[Federal Register Volume 80, Number 114 (Monday, June 15, 2015)]
[Proposed Rules]
[Pages 34113-34119]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-14640]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Part 250

[Docket ID: BSEE-2014-0002; 14XE1700DX EX1SF0000.DAQ000 EEEE50000]
RIN 1014-AA13


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Update of Incorporated Cranes Standard

AGENCY: Bureau of Safety and Environmental Enforcement (BSEE), 
Interior.

ACTION: Proposed rule.

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SUMMARY: BSEE proposes to incorporate by reference the Seventh Edition 
of the American Petroleum Institute (API) Specification 2C (Spec. 2C), 
``Offshore Pedestal-mounted Cranes'' (2012), into its regulations. The 
Seventh Edition of API Spec. 2C revised many aspects of the standard 
for design and construction of cranes manufactured since the Seventh 
Edition took effect in October 2012. The intent of proposing to 
incorporate this revised standard into BSEE regulations is to improve 
the safety of cranes mounted on fixed platforms that are installed on 
the Outer Continental Shelf (OCS). This proposed rule would require 
that all cranes that lessees or operators mount on any fixed platforms 
after the effective date of the final rule comply with the Seventh 
Edition of API Spec. 2C.

DATES: Submit comments by July 15, 2015. BSEE may not fully consider 
comments received after this date.

ADDRESSES: You may submit comments on the proposed rulemaking by any of 
the following methods. Please use the Regulation Identifier Number 
(RIN) 1014-AA13 as an identifier in your comments. BSEE may post all 
submitted comments, in their entirety, at: www.regulations.gov. See 
Public Participation and Availability of Comments.
    1. Federal eRulemaking Portal: www.regulations.gov. In the search 
box, enter ``BSEE-2014-0002,'' then click search. Follow the 
instructions to submit public comments and view supporting and related 
materials available for this rulemaking.
    2. Mail or hand-carry comments to the Department of the Interior 
(DOI); Bureau of Safety and Environmental Enforcement; ATTN: 
Regulations and Standards Branch; 45600 Woodland Road, Mail Code VAE-
ORP; Sterling, Virginia 20166. Please reference ``Oil and Gas and 
Sulphur Operations in the Outer Continental Shelf--Update of Cranes 
Standard, 1014-AA13,'' in your comments and include your name and 
return address.

FOR FURTHER INFORMATION CONTACT: Kelly Odom, BSEE, Regulations and 
Standards Branch, 703-787-1775, email address: [email protected].

SUPPLEMENTARY INFORMATION: 

Executive Summary

    As required by law, BSEE regulates oil and gas exploration, 
development and production operations on the OCS. Among other purposes, 
BSEE's regulations seek to prevent injury, loss of life, as well as 
damage to property, natural resources, and the environment. BSEE 
incorporates by reference in its regulations many oil and gas industry 
standards in order to require compliance with those standards in 
offshore operations.
    Currently, BSEE's regulations require that all cranes on any fixed 
platform that was installed on the OCS after March 17, 2003, as well as 
all cranes manufactured after March 17, 2003 and installed (i.e., 
mounted) on any fixed platform (regardless of when the platform was 
installed on the OCS), meet the requirements of the Sixth Edition of 
API Specification 2C, ``Offshore Pedestal Mounted Cranes'' (2004). In 
2012, API adopted the Seventh Edition of API Spec. 2C, which extended 
the standard to more types of cranes and made significant improvements 
to the standard for design, manufacture and testing of cranes in areas 
such as gross overload (e.g., from supply boat entanglement), 
consideration of duty cycles (including intensity and frequency of 
crane use), structural design, and wire rope design.
    BSEE has determined that incorporation of the Seventh Edition of 
API Spec. 2C would improve safety and help prevent injury as well as 
damage to property. Thus, BSEE proposes to amend its existing 
regulations by incorporating the Seventh Edition of API Spec. 2C and, 
thus, to require that any cranes that lessees or operators mount--after 
the effective date of the final rule--on any fixed platforms meet the 
requirements of that standard. BSEE also proposes to add a definition 
of ``Fixed Platform'' to the regulations, consistent with the Sixth and 
Seventh Editions of API Spec. 2C as well as with related API standards 
and BSEE regulations.

