]53'47.15''                  23.1 (37.2)
--------------------------------------------------------------------------------------------------------------------------------------------------------

    During the 2012 timeframe, Shell Exploration & Production Company 
has proposed drilling up to two exploration wells at the identified 
Beaufort Sea prospects depending on favorable ice conditions, weather, 
sea state, and any other pertinent factors. Each of these drill sites 
will be permitted for drilling in 2012 to allow for operational 
flexibility in the event sea ice conditions prevent access to one of 
the locations. The number of actual wells that will be drilled will 
depend on ice conditions and the length of time available for the 2012 
drilling season. The predicted ``average'' drilling season, constrained 
by prevailing ice conditions and regulatory restrictions, is long 
enough for two to three typical exploration wells to be drilled.
    The actual order of drilling activities will be controlled by an 
interplay between actual ice conditions immediately prior to a rig 
move, ice forecasts, any regulatory restrictions with respect to the 
dates of allowed operating windows, whether the planned drilling 
activity involves only drilling the shallow non-objective section or 
penetrating potential hydrocarbon zones, the availability of permitted 
sites having approved shallow hazards clearance, the anticipated 
duration of each contemplated drilling activity, the results of 
preceding wells and Marine Mammal Monitoring and Mitigation plan 
requirements.
    All planned exploration drilling in the identified lease blocks 
will be conducted with the KULLUK. The KULLUK is a true Mobile Offshore 
Drilling Unit, and is a large self-contained drilling vessel that 
offers full accommodations for up to 108 persons. The hull has been 
reinforced for ice resistance.
    The KULLUK has a ``persons on board'' capacity of 108, and it is 
expected to be at capacity for most of its operating period. The 
KULLUK's personnel will include its crew, as well as Shell employees, 
third party contractors, Alaska Native Marine Mammal Observers and 
possibly Bureau of Ocean Energy Management (BOEM) or Bureau of Safety 
and Environmental Enforcement (BSEE) personnel.
    While conducting exploration drilling operations, the KULLUK will 
be anchored. The KULLUK has an Arctic Class IV hull design, is capable 
of drilling in up to 600 feet (ft) [182.9 meters (m)]) of water and is 
moored using a 12-point anchor system. The KULLUK's mooring system 
consists of 12 Hepburn winches located on the outboard side of the main 
deck, Anchor wires lead off the bottom of each winch drum inboard for 
approximately 55 ft (16.8 m). The wire is then redirected by a sheave, 
down through a hawse pipe to an underwater, ice protected, swivel 
fairlead. The wire travels from the fairlead directly under the hull to 
the

[[Page 10713]]

anchor system on the seafloor. The KULLUK will have an anchor radius of 
3,117 ft (950 m) for the Sivulliq drill sites and 2,995 ft (913 m) for 
the Torpedo drill sites. Anchor marker buoys will delineate the outer 
edge of the anchor spread. The anchor spread, which radiates from the 
center of the KULLUK, may pose a fouling hazard to any vessel 
attempting to anchor within the anchor spread. Fouling of the KULLUK 
anchor lines may endanger the drillship, its 108 persons onboard, the 
third party vessel, persons onboard the third party vessel and the 
environment.
    The center point of the KULLUK will be positioned within the 
prospect location in the Beaufort Sea at the coordinates listed below 
(See Table 1).
    The KULLUK will move into the Beaufort Sea on or about July 1, 2012 
and onto a prospect location when ice allows. Drilling will be 
curtailed on or before October 31, 2012. The MODU and support vessels 
will depart the Beaufort Sea at the conclusion of the 2012 drilling 
season.

Discussion of Proposed Rule

    The proposed temporary safety zone would encompass the area within 
500 meters from each point on the outer edge of the KULLUK while 
anchored on location in order to drill exploratory wells or deploying 
and recovering moorings on location in order to drill exploratory 
wells. No vessel would be allowed to enter or remain in this proposed 
safety zone except the following: An attending vessel or a vessel 
authorized by the Commander, Seventeenth Coast Guard District or a 
designated representative. They may be contacted on VHF-FM Channel 13 
or 16 or by telephone at 907-463-2000.

