[Federal Register Volume 81, Number 222 (Thursday, November 17, 2016)]
[Proposed Rules]
[Pages 81033-81049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27500]


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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

30 CFR Part 250

[Docket ID: BSEE-2016-0003; 17XE1700DX EEEE500000 EX1SF0000.DAQ000]
RIN 1014-AA31


Adjustments to Cost Recovery Fees Relating to the Regulation of 
Oil, Gas, and Sulfur Activities on the Outer Continental Shelf

AGENCY: Bureau of Safety and Environmental Enforcement, Interior.

ACTION: Proposed rule.

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SUMMARY: The Bureau of Safety and Environmental Enforcement (BSEE) 
currently charges a fee for 31 different services (hereafter ``cost 
recovery fees'') it provides to non-Federal recipients. The services 
were identified by BSEE's predecessor agency, the Minerals Management 
Service (MMS). This proposed rule would revise and clarify the existing 
fees; add new fees for certain services; revise and codify the existing 
conditions for refunding fees; and clarify the acceptable methods of 
fee payment. This proposed rule would enable BSEE to recover its full 
costs associated with providing these services to recipients of special 
benefits beyond those accruing to the general public.

DATES: BSEE will consider all comments received by January 17, 2017. 
BSEE may not consider comments received after this date. Submit 
comments to the Office of Management and Budget (OMB) on the 
information collection burden in this proposed rule by December 19, 
2016.

ADDRESSES: You may submit comments on the proposed rule by any of the 
following methods. Please use the Regulatory Identifier Number (RIN) 
1014-AA31 as an identifier to your message. See also Public 
Availability of Comments under Procedural Matters.
     Submit comments electronically. Go to http://www.regulations.gov and search for ``BSEE-2016-0003.'' Follow the 
instructions to submit public comments and view supporting and related 
materials available for this rulemaking. BSEE will post all relevant 
comments.
     Mail or hand-carry comments to the Department of the 
Interior (DOI); Bureau of Safety and Environmental Enforcement; 
Attention: Regulations and Standards Branch; 45600 Woodland Road, 
Sterling, VA 20166. Please reference Adjustment of Service Fees 
Relating to the Regulation of Oil, Gas, and Sulfur Activities on the 
Outer Continental Shelf, AA31 in your comments and include your name 
and return address.
     Comments on the information collection contained in this 
proposed rule are separate from those on the substance of the proposed 
rule. Send comments on the information collection burden in this rule 
to: OMB, Interior Desk Officer, 202-395-5806 (fax); email 
[email protected]. Please also send a copy to BSEE at 
[email protected], fax number (703) 787-1546, or by the address listed 
above.
     Public Availability of Comments--Before including your 
address, phone number, email address, or other personal identifying 
information in your comment, you should be aware that your entire 
comment--including your personal identifying information--may be made 
publicly available at any time. While you can ask us in your comment to 
withhold your personal identifying information from public review, we 
cannot guarantee that we will be able to do so.

FOR FURTHER INFORMATION CONTACT: Kimberly Monaco, Budget Analyst, 
Office of Budget at (703) 787-1658, [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background
    A. BSEE Statutory and Regulatory Authority
    B. Summary of Existing Cost Recovery Fees Regulations and Basis 
for Proposed Amendments
    C. Request for Comments on Potential Future Fees
II. Procedural Matters

I. Background

A. BSEE Statutory and Regulatory Authority

    In accordance with the Independent Offices Appropriation Act, 1952, 
31 U.S.C. 9701 and the Office of Management and Budget (OMB) Circular 
A-25,\1\ BSEE is required to assess a charge against each identifiable 
non-Federal recipient of special benefits derived from BSEE services 
beyond those received by the public at large. The charge BSEE assesses 
is legally sufficient if it recovers BSEE's full cost to provide the 
service.
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    \1\ Office of Management and Budget (OMB) Circular A-25 Revised, 
User Charges, July 8, 1993, and Transmittal Memorandum 1.
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    OMB Circular A-25 requires a Federal agency to conduct a biennial 
review of its user charges to determine whether adjustments are 
necessary and to review other agency programs to determine whether new 
fees should be established for any services it provides. BSEE reviewed 
its 31 services and pre-production site visits along with the 
associated cost recovery fees to determine whether the cost of 
providing each of the services supports the existing fee structure in 
the existing regulations. BSEE's methodology for calculating its direct 
and indirect costs to perform the 31 services and the pre-production 
site visits is found later in this document. Results from the direct 
and indirect cost calculations indicate that 17 fees should be 
increased, eight fees reduced, and six fees subdivided into two tiers 
by complexity, with six of the subdivided fees increasing above the 
existing undivided fee, and six decreasing. The results also indicate 
that the existing pre-production site visit fees for two of the 
facility production safety system applications should be decreased for 
visits to facilities offshore and increased for visits to facilities 
while in a shipyard. Finally, the results suggest that new pre-
production site visit fees should be implemented for the four facility 
production safety system applications that did not previously include 
site visit fees. The details of these proposed fees are shown in the 
Service Fee Table later in this document.
    The fees are codified in BSEE's regulations at 30 CFR 250.125(a). 
This proposed rule would: (1) Amend 31 of the cost recovery fees in 
existing Sec.  250.125; (2) establish two tiers of fees within the 
Deepwater Operations Plans (DWOPs), New Pipeline Applications, Pipeline 
Modification Applications for both Lease Term and Right-of-way (ROW) 
Pipelines, ROW Pipeline Grant Applications, and Unitization Revisions 
fee categories; (3) add four new pre-production site visit cost 
recovery fees to the existing two pre-production site visit fees to 
support the review and approval, if necessary, of production

[[Page 81034]]

safety system applications; (4) revise the two existing pre-production 
site visit cost recovery fees; (5) amend and codify conditions for 
granting fee payment refunds in the existing Notice to Lessees and 
Operators (NTL) No. 2009-N09; \2\ (6) amend Sec.  250.126 to provide 
clarification on the payment of cost recovery fees and the acceptable 
payment methods; and 7) include descriptions of the two complexity-
based levels of service fees in 30 CFR 250.292 (DWOPs), Sec.  250.1000 
(Applications to install or modify lease term pipelines), Sec.  
250.1015 (Applications for pipeline ROW grants)), and Sec.  250.1303 
(Requests for voluntary unitization).
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    \2\ Minerals Management Service, MMS Policy on Refund Requests 
for Service Fees, NTL No. 2009-N09, November 1, 2009.
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    In addition to BSEE's in-depth review of the bureau's existing cost 
recovery fees, the need for adjustments is further supported by the 
fact that, with the exception of adjustments for inflation, BSEE's cost 
recovery fees have not been adjusted since the 2005 and 2006 
rulemakings establishing the fees (see 70 FR 49871 (August 25, 2005) 
and 71 FR 40904 (July 19, 2006)). Over the last ten years, offshore 
operations have moved into deeper, more complex, and more hostile 
environments. This evolution of offshore operations has resulted in 
increasingly technical and more complex requests submitted by 
operators. Reviewing and approving these requests requires extensive 
communication and collaboration between offshore operators, BSEE 
engineers, and BSEE subject matter experts (SMEs) who are knowledgeable 
about the safety and environmental aspects of the current technologies 
and operational challenges, which require additional time and more 
experienced, senior-level individuals at higher pay grades to review 
and approve. In addition, the Consolidated Appropriations Act of 2012 
authorized BSEE to ``establish higher minimum rates of basic pay for 
employees of the Department of the Interior in the Gulf of Mexico 
Region in the Geophysicist (GS-1313), Geologist (GS-1350), and 
Petroleum Engineer (GS-0881) job series at grades 5 through 15 at rates 
no greater than 25 percent above the minimum rates of basic pay 
normally scheduled . . .'' Public Law 112-74, sec. 121(c) (Dec. 23, 
2011). In August 2015, the Office of Personnel Management (OPM) 
increased the special pay for the job series identified in Public Law 
112-74, sec. 121(c) (Dec. 23, 2011) to 35 percent above basic pay and 
also used its authority to establish the same 35 percent special pay 
rate for the Inspectors (GS-1801) job series. These special pay rates 
have allowed the Bureau to be competitive with the oil and gas industry 
in attracting and retaining qualified personnel, but have increased the 
bureau's personnel costs. For these reasons, BSEE's costs to provide 
certain services have increased over the levels set out in the existing 
regulations including, but not limited to, the costs to process 
applications for permits to drill and applications for permits to 
modify. For other services, the proposed fees may be lower than the 
existing fees due to an overall reduced cost to provide those services 
(i.e., efficiencies).
    The proposed adjustments are based on an analysis of BSEE's costs 
for providing services from fiscal year (FY) 2013 to FY 2015. The 
proposed fee adjustments are necessary to more accurately align fees 
with the cost of BSEE's services provided to the non-Federal 
recipients. BSEE invites comments on each of the proposed fee 
adjustments described later in this document.

B. Summary of Existing Cost Recovery Fees Regulations and Basis for 
Proposed Amendments

    Existing Sec. Sec.  250.125 and 250.126 set out the amount of cost 
recovery fees for each BSEE service and provide instructions for making 
payments. Section 250.125(a) lists the 31 cost recovery fees currently 
imposed by BSEE for specific services. Section 250.125(b) requires that 
payment of the applicable fee(s) must accompany the request for service 
and provides that all fees are non-refundable. Section 250.125(c) 
requires the submission of a written request and accompanying payment 
within 72 hours of a BSEE verbal approval. Section 250.126 requires 
that all cost recovery fees be paid electronically through www.pay.gov.
    BSEE proposes to amend Sec.  250.125 by revising the fees for 
specific services based on its in-depth review and incorporating 
guidance from NTL No. 2009-N09 regarding conditions for granting fee 
payment refunds. BSEE proposes amendments to Sec.  250.126 to provide 
clarification on the payment of cost recovery fees and the acceptable 
payment methods. BSEE also proposes to amend the following other 
sections of 30 CFR part 250 that are subject to the proposed Sec.  
250.125 amendments in this document: Sec.  250.292 (DWOPs); Sec.  
250.1000 (Applications to install or modify lease term pipelines); 
Sec.  250.1015 (Applications for pipeline ROW grants); and Sec.  
250.1303 (Requests for voluntary unitization).
What Fees Would This Proposed Rule Adjust?
    BSEE is proposing adjustments to its 31 existing cost recovery fees 
to fully account for the costs of providing the services listed in the 
Service Fee Table below. Additionally, BSEE is proposing to amend Sec.  
250.125(a) to:
    1. Subdivide into two categories and add different fee levels for 
six types of cost recovery fees (DWOPs, New Pipeline Applications, 
Pipeline Modification Applications for both Lease Term and ROW 
Pipelines, ROW Pipeline Grant Applications, and Unitization Revisions) 
to accurately reflect the varying levels of complexity of the requested 
services and the corresponding levels of costs to BSEE from providing 
those services; \3\ and
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    \3\ The complexity-based fees for these services are specified 
in proposed Sec. Sec.  250.125(a)(2), (15)-(17), (19), and (28) and 
in the Service Fee Table in this document.
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    2. Add four new pre-production site visit fees and revise the two 
existing pre-productions site visit fees to support the review and 
approval of production safety system applications, if a site visit is 
deemed necessary. These new and revised site visit fees are proposed to 
be included in Sec. Sec.  250.125(a)(5)-(10).
The following table lists the type of service to be performed by BSEE 
when it receives a plan, application, permit, or other request; the 
associated regulatory citation for each type of request; the existing 
and proposed fee; and the proposed acceptable payment type for each 
service. The proposed payment types are credit card and electronic 
check through the Automated Clearing House (ACH-debit). Because the 
current U.S. Treasury limit on credit card payments is $24,999.99, an 
ACH-debit must be used for payments of $25,000 or more.
    In the Service Fee Table below, the existing regulations are in 
regular font; proposed text is in italic font; and new fees are in bold 
font. The fifth column, payment type, is provided to explain the 
options for payment for a particular service.