BSEE's Functions and Authority

    BSEE promotes safety, protects the environment, and conserves 
offshore oil and gas resources through vigorous regulatory oversight 
and enforcement. BSEE derives its authority primarily from the Outer 
Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1331-1356a. Congress 
enacted OCSLA in 1953, establishing Federal control over the OCS and 
authorizing the Secretary of the Interior (Secretary) to regulate oil 
and natural gas exploration, development, and production operations on 
the OCS. The Secretary has authorized BSEE to perform these functions 
(see 30 CFR 250.101).
    To carry out its responsibilities, BSEE regulates exploration, 
development and production of oil and natural gas on the OCS to enhance 
safety and environmental protection in a way that reflects advancements 
in technology and new information. In addition to developing and 
implementing such regulatory requirements, BSEE collaborates with 
standards development organizations and the international community to 
develop and revise safety and environmental standards, which BSEE may 
incorporate into its regulatory program. BSEE also conducts onsite 
inspections to ensure

[[Page 34114]]

compliance with regulations, lease terms, and approved plans. Detailed 
information concerning BSEE's regulations and guidance for the offshore 
industry may be found on BSEE's Web site at: www.bsee.gov/Regulations-and-Guidance/index.

Public Participation and Availability of Comments

    BSEE encourages you to participate in this proposed rulemaking by 
submitting written comments, as discussed in the ADDRESSES and DATES 
sections of this proposed rule. This proposed rule provides 30-days for 
public comment because the Seventh Edition of API Spec. 2C (which was 
extensively reviewed and discussed during the API standard-setting 
consensus process) has been in effect for well over two years; thus, 
the relevant industries are already familiar with both the Seventh 
Edition and the existing BSEE regulations incorporating the prior 
edition of that standard.
    Before including your address, phone number, email address, or 
other personal identifying information in your comment on this proposed 
rule, however, you should be aware that your entire comment--including 
your personal identifying information--may be made publicly available 
at any time. While you can ask us in your comment to withhold your 
personal identifying information from public review, we cannot 
guarantee that we will be able to do so.

Procedures for Incorporation by Reference and Availability of 
Incorporated Documents for Public Viewing

    BSEE frequently uses standards (e.g., codes, specifications, 
recommended practices) developed through a consensus process, 
facilitated by standards development organizations and with input from 
the oil and gas industry, as a means of establishing requirements for 
activities on the OCS. BSEE may incorporate these standards into its 
regulations without republishing the standards in their entirety in the 
Code of Federal Regulations, a practice known as incorporation by 
reference. The legal effect of incorporation by reference is that the 
incorporated standards become regulatory requirements. This 
incorporated material, like any other properly issued regulation, has 
the force and effect of law, and BSEE holds operators, lessees and 
other regulated parties accountable for complying with the documents 
incorporated by reference in our regulations. We currently incorporate 
by reference over 100 consensus standards in BSEE's regulations 
governing offshore oil and gas operations (see 30 CFR 250.198).
    Federal regulations at 1 CFR part 51 govern how BSEE and other 
Federal agencies incorporate various documents by reference. Agencies 
may only incorporate a document by reference by publishing the document 
title, edition, date, author, publisher, identification number, and 
other specified information in the Federal Register. The Director of 
the Federal Register must approve each publication incorporated by 
reference in a final rule. Incorporation by reference of a document or 
publication is limited to the specific edition approved by the Director 
of the Federal Register.
    When a copyrighted industry standard is incorporated by reference 
into our regulations, BSEE is obligated to observe and protect that 
copyright. We provide members of the public with Web site addresses 
where these standards may be accessed for viewing--sometimes for free 
and sometimes for a fee. The decision to charge a fee is made by each 
standards development organization. API provides free online public 
access to at least 160 technical and other key industry standards. 
Those standards represent almost one-third of all API standards and 
include all that are safety-related or are incorporated into Federal 
regulations. These standards are available for review online, while 
hard copies and printable versions will continue to be available for 
purchase through API. To review such standards online, go to the API 
publications Web site at: http://publications.api.org. You must then 
log-in or create a new account, accept API's ``Terms and Conditions,'' 
click on the ``Browse Documents'' button, and then select the 
applicable category (e.g., ``Exploration and Production'') for the 
standard(s) you wish to review.
    For the convenience of the viewing public who may not wish to 
purchase or view the incorporated documents online, they may be 
inspected at BSEE's office at 45600 Woodland Road, Sterling, Virginia 
20166 (phone: 703-787-1587).
    Documents incorporated in the final rule will be made available to 
the public for viewing when requested. Additional information on where 
these documents can be inspected or purchased can be found at 30 CFR 
250.198, Documents incorporated by reference.

