[Federal Register Volume 63, Number 2 (Monday, January 5, 1998)]
[Notices]
[Pages 256-259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-9]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Memorandum of Understanding (MOU) Between the Minerals Management
Service and the United States Coast Guard
AGENCY: Minerals Management Service, Interior.
ACTION: Notice.
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SUMMARY: Minerals Management Service (MMS) and the United States Coast
Guard (USCG) are updating their MOU concerning responsibilities for
offshore facilities. The update is necessary to add responsibilities
associated with floating facilities, the Oil Pollution Act (OPA), and
civil penalties.
DATES: MMS and USCG will consider all comments received by March 6,
1998. We will begin reviewing comments at that time and may not fully
consider comments we receive after March 6, 1998.
ADDRESSES: Mail or hand-carry comments to the Department of Interior;
Minerals Management Service; Mail Stop 4700; 381 Elden Street; Herndon,
Virginia 20170-4817; Attention: Rules Processing Team.
FOR FURTHER INFORMATION CONTACT: Sharon Buffington, MMS at (703) 787-
1147 or LCDR Stephen Kantz, USCG at (202) 267-0505.
SUPPLEMENTARY INFORMATION: In August, 1989 the MMS and the USCG signed
an MOU that outlined responsibilities associated with facilities
located on the Outer Continental Shelf (OCS). The purpose was to
minimize duplication, and to promote consistent regulation of these
facilities. The use of floating facilities, and responsibilities
assigned by OPA created by need to update the MOU. Therefore, the MMS
and USCG are coordinating an update of the 1989 MOU to add
responsibilities for:
Floating facilities;
OPA; and
Civil penalities.
For floating facilities, we plan to use jointly approved third
party verification agents to conduct the joint reviews specified in
Table C of the MOU.
We are working to ensure that the MOU is a workable document that
we will update whenever necessary. MMS is publishing this request for
comment on behalf of both MMS and the USCG. Please send comments on the
MOU (Appendix A) to the address listed in the addresses section of this
notice.
Also, please comment on whether you believe that the MMS and USCG
should exchange other responsibilities to improve efficiency. For
example, would it be more efficient if MMS assumed the remaining USCG
responsibilities for fixed facilities? We are considering all options
to improve customer service under the guidelines of the National
Performance Review.
[[Page 257]]
Dated: December 29, 1997.
Carolita U. Kallaur,
Associate Director for Offshore Minerals Management.
Appendix A--Memorandum of Understanding between the Minerals Management
Service and the United States Coast Guard
I. Purpose
This Memorandum of Understanding (MOU) defines the
responsibilities of the Minerals Management Service (MMS) and the
United States Coast Guard (USCG). The jurisdictional area covered by
this MOU is the Outer Continental Shelf (OCS) except for oil-spill
preparedness and response functions that are seaward of the coast
line. An MOU, dated February 3, 1994, among the Departments of
Transportation and the Interior, and the Environmental Protection
Agency established jurisdictional responsibilities for facilities
located both seaward and landward of the coast line.
This MOU will minimize duplication and promote consistent
regulation of facilities in the offshore. This MOU does not apply to
deepwater ports as licensed by the Secretary of Transportation under
the Deepwater Port Act of 1974, as amended.
II. Definition
For purposes of this MOU, the following definitions apply:
Act--The OCS Lands Act (OCSLA) of 1953 (43 U.S.C. 1331 et seq.),
as amended by the OCSLA amendments of 1978 (Pub. L. 95-372).
Coast Line--The line of ordinary low water along that portion of
the coast which is in direct contact with the open sea and the line
marking the seaward limit of inland waters, as defined by the
Submerged Lands Act (43 U.S.C. 1301 (c)).
Mobile Offshore Drilling Unit (MODU)--A vessel capable of
engaging in drilling operations for exploring or exploiting subsea
resources of oil, gas, or minerals. An MODU is also classified as a
facility when engaged in drilling or downhole operations.
OCS--The submerged lands which are subject to the Act.
OSC Activity--Any activity in the OCS associated with
exploration, development, production, transporting, or processing of
OCS mineral resources including but not limited to oil and gas.
OCS Facility--Any artificial island, and installation or other
device permanently or temporarily attached to the sea bed, erected
for the purpose of exploring for, developing, or producing resources
from the OCS. This term does not include ships or vessels on the
waters above the OCS used for construction or conveyance in support
of OCS activities, or in uses of these waters unrelated to OCS
activities. The following are types of OCS facilities:
1. Fixed OCS Facility--A bottom founded OCS facility permanently
attached to the seabed or subsoil of the OCS, including platforms,
guyed towers, articulated gravity platforms, and other structures.
This definition also includes gravel and ice islands and caisson
retained islands engaged in OCS activities used for drilling,
production, or both.