[[Page 81035]]



                                                Service Fee Table
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  Service--processing of the
          following:             30 CFR citation       Existing fee           Proposed fee        Payment type
----------------------------------------------------------------------------------------------------------------
(1) Suspension of Operations/   Sec.              $2,123...............  $3,055...............  Credit Card or
 Suspension of Production (SOO/  250.171(e).                                                     ACH-debit.
 SOP) Request.
(2) Deepwater Operations Plan.  Sec.              $3,599...............
                                 250.292(q).
(a) Deepwater Operations Plan-- ................  .....................  $14,290..............  Credit Card or
 Simple.                                                                                         ACH-debit.
(b) Deepwater Operations Plan-  ................  .....................  $70,333..............  ACH-debit Only.
 Complex (New Technology).
(3) Application for Permit to   Sec.              $2,113...............  $10,420..............  Credit Card or
 Drill (APD; Form BSEE-0123).    250.410(d);                                                     ACH-debit.
                                 Sec.
                                 250.513(b);
                                 Sec.
                                 250.1617(a).
(4) Application for Permit to   Sec.              $125.................  $1,680...............  Credit Card or
 Modify (APM; Form BSEE-0124).   250.465(b);                                                     ACH-debit.
                                 Sec.
                                 250.513(b);
                                 Sec.
                                 250.613(b);
                                 Sec.
                                 250.1618(a);
                                 Sec.
                                 250.1704(g).
(5) New Facility Production     Sec.   250.842..  $5,426...............  $3,976...............  Credit Card or
 Safety System Application for                    $14,280 additional     $13,534 additional      ACH-debit.
 Facility with More than 125                       fee will be charged    fee will be charged
 Components.                                       if BSEE conducts a     if BSEE conducts a
                                                   pre-production         pre-production
                                                   inspection of a        inspection of a
                                                   facility offshore,     facility offshore,
                                                   and $7,426 for an      and $14,567 for an
                                                   inspection of a        inspection of a
                                                   facility while in a    facility while in a
                                                   shipyard.              shipyard.
                                                  A component is a       A component is a
                                                   piece of equipment     piece of equipment
                                                   or an ancillary        or an ancillary
                                                   system that is         system that is
                                                   protected by one or    protected by one or
                                                   more of the safety     more of the safety
                                                   devices required by    devices required by
                                                   American Petroleum     API RP 14C (as
                                                   Institute (API)        incorporated by
                                                   Recommended Practice   reference in Sec.
                                                   (RP) 14C (as           250.198).
                                                   incorporated by
                                                   reference in Sec.
                                                   250.198).
(6) New Facility Production     Sec.   250.842..  $1,314...............  $548.................  Credit Card or
 Safety System Application for                    $8,967 additional fee  $8,508 additional fee   ACH-debit.
 Facility with 25-125                              will be charged if     will be charged if
 Components.                                       BSEE conducts a pre-   BSEE conducts a pre-
                                                   production             production
                                                   inspection of a        inspection of a
                                                   facility offshore,     facility offshore,
                                                   and $5,141 for an      and $9,818 for an
                                                   inspection of a        inspection of a
                                                   facility while in a    facility while in a
                                                   shipyard.              shipyard.
(7) New Facility Production     Sec.   250.842..  $652.................  $463.................  Credit Card or
 Safety System Application for                                           $4,338 additional fee   ACH-debit.
 Facility with Fewer than 25                                              will be charged if
 Components.                                                              BSEE conducts a pre-
                                                                          production
                                                                          inspection of a
                                                                          facility offshore,
                                                                          and $1,967 for an
                                                                          inspection of a
                                                                          facility while in a
                                                                          shipyard.
(8) Production Safety System    Sec.   250.842..  $605.................  $1,278...............  Credit Card or
 Application--Modification                                               $9,313 additional fee   ACH-debit.
 with More than 125 Components                                            will be charged if
 Reviewed.                                                                BSEE conducts a pre-
                                                                          production
                                                                          inspection of a
                                                                          facility offshore,
                                                                          and $8,100 for an
                                                                          inspection of a
                                                                          facility while in a
                                                                          shipyard.
(9) Production Safety System    Sec.   250.842..  $217.................  $439.................  Credit Card or
 Application--Modification                                               $6,765 additional fee   ACH-debit.
 with 25-125 Components                                                   will be charged if
 Reviewed.                                                                BSEE conducts a pre-
                                                                          production
                                                                          inspection of a
                                                                          facility offshore,
                                                                          and $7,326 for an
                                                                          inspection of a
                                                                          facility while in a
                                                                          shipyard.
(10) Production Safety System   Sec.   250.842..  $92..................  $386.................  Credit Card or
 Application--Modification                                               $4,513 additional fee   ACH-debit.
 with Fewer than 25 Components                                            will be charged if
 Reviewed.                                                                BSEE conducts a pre-
                                                                          production
                                                                          inspection of a
                                                                          facility offshore,
                                                                          and $2,141 for an
                                                                          inspection of a
                                                                          facility while in a
                                                                          shipyard.
(11) Platform Application--     Sec.              $22,734..............  $28,311..............  ACH-debit Only.
 Installation--Under the         250.905(l).
 Platform Verification Program.
(12) Platform Application--     Sec.              $3,256...............  $1,914...............  Credit Card or
 Installation--Fixed Structure   250.905(l).                                                     ACH-debit.
 Under the Platform Approval
 Program.
(13) Platform Application--     Sec.              $1,657...............  $1,914...............  Credit Card or
 Installation--Caisson/Well      250.905(l).                                                     ACH-debit.
 Protector.
(14) Platform Application--     Sec.              $3,884...............  $1,975...............  Credit Card or
 Modification/Repair.            250.905(l).                                                     ACH-debit.
(15) New Pipeline Application   ................  $3,541...............
 (Lease Term).

[[Page 81036]]

 
(a) New Pipeline Application    Sec.              .....................  $1,584...............  Credit Card or
 (Lease Term)--Shallow Water     250.1000(b).                                                    ACH-debit.
 (less than 1000 ft.).
(b) New Pipeline Application    ................  .....................  $3,663...............  Credit Card or
 (Lease Term)--Deepwater                                                                         ACH-debit.
 (greater than 1000 ft.).
(16) Pipeline Application--     ................  $2,056...............
 Modification (Lease Term).
(a) Pipeline Application--      Sec.              .....................  $651.................  Credit Card or
 Modification (Lease Term)--     250.1000(b).                                                    ACH-debit.
 Minor.
(b) Pipeline Application--      ................  .....................  $1,696...............  Credit Card or
 Modification (Lease Term)--                                                                     ACH-debit.
 Major.
(17) Pipeline Application--     ................  $4,169...............
 Modification (ROW).
(a) Pipeline Application--      Sec.              .....................  $455.................  Credit Card or
 Modification (ROW)--Minor.      250.1000(b).                                                    ACH-debit.
(b) Pipeline Application--      ................  .....................  $1,800...............  Credit Card or
 Modification (ROW)--Major.                                                                      ACH-debit.
(18) Pipeline Repair            Sec.              $388.................  $557.................  Credit Card or
 Notification.                   250.1008(e).                                                    ACH-debit.
(19) Pipeline ROW Grant         ................  $2,771...............
 Application.
(a) Pipeline ROW Grant          Sec.              .....................  $1,662...............  Credit Card or
 Application--Shallow Water      250.1015(a).                                                    ACH-debit.
 (less than 1000 ft.).
(b) Pipeline ROW Grant          ................  .....................  $3,796...............  Credit Card or
 Application--Deepwater                                                                          ACH-debit.
 (greater than 1000 ft.).
(20) Pipeline Conversion of     Sec.              $236.................  $494.................  Credit Card or
 Lease Term to ROW.              250.1015(a).                                                    ACH-debit.
(21) Pipeline ROW Assignment..  Sec.              $201.................  $397.................  Credit Card or
                                 250.1018(b).                                                    ACH-debit.
(22) 500 Feet From Lease/Unit   Sec.              $3,892...............  $5,440...............  Credit Card or
 Line Production Request.        250.1156(a).                                                    ACH-debit.
(23) Gas Cap Production         Sec.   250.1157.  $4,953...............  $11,962..............  Credit Card or
 Request.                                                                                        ACH-debit.
(24) Downhole Commingling       Sec.              $5,779...............  $14,064..............  Credit Card or
 Request.                        250.1158(a).                                                    ACH-debit.
(25) Complex Surface            Sec.              $4,056...............  $8,205...............  Credit Card or
 Commingling and Measurement     250.1202(a);                                                    ACH-debit.
 Application.                    Sec.
                                 250.1203(b);
                                 Sec.
                                 250.1204(a).
(26) Simple Surface             Sec.              $1,371...............  $3,514...............  Credit Card or
 Commingling and Measurement     250.1202(a);                                                    ACH-debit.
 Application.                    Sec.
                                 250.1203(b);
                                 Sec.
                                 250.1204(a).
(27) Voluntary Unitization      Sec.              $12,619..............  $27,288..............  ACH-debit Only.
 Proposal or Unit Expansion.     250.1303(d).
(28) Unitization Revision.....  ................  $896.................
(a) Unitization Revision--      Sec.              .....................  $1,683...............  Credit Card or
 Exhibit A, Exhibit B, and       250.1303(d).                                                    ACH-debit.
 Successor Unit Operator/Sub-
 operator.
(b) Unitization Revision--      ................  .....................  $3,255...............  Credit Card or
 Exhibit C.                                                                                      ACH-debit.
(29) Application to Remove a    Sec.   250.1727.  $4,684...............  $2,846...............  Credit Card or
 Platform or Other Facility.                                                                     ACH-debit.
(30) Application to             Sec.              $1,142...............  $857.................  Credit Card or
 Decommission a Pipeline         250.1751(a) or                                                  ACH-debit.
 (Lease Term).                   Sec.
                                 250.1752(a).
(31) Application to             Sec.              $2,170...............  $980.................  Credit Card or
 Decommission a Pipeline (ROW).  250.1751(a) or                                                  ACH-debit.
                                 Sec.
                                 250.1752(a)
----------------------------------------------------------------------------------------------------------------