Background Information for Proposed Incorporation by Reference of 
Seventh Edition of API Spec. 2C

    As authorized by OCSLA, BSEE has promulgated regulations governing 
oil, gas and sulphur exploration, development, and production 
operations on the OCS (30 CFR part 250). On February 14, 2003, the 
Minerals Management Service (MMS), the predecessor to BSEE, 
incorporated the Fifth Edition of API Spec. 2C, ``Specification for 
Offshore Cranes'' (1995), into its regulations at Sec. Sec.  250.108(c) 
and (d) and Sec.  250.198(e), effective March 17, 2003 (68 FR 7421).\1\ 
The purpose of that rule was to require lessees and operators to ensure 
the safe design, construction, and testing of all cranes mounted on any 
fixed platform that was installed on the OCS after the effective date 
of the final rule (March 17, 2003) and of all cranes manufactured after 
March 17, 2003, and subsequently mounted on any fixed platform (without 
regard to the platform's installation date on the OCS).
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    \1\ MMS proposed this regulation on July 19, 2001 (see 66 FR 
37611).
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    On March 15, 2007, the MMS incorporated the Sixth Edition of API 
Spec. 2C (adopted by API in 2004) into the regulations at Sec. Sec.  
250.108(c) and (d) and Sec.  250.198(e) in place of the Fifth Edition 
(72 FR 12088).\2\ Thus, the regulations currently require that 
operators and lessees ensure that all cranes mounted on any fixed 
platform that was installed on the OCS after March 2003, as well as all 
cranes manufactured after March 2003 and subsequently mounted on any 
fixed platform (regardless of when the platform was installed on the 
OCS), meet the requirements of the Sixth Edition of API Spec. 2C.
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    \2\ On April 28, 2010, MMS revised and reorganized Sec.  
250.198, and the provision incorporating API Spec. 2C, Sixth 
Edition, was moved to Sec.  250.198(h)(69) (see 75 FR 22219).
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    In March 2012, API approved the Seventh Edition of API Spec. 2C 
(effective in October 2012), reorganizing the standard and providing 
improved design and construction criteria for new pedestal-mounted 
cranes (i.e., those manufactured after October 2012). The most 
significant technical and engineering issues addressed by API in the 
Seventh Edition of API Spec. 2C include:

--Gross overload of cranes and supply boat entanglement issues (i.e., 
while the Sixth Edition did not require manufacturers to address gross 
overload conditions, the Seventh Edition requires that manufacturers 
use a failure mode assessment to address gross overload conditions, 
such as supply boat entanglement, and provide the failure mode results 
to crane purchasers);

[[Page 34115]]

--Consideration of duty cycles in service life design \3\ (e.g., while 
the Sixth Edition did not specifically address duty cycles in the 
design of cranes, the Seventh Edition expressly includes consideration 
of duty cycles, or the magnitude of loads and/or frequency of use, in 
the design life of machinery and wire rope components of cranes);
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    \3\ Offshore cranes can experience significantly different 
intensity and frequency of use depending on many factors, including 
the location of the platform and the environmental conditions under 
which the cranes will be used.
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--Wire rope design factors (e.g., while the Sixth Edition included a 
fixed factor for design of running rigging, the Seventh Edition 
includes specific reeving efficiency calculations in running rigging 
design); and
--Structural crane design factors for all types of offshore pedestal-
mounted cranes (e.g., while the Sixth Edition used a fixed minimum 
onboard dynamic coefficient, the Seventh Edition uses a more precise 
sliding minimum onboard dynamic coefficient based on each crane's safe 
working load).
--Dual braking systems (while the Sixth Edition required only parking 
brake systems for crane hoist systems, the Seventh Edition requires 
that cranes have both ``parking brake systems'' (i.e., disk or 
mechanical brakes that act directly on the wire rope drum) and 
``dynamic brake systems'' (e.g., brakes that use control fluid from a 
drive motor) for hoisting operations (i.e., raising or lowering 
loads)).
--Load moment indicator systems (i.e., the Seventh Edition adds a new 
provision--for intermediate, drilling and construction duty cranes--
requiring load moment indicator systems that sense load and lifting 
conditions when the crane is in use, compare those conditions to the 
crane's rated capacity, and alert the operator when the crane 
approaches an overload condition (e.g., the overturning moment)).
--Personnel capacity and Safe Working Load (SWL) calculations (i.e., 
the Seventh Edition provides more precise methods for calculating the 
SWL, and increases the capacity for safely hoisting personnel from 35 
percent, under the Sixth Edition, to 50 percent of the SWL).

    In addition, section 4 (``Documentation'') of the Seventh Edition 
of API Spec. 2C requires purchasers to supply certain information to 
manufacturers prior to purchasing a crane--and manufacturers to supply 
certain documentation to the purchaser--in order to ensure that cranes 
are designed and manufactured, in compliance with the Seventh Edition, 
to perform safely and properly under the conditions in which the cranes 
are expected to be used.