Regulatory Analyses

    The Coast Guard developed this proposed 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 proposed 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 MODU KULLUK on the Outer Continental Shelf and its 
distance from both land and safety fairways. Vessels traversing waters 
near the proposed 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), the Coast 
Guard has considered whether this proposed 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 proposed 
rule would not have a significant economic impact on a substantial 
number of small entities. This proposed 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 Sivulliq and 
Torpedo Prospect of the Beaufort Sea, including Flaxman Island blocks 
6610, 6658 and 6659 (See Table 1).
    This safety zone will not have a significant economic impact or a 
substantial number of small entities for the following reasons: This 
rule will enforce a safety zone around a drillship facility that is in 
an area of the Flaxman Island of the Beaufort Sea not frequented by 
vessel traffic and is not in close proximity to a safety fairway. 
Further, vessel traffic can pass safely around the safety zone without 
incurring additional costs.
    If you think that your business, organization, or governmental 
jurisdiction qualifies as a small entity and that this rule would have 
a significant economic impact on it, please submit a comment (see 
ADDRESSES) explaining why you think it qualifies and how and to what 
degree this rule would economically affect it.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small 
entities in understanding this proposed rule so that they can better 
evaluate its effects on them and participate in the rulemaking. If the 
rule would affect your small business, organization, or governmental 
jurisdiction and you have questions concerning its provisions or 
options for compliance, please contact LT Jason Smilie, Coast Guard 
Seventeenth District, Office of Prevention; telephone 907-463-2809, 
[email protected]. The Coast Guard will not retaliate against 
small entities that question or complain about this proposed rule or 
any policy or action of the Coast Guard.

Collection of Information

    This proposed 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 proposed 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 (adjusted for 
inflation) or more in any one year. Though this proposed rule would not 
result in such expenditure, we do discuss the effects of this rule 
elsewhere in this preamble.

Taking of Private Property

    This proposed rule would not cause 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 proposed 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

    The Coast Guard has analyzed this proposed 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 proposed rule does not have tribal implications under 
Executive

[[Page 10714]]

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.

Energy Effects

    The Coast Guard analyzed this proposed 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 proposed rule does not use technical standards. Therefore, we 
did not consider the use of voluntary consensus standards.

Environment

    We have analyzed this proposed 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 made a preliminary determination that this action is one of a 
category of actions that do not individually or cumulatively have a 
significant effect on the human environment. A preliminary 
environmental analysis checklist supporting this determination is 
available in the docket where indicated under ADDRESSES. We seek any 
comments or information that may lead to the discovery of a significant 
environmental impact from this proposed rule.

List of Subjects in 33 CFR Part 147

    Continental shelf, Marine safety, Navigation (water).

    For the reasons discussed in the preamble, the Coast Guard proposes 
to amend 33 CFR part 147 as follows:

PART 147--SAFETY ZONES

    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.

    2. Add Sec.  147.T17-1143 to read as follows: Sec.  147.T17-1143 
Safety Zone; KULLUK, Outer Continental Shelf Mobile Offshore Drilling 
Unit (MODU), Beaufort Sea, Alaska.
    (a) Description. The KULLUK will be engaged in exploratory drilling 
operations at various locations in the Beaufort Sea from July 1, 2012 
through October 31, 2012. The MODU 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            NR06-04                        Surface location (NAD 83) *
                                                            Flaxman    ------------------------------------------------------------------   Distance to
             Drill site                Lease File No.    Island Lease                                                                     mainland shore
                                                           Block No.              Latitude (N)                    Longitude (W)               mi (km)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sivulliq G..........................        OCS-Y 1805            6658  70[deg]23'46.82''                146[deg]01'03.46''                  16.6 (26.7)
Sivulliq N..........................        OCS-Y 1805            6658  70[deg]23'29.58''                145[deg]58'52.53''                  16.2 (26.1)
Torpedo H...........................        OCS-Y 1941            6610  70[deg]27'01.62''                145[deg]49'32.07''                  20.8 (33.5)
Torpedo J...........................        OCS-Y 1936            6559  70[deg]28'56.94''                145[deg]53'47.15''                  23.1 (37.2)
--------------------------------------------------------------------------------------------------------------------------------------------------------

The area within 500 meters (1,640.4 feet) from each point on the outer 
edge of the vessel while anchored on location is a safety zone. Lawful 
demonstrations may be conducted outside of the safety zone.

    (b) Regulation. No vessel may enter or remain in this safety zone 
except the following:
    (1) An attending vessel; or
    (2) A vessel authorized by the Commander, Seventeenth Coast Guard 
District, or a designated representative.
    (c) Penalties. Violation of this regulation may result in criminal 
or civil penalties, or both.

    Dated: February 2, 2012.
Thomas P. Ostebo,
Rear Admiral, U.S. Coast Guard, Commander, Seventeenth Coast Guard 
District.
[FR Doc. 2012-4025 Filed 2-22-12; 8:45 am]
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