How did BSEE determine the costs to be recovered by the proposed fees?
    Federal agency policy covering full cost recovery through user 
charges is outlined in OMB Circular A-25. According to OMB Circular A-
25, BSEE should assess fees to recover the bureau's full costs of 
providing the services to the offshore oil and gas industry, rather 
than market price, because BSEE is acting on behalf of the United 
States to issue offshore oil and gas permits, approve DWOPs, and 
provide the other listed services. Therefore, BSEE used the full cost 
recovery approach, described in paragraph 6.d.1 of OMB Circular A-25, 
to assess the cost of each process.
    For each of the services provided by BSEE, the process begins with 
the submission of an application, plan, permit, or other request by an 
operator. BSEE typically provides the service requested when an 
operator submits a request and the associated user fee. The output of 
each service is BSEE's issuance of the permit or application/plan 
approval or denial.
    In order to determine the current cost of BSEE's services, BSEE 
assessed and itemized its services through data collection and dialogue 
with BSEE personnel in its Gulf of Mexico Regional Office (GOMR) and 
other BSEE SMEs. This process included the identification of each task 
undertaken by BSEE to review and approve each type of plan, 
application, permit, or other request. These tasks include: The 
initiating event or BSEE's receipt of a request for service; the 
identification of personnel to perform the review of the plan, 
application, permit, or other request; the review of the plan, 
application, permit, or other request; and the issuance of the permit 
or approval/denial of the application/plan. This information and the 
time spent performing each task were used to calculate BSEE's service 
costs, consistent with the procedures in OMB Circular A-25, as 
explained in the following discussion.

[[Page 81037]]

How were the direct costs calculated?
    The direct costs assessed as part of the full cost recovery 
analysis are direct labor costs, e.g., direct salary costs and fringe 
benefits for BSEE staff performing the requested services. Direct labor 
costs were established using the average work time provided by BSEE 
staff members for each task. The average time was then multiplied by 
the 2016 Office of Personnel Management's (OPM) General Schedule (GS) 
pay grade hourly rate for the employee responsible for completing that 
task. The GS pay grade was calculated at a step 5 level, which was 
estimated to be the average step within each pay grade. A range of GS 
pay grades are involved in certain actions (i.e., specific tasks might 
be accomplished by either a GS-7, 9, or 11 employee). In this case, 
BSEE averaged the hourly rate for a step 5 at all the grade levels that 
could accomplish the task to create an average hourly rate for that 
specific task.
    The following 2016 OPM GS rate tables were used to identify the 
appropriate hourly rate for the employee responsible for completing 
each task:
    (1) For any task completed by a petroleum engineer, OPM's 2016 
special rate tables 711 and 712 were utilized. These tables provide 
petroleum engineers in GOMR and the Pacific OCS Region (POCSR) with a 
35 percent increase above OPM's ``Base'' pay rate.
    (2) For any task completed by a geologist or geophysicist, OPM's 
2016 special rate table 711 was utilized. This table provides 
geologists and geophysicists in Jefferson, LA and Camarillo, CA with a 
35 percent increase above OPM's ``Base'' pay rate. Jefferson, LA 
includes the GOMR New Orleans District where the majority of these 
positions are located.
    (3) For all other tasks not covered by (1) or (2) above, the GS 
``REST OF UNITED STATES'' 2016 rate table was used.
    Along with direct labor salary costs, OMB Circular A-25 requires 
the collection of direct labor costs classified as fringe benefits, 
which usually includes paid leave, medical insurance, and retirement. 
Historically, BSEE has calculated the fringe benefits as 28 percent of 
the direct salary costs and refers to that percentage as the ``fringe 
benefit factor.'' The fringe benefit factor was applied to all labor 
categories and grades for all cost recovery fee calculations.
How were the indirect costs calculated?
    In accordance with OMB Circular A-25, indirect costs include 
personnel fringe benefits, all physical overhead costs, and management 
and supervisory costs. In accordance with OMB Circular A-25, BSEE 
assessed indirect costs for all headquarters, Regional, and District 
personnel and operations involved in the provision of services that are 
the subject of this proposed rule. These indirect costs include 
salaries and fringe benefits of personnel providing ancillary support 
functions, material and supply costs, utilities, and other costs that 
are allocated across all services provided by BSEE. BSEE has an 
extensive activity-based costing code table and cost capture database 
(Cost and Performance Management Tool (CPMT)) that categorizes all BSEE 
costs as either direct or indirect. Data from CPMT, going back to FY 
2007, were analyzed to develop an appropriate methodology for 
estimating the indirect costs component of the cost recovery fees.
    Indirect costs were estimated using the historical ratio of 
indirect to direct costs observed at the headquarters, Regional, or 
District levels. From FY 2007 through FY 2015, the ratio was 
consistently between 51 and 56 percent. An average ratio of 53.51 
percent was used. This percentage was applied to each service's direct 
cost to derive an indirect cost estimate for each service. The 
following table provides the indirect to direct cost data and ratios 
for BSEE and the Bureau of Ocean Energy Management's (BOEM) predecessor 
agencies, MMS and the Bureau of Ocean Energy Management, Regulation, 
and Enforcement, from FY 2007-FY 2011 and for BSEE from FY 2013-FY 
2015.\4\ FY 2012 data were not included due to inaccurate tracking that 
occurred as BSEE and BOEM were established at the beginning of that 
fiscal year.
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    \4\ BSEE and BOEM were created on October 1, 2011 as part of the 
DOI reorganization and division of responsibilities formerly 
exercised by MMS.

                                        Direct and Indirect Cost Data \1\
----------------------------------------------------------------------------------------------------------------
                                                                                                     Indirect/
                                                                   Direct total   Indirect total    direct cost
                           Fiscal year                               cost  ($        cost  ($          ratio
                                                                     millions)       millions)       (percent)
----------------------------------------------------------------------------------------------------------------
2007............................................................          205.62          110.75           53.86
2008............................................................          203.42          114.35           56.22
2009............................................................          219.36          120.14           54.77
2010............................................................          222.91          114.88           51.54
2011............................................................          244.25          135.10           55.31
2013............................................................          113.27           58.26           51.43
2014............................................................          138.21           74.50           53.91
2015............................................................          159.97           81.68           51.06
    Average.....................................................  ..............  ..............           53.51
----------------------------------------------------------------------------------------------------------------

Why are two fee levels proposed for some service categories?
    Two fee levels are proposed for certain applications, plans, 
permits, and other requests for BSEE services (e.g., simple DWOP vs. 
complex DWOP, or shallow water pipeline application (lease term) vs. 
deepwater pipeline application (lease term)) based on the varying 
levels of complexity, and resulting costs, associated with processing 
those requests. The six categories of BSEE services for which two tiers 
of complexity-based fees are proposed are identified in the following 
list, along with clarification for operators on which fee is more 
appropriate with regard to an application, plan, permit, or other 
request for these services:
    1. DWOP: The complexity of processing a DWOP varies and depends on 
whether it includes new or unusual technology, as well as the scope and 
scale of the proposed development project.
    a. DWOP--Complex: An operator would submit payment for this service 
when a DWOP meets any of the following criteria:

[[Page 81038]]

     The plan contains new or unusual technology, as defined in 
30 CFR 250.200(b), and the new or unusual technology:

--requires a high degree of specialized knowledge;
--exceeds the limits of existing engineering standards;
--conflicts with existing engineering standards; or
--warrants an additional level of review due to the risk associated 
with implementation; or