Discussion of Proposed Amendments

    BSEE has reviewed the Seventh Edition of API Spec. 2C and 
determined that the revised edition should be incorporated into the 
regulations to ensure that lessees and operators are complying with the 
latest consensus industry practices and standards for cranes. If the 
Seventh Edition is incorporated into BSEE's regulations, it will 
require the use of up-to-date industry standard technology, processes, 
and design criteria to ensure that fixed platform operators mount 
cranes designed to operate safely in difficult offshore conditions. For 
example, the failure mode calculations and gross overload protection 
provisions in the Seventh Edition of API Spec. 2C would help reduce the 
potential risk of injury to personnel by, among other things:

--Addressing the possibility of supply boat entanglement;
--Improving crane operator safety in the event of an unbounded gross 
overload (e.g., supply boat entanglement) without increasing the risk 
to other personnel from the crane dropping its load; and
--Using a higher factor of safety for the pedestal/slew bearing to 
ensure that the main crane structure and operator cabin remain attached 
to the platform during a catastrophic event.

    Similarly, the Seventh Edition's provision for dual braking systems 
would improve hoisting efficiency and decrease stress on the crane 
motor and, thus, help prevent both unintended load drops and motor 
malfunctions. In addition, the Load Moment Indicator System provision 
would improve safety by alerting the operator (e.g., with bells, 
warning lights, buzzers) when a crane is approaching a critical 
overload condition, giving the operator a better chance to prevent the 
crane from overturning or causing other safety problems. Likewise, the 
Seventh Edition's improved method for calculating a crane's SWL 
justifies increasing the personnel capacity to 50 percent of the SWL, 
which, in turn, should reduce both the number of hoists needed to 
safely move the same number of people (as compared to the Sixth 
Edition) and the cumulative risk inherent in multiple hoists.
    Therefore, BSEE is proposing to amend Sec. Sec.  250.108 and 
250.198(h)(69) to incorporate, and to require that lessees and 
operators ensure compliance with, the Seventh Edition of API Spec. 2C 
for all cranes mounted after the effective date of the final rule on 
any fixed OCS platform without regard to when the platform was 
installed on the OCS.
    Unlike the current regulations, compliance with the Seventh Edition 
of API Spec. 2C would not be tied to the date of manufacture of the 
crane or the date that the fixed platform was installed on the OCS. The 
original promulgation of Sec.  250.108(c) and (d) in 2003 marked the 
first time that MMS required lessees and operators to ensure that the 
cranes on fixed platforms complied with the criteria of the version of 
API Spec. 2C then in effect (i.e., the Fifth Edition). Accordingly, MMS 
initially made Sec.  250.108(c) and (d) applicable only to cranes that 
were manufactured after the effective date of that final rule (March 
17, 2003) and then mounted on any fixed platform (regardless of the 
platform's installation date), as well as to all cranes (regardless of 
their manufacture dates) mounted on any fixed platform that was 
installed on the OCS after March 17, 2003. Thus, lessees and operators 
could become familiar with, and plan for compliance with, the new 
regulatory requirement before mounting new cranes or installing new 
platforms.
    In 2007, when MMS amended Sec. Sec.  250.108(c) and (d) and 250.198 
to require compliance with the Sixth Edition of API Spec. 2C in lieu of 
the Fifth Edition, MMS retained the original threshold applicability 
date (March 17, 2003) in Sec.  250.108 for manufacture of cranes and 
for installation of platforms. There was no need at that time to change 
the threshold date because the criteria for design and manufacture of 
cranes in the Sixth Edition were very similar to those in the Fifth 
Edition, which had been in effect under Sec.  250.108 since March 2003.
    By contrast, the Seventh Edition of API Spec. 2C makes significant 
changes to the criteria in the Sixth Edition. These changes will result 
in improvements, as previously described, to safety and personnel 
protection on fixed platforms. Cranes that meet the specifications of 
the Sixth Edition may not necessarily meet all of the specifications of 
the Seventh Edition and would not necessarily achieve the same level of 
safety afforded by cranes that meet the specifications of the Seventh 
Edition.
    In light of those changes, and the fact that the industry has been 
required to comply with prior editions of API Spec. 2C for over 10 
years, the original March 2003 threshold applicability date is no

[[Page 34116]]

longer necessary or appropriate. Thus, we propose that operators and 
lessees ensure that all cranes that they mount on any fixed OCS 
platforms after the effective date of the new final rule comply with 
the criteria in the Seventh Edition of API Spec. 2C, without regard to 
the fixed platforms' installation dates or the cranes' manufacture 
dates. Because crane manufacturers and offshore lessees and operators 
have been familiar with, and voluntarily using, the Seventh Edition of 
API Spec. 2C since October 2012, this proposed requirement should not 
require significant changes in lessees' and operators' ordinary 
business practices. Moreover, the proposed rule would effectively 
eliminate a potential anomaly in the existing rules that arguably could 
be read to imply that cranes manufactured before March 2003 may 
continue to be mounted on platforms that were installed on the OCS 
before March 2003 without complying with any version of API Spec. 2C.
    We also propose, in accordance with Sec.  250.108(c) and (d) of the 
current regulations, to allow lessees and operators to continue to use 
cranes that comply with the Sixth Edition of API Spec. 2C if they mount 
(or mounted) a crane on a fixed platform between March 17, 2003, and 
the effective date of the new final rule and:

--The fixed platform was installed on the OCS between March 17, 2003, 
and the effective date of the final regulation; or
--the crane was manufactured after March 17, 2003, and before the 
effective date of the final rule.