2. Floating OCS Facility--A buoyant OCS facility securely and
substantially moored so that it cannot be moved without a special
effort. This term includes tension leg platforms, spars, and
permanently moored semisubmersibles or shipshape hulls but does not
include MODUs solely engaged in drilling activities.
3. OCS Terminal--Any facility or vessel located on the OCS which
is designated for use as a port or terminal for transferring OCS
mineral resources or hydrocarbons from other sources to or from a
vessel. This includes OCS facilities and their associated pipelines
licensed by the Secretary of Transportation under the Deepwater Port
Act of 1974.
OPA--The Oil Pollution Act of 1990 (Pub. L. 101-380).
Person--A natural person, an association, a State, a political
subdivision of a State, or a private, public, or municipal
corporation.
Production Facility--Any OCS facility designated by the lessee
of an OCS lease for the purpose of producing, transporting,
processing, or supporting the production of the mineral resources.
This definition also includes gravel and caisson retained islands
engaged in any OCS activities even though they may be used for
purposes other than producing, transporting, processing, or
supporting the production of OCS mineral resources.
Regional Director (RD)--The MMS officer delegated the
responsibility and authority for a region within MMS. The USCG
referrals for violations occurring in a particular MMS Region would
be made to that MMS Region's RD.
Regional Supervisor (RS)--The MMS officer (or the authorized
representative) in charge of operations with a region.
Vessel--Every description of watercraft or other artificial
contrivance used, or capable of being used, as a means of
transportation on the water. This term does not include atmospheric
or pressure vessels used for containing liquids or gases.
Violation--Failure to comply with the OCSLA, with any
regulations, or the terms or provisions of leases, licenses,
permits, or rights-of-way issued under the OCSLA.
III. Responsibilities.
The responsibilities in section III are organized as follows:
Table A lists MODUs;
Table B lists fixed facilities; and
Table C lists floating systems.
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MMS USCG
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A. MODUs:
1. Design and construction................ ........... 1
2. Structural integrity & modification &
repair requirements...................... ........... 2
3. Stability & buoyancy in transit and
operation................................ ........... 3
4. General arrangement.................... ........... 4
5. Cranes, booms, elevators, handling
equipment (includes BOP handling)........ ........... 5
6. Electrical system design and equipment
& classified area designations........... ........... 6
7. Permanently installed boilers, pressure
vessels, piping, & machinery not covered
by MMS................................... ........... 7
8. Mooring systems design, rating, &
compatibility--not site-specific......... ........... 8
9. Helicopter deck installations,
including refueling facilities and
operations............................... ........... 9
10. Pollution prevention systems (33 CFR
151-156)................................. ........... 10
11. Firefighting for systems under USCG
authority................................ ........... 11
12. Structural inspection................. ........... 12
13. Safe welding and burning procedures on
structural members....................... ........... 13
14. Transferring materials and personnel
by crane or other--on or off facility.... ........... 14
15. Well-control equipment--surface and
subsurface............................... 15 ...........
16. Safety systems required by MMS........ 16 ...........
17. Emergency shutdown systems............ 17 ...........
18. H2S equipment and control, gas
detection systems, worker protection (not
fire related)............................ 18 ...........
19. Subsea completions.................... 19 ...........
20. Gas detection systems................. 20 ...........
21. Containment systems for overflow...... 21 ...........
22. Well or production related pressure
vessels and piping....................... 22 ...........
23. Pollution prevention and equipment
(not vessel transfers)................... ........... 23
24. Administrates a shut down of a
facility................................. 24 ...........
[[Page 258]]
B. Fixed facilities:
1. Fire protection--structural (quarters,
bulkheads, decks, escape routes, testing
& material classification; fire
detection, control & extinguishing
systems; equipment & helicopter deck &
refueling facilities. Fire fighting for
structural systems not in #2 below....... ........... 1
2. Fire protection systems (deluge &
sprinkler in well bay areas, detectors,
and fire loop in wellhead production area
and quarters)............................ 2 ...........
3. Dehydration equipment and gas
compressor units used in production...... 3 ...........
4. Occupational health and workplace
safety................................... ........... 4
5. Evacuation procedures and escape routes ........... 5
6. Lifesaving systems and equipment....... ........... 6
7. Ventilation system requirements........ ........... 7
8. General alarms......................... ........... 8
9. Personnel protection equipment (not
H2S)..................................... ........... 9
10. Living quarters....................... ........... 10
11. Communications........................ ........... 11
12. Navigation & obstruction lights an
sound signals............................ ........... 12
13. Review design, fabrication, and
installation............................. 13 ...........
14. Verify site specific considerations... 14 ...........
15. Well-control equipment--surface and
subsurface............................... 15 ...........