     The plan includes installation of a new floating 
production facility.
    b. DWOP--Simple: An operator would submit payment for this service 
for all DWOPs that do not meet the criteria for Deepwater Operation 
Plans--Complex. This includes, but is not limited to:
     A new or unusual technology as defined in 30 CFR 
250.200(b) that does not require a high degree of specialized 
knowledge.
     A new or unusual technology that is a modification or 
repair to an existing floating production facility or project.
     A subsea tieback to a new or existing floating production 
facility.
     A material change, addition or revision to an existing, 
previously approved project.
     A subsea tieback/additional well(s) for which only minor 
or no updates for subsea production safety system are necessary.
     Addition of a new subsea development to a new or existing 
floating production facility.
    2. New Pipeline Application (Lease Term): The complexity of 
processing an application varies and is dependent on the water depth of 
the pipeline.
    a. New Pipeline Application (Lease Term)--Shallow Water: An 
operator would submit payment for this service when the pipeline in a 
New Pipeline Application (Lease Term) is located in its entirety in 
water depths less than or equal to 1,000 feet (ft.).
    b. New Pipeline Application (Lease Term)--Deepwater: An operator 
would submit payment for this service when any portion of the pipeline 
in a New Pipeline Application (Lease Term) is located in water depths 
greater than 1,000 ft.
    3. Pipeline Application--Modification (Lease Term): The complexity 
of processing an application varies and is dependent on the complexity 
of the modification.
    a. Pipeline Application--Modification (Lease Term)--Major: An 
operator would submit payment for this service when a Pipeline 
Application--Modification (Lease Term) contains a route modification 
request. Actions which constitute a ``route modification'' include, but 
are not limited to, changing a pipeline route, installing a new portion 
of pipeline, decommissioning a portion of pipeline, and changing 
service or flow direction of a pipeline.
    b. Pipeline Application--Modification (Lease Term)--Minor: An 
operator would submit payment for this service for all other Pipeline 
Applications--Modification (Lease Term) requests (i.e., for all 
Pipeline Applications--Modification (Lease Term) requests that do not 
contain a route modification).
    4. Pipeline Application--Modification (ROW): The complexity of 
processing an application varies and is dependent on the complexity of 
the modification.
    a. Pipeline Application--Modification (ROW)--Major. An operator 
would submit payment for this service when a Pipeline Application--
Modification (ROW) contains a route modification request. Actions that 
constitute a ``route modification'' include, but are not limited to, 
changing a pipeline route, installing a new portion of pipeline, 
decommissioning a portion of pipeline, and changing service or flow 
direction of a pipeline.
    b. Pipeline Application--Modification (ROW)--Minor: An operator 
would submit payment for this service for all other Pipeline 
Applications--Modification (ROW) requests (i.e., for all Pipeline 
Applications--Modification (ROW) requests that do not contain a route 
modification). An example is an ROW Grant Modification request for 
cessation of operations.
    5. Pipeline ROW Grant Application: The complexity of processing an 
application varies and is dependent on the water depth of the pipeline.
    a. Pipeline ROW Grant Application--Shallow Water: An operator would 
submit payment for this service when the pipeline in a Pipeline ROW 
Grant Application is located in its entirety in water depths less than 
or equal to 1,000 ft.
    b. Pipeline ROW Grant Application--Deepwater: An operator would 
submit payment for this service when any portion of the pipeline in a 
Pipeline ROW Grant Application is located in water depths greater than 
1,000 ft.
    6. Unitization Revision: BSEE currently charges one fee for the 
review of a Unitization Revision; however, the complexity of processing 
the application and resulting cost vary based on the specific exhibits 
being revised in the signed unit agreement. Typical unitization 
applications contain an Exhibit A, which is the lease plat identifying 
the unit area; Exhibit B, which is a listing of the component leases 
and ownership of each; and Exhibit C, which is a listing of the 
participation and allocation by lease. Payment for unitization revision 
services are as follows:
    a. Unitization Revision--Exhibit A, Exhibit B, and Designation of 
Successor Unit Operator/Sub-operator: The Unit Operator would submit 
payment for this service when a Unitization Revision is submitted for 
approval that revises Exhibit A and/or Exhibit B of the signed unit 
agreement or designates a Successor Unit Operator and/or Successor Unit 
Sub-operator.
    b. Unitization Revision--Exhibit C: The Unit Operator would submit 
payment for this service when a Unitization Revision is submitted for 
approval that revises Exhibit C of the signed unit agreement.
Why are there proposed new and adjusted fees for some services that 
involve BSEE site visits?
    In accordance with existing Sec.  250.800, production must not 
commence until the production safety system has been approved and a 
pre-production inspection has been requested by the lessee. If a BSEE 
application reviewer decides that a pre-production inspection is 
necessary as part of the production safety system application review 
and approval process, then a team of engineers and inspectors visits 
the facility offshore (e.g., a mobile offshore drilling unit) or at a 
shipyard.
    Existing Sec. Sec.  250.125(a)(5) and (6) establish fees for 
visiting a facility offshore or in a shipyard for two of the six 
production safety system applications, when necessary, as part of the 
BSEE review and approval process. Visits to an offshore facility or a 
shipyard can become necessary in order to verify that safety devices 
are in the proper locations or to identify if they are missing when 
compared with the associated application submitted for approval. Any 
necessary corrections to production safety systems can typically be 
handled more easily while construction work is ongoing in a shipyard, 
rather than when the facility is offshore.
    BSEE's costs for travel to offshore facilities and shipyard 
locations and for services, as part of the application review process, 
can be recovered in accordance with OMB Circular A-25. Estimates for 
BSEE's costs for these services include costs for transportation, 
lodging, and labor hours for each labor category involved.
    As illustrated in the Service Fee Table, under Sec. Sec.  
250.125(a)(7)-(a)(10), BSEE proposes four new fees for production 
safety system visits to

[[Page 81039]]

offshore facilities or shipyards. BSEE also proposes to amend the two 
existing fees for production safety system inspection visits to 
offshore facilities or shipyards under Sec. Sec.  250.125(a)(5) and 
250.125(a)(6). The proposed new and amended fees would affect:
    1. New Facility Production Safety System Application for Facility 
with more than 125 components;
    2. New Facility Production Safety System Application for Facility 
with 25-125 components;
    3. New Facility Production Safety System Application for Facility 
with fewer than 25 components;
    4. Production Safety System Application--Modification with more 
than 125 components reviewed;
    5. Production Safety System Application--Modification with 25-125 
components reviewed; and
    6. Production Safety System Application--Modification with fewer 
than 25 components reviewed.
Why are the adjustments to BSEE's cost recovery fees necessary?
    As previously mentioned, offshore operations have changed 
dramatically over the last ten years, which has led to adjustments in 
the review and approval process for a large portion of the services 
BSEE provides to industry. BSEE proposes the listed fee levels based on 
the assessment of the bureau's full costs to provide the associated 
services using the methodology described above. However, this full-cost 
methodology is not entirely comparable to the methodologies used in the 
2005 and 2006 rulemakings that initially established the fees. The 
following examples provide the general rationale for some of the fee 
adjustments as compared to the fees in existing regulations.
    1. BSEE's assessment of its costs for processing complex DWOPs 
indicates that six employees, ranging in grades from GS-5 through GS-
14, will spend between 310 and 1,094 hours reviewing, analyzing, and 
processing these plans. As previously discussed, the increased 
complexity of offshore operations has required additional senior-level 
employees to spend added time reviewing and approving these plans. This 
is particularly true with regard to the increased processing time of 
DWOPs and the associated increased costs to BSEE. In addition, the 
existing $3,599 fee for processing both complex and simple DWOPs does 
not account for the special pay that many BSEE employees receive for 
reviewing and approving these plans and the higher indirect cost ratio. 
The fee assessed for DWOP review has also not been adjusted since a 
2006 rulemaking that established the existing fee. The adjusted fee is 
the result of calculations performed with input from BSEE Regional 
Offices and takes into account the increased complexity of submitted 
DWOPs due to the use of new or unusual technologies and the increased 
scope or scale of proposed plans. Based on its assessment, BSEE 
proposes to subdivide the DWOP processing fees and assess a $70,333 fee 
for processing complex DWOPs in 250.125(a)(2)(ii).
    2. Similarly, BSEE proposes subdividing the fees for processing 
unitization revisions based on its assessment of the bureau's direct 
and indirect costs. Typically, seven BSEE positions, ranging in grades 
from GS-5 through GS-15, spend between 6.6 and 29.7 hours processing 
unitization revisions impacting exhibits A and B, while six BSEE 
positions spend between 8.5 to 71.9 hours processing unitization 
revisions impacting exhibit C. As is the case with the existing DWOP 
fee, the existing $896 fee for processing unitization revisions does 
not account for the special pay that many BSEE employees receive for 
reviewing and approving these documents and the higher indirect cost 
ratio. Based on its assessment, BSEE proposes a $1,683 fee for 
processing a unitization revision related to exhibits A and B and a 
$3,255 fee for processing a unitization revision related to exhibit C 
in 250.125(a)(28)(i) and (ii).
    3. BSEE is also proposing to reduce some existing fees based on its 
assessment of the bureau's full costs to process applications and 
requests. For example, BSEE's assessment indicated that five BSEE 
employees, ranging in grades from GS-5 through GS-14, will spend 
between 5.8 and 12.5 hours processing an application for a minor lease 
term pipeline modification, resulting in $651 in full bureau costs. 
Since the existing fee of $2,056 was established, efficiencies have 
resulted in lower costs to process applications and requests (e.g., a 
technician now performs certain steps in the process previously 
performed by an engineer). Based on this assessment, BSEE proposes to 
subdivide and reduce the existing fee for processing both major and 
minor applications for lease term pipeline modifications in Sec.  
250.125(a)(16)(i).

C. Request for Comments on Potential Future Fees

    Due to the large number of revised applications received by BSEE 
and the associated costs to BSEE to process them, BSEE is currently 
evaluating the need for additional fees for revised applications for 
permits to drill (R-APD) and revised applications for permits to modify 
(R-APM). Accordingly, BSEE requests comments on whether separate fee 
levels for R-APD and R-APM should be proposed in a future rulemaking. 
BSEE also requests comments on the factors that should be the basis for 
determining the separate fee levels for R-APDs and R-APMs (e.g., 
complexity, water depth, etc.).

II. Procedural Matters

Regulatory Planning and Review (Executive Orders (E.O.) 12866 and 
13563)
    E.O. 12866 provides that 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 would 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.
    Accordingly, BSEE has not prepared an economic analysis, and OIRA 
has not reviewed this proposed rule.
    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. 
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. BSEE 
is developing this rule in a manner consistent with these requirements.

[[Page 81040]]

Regulatory Flexibility Act
    The DOI 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. (RFA). The 
RFA, at 5 U.S.C. 603, requires agencies to prepare an initial 
regulatory flexibility analysis to determine whether a regulation would 
have a significant economic impact on a substantial number of small 
entities. Further, under the Small Business Regulatory Enforcement 
Fairness Act of 1996, at section 212 of Public Law 104-121 (March 29, 
1996), an agency is required to produce compliance guidance for small 
entities if the rule would have a significant economic impact.
    The Initial Regulatory Flexibility Analysis prepared by BSEE 
assessed the impact of this proposed rule on small entities, as defined 
by the applicable Small Business Administration (SBA) size standards. 
BSEE has determined that this proposed rule potentially affects 
operators and holders of Federal oil and gas leases, as well as right-
of-way holders, on the OCS. This includes an estimated 99 businesses 
with active operations. Businesses that operate under this rule fall 
under the SBA'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 classifications, a small 
business is defined as one with fewer than 1,251 employees (for NAICS 
211111) and fewer than 1,001 (for NAICS 213111). Based on these 
criteria, 54 of the potentially impacted businesses are considered 
small and 45 are considered large businesses. BSEE considers that a 
rule has an impact on a ``substantial number of small entities'' when 
the total number of small entities impacted by the rule is equal to or 
exceeds 10 percent of the relevant universe of impacted entities. 
Approximately 55% of the businesses that would be affected by this rule 
are considered small; therefore, BSEE has determined that this rule 
would impact a substantial number of small businesses under the RFA.
    BSEE's analysis estimates the incremental costs for small 
operators, lease holders, and right-of-way holders in the offshore oil 
and natural gas industry. Costs already incurred as a result of 
existing fees were not considered as costs of this proposed rule 
because they are part of the baseline. Among the 54 small businesses 
involved in offshore operations, the average annual corporate sales 
volume, from the latest available data, for the year 2014, is $186 
million, which is approximately $192 million in 2016 dollars.
    The following ``Change in Cost per Small Entity'' table provides an 
analysis and derivation of the estimated average cost, per small firm, 
that would be incurred per year as a result of the proposed rule. The 
first column of the table displays the list of services provided, as 
they appeared earlier in the Service Fee Table. The second column 
displays an estimate of the total counts of these services expected 
over the three fiscal year period 2016-2018. The third and fourth 
columns show the existing fee, and the proposed fee, respectively, for 
each service provided. The fifth column then displays, for each 
service, the expected change in total costs over the three-year period, 
on the basis of the data in the previous columns (the change in fees 
and the counts of services). The sixth column reflects the estimated 
proportion of the change in cost per small firm based on BSEE's data 
regarding counts of services across firms from FY 2013 to FY 2015. 
Finally, the seventh column reflects the estimated change in cost per 
small firm per fiscal year, by taking the annualized product of columns 
five and six. The estimated additional costs of the proposed rule from 
service fee changes totals approximately $8,875 per small firm per 
year, or an estimated 0.0046 percent of an average small business's 
sales.