    However, because the Seventh Edition of API Spec. 2C has been in 
voluntary use by the industry since October 2012, we propose to amend 
Sec.  250.108 to give lessees and operators the option of ensuring that 
any cranes mounted after October 2012 and before the effective date of 
the new final rule comply with the Seventh Edition of API Spec. 2C in 
lieu of the Sixth Edition. Currently, Sec.  250.198(c) allows a lessee 
or operator to comply with a later edition of any incorporated 
standard, provided that the lessee or operator shows that the later 
edition is at least as protective as the incorporated standard and 
obtains prior written approval from BSEE. The proposed amendment to 
allow compliance with either the Sixth or Seventh Edition for cranes 
mounted between October 2012 and the effective date of the new final 
rule would simply eliminate the need for such a showing and for prior 
BSEE approval.
    Finally, we propose to add a new definition to Sec.  250.105 for 
``fixed platform,'' solely as used in Sec.  250.108. The Sixth Edition 
of API Spec. 2C used and defined the term ``fixed platform'' in 
virtually the same way as that term is currently defined in API 
Recommended Practice 2D, ``Operation and Maintenance of Offshore 
Cranes'' (Sixth Edition, May 2007) (API RP 2D), which is incorporated 
by reference in Sec.  250.108(a). However, the Seventh Edition of API 
Spec. 2C largely replaced the term ``fixed platform'' with the term 
``bottom-supported structure,'' which is defined in a way very similar 
to the definition of ``fixed platform'' in the Sixth Edition of API 
Spec. 2C. In fact, the Seventh Edition of API Spec. 2C frequently uses 
the terms ``bottom-supported structure'' and ``fixed platform'' 
interchangeably.
    To avoid confusion, however, we propose to add to Sec.  250.105 a 
definition of ``fixed platform,'' as used in Sec.  250.108, that is 
consistent with the definition of ``bottom-supported structure'' in the 
Seventh Edition of API Spec. 2C, as well as with the definition of 
``fixed platform'' in API RP 2D. In addition, the proposed new 
definition would be compatible with the definition of ``fixed 
platform'' in API RP 2A-WSD, ``Recommended Practice for Planning, 
Designing, and Constructing Fixed Offshore Platforms--Working Stress 
Design'' (Twenty-first Edition, reaffirmed October 2010) and with the 
definition of OCS ``facility'' in 30 CFR 250.105.

Consistency With United States Coast Guard (USCG) Proposed Rule

    On May 13, 2013, the USCG proposed to incorporate the Seventh 
Edition of API Spec. 2C into USCG regulations at 46 CFR parts 107 
through 109 for cranes installed on mobile offshore drilling units 
(MODUs), offshore supply vessels (OSVs), and floating OCS facilities 
(see 78 FR 27913). Because this BSEE-proposed rule would apply only to 
cranes mounted on offshore fixed platforms--which, as defined in 
proposed Sec.  250.105, do not include MODUs, OSVs, or floating OCS 
facilities--there is no duplication between the USCG proposal and this 
proposed rule. Similarly, the USCG-proposed rule would not duplicate or 
conflict with the current BSEE requirements at Sec.  250.108 because 
the existing BSEE requirements apply only to fixed platforms. In any 
case, the USCG proposal is essentially consistent with our proposed 
rule in that USCG would require offshore cranes used for OCS 
activities, and mounted after the effective date of USCG's final rule, 
to comply with the Seventh Edition of API Spec. 2C.\4\ In fact, USCG 
intends that its proposed rule align with BSEE's requirements for 
cranes used on offshore fixed platforms (see 78 FR 27914).\5\
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    \4\ The USCG also proposed to provide an option for compliance 
with ``other equivalent standard[s] identified by [the] Commandant'' 
in lieu of compliance with the Seventh Edition of API Spec. 2C (78 
FR 27924). The existing BSEE regulations also provide a process for 
seeking BSEE's approval to use alternate procedures or equipment 
under appropriate conditions (see 30 CFR 250.141).
    \5\ Although the Seventh Edition of API Spec. 2C has no size 
limitations on its applicability to cranes, USCG proposes to apply 
that standard (as well as the Sixth Edition of API RP 2D) only to 
cranes with a lifting capacity of 10,000 pounds or more (see 78 FR 
27915.) There is no such size threshold in BSEE's current 
regulations at 30 CFR 250.108, and we do not propose to create one. 
In fact, Sec.  250.108 is intended to include smaller cranes used 
for material handling purposes on fixed platforms.
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    The USCG proposal would also incorporate, and require compliance 
with, the Sixth Edition of API RP 2D for operation and maintenance of 
cranes on MODUs, OSVs, and floating OCS facilities in 46 CFR parts 107-
109 (see 78 FR 27915). The existing BSEE regulations, at Sec. Sec.  
250.108(a) and 250.198(h)(48), already require that lessees and 
operators operate cranes on fixed platforms in accordance with the 
Sixth Edition of API RP 2D. We are aware, however, that API published a 
Seventh Edition of RP 2D in December 2014. We will evaluate that 
revised standard and consider whether it should be incorporated by 
reference in Sec.  250.108(a) at a later date.

