[Federal Register Volume 64, Number 248 (Tuesday, December 28, 1999)]
[Rules and Regulations]
[Pages 72756-72795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-31869]
[[Page 72755]]
_______________________________________________________________________
Part V
Department of the Interior
_______________________________________________________________________
Minerals Management Service
_______________________________________________________________________
30 CFR Parts 218, 250, 252, etc.
Postlease Operations Safety; Final Rule
Federal Register / Vol. 64, No. 248 / Tuesday, December 28, 1999 /
Rules and Regulations
[[Page 72756]]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Parts 218, 250, 252, 253, 256 and 282
RIN 1010-AC32
Postlease Operations Safety
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Final rule.
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SUMMARY: This rule: Updates and clarifies requirements related to
postlease operations and stresses diligence; Allows MMS to grant a
right-of-use and easement for an Outer Continental Shelf (OCS) leased
or unleased block to a State lessee; Brings uniformity to the public
release time for all proprietary geophysical data and information
gathered under prelease; Clarifies the distinction between granting and
directing a suspension, and the different consequences of each;
Requires evacuation statistics for natural occurrences; Sets out
criteria to disqualify an operator with repeated poor operating
performance from continuing as designated operator; and Allows
operators the opportunity to propose alternative regulatory approaches
if they can demonstrate an equal or higher level of performance.
EFFECTIVE DATE: The rule is effective on January 27, 2000. The
incorporation by reference of certain publications listed in these
rules is approved by the Director of the Federal Register as of January
27, 2000.
FOR FURTHER INFORMATION CONTACT: Kumkum Ray, Engineering and Operations
Division, at (703) 787-1600.
SUPPLEMENTARY INFORMATION: On February 13, 1998, we published a Notice
of Proposed Rulemaking (63 FR 7335), titled ``Postlease Operations
Safety,'' revising the entire 30 CFR part 250, subpart A. The proposed
rule was subsequently corrected in a notice on March 9, 1998 (63 FR
11385). We extended the 90-day comment period once (to provide a
comment period of 120 days that closed on July 17, 1998). We received
11 responses during the comment period. On March 24, 1998 (during the
comment period), we held a public meeting to consult on establishing
criteria for the disqualification provision in the rule. This final
rule amends the regulations at 30 CFR 218.154; 30 CFR part 250, subpart
A; 30 CFR 256.1, 256.4, 256.35, and 256.73; and it corrects regulatory
citations throughout the CFR to reflect the new subpart A sections.
Redesignation of 30 CFR Part 250
On May 29, 1998, we published a final rule that redesignated 30 CFR
part 250 and assigned new section numbers to each section in part 250.
The subpart A proposed rule was published before the redesignation. The
redesignation rule allowed us to add more sections to the subpart A
final rule and to break down lengthy sections into shorter and clearer
sections. In our discussion of comments on the rule, we retained the
section numbers from the proposed rule when we referred to the comments
that we received. When we refer to the current regulations, we use the
redesignated numbers as published in the final rule, published in the
Federal Register on May 29, 1998 (also in the bound copy of the CFR,
dated July 1, 1998).
MMS Position on Incorporated Documents
Incorporation by reference allows Federal agencies to comply with
the requirements to publish regulations in the Federal Register by
referring to materials already published elsewhere. The legal effect of
incorporation by reference is that the material is treated as if it
were published in the Federal Register. This material, like any other
properly issued regulation, then has the force and effect of law. We
hold operators accountable for complying with the documents
incorporated by reference in our regulations.
Differences Between Proposed and Final Rules Not Directly Related
to Comments
In addition to changes we made to the final rule in response to
comments, we reworded certain complex sections for further clarity. We
also changed the wording/format of several section titles and headings.
Although not directly related to public comments on the proposed rule,
these changes were often triggered by the comments to other sections
because so many of the sections are interrelated. Following are the
major changes by section. We emphasize that the wording revisions do
not change any requirements. In many instances, the changes improve
MMS's internal work processes to better serve its external customers.
In the table at Sec. 250.102(b), we added a reference to
Oil Spill Financial Responsibility coverage.
We added Sec. 250.103 on issuing Notices to Lessees and
Operators (NTLs).
In Sec. 250.105, we modified the definition of exploration
to clarify that exploration is not just any drilling per se, but are
those drilling activities conducted in searching for potential
commercial quantities of oil and gas.