                                             Change in Cost per Small Entity by Proposed Rule Provision \1\
                                                               [Negatives in parentheses]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Estimated
                                                           (Est.) total                                      Change in         Est.
                                                          counts for all   Existing fee    Proposed fee   total cost for   proportion of  Est. change in
                    Service provided                       operators in    per incidence   per incidence   all firms in   cost per small  cost per small
                                                            FY 2016- FY                                     FY 2016- FY        firm        firm, per FY
                                                               2018                                            2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
1 Suspension of Operations/Suspension of Production (SOO/            468          $2,123          $3,055        $436,176          0.0085          $1,235
 SOP) Request...........................................
2a Deepwater Operations Plan--Simple....................              19           3,599          14,290         203,129          0.0074             502
2b Deepwater Operations Plan--Complex...................              11           3,599          70,333         734,074          0.0074           1,813
3 Application for Permit to Drill (APD; Form BSEE-0123).             244           2,113          10,420       2,026,908          0.0082           5,544
4 Application for Permit to Modify (APM; Form BSEE-0124)             540             125           1,680         839,700          0.0094           2,622
5 New Facility Production Safety System Application for                3           5,426           3,976         (4,350)          0.0085            (12)
 facility with more than 125 components.................
 Pre-Production inspection Facility Offshore............               3          14,280          13,534         (2,238)          0.0085             (6)
 Pre-Production inspection Facility in a Shipyard.......               3           7,426          14,567          21,423          0.0085              61
6 New Facility Production Safety System Application for               12           1,314             548         (9,192)          0.0085            (26)
 facility with 25-125 components........................
 Pre-Production inspection Facility Offshore............               3           8,967           8,508         (1,377)          0.0085             (4)
 Pre-Production inspection Facility in a Shipyard.......               3           5,141           9,818          14,031          0.0085              40

[[Page 81041]]

 
7 New Facility Production Safety System Application for               29             652             463         (5,481)          0.0085            (15)
 facility with fewer than 25 components.................
 Pre-Production inspection Facility Offshore............               3  ..............           4,338          13,014          0.0085              37
 Pre-Production inspection Facility in a Shipyard.......               3  ..............           1,967           5,901          0.0085              17
8 Production Safety System Application--Modification                 404             605           1,278         271,892          0.0085             768
 with more than 125 components reviewed.................
 Pre-Production inspection Facility Offshore............               3  ..............           9,313          27,939          0.0085              79
 Pre-Production inspection Facility in a Shipyard.......               3  ..............           8,100          24,300          0.0085              69
9 Production Safety System Application--Modification               1,424             217             439         316,128          0.0085             893
 with 25-125 components reviewed........................
 Pre-Production inspection Facility Offshore............               3  ..............           6,765          20,295          0.0085              57
 Pre-Production inspection Facility in a Shipyard.......               3  ..............           7,326          21,978          0.0085              62
10 Production Safety System Application--Modification                880              92             386         258,720          0.0085             731
 with fewer than 25 components reviewed.................
 Pre-Production inspection Facility Offshore............               3  ..............           4,513          13,539          0.0085              38
 Pre-Production inspection Facility in a Shipyard.......               3  ..............           2,141           6,423          0.0085              18
11 Platform Application--Installation--Under the                       5          22,734          28,311          27,885          0.0111             103
 Platform Verification Program..........................
12 Platform Application--Installation--Fixed Structure                27           3,256           1,914        (36,234)          0.0106           (128)
 Under the Platform Approval Program....................
13 Platform Application--Installation--Caisson/Well                   41           1,657           1,914          10,537          0.0126              44
 Protector..............................................
14 Platform Application--Modification/Repair............             108           3,884           1,975       (206,172)          0.0075           (514)
15a New Pipeline Application (Lease Term)--Shallow water              12           3,541           1,584        (23,484)          0.0038            (30)
 (less than 1000 ft.)...................................
15b New Pipeline Application (Lease Term)--Deepwater                 369           3,541           3,663          45,018          0.0038              58
 (greater than 1000 ft.)................................
16a Pipeline Application--Modification (Lease Term)--                361           2,056             651       (507,205)          0.0040           (673)
 Minor..................................................
16b Pipeline Application--Modification (Lease Term)--                 11           2,056           1,696         (3,960)          0.0040             (5)
 Major..................................................
17a Pipeline Application--Modification (ROW)--Minor.....             631           4,169             455     (2,343,534)          0.0083         (6,462)
17b Pipeline Application--Modification (ROW)--Major.....              21           4,169           1,800        (49,749)          0.0083           (137)
18 Pipeline Repair Notification.........................             397             388             557          67,093          0.0081             181
19a Pipeline ROW Grant Application--Shallow water (less              121           2,771           1,662       (134,189)          0.0092           (409)
 than 1000 ft.).........................................
19b Pipeline ROW Grant Application--Deepwater (greater                77           2,771           3,796          78,925          0.0092             241
 than 1000 ft.).........................................
20 Pipeline Conversion of Lease Term to ROW.............              35             236             494           9,030          0.0116              35
21 Pipeline ROW Assignment..............................             800             201             397         156,800          0.0092             478
22 500 Feet From Lease/Unit Line Production Request.....              69           3,892           5,440         106,812          0.0093             330
23 Gas Cap Production Request...........................              87           4,953          11,962         609,783          0.0035             709
24 Downhole Commingling Request.........................             138           5,779          14,064       1,143,330          0.0048           1,828
25 Complex Surface Commingling and Measurement                       164           4,056           8,205         680,436          0.0082           1,863
 Application............................................

[[Page 81042]]

 
26 Simple Surface Commingling and Measurement                        251           1,371           3,514         537,893          0.0082           1,473
 Application............................................
27 Voluntary Unitization Proposal or Unit Expansion.....              50          12,619          27,288         733,450          0.0021             522
28a Unitization Revision--Exhibit A, Exhibit B, and                  154             896           1,683         121,198          0.0076             309
 Successor Unit Operator/Suboperator....................
28b Unitization Revision--Exhibit C.....................              21             896           3,255          49,539          0.0076             126
29 Application to Remove a Platform or Other Facility...             687           4,684           2,846     (1,262,706)          0.0089         (3,729)
30 Application to Decommission a Pipeline (Lease Term)..             707           1,142             857       (201,495)          0.0050           (333)
31 Application to Decommission a Pipeline (ROW).........             503           2,170             980       (598,570)          0.0077         (1,526)
                                                         -----------------------------------------------------------------------------------------------
    Total \2\...........................................  ..............  ..............  ..............  ..............  ..............           8,874
        As a Percent of the Average Sales Revenue of      ..............  ..............  ..............  ..............  ..............          0.0046
         Small Firms ($192 million).....................
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Estimated dollar amounts are in 2016 dollars.
\2\ Numbers may not add up due to rounding.

    BSEE has concluded the additional costs of the proposed rule would 
impose an insignificant, negligible burden on small entities.
Small Business Regulatory Enforcement Fairness Act
    The proposed rule is not a major rule under the Small Business 
Regulatory Enforcement Fairness Act, 5 U.S.C. 804(2). This proposed 
rule:
    (a) Would not have an annual effect on the economy of $100 million 
or more;
    (b) Would not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions; and
    (c) Would not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.
    The requirements would apply to all entities operating on the Outer 
Continental Shelf (OCS) regardless of company designation as a small 
business. For more information on costs affecting small businesses, see 
the Regulatory Flexibility Act portion of this document.
    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 SBA without fear of retaliation. 
Allegations of discrimination/retaliation filed with the SBA will be 
investigated for appropriate action.
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. The proposed rule would not have a significant or 
unique effect on State, local, or tribal governments or the private 
sector. Therefore, a statement containing the information required by 
the Unfunded Mandates Reform Act, 2 U.S.C. 1501 et seq., is not 
required.
Takings Implication Assessment (E.O. 12630)
    Under the criteria in E.O. 12630, this proposed rule does not have 
significant takings implications. The proposed rule is not a 
governmental action capable of interference with constitutionally 
protected property rights. Therefore, a Takings Implication Assessment 
is not required.
Federalism (E.O. 13132)
    Under the criteria in E.O. 13132, this proposed rule does not have 
federalism implications. This proposed rule would not substantially and 
directly affect the relationship between the Federal and State 
governments. To the extent that State and local governments have a role 
in OCS activities, this proposed rule would not affect that role. A 
federalism assessment is not required.
Civil Justice Reform (E.O. 12988)
    This proposed rule complies with the requirements of E.O. 12988. 
Specifically, this proposed rule:
    (1) Meets the criteria of section 3(a) requiring that all 
regulations be reviewed to eliminate errors and ambiguity and be 
written to minimize litigation; and
    (2) Meets the criteria of section 3(b)(2) requiring that all 
regulations be written in clear language and contain clear legal 
standards.
Consultation With Indian Tribal Governments (E.O. 13175)
    Under the criteria in E.O. 13175 and the Department's tribal 
consultation policy, we have evaluated this proposed rule and have 
determined that it has no substantial direct effects on federally 
recognized Indian tribes, or on the relationship or distribution of 
power and responsibilities between the Federal Government and Indian 
tribes, and that consultation under the Department's tribal 
consultation policy is not required.