Request for Comments on Quality Control

    In addition to proposing to require lessees and operators to ensure 
that the cranes on their fixed platforms comply with the Seventh 
Edition of API Spec. 2C, we are considering whether there are ways to 
verify that new cranes have been fabricated pursuant to that API 
standard. For example, we are considering whether lessees and operators 
should ensure that cranes mounted on their fixed platforms in the 
future are constructed and marked in accordance with a quality 
management system such as API Specification Q1, ``Specification for 
Quality Programs for the Petroleum, Petrochemical and Natural Gas 
Industry,'' Ninth Edition (2014) (API Spec. Q1). Accordingly, we 
request comments on whether API Spec. Q1, or any similar quality 
management systems (such as those found in the International Standards 
Organization 9000 collection of standards), could help to ensure the 
overall reliability and safety of cranes.

[[Page 34117]]

Procedural Matters

Regulatory Planning and Review (Executive Orders 12866 and 13563)

    Executive Order 12866 (E.O. 12866) provides that the Office of 
Management and Budget (OMB), Office of Information and Regulatory 
Affairs (OIRA), will review all significant rules. BSEE has determined 
that this proposed rule is not a significant regulatory action as 
defined by section 3(f) of E.O. 12866 because:

--It is not expected to have an annual effect on the economy of $100 
million or more;
--It would not adversely affect in a material way the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or State, local, or tribal governments or communities;
--It would not create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency;
--It would not alter the budgetary impact of entitlements, grants, user 
fees, or loan programs, or the rights or obligations of their 
recipients; and
--It does not raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
E.O. 12866.

    In particular, BSEE has determined that this proposed rule would 
not have a significant economic effect on the offshore oil and gas 
industry because BSEE includes existing industry standards in the 
baselines for economic analyses for regulations. OMB Circular A-4, 
which provides guidance to Federal agencies on the preparation of 
economic analyses under E.O. 12866, states that the economic baseline 
represents the agency's best assessment of what the world would be like 
absent the action. Thus, the baseline should include all practices that 
already exist, and that would continue to exist, even if the new 
regulations were never imposed.
    Since consensus industry standards represent generally accepted 
industry practices and expectations for use in operations, and are 
developed and written by industry experts and approved by the industry 
itself, we understand and expect that industry follows such standards 
(or similar best practices) to ensure safety and reliability of 
operations. Therefore, BSEE includes relevant existing standards in the 
baseline when considering the potential economic impacts of its 
regulatory actions. Accordingly, because this proposed rule would 
simply incorporate the Seventh Edition of API Spec. 2C, which has been 
in effect since October 2012, BSEE has not prepared an economic 
analysis for, and OIRA has not reviewed, this proposed rule.
    Executive Order 13563 (E.O. 13563) reaffirms the principles of E.O. 
12866 while calling for improvements in the nation's regulatory system 
to promote predictability, to reduce uncertainty, and to use the best, 
most innovative, and least burdensome tools for achieving regulatory 
ends. In addition, E.O. 13563 directs agencies to consider regulatory 
approaches that reduce burdens and maintain flexibility and freedom of 
choice for the public where these approaches are relevant, feasible, 
and consistent with regulatory objectives. It also emphasizes that 
regulations must be based on the best available science and that the 
rulemaking process must allow for public participation and an open 
exchange of ideas. We developed this proposed rule in a manner 
consistent with these requirements.