In Sec. 250.105, we removed the definition of
``information'' as the definition was too narrow and restrictive. In
addition to geological and geophysical (G&G) information, we deal with
many different kinds of information including archaeological,
biological, engineering, environmental, financial, and technical.
In Sec. 250.105, we expanded definitions of (1) ``lessee''
to include the MMS-approved assignee of the lease or the operating
rights; (2) ``operator'' to include a designated agent of the
lessee(s); and (3) ``you'' to include a designated agent of the
lessee(s) and a pipeline right-of-way holder.
In Sec. 250.105, for consistency, we used 30 CFR 251
definitions for terms related to G&G.
In Sec. 250.105, in defining ``sensitive reservoirs,'' we
deleted the word ``initially'' and added the words ``for submitting the
first MER.''
In Sec. 250.108, we clarified the recordkeeping timeframe
for crane operator qualifications to 4 years instead of 2 years. This
clarification ensures that the crane operator has completed the
appropriate training within the past 4 years. The 4-year timeframe is
consistent with the currently incorporated Third Edition of API RP 2D,
which says that operator qualifications are to be maintained at a
minimum of 4 years through appropriate refresher training.
In Sec. 250.115, we separated the criteria for determining
whether a well was an oil well or a gas well.
In Secs. 250.118 through 250.124, wherever applicable, we
changed ``reinject'' and ``reinjection'' to ``inject'' and
``injection'' to denote that the gas is being injected for the first
time.
We revised Sec. 250.120 to read: (a) ``If you produce gas
from an OCS lease and inject it into a reservoir on the lease or unit
according to paragraph Sec. 250.118(b), you are not required to pay
royalties until you remove or sell the gas from the reservoir. (b) If
you store the gas according to paragraph Sec. 250.119(c), you are
required to pay royalty before injecting it into the storage
reservoir.'' The reason is that injection of gas for a commercial
storage project is not for the benefit of the lease; therefore,
royalties are due before injection. This is consistent with the
subsurface storage project approved by the Gulf of Mexico (GOM) Region
for Chandeleur Block 29.
In Sec. 250.140(a) we replaced ``written approval'' with
``written decision'' because it is not a foregone
[[Page 72757]]
conclusion that the decision will be an approval.
In the last sentence of Sec. 250.162, we replaced the
words ``provide you'' with the word ``recognize.'' The grant of the
right-of-use or easement by MMS ``provides'' the ``rights.'' The
lessee, or any subsequent lessee, simply recognizes those rights.
We deleted proposed Sec. 250.119(l)(5) which would have
allowed us to grant a Suspension of Production (SOP) for exploratory
reasons without a commitment to development and production. To give
meaning to the primary term, we expect lessees to complete exploration
and delineation to commit to production by the end of the lease term.
We deleted proposed paragraph Sec. 250.119(l)(6) which would have
clarified when geophysical work could be used as a basis for an SOP
approval. We deleted it because the regulatory authority provided in
Sec. 250.175(b)(1) allows us to grant an SOP when a lessee is committed
to production and needs to complete geophysical work. In this section,
we also removed the vague phrase ``good faith efforts.''
In Sec. 250.180, we inserted a new paragraph (a) to
provide for reporting requirements for leases in their primary term and
added clarity and specificity to paragraphs (e), (f), and (i).
In Sec. 250.190, we added a sentence at the end of
paragraph (a)(2) to put the responsibility of the contents of a
computer-generated form on the lessee/operator who generates the form.
In the table at Sec. 250.196, we added language to clarify
that part 251 determines the public release of all proprietary
geophysical data and information acquired under an exploration permit,
even when the data and information are later submitted to MMS under
part 250 stipulations. These permit data and information are protected
under Sec. 251.14 (currently 50 years for data and 25 years for
information). The proprietary terms of these permit data and
information would be unaffected by lease expiration or relinquishment.
The vast majority of seismic data and information submitted by
lessees was originally acquired under exploration permits. The lessees
acquired the data and information indirectly on a nonexclusive basis
under a license agreement among the permittee, the geophysical
contractor who acquired the data and information under part 251, and
the lessee, who is a third party to the data and information.
However, part 250 determines the release of proprietary geophysical
data and information that were acquired on a lease exclusively by or
for a lessee, under terms of a lease, and submitted to MMS under part
250. These data and information are protected for a period of 10 years,
or until the lease is relinquished or expires, whichever is sooner.