[[Page 81043]]

Paperwork Reduction Act (PRA) of 1995
    This proposed rule contains a collection of information that will 
be submitted to OMB for review and approval under the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.). As part of our 
continuing effort to reduce paperwork and respondent burdens, BSEE 
invites the public and other Federal agencies to comment on any aspect 
of the non-hour cost burden. If you wish to comment on the information 
collection (IC) aspects of this proposed rule, you may send your 
comments directly to OMB and send a copy of your comments to the 
Regulations and Standards Branch (see the ADDRESSES section of this 
proposed rule). Please reference Adjustments to Cost Recovery Fees 
Relating to the Regulation of Oil, Gas, and Sulfur Activities on the 
Outer Continental Shelf, 1014--NEW, in your comments. BSEE specifically 
requests comments concerning: The need for the information, its 
practical utility, the accuracy of the agency's burden estimate, and 
ways to minimize the burden. You may obtain a copy of the supporting 
statement for the new collection of information by contacting the 
Bureau's Information Collection Clearance Officer at (703) 787-1607. To 
see a copy of the entire IC request (ICR) submitted to OMB, go to 
http://www.reginfo.gov (select Information Collection Review, Currently 
Under Review).
    The PRA provides that an agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information 
unless it displays a currently valid OMB control number. OMB is 
required to make a decision concerning the collection of information 
contained in these proposed regulations 30 to 60 days after publication 
of this document in the Federal Register. Therefore, a comment to OMB 
is best assured of having its full effect if OMB receives it by 
December 19, 2016.
    The title of the collection of information for this rule is 30 CFR 
part 250, Adjustments to Cost Recovery Fees. The proposed regulations 
pertain to BSEE updating its 31 cost recovery fees, including 
additional fees for site visits if deemed necessary. These proposed 
changes are designed to recover the full cost BSEE incurs for providing 
these services.
    Potential respondents comprise Federal OCS oil, gas, and sulfur 
operators and lessees, as well as pipeline ROW holders. Responses to 
this collection of information are required to obtain or retain a 
benefit and are mandatory. The frequency of response varies depending 
upon the requirement. The IC does not include questions of a sensitive 
nature. BSEE will protect proprietary information according to the 
Freedom of Information Act (5 U.S.C. 552) and DOI's implementing 
regulations (43 CFR part 2), 30 CFR 250.197, Data and information to be 
made available to the public or for limited inspection, and 30 CFR part 
252, OCS Oil and Gas Information Program.
    OMB approved the IC burden of the existing 30 CFR part 250 
regulations under Control Numbers 1014-0022, Subpart A (84,391 hour 
burden, $1,371,458 non-hour cost burden; expiration 8/31/17); 1014-
0024, Subpart B ($39,589 non-hour cost burden; expiration 11/30/2018); 
1014-0025 Applications for Permit to Drill ($862,104 non-hour cost 
burden, expiration 4/30/2017); 1014-0026, Applications for Permit to 
Modify ($361,625 non-hour cost burden, expiration 5/31/2017); 1014-
0003, Subpart H ($323,481 non-hour cost burden; expiration 12/31/2017); 
1014-0011, Subpart I, ($392,874 non-hour cost burden, expiration 5/31/
2017); 1014-0016, Subpart J ($1,508,968 non-hour cost burden, 
expiration 8/31/2018); 1014-0019, Subpart K ($1,361,176 non-hour cost 
burden, expiration 1/31/2019); 1014-0002, Subpart L ($322,479 non-hour 
cost burden, expiration 10/31/16); 1014-0015, Subpart M ($138,188 non-
hour cost burden, expiration 12/31/2017); and 1014-0010, Subpart Q 
($1,686,396 non-hour cost burden, expiration 10/31/2016), respectively.
    If this proposed rule is finalized and codified, the various non-
hour cost burdens and one new hour burden will be removed from this 
collection of information and consolidated with their primary 
information collection burden under their respective OMB Control 
Numbers.
    Hour burdens are included in the regulatory requirements of various 
OMB-approved ICRs, of which only one is changing and discussed in this 
ICR.

                                                Hour Burden Table
----------------------------------------------------------------------------------------------------------------
                                      Reporting and
      Citation 30 CFR 250             recordkeeping         Hour burden     Average number of    Annual burden
                                      requirements                           annual responses        hours
----------------------------------------------------------------------------------------------------------------
                                                    Subpart A
----------------------------------------------------------------------------------------------------------------
125; 126; 292; 1000; 1015; 1303  Cost recovery fees,     Cost Recovery Fees and related items  0.
                                  applications,           are covered individually throughout
                                  confirmation                          Part 250
                                  receipts, etc.,
                                  verbal approvals
                                  pertaining to fees.
                                                        --------------------------------------
125(c).........................  Request refund,         3 min............  200 requests.....  10.
                                  including a reason
                                  for the refund,
                                  within 150 days of
                                  the initial payment.
    Total......................  ......................  .................  200 responses....  10 hours.
----------------------------------------------------------------------------------------------------------------

    BSEE currently receives approximately $7,000,000 in cost recovery 
fees (non-hour cost burdens) annually. This proposed rulemaking would 
increase that total by approximately $9,000,000 for a total of 
$16,000,000 in cost recovery fees. The following table provides a 
breakdown of the non-hour cost burdens for this proposed rulemaking.
    [Existing non-hour cost burden/cost recovery fees are in regular 
font; proposed non-hour cost burden/cost recovery fees and text are in 
italic font; new fees are in bold font]

[[Page 81044]]



                       Non-Hour Cost Burden Table
------------------------------------------------------------------------
                                  Service/cost          Non-hour cost
  Citation 30 CFR part 250        recovery fee             burdens
------------------------------------------------------------------------
                                Subpart A
------------------------------------------------------------------------
171(e)......................  Suspension of         $2,123 x 646
                               Operations and/or     requests =
                               Suspension of         $1,371,458.
                               Production (SOO/     $3,055 x 646
                               SOP) Request.         requests =
                                                     $1,973,530.
------------------------------------------------------------------------
                                Subpart B
------------------------------------------------------------------------
292(q)......................  Deepwater Operations  $3,599 x 11 plans =
                               Plan [simple and      $39,589.
                               complex].            $14,290 x 7 simple
                                                     DWOPs = $100,030.
                                                    $70,333 x 4 complex
                                                     DWOPs = $281,332.
------------------------------------------------------------------------
                    Applications for Permit to Drill
------------------------------------------------------------------------
410(d); 513(b); 1617(a).....  Application for       $2,113 x 408
                               Permit to Drill       applications =
                               [initial permit].     $862,104.
                                                    $10,420 x 408
                                                     applications =
                                                     $4,251,360.
------------------------------------------------------------------------
                    Application for Permit to Modify
------------------------------------------------------------------------
465(b); 513(b); 613(b);       Application for       $125 x 2,893
 1618(a); 1704(g).             Permit to Modify      applications =
                               [initial permit].     $361,625.
                                                    $1,680 x 2,893
                                                     applications =
                                                     $4,860,240.
------------------------------------------------------------------------
                                Subpart H
------------------------------------------------------------------------
842.........................  New Facility          $5,426 x 1
                               Production Safety     application =
                               System Application    $5,426.
                               for facility with    $3,976 x 1
                               more than 125         application =
                               components.           $3,976.
                              Pre-production        $14,280 x 1 offshore
                               Inspection--offshor   = $14,280.
                               e.                   $13,534 x 1 offshore
                                                     = $13,534.
                              Pre-production        $7,426 x 1 shipyard
                               Inspection--shipyar   = $7,426.
                               d.                   $14,567 x 1 shipyard
                                                     = $14,567.
842.........................  New Facility          $1,314 x 4
                               Production Safety     applications =
                               System Application    $5,256.
                               for facility with    $548 x 4
                               25-125 components.    applications =
                                                     $2,192.
                              Pre-production        $8,967 x 1 offshore
                               Inspection--offshor   visit = $8,967.
                               e.                   $8,508 x 1 offshore
                                                     visit = $8,508.
                              Pre-production        $5,141 x 1 shipyard
                               Inspection--shipyar   = $5,141.
                               d.                   $9,818 x 1 shipyard
                                                     = $9,818.
842.........................  New Facility          $652 x 10
                               Production Safety     applications =
                               System Application    $6,520.
                               for facility with    $463 x 10
                               fewer than 25         applications =
                               components.           $4,630.
                              Pre-production        $4,338 x 1 offshore
                               Inspection--offshor   visit = $4,338.
                               e.
                              Pre-production        $1,967 x 1 shipyard
                               Inspection--shipyar   = $1,967.
                               d.
842.........................  Production Safety     $605 x 174
                               System Application--  applications =
                               Modification with     $105,270.
                               more than 125        $1,278 x 174
                               components reviewed.  applications =
                                                     $222,372.
                              Pre-production        $9,313 x 1 shipyard
                               Inspection--offshor   visit = $9,313.
                               e.
                              Pre-production        $8,100 x 1 shipyard
                               Inspection--shipyar   visit = $8,100.
                               d.
842.........................  Production Safety     $217 x 615
                               System Application--  applications =
                               Modification with     $133,455.
                               25-125 components    $439 x 615
                               reviewed.             applications =
                                                     $269,985.
                              Pre-production        $6,765 x 1 offshore
                               Inspection--offshor   = $6,765.
                               e.
                              Pre-production        $7,326 x 1 shipyard
                               Inspection--shipyar   = $7,326.
                               d.
842.........................  Production Safety     $92 x 345
                               System Application--  applications =
                               Modification with     $31,740.
                               fewer than 25        $386 x 345
                               components reviewed.  applications =
                                                     $133,170.
                              Pre-production        $4,513 x 1 offshore
                               Inspection--offshor   = $4,513.
                               e.
                              Pre-production        $2,141 x 1 shipyard
                               Inspection--shipyar   = $2,141.
                               d.
------------------------------------------------------------------------
                                Subpart I
------------------------------------------------------------------------
905(l)......................  Platform              $22,734 x 3=
                               Application--Instal   $68,202.
                               lation--Under the    $28,311 x 3 =
                               Platform              $84,933.
                               Verification
                               Program.
905(l)......................  Platform              $3,256 x 12 =
                               Application--Instal   $39,072.
                               lation--Fixed        $1,914 x 12 =
                               Structure Under the   $22,968.
                               Platform Approval
                               Program.
905(l)......................  Platform              $1,657 x 20 =
                               Application--Instal   $33,140.
                               lation--Caisson/     $1,914 x 20 =
                               Well Protector.       $38,280.
905(1)......................  Platform              $3,884 x 65
                               Application--Modifi   applications =
                               cation/Repair.        $252,460.
                                                    $1,975 x 65
                                                     applications =
                                                     $128,375.
------------------------------------------------------------------------
                                Subpart J
------------------------------------------------------------------------
1000(b).....................  Submit application    $3,541 x 61 L/T P/L
                               and all required      applications =
                               information and       $216,001.
                               notices to install
                               new lease term
                               pipeline (L/T P/L)..
                              Submit application    $1,584 x 2
                               and all required      applications =
                               information and       $3,168.
                               notices to modify a
                               L/T P/L--Shallow
                               Water (less than
                               1,000 ft.).
                              Submit application    $3,663 x 59
                               and all required      applications =
                               information and       $216,117.
                               notices to modify a
                               L/T P/L--Deepwater
                               (greater than 1,000
                               ft.).