Regulatory Flexibility Act

    BSEE certifies that this proposed rule would 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.). The changes that 
would be incorporated by this proposed rule could affect lessees and 
operators of leases on the OCS who install new fixed platforms or new 
cranes on existing fixed platforms. This could include about 130 active 
companies. Offshore lessees and operators fall under the Small Business 
Administration's 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 90 (or 69 percent) of the active lessee/operator 
companies are considered small. Thus, this proposed rule would affect a 
substantial number of small entities. However, because the proposed 
rule simply incorporates an existing standard that has been adopted and 
followed by industry voluntarily since 2012, it would not impose 
significant new costs or burdens on the offshore oil and gas industry. 
Accordingly, the changes in the proposed rule would not have a 
significant economic effect on a substantial number of small entities, 
and BSEE is not required by the Regulatory Flexibility Act to prepare 
an initial regulatory flexibility analysis for this proposed rule.
    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 BSEE, call 1-888-
734-3247. You may comment to the Small Business Administration (SBA) 
without fear of retaliation. Allegations of discrimination/retaliation 
filed with the SBA will be investigated for appropriate action.

Small Business Regulatory Enforcement Fairness Act

    This proposed rule is not a major rule under the Small Business 
Regulatory Enforcement Fairness Act (5 U.S.C. 801 et seq.). This 
proposed rule would not:

--Have an annual effect on the economy of $100 million or more;
--Cause a major increase in costs or prices for consumers, individual 
industries, Federal, State, or local government agencies, or geographic 
regions; or
--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 of 1995

    This proposed rule would not impose an unfunded mandate on State, 
local, or tribal governments or the private sector of more than $100 
million per year. This proposed rule would not have a significant or 
unique effect on State, local, or tribal governments or the private 
sector. Thus, a statement containing the information required by the 
Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1501, et seq.) is not 
required.

Takings Implication Assessment (Executive Order 12630)

    Under the criteria in Executive Order 12630, this proposed rule 
would not have significant takings implications. This proposed rule is 
not a governmental action capable of interference with constitutionally 
protected property rights. Thus, a Takings Implication Assessment is 
not required.

Federalism (Executive Order 13132)

    Under the criteria in Executive Order 13132, this proposed rule 
would not

[[Page 34118]]

have federalism implications. This proposed rule would not 
substantially and directly affect the relationship between the Federal 
and State governments. To the extent that State and local governments 
have a role in OCS activities, this proposed rule would not affect that 
role. Accordingly, a Federalism Assessment is not required.

Civil Justice Reform (Executive Order 12988)

    This proposed rule complies with the requirements of Executive 
Order 12988 (E.O. 12988). Specifically, this rule:

--Would meet the criteria of section 3(a) of E.O. 12988 requiring that 
all proposed regulations be reviewed to eliminate drafting errors and 
ambiguity, be written to minimize litigation, and provide clear legal 
standards; and
--Would meet the criteria of section 3(b)(2) of E.O. 12988 requiring 
that all regulations be written in clear language and contain clear 
legal standards.

Consultation With Indian Tribes (Executive Order 13175)

    We have evaluated this proposed rule under the Department's tribal 
consultation policy and under the criteria in Executive Order 13175 and 
have determined that it would have no substantial effects on federally 
recognized Indian tribes and that consultation under the department's 
policy is not required.

Paperwork Reduction Act of 1995 (PRA)

    BSEE has determined that this proposed regulation does not contain 
new information collection requirements pursuant to the PRA (44 U.S.C. 
3501 et seq.). Thus, we will not submit an information collection 
request to OMB.

National Environmental Policy Act of 1969 (NEPA)

    This proposed rule meets the criteria set forth in 516 Departmental 
Manual (DM) 15.4C(1) for a categorical exclusion because it involves 
modification of existing regulations, the impacts of which would be 
limited to administrative, economic, or technological effects with 
minimal environmental impacts.
    We also analyzed this proposed rule to determine if it meets any of 
the extraordinary circumstances set forth in 43 CFR 46.215, that would 
require an environmental assessment or an environmental impact 
statement for actions otherwise eligible for a categorical exclusion. 
We concluded that this rule does not meet any of the criteria for 
extraordinary circumstances.

Data Quality Act

    In developing this proposed 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 sec. 515, 114 Stat. 2763, 2763A-
153-154).

Effects on the Nation's Energy Supply (Executive Order 13211)

    This proposed rule would not be a significant energy action under 
Executive Order 13211 because:

--It is not a significant regulatory action under E.O. 12866;
--It is not likely to have a significant adverse effect on the supply, 
distribution or use of energy; and
--It has not been designated as a significant energy action by the 
Administrator of OIRA.

    Thus, a Statement of Energy Effects is not required.