16. Safety systems........................ 16 ...........
17. Emergency shutdown system............. 17 ...........
18. Wellhead, flowline, pipeline, & well
test equipment includes safety valves &
pressure sensors......................... 18 ...........
19. H2S equipment and control, gas
detection systems, worker protection (not
fire-related)............................ 19 ...........
20. Piping systems (production and
related) includes incoming and departing. 20 ...........
21. Pumps used to transfer liquids within
the production systems & into pipes...... 21 ...........
22. Odorant treatment of gas piped into
enclosures............................... 22 ...........
23. Subsea completions.................... 23 ...........
24. Gas-detection systems (drilling,
production, gas-transmission or
equipment)............................... 24 ...........
25. Sale and metering equipment for
production of oil, gas & sulphur......... 25 ...........
26. Containment systems for overflow from
drilling and production equipment........ 26 ...........
27. Vessels (pressure, atmospheric, &
fired) and piping-drilling and production 27 ...........
28. Well-head and platform removal........ 28 ...........
29. Drilling, workover, completion, well-
servicing (includes well-control)........ 29 ...........
30. Pollution prevention and equipment
(not vessel transfers)................... 30 ...........
31. Safe welding, burning and hot tapping. 31 ...........
32. Pipeline operations--associated with
the facility............................. 32 ...........
33. Emergency egress procedures (includes
lifesaving & emergency equipment)........ ........... 33
34. Explosive, radioactive & flammable
(not hydrocarbon) material handling,
transferring & stowage (& other HAZMATS). ........... 34
35. Petroleum and other product transfer
(to & from a vessel)..................... ........... 35
36. Vehicle and vessel operations......... ........... 36
37. Diving operations and equipment....... ........... 37
38. Administrates a shut down of a
facility................................. 38 ...........
39. Investigation lead for collisions,
deaths, injuries......................... ........... 39
40. Structural integrity, modification,
and repair requirements.................. 40 ...........
41. Electrical system design and equipment 41 ...........
42. Engine exhaust insulation and spark
arrestors................................ 42 ...........
43. Material handling equipment (including
cranes and booms)........................ 43 ...........
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C. Floating OCS Systems
Table C lists the responsibilities for floating OCS systems:
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MMS MMS/USCG USCG
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Production equipment (including Design of turret
risers & turret). hull interface &
fabrication of
turret & turret
hull interface.
Fire detection--production & System interfaces Fire Protection &
drilling areas. for non- Response For All
Fire extinguishing--well bay gas independent fire Other Areas
&/or H2S detection in all areas. detection and Fire Detection--
fire Remainder of
extinguishing Vessel/Facility.
systems.
Site specific considerations TLP tendons & ..................
(including geotechnics. mooring systems
of other floating
production
systems.
TLP foundations................. Hull structure for Hull structure-
TLP, SPAR, & shipshape FPS
hybrid. Accommodations-
all types
Structural fire
protection for
all types.
Hazardous areas &
general
arrangement.
Design Stability for all
Environmental types.
Conditions (DEC)
Station keeping--
DP vessels.
Design operating ..................
conditions.
Non-production
machinery/
electrical
systems..
Lifesaving
equipment [MODU
or tankship
requirements].
Helicopter
facilities (MODU
regulations).
------------------------------------------------------------------------
TLP--Tension leg platform. DP--Dynamically Positioned.
[[Page 259]]
IV. Civil Penalties
A. The USCG reports violations of OCSLA statutes or regulations
which may result in civil penalty action to MMS by using the
Compliance Review Form, MMS-129. The USCG will investigate and
document OCSLA based violation cases according to the procedures in
33 CFR 140.40 with the following clarification:
1. The cognizant Officer in Charge, Marine Inspection (OCMI)
provides the violator written notice of the violation and
establishes a reasonable time for the violator to correct the
violation. However, a violation that constitutes a threat of
serious, irreparable, or immediate harm does not need a time for
correction before the OCMI proceeds with a civil penalty
recommendation. For violations which do not constitute a threat of
serious, irreparable, or immediate harm, the OCMI may consult the
MMS RD to establish reasonable corrective times, particularly on
matters in which MMS has expertise or knowledge of industry
practice.
2. If the appropriate time to file an appeal has past, and the
violator has not filed an appeal with the appropriate USCG official,
pursuant to 43 USC 1248(a), the OCMI provides the MMS Regional Civil
Penalty Coordinator with the following information:
I. The case file, which consists of a summary of the
investigation and a USCG determination of the regulations violated.
ii. A description of the seriousness of violation and any
incidents actually associated with the violation.
iii. If requested, additional information concerning the merits
of a civil penalty action. All physical evidence remains with the
USCG, but available to MMS upon request.
3. If the violator files an appeal, the USCG will forward the
case to MMS after the USCG Hearing Officer issues a final decision
on the appeal.