[[Page 81045]]

 
1000(b).....................  Submit application    $2,056 x 102 L/T P/L
                               and all required      applications =
                               information and       $209,712.
                               notices to modify a
                               L/T P/L.
                              Submit application    $651 x 99 minor
                               and all required      modifications =
                               information and       $64,449.
                               notices to modify a
                               L/T P/L--Minor.
                              Submit application    $1,696 x 3 major
                               and all required      modifications =
                               information and       $5,088.
                               notices to modify a
                               L/T P/L--Major.
1000(b).....................  Pipeline Application  $4,169 x 190
                               Modification (ROW).   applications =
                                                     $792,110.
                              Pipeline Application  $455 x 184 minor
                               Modification (ROW)--  applications =
                               Minor.                $83,720.
                              Pipeline Application  $1,800 x 6 major
                               Modification (ROW)--  applications =
                               Major.                $10,800.
1008(e).....................  Pipeline Repair       $388 x 156 =
                               Notification.         $60,528.
                              Pipeline Repair       $557 x 156
                               Notification.         notifications =
                                                     $86,892.
1015(a).....................  Pipeline ROW Grant    $2,771 x 62
                               Application.          applications =
                                                     $171,802.
                              Pipeline ROW Grant    $1,662 x 38 ROWs in
                               Application--Shallo   shallow water =
                               w Water (less than    $63,156.
                               1,000 ft.).
                              Pipeline ROW Grant    $3,796 x 24 ROWs in
                               Application--Deepwa   Deepwater =
                               ter (greater than     $91,104.
                               1,000 ft.).
1015(a).....................  Pipeline Conversion   $236 x 15
                               of Lease Term to      applications =
                               ROW.                  $3,540.
                                                    $494 x 15
                                                     applications =
                                                     $7,410.
1018(b).....................  Pipeline ROW          $201 x 275 P/L ROW
                               Assignment.           requests = $55,275.
                                                    $397 x 275 P/L ROW
                                                     requests =
                                                     $109,175.
------------------------------------------------------------------------
                                Subpart K
------------------------------------------------------------------------
1156(a).....................  500 Feet From Lease/  $3,892 x 20 requests
                               Unit Line             = $77,840.
                               Production Request.
                                                    $5,440 x 20 requests
                                                     = $108,800.
1157........................  Gas Cap Production    $4,953 x 22 requests
                               Request.              = $108,966.
                                                    $11,962 x 22
                                                     requests =
                                                     $263,164.
1158(a).....................  Downhole Commingling  $5,779 x 30 requests
                               Request.              = $173,370.
                                                    $14,064 x 30
                                                     requests =
                                                     $421,920.
------------------------------------------------------------------------
                                Subpart L
------------------------------------------------------------------------
1202(a); 1203(b); 1204(a)...  Complex Surface       $4,056 x 67
                               Commingling and       applications =
                               Measurement           $271,752.
                               Application.
                                                    $8,205 x 67
                                                     applications =
                                                     $549,735.
1202(a); 1203(b); 1204(a)...  Simple Surface        $1,371 x 37
                               Commingling and       applications =
                               Measurement           $50,727.
                               Application.
                                                    $3,514 x 37
                                                     applications =
                                                     $130,018.
------------------------------------------------------------------------
                                Subpart M
------------------------------------------------------------------------
1303(d).....................  Voluntary             $12,619 x 8 requests
                               Unitization           = $100,952.
                               Proposal or Unit
                               Expansion.
                                                    $27,288 x 8 requests
                                                     =$218,304.
                              Unitization Revision  $896 x 41 revisions
                                                     = $36,736.
                              Unitization           $1,683 x 36 Exhibit
                               Revision--Exhibit     A/B = $60,588.
                               A, Exhibit B, and
                               Successor Unit
                               Operator/Sub-
                               operator.
                              Unitization           $3,255 x 5 Exhibit C
                               Revision--Exhibit C.  = $16,275.
------------------------------------------------------------------------
                                Subpart Q
------------------------------------------------------------------------
1727........................  Application to        $4,684 x 240
                               Remove a Platform     applications =
                               or Other Facility.    $1,124,160.
                                                    $2,846 x 240
                                                     applications =
                                                     $683,040.
1751(a); 1752(a)............  Application to        $1,142 x 213
                               Decommission a        applications =
                               Pipeline (Lease       $243,246.
                               Term).
                                                    $857 x 213
                                                     applications =
                                                     $182,541.
1751(a); 1752(a)............  Application to        $2,170 x 147
                               Decommission a        applications =
                               Pipeline (ROW).       $318,990.
                                                    $980 x 147
                                                     applications =
                                                     $144,060.
NEW NON-HOUR COST BURDEN....  ....................  $44,463.
REVISED NON-HOUR COST BURDEN  ....................  $15,943,324.
                             -------------------------------------------
    TOTAL NEW and Revised     ....................  $15,987,787.
     Non-Hour Cost Burdens.
------------------------------------------------------------------------

    Although the total new and revised Non-Hour Cost Burdens are 
estimated to be $16 million based on 3-year averages of the number of 
plans, applications, and permits, due to recent declines in the number 
of these submissions, BSEE anticipates that collections will more 
closely approximate $11 million in FY 2018.
    For further information on this non-hour burden estimation process, 
refer to 5 CFR 1320.3(b)(1) and (2), or contact the BSEE Information 
Collection Clearance Officer at (703) 787-1607.

[[Page 81046]]

National Environmental Policy Act (NEPA) of 1969
    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 or economic effects with minimal 
environmental impacts. BSEE also analyzed this proposed rule to 
determine if extraordinary circumstances, set forth in 43 CFR 46.215, 
exist that would require BSEE to prepare an environmental assessment or 
an environmental impact statement for actions otherwise eligible for a 
categorical exclusion. BSEE concluded that this proposed rule does not 
trigger any of the criteria for extraordinary circumstances and, 
therefore, has not prepared an environmental assessment or an 
environmental impact statement.
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 Sec.  515).
Effects on the Nation's Energy Supply (E.O. 13211)
    This proposed rule is not a significant energy action under the 
definition in E.O. 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.
Clarity of This Regulation
    We are required by E.O. 12866, E.O. 12988, E.O. 13563, and by the 
Presidential Memorandum of June 1, 1998, to write all rules in plain 
language. This means that each rule 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, the sections where you feel lists or tables would be useful, 
etc.

List of Subjects in 30 CFR Part 250

    Administrative practice and procedure, Continental Shelf, 
Environmental impact statements, Environmental protection, Government 
contracts, Investigations, Oil and gas exploration, Penalties, 
Reporting and recordkeeping requirements, Sulfur.

    Dated: October 31, 2016.
Amanda C. Leiter,
 Acting 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 SULFUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

0
1. Authority citation for part 250 continues to read as follow:

    Authority:  30 U.S.C. 1751; 31 U.S.C. 9701, 33 U.S.C. 
1321(j)(1)(C), 43 U.S.C. 1334.

0
2. Revise Sec.  250.125 by:
0
a. Revising the table in paragraph (a) to read as follows;
0
b. Redesignating paragraph (c) as paragraph (d);
0
c. Removing paragraph (b) and adding new paragraphs (b) and (c) to read 
as follows:


Sec.  250.125   Service fees.

    (a) * * *

                                                Service Fee Table
----------------------------------------------------------------------------------------------------------------
     Service--processing of the
             following:                          Fee amount                          30 CFR citation
----------------------------------------------------------------------------------------------------------------
(1) Suspension of Operations/        $3,055...........................  Sec.   250.171(e).
 Suspension of Production (SOO/SOP)
 Request.
(2) Deepwater Operations Plan:
    (i) Deepwater Operations Plan--  $14,290..........................  Sec.   250.292(q).
     Simple.
    (ii) Deepwater Operations Plan-- $70,333..........................
     Complex (New Technology).
(3) Application for Permit to Drill  $10,420..........................  Sec.   250.410(d); Sec.   250.513(b);
 (APD; Form BSEE-0123).                                                  Sec.   250.1617(a).
(4) Application for Permit to        $1,680...........................  Sec.   250.465(b); Sec.   250.513(b);
 Modify (APM; Form BSEE-0124).                                           Sec.   250.613(b); Sec.   250.1618(a);
                                                                         Sec.   250.1704(g).
(5) New Facility Production Safety   $3,976 $13,534 additional fee
 System Application for Facility      will be charged if BSEE conducts
 with More than 125 Components.       a pre-production inspection of a
                                      facility offshore, and $14,567
                                      for an inspection of a facility
                                      while in a shipyard.
                                     A component is a piece of
                                      equipment or an ancillary system
                                      that is protected by one or more
                                      of the safety devices required
                                      by API RP 14C (as incorporated
                                      by reference in Sec.   250.198).
(6) New Facility Production Safety   $548 $8,508 additional fee will    Sec.   250.842.
 System Application for Facility      be charged if BSEE conducts a
 with 25-125 Components.              pre-production inspection of a
                                      facility offshore, and $9,818
                                      for an inspection of a facility
                                      while in a shipyard.
(7) New Facility Production Safety   $463 $4,338 additional fee will    Sec.   250.842.
 System Application for Facility      be charged if BSEE conducts a
 with Fewer than 25 Components.       pre-production inspection of a
                                      facility offshore, and $1,967
                                      for an inspection of a facility
                                      while in a shipyard.