Clarity of This Regulation (Executive Orders 12866 and 12988)

    We are required by Executive Orders 12866 and 12988, and by the 
Presidential Memorandum of June 1, 1998, to write all rules in plain 
language. This means that each rulemaking we publish must:

--Be logically organized;
--Use the active voice to address readers directly;
--Use clear language rather than jargon;
--Be divided into short sections and sentences; and
--Use lists and tables wherever possible.

    If you feel that we have not met these requirements, send us 
comments by one of the methods listed in the ADDRESSES section. To 
better help us revise the rule, your comments should be as specific as 
possible. For example, you should tell us the numbers of the sections 
or paragraphs that you find unclear, which sections or sentences are 
too long, and the sections where you feel lists or tables would be 
useful.

List of Subjects in 30 CFR Part 250

    Continental shelf, Environmental impact statements, Environmental 
protection, Government contracts, Incorporation by reference, 
Investigations, Mineral royalties, Oil and gas development and 
production, Oil and gas exploration, Oil and gas reserves, Penalties, 
Pipelines, Reporting and recordkeeping requirements, Sulphur 
development and production, Sulphur exploration.

    Dated: June 7, 2015.
Janice M. Schneider,
Assistant Secretary, Land and Minerals Management.

    For the reasons stated in the preamble, the Bureau of Safety and 
Environmental Enforcement (BSEE) proposes to amend 30 CFR part 250 as 
follows:

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

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

    Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 43 U.S.C. 1334.

0
2. Amend Sec.  250.105 by adding, in alphabetical order, a definition 
of ``Fixed platform,'' to read as follows:


Sec.  250.105  Definitions.

* * * * *
    Fixed platform, as used in 30 CFR 250.108, means a bottom-supported 
stationary structure extending above the ocean surface, without 
significant movement in response to waves or currents in normal 
operating conditions, and installed for the purpose of exploration, 
development, or production of oil, gas or sulphur on the OCS. Examples 
of a fixed platform include gravity-based or jacket-and-pile supported 
platforms, jackup rigs (once in position and bottom-supported), and 
submersible bottom-supported rigs.
* * * * *
0
3. Amend Sec.  250.108 as follows:
0
a. Revise paragraphs (c) and (d);
0
b. Redesignate paragraphs (e) and (f) as paragraphs (f) and (g), 
respectively; and
0
c. Add new paragraph (e).
    The revisions and additions read as follows:


Sec.  250.108  What requirements must I follow for cranes and other 
material-handling equipment?

* * * * *
    (c) If you installed a fixed platform after March 17, 2003, and 
before [EFFECTIVE DATE OF THE FINAL RULE]:
    (1) All cranes mounted on the fixed platform on or after March 17, 
2003, and before October 1, 2012, must meet the requirements of 
American Petroleum Institute Specification for Offshore Pedestal-
mounted Cranes (API Spec. 2C), Sixth Edition (2004), as incorporated by 
reference in Sec.  250.198(h)(69)(i); and
    (2) All cranes mounted on the fixed platform on or after October 1, 
2012, and before [EFFECTIVE DATE OF FINAL RULE], must meet either the

[[Page 34119]]

requirements of API Spec. 2C, Sixth Edition, or API Spec. 2C, Seventh 
Edition (2012), as incorporated by reference in Sec.  
250.198(h)(69)(ii).
    (d) If you installed a fixed platform before March 17, 2003, and 
mounted a crane on the fixed platform before [EFFECTIVE DATE OF FINAL 
RULE], and
    (1) The crane was manufactured after March 17, 2003, and before 
October 1, 2012, the crane must meet the requirements of API Spec. 2C, 
Sixth Edition;
    (2) The crane was manufactured on or after October 1, 2012, the 
crane must meet either the requirements of API Spec. 2C, Sixth Edition, 
or API Spec. 2C, Seventh Edition.
    (e) If you mount a crane on a fixed platform after [EFFECTIVE DATE 
OF FINAL RULE], the crane must meet the requirements of API Spec. 2C, 
Seventh Edition.
* * * * *
0
4. Amend Sec.  250.198 by revising paragraph (h)(69) to read as 
follows:


Sec.  250.198  Documents incorporated by reference.

* * * * *
    (h) * * *
    (69) API Spec. 2C, Specification for Offshore Pedestal-mounted 
Cranes:
    (i) Sixth Edition, March 2004, Effective Date: September 2004, API 
Stock No. G02C06; incorporated by reference at Sec.  250.108(c) and 
(d);
    (ii) Seventh Edition, March 2012, Effective Date: October 2012, API 
Product No. G02C07; incorporated by reference at Sec.  250.108(c), (d) 
and (e);

* * * * *

[FR Doc. 2015-14640 Filed 6-12-15; 8:45 am]
BILLING CODE 4310-VH-P