4. Upon receipt of the violation report, the MMS Regional Civil
Penalty Coordinator will appoint a Reviewing Officer (RO) who will
process the report in accordance with the MMS OCS Criminal/Civil
Penalties Program Guidebook.
5. Notification of the MMS RO's decision regarding the civil
penalty assessment, collection, compromise, or dismissal shall be
provided to the OCMI originating the violation report.
V. Pollution responsibilities
A. Certificates of Financial Responsibility (COFR)
1. The MMS issues Certificates of Financial Responsibility
(COFR) for all facilities seaward of the coast line. The MMS COFR
ensures that lessees possess adequate oil spill financial
responsibility for the clean up and damages from oil discharges
resulting from oil exploration and production facilities and the
associated pipelines.
2. The USCG issues COFR for vessels and floating OCS facilities
which store oil. This COFR is in addition to the MMS COFR and
addresses the operators financial responsibility for the clean up
and damages from oil discharges resulting from non-well related
sources and produced oil store on board the floating OCS facility.
B. Oil Spill Preparedness and Response Planning
1. The MMS, for all facilities seaward of the coast line,
requires that responsible parties maintain approved Oil Spill
Response Plan (OSRP) consistent with the area contingency plan
(ACP); ensures that response personnel receive training; and that
response equipment is inspected. The MMS may require unannounced oil
spill response drills. The MMS RS will notify the Federal On Scene
Coordinator (FOSC) of drills to coordinate participation, and avoid
conflict or duplication.
2. The USCG Captain of the Port serves as the pre-designated
FOSC in accordance with the national Contingency Plan. The cognizant
FOCS will also jointly approve OSRPs for floating OCS facilities
which store oil. Participation in MMS drills will be at the
discretion of the FOSC. The FOSC will advise the MMS RS of spill
response drills and activities occurring offshore.
C. Spill Response
1. All spills are required to be reported to the NRC. The NRC
provides notification to the appropriate agencies and state offices.
Additionally, offshore facility owners or operators are required to
report spills over one barrel to the MMS RS.
2. The FOSC will direct and monitor federal, state, and private
actions, consult with affected trustees, and determine removal
completion. The MMS RS will direct measures to abate sources of
pollution from an offshore facility.
VI. Exchanging Services and Personnel
To the extent its own operations and resources permit, each
Agency will provide the other Agency with assistance, technical
advice, and support, including transportation, if requested.
Exchange of services and personnel is non-reimbursable (except for
pollution removal funding authorizations for incident specific fund
access). The assistance may extend to areas beyond the OCS where one
Agency's expertise will benefit the other Agency in applying and
enforcing its safety regulations.
VII. Other Cooperative Functions
A. Both agencies will exchange data and study results,
participate in research and development projects and exchange early
drafts of rulemaking notices to avoid duplicative or conflicting
requirements.
B. Both Agencies will review current standards, regulations, and
directives and will propose revisions to them necessary in keeping
with the provision of this MOU.
C. Both Agencies will review reporting and data collection
requirements imposed on operators of OCS facilities and, where
feasible, eliminate or minimize duplicate reporting and data
collection requirements.
VIII. Implementing this MOU
A. Each Agency will review its internal procedures, and where
appropriate, will revise them to accommodate the provisions of this
MOU. Each Agency will also designate in writing one senior official
who will be responsible for coordinating and implementing the
provisions of this MOU.
B. Each agency will designate regional officials to be
responsible for coordinating and implementing the provisions of this
MOU in their respective regions.
C. The USCG--MMS MOU concerning regulation of activities and
facilities in the OSC, dated August 29, 1990, is canceled on the
effective date of this agreement.
D. The MOU between the Department of the Interior and the
Department of Transportation regarding responsibilities under the
National Oil and Hazardous Substances Pollution Contingency Plan,
dated August 16, 1971, is canceled on the effective date of this
agreement.
E. If new technology (or new uses of current technology) require
a change to this MOU, the MMS regional office and appropriate USCG
district will work together to solve the situation. The MMS regional
office and the USCG district will notify their respective
headquarters office of the change. If the MMS regional office and
the USCG district office can't solve the situation, it will be
elevated to MMS and USCG headquarters. The new policy will become
part of a revised MOU the next time the MOU is revised.
IX. Savings Provision
Nothing in this MOU alters, amends, or affects in any way the
statutory authority of MMS or the USCG.
X. Effective Date
This MOS is effective upon signature. Both parties may amend it
by mutual agreement and either agency may terminate it with a 30-day
written notice.
Signed at Washington, D.C. this
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Commandant, U.S. Coast Guard, Department of Transportation.
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Director, Minerals Management Service, Department of the Interior.
[FR Doc. 98-9 Filed 1-2-98; 8:45 am]
BILLING CODE 4310-MR-M