[[Page 81047]]

 
(8) Production Safety System         $1,278 $9,313 additional fee will  Sec.   250.842.
 Application--Modification with       be charged if BSEE conducts a
 More than 125 Components Reviewed.   pre-production inspection of a
                                      facility offshore, and $8,100
                                      for an inspection of a facility
                                      while in a shipyard.
(9) Production Safety System         $439 $6,765 additional fee will    Sec.   250.842.
 Application--Modification with 25-   be charged if BSEE conducts a
 125 Components Reviewed.             pre-production inspection of a
                                      facility offshore, and $7,326
                                      for an inspection of a facility
                                      while in a shipyard.
(10) Production Safety System        $386 $4,513 additional fee will    Sec.   250.842.
 Application--Modification with       be charged if BSEE conducts a
 Fewer than 25 Components Reviewed.   pre-production inspection of a
                                      facility offshore, and $2,141
                                      for an inspection of a facility
                                      while in a shipyard.
(11) Platform Application--          $28,311..........................  Sec.   250.905(l).
 Installation--Under the Platform
 Verification Program.
(12) Platform Application--          $1,914...........................  Sec.   250.905(l).
 Installation--Fixed Structure
 Under the Platform Approval
 Program.
(13) Platform Application--          $1,914...........................  Sec.   250.905(l).
 Installation--Caisson/Well
 Protector.
(14) Platform Application--          $1,975...........................  Sec.   250.905(l).
 Modification/Repair.
(15) New Pipeline Application
 (Lease Term):
    (i) New Pipeline Application     $1,584...........................  Sec.   250.1000(b).
     (Lease Term)--Shallow Water
     (less than 1,000 ft.).
    (ii) New Pipeline Application    $3,663
     (Lease Term)--Deepwater
     (greater than 1,000 ft.).
(16) Pipeline Application--
 Modification (Lease Term):
    (i) Pipeline Application--       $651.............................  Sec.   250.1000(b).
     Modification (Lease Term)--
     Minor.
    (ii) Pipeline Application--      $1,696
     Modification (Lease Term)--
     Major.
(17) Pipeline Application--
 Modification Right-of-Way (ROW):
    (i) Pipeline Application--       $455.............................  Sec.   250.1000(b).
     Modification (ROW)--Minor.
    (ii) Pipeline Application--      $1,800
     Modification (ROW)--Major.
(18) Pipeline Repair Notification..  $557.............................  Sec.   250.1008(e).
(19) Pipeline ROW Grant
 Application:
    (i) Pipeline ROW Grant           $1,662...........................  Sec.   250.1015(a).
     Application--Shallow Water
     (less than 1,000 ft.).
    (ii) Pipeline ROW Grant          $3,796
     Application--Deepwater
     (greater than 1,000 ft.).
(20) Pipeline Conversion of Lease    $494.............................  Sec.   250.1015(a).
 Term to ROW.
(21) Pipeline ROW Assignment.......  $397.............................  Sec.   250.1018(b).
(22) 500 Feet From Lease/Unit Line   $5,440...........................  Sec.   250.1156(a).
 Production Request.
(23) Gas Cap Production Request....  $11,962..........................  Sec.   250.1157.
(24) Downhole Commingling Request..  $14,064..........................  Sec.   250.1158(a).
(25) Complex Surface Commingling     $8,205...........................  Sec.   250.1202(a); Sec.   250.1203(b);
 and Measurement Application.                                            Sec.   250.1204(a).
(26) Simple Surface Commingling and  $3,514...........................  Sec.   250.1202(a); Sec.   250.1203(b);
 Measurement Application.                                                Sec.   250.1204(a).
(27) Voluntary Unitization Proposal  $27,288..........................  Sec.   250.1303(d).
 or Unit Expansion.
(28) Unitization Revision:
    (i) Unitization Revision--       $1,683...........................  Sec.   250.1303(d).
     Exhibit A, Exhibit B, and
     Successor Unit Operator/Sub-
     operator.
    (ii) Unitization Revision--      $3,225...........................
     Exhibit C.
(29) Application to Remove a         $2,846...........................  Sec.   250.1727.
 Platform or Other Facility.
(30) Application to Decommission a   $857.............................  Sec.   250.1751(a) or Sec.
 Pipeline (Lease Term).                                                  250.1752(a).
(31) Application to Decommission a   $980.............................  Sec.   250.1751(a) or Sec.
 Pipeline (ROW).                                                         250.1752(a).
----------------------------------------------------------------------------------------------------------------

    (b) Fees specified in paragraph (a) must be paid electronically 
using one of the methods required by Sec.  250.126. Proof of payment of 
the fees listed in paragraph (a) must accompany the submission of the 
application or other request for service. Once a fee is paid, it is 
nonrefundable, except as provided in paragraph (c). If your application 
is returned to you as incomplete, you are not required to submit a new 
fee with the amended application.

[[Page 81048]]

    (c) BSEE will issue a refund in certain situations.
    (1) You are eligible for a refund if you submit:
    (i) More than one payment with a single request;
    (ii) An incorrect fee or fee amount; or
    (iii) A payment without submitting any application or other request 
and the matter does not proceed further.
    (2) If you meet the criteria for a refund, you must submit a 
completed Refund Request form, which can be found at http://www.bsee.gov/About-BSEE/Fees-for-Services/. On the Refund Request form, 
in the ``*Memo (reason requesting refund)'' section, you must list the 
reason for the refund. You must use the information from your original 
proof of payment to prepare your refund request.
    (3) You must submit all refund requests to BSEE within 150 days of 
the initial service fee payment. If you do not submit your request 
within the 150-day timeframe, BSEE will not issue a refund.
    (4) If you have any questions pertaining to refund eligibility or 
to the preparation of the refund request, contact the appropriate 
Regional Office.
* * * * *
0
3. Revise Sec.  250.126 to read as follows:


Sec.  250.126  Electronic payment instructions.

    (a) You must file all payments under any provision of this part 
electronically, as provided in paragraphs (a)(1) or (a)(2) of this 
section.
    (1) If you submit an application through the eWell Web site at 
https://ewell.bsee.gov/ewell/, you must use the interactive payment 
feature in that system, which directs you through pay.gov to make a 
payment. A copy of your pay.gov payment confirmation or pay.gov receipt 
serves as proof of your payment.
    (2) For applications not submitted through eWell, you may make a 
payment through the Fees for Services page on the BSEE Web site at 
http://www.bsee.gov/About-BSEE/Fees-for-Services/ or directly through 
the pay.gov Web site. A copy of your pay.gov payment confirmation or 
pay.gov receipt serves as proof of your payment and must accompany the 
submission of the application or other request for service.
    (b) Payments at or below the current U.S. Treasury credit card 
limit may be made using a credit card or through the automated clearing 
house (ACH-debit). Payments above the current U.S. Treasury credit card 
limit must be made through ACH-debit.
    (c) BSEE does not accept wire transfer electronic payments.
0
4. In Sec.  250.292, revise paragraph (q) to read as follows:


Sec.  250.292   What must the DWOP contain?

* * * * *
    (q) Payment of the service fee listed in Sec.  250.125. The service 
fee is divided into two levels based on the complexity of the plan, as 
shown in the following table.

------------------------------------------------------------------------
         Application type                        Description
------------------------------------------------------------------------
(1) Complex plans.................  Plans containing:
                                    i. ``new or unusual technology'' as
                                     defined by Sec.   250.200 and such
                                     technology:
                                       A. requires a high degree of
                                        specialized knowledge;
                                       B. exceeds the limits of existing
                                        engineering standards;
                                       C. conflicts with existing
                                        engineering standards; or
                                       D. warrants an additional level
                                        of review due to the risk
                                        associated with implementation.
                                    ii. installation of a new floating
                                     production facility.
(2) Simple plans..................  All other plans.
------------------------------------------------------------------------

0
5. Revise Sec.  250.1000 by:
0
a. Redesignating paragraphs (c) through (e) as paragraphs (e) through 
(g); and
0
b. Adding new paragraphs (c) and (d) to read as follows:


Sec.  250.1000   General requirements

* * * * *
    (c) The service fee for a New Pipeline Application (Lease Term) is 
divided into two levels based on water depth, as shown in the following 
table:

------------------------------------------------------------------------
         Application type                        Description
------------------------------------------------------------------------
(1) Shallow water applications....  Applications for new lease term
                                     pipelines that will be located in
                                     their entirety within water depths
                                     of 1,000 feet or less.
(2) Deepwater applications........  Applications for new lease term
                                     pipelines, any portion of which
                                     will be located in water depths
                                     greater than 1,000 feet.
------------------------------------------------------------------------

    (d) The service fee for a Pipeline Application--Modification (Lease 
Term) and a Pipeline Application--Modification (Right-of-way) are 
divided into two levels based on complexity, as shown in the following 
table:

------------------------------------------------------------------------
         Application type                        Description
------------------------------------------------------------------------
(1) Major Applications............  Applications containing a route
                                     modification.
(2) Minor Applications............  All other applications.
------------------------------------------------------------------------

* * * * *
0
6. In Sec.  250.1015, revise paragraph (a) to read as follows:


Sec.  250.1015   Applications for pipeline right-of-way grants

    (a) You must submit to the Regional Supervisor an original and 
three copies of an application for a new or modified pipeline ROW 
grant. The application must address those items required by Sec. Sec.  
250.1007(a) or (b) of this subpart, as applicable. It must also state 
the primary purpose for which you will use the ROW grant. If the ROW 
has been used before the application is made, the application must 
state the date such use began, by whom, and the date the applicant 
obtained control of the ROW. When you file your application, you must 
pay the rental required under Sec.  250.1012 of this subpart, as well 
as the

[[Page 81049]]

service fees listed in Sec.  250.125 of this part for a pipeline ROW 
grant to install a new pipeline, or to convert an existing lease term 
pipeline into an ROW pipeline. An application to modify an approved ROW 
grant must be accompanied by the additional rental required under Sec.  
250.1012, if applicable. You must file a separate application for each 
ROW. The service fee for a pipeline ROW grant application is divided 
into two levels based on water depth, as shown in the following table:

------------------------------------------------------------------------
         Application type                        Description
------------------------------------------------------------------------
(1) Shallow water applications....  Applications for a pipeline ROW
                                     grant for pipelines that will be
                                     located in their entirety within
                                     water depths of 1,000 feet or less.
(2) Deepwater applications........  Applications for a pipeline ROW
                                     grant for pipelines, any portion of
                                     which will be located in water
                                     depths greater than 1,000 feet.
------------------------------------------------------------------------

* * * * *
0
7. In Sec.  250.1303, revise paragraph (d) to read as follows:


Sec.  250.1303   How do I apply for voluntary unitization?

* * * * *
    (d) You must pay the service fee listed in Sec.  250.125 of this 
part with your request for a voluntary unitization proposal or the 
expansion of a previously approved voluntary unit to include additional 
acreage. Additionally, you must pay the service fee listed in Sec.  
250.125 with your request for unitization revision. The service fee for 
a request for unitization revision is divided into two levels, as shown 
in the following table:

------------------------------------------------------------------------
         Application type                        Description
------------------------------------------------------------------------
(1) Exhibits A and B..............  Applications for revisions to
                                     Exhibit A and/or Exhibit B or
                                     designation of Successor Unit
                                     Operators and/or Successor Unit Sub-
                                     operators.
(2) Exhibit C.....................  Applications for revisions to
                                     Exhibit C.
------------------------------------------------------------------------

[FR Doc. 2016-27500 Filed 11-16-16; 8:45 am]
 BILLING CODE 4310-VH-P