This would include all seismic data and information acquired
exclusively by or for the lessee and submitted for unitization
purposes, or in support of exploration or development and production
plans.
In the table at Sec. 250.199(e)(1), we added the following
reason for collecting information, specifically G&G data and
information under 30 CFR part 250, subpart A: to support the unproved
and proved reserve estimation, resource assessment, and fair market
value determinations.
Comments on the Rule
We received comments on specific issues from the Trustees for
Alaska (Trustees), the International Association of Drilling
Contractors (IADC), Newfield Exploration Company, the State of Florida,
and the Small Business Administration (SBA). The American Petroleum
Institute (API) and Offshore Operator's Committee (OOC), representing
the industry, sent a consolidated comments table and clearly depicted
their suggested language changes and rationale. The National Ocean
Industries Association, the Independent Petroleum Association of
America, and some of the large oil companies sent letters endorsing the
American Petroleum Institute/Offshore Operator's Committee (API/OOC)
consolidated comments. We posted all comments on the MMS internet
homepage. We noted a universal comment on the need for a side-by-side
comparison of existing regulations and plain language rewrites; we will
adopt this suggestion for future rules rewritten in plain language. We
have included in this notice our responses to comments other than those
included on the table submitted by API/OOC followed by the API/OOC
comments in tabular form together with our responses. Some of the
comments in the consolidated API/OOC comments table were reiterated by
other commenters. Since our response was the same, we have not provided
in this notice a separate set of comments and responses for those
comments. We organized our responses to comments other than those
included in the API/OOC table under the following topics: I. comments
and responses to miscellaneous issues; II. disqualifying an operator;
III. granting a right-of-use and easement (with detailed responses to
the extensive comments we received on the section); and IV. comments
from SBA.
I. Comments and Responses to Miscellaneous Issues
Comment: The reference to conservation, which was under
the Director's authority at current Sec. 250.104, was removed.
Response: The reference was never removed and appears at
Sec. 250.101(b): Under this authority, the MMS Director requires that
all operations conform to sound conservation practice to preserve,
protect, and develop mineral resources of the OCS to balance orderly
energy resource development with protection of the human, marine, and
coastal environments.
Comment: Retain wording to the effect that the
implementation of the regulation of operations on the OCS remains
``subject to the supervisory authority of the Secretary.''
Response: The Secretary's authority is stated clearly at
Sec. 250.101: ``The Secretary of the Interior (Secretary) authorized
the Minerals Management Service (MMS) to regulate oil, gas, and sulphur
exploration, development, and production operations on the outer
Continental Shelf (OCS). Under this authority, the Director requires
that all operations. * * *'' To clarify that ``this authority'' refers
to the Secretary's authority, we are changing the words in italics to
read ``Under the Secretary's authority.''
Response: We strengthened the language at Sec. 250.106.
Comment: Include definition for natural resources.
Response: We included the OCS Lands Act (OCSLA) definition for
natural resources.
Comment: Provide definitions for Eastern and Western GOM.
Response: We put back a definition for Eastern GOM, which was
deleted in the proposed rule. We also included a definition for the
Western GOM. In both definitions, we clarify that these areas are not
to be confused with the planning areas that we use for lease sales.
Comment: The requirements for cranes at proposed
Sec. 250.105 should not apply to mobile offshore drilling units (MODU)
or other vessels.
Response: We clarified in Sec. 250.108(a) that the requirements for
cranes apply only to fixed platforms.
Comment: Proposed change at Sec. 250.106(g)(5)
(italicized): You may not weld while you drill, complete, workover, or
conduct wireline operations unless the fluids in the well, (being
drilled, completed, worked over, or having wireline operations
conducted), are noncombustible, and
[[Page 72758]]
you have precluded the entry of formation hydrocarbons into the
wellbore either by mechanical means or by a positive overbalance toward
the formation. The intent is to limit welding activities on or near
wells that are being serviced or drilled, not limit welding because
other wells in the wellbay are live.
Response: We have made the suggested changes at Sec. 250.113(c)(6).
Comment: ``You'' as used in proposed Sec. 250.13 is too
restrictive and should be expanded to include any person an MMS order
or decision may adversely impact.
Response: We deleted the reference related to civil penalty appeals
from subpart A. On August 8, 1997 (62 FR 42668), we published a final
rule revision to subpart N that provides information related to civil
penalty appeals. We further shortened Sec. 250.104 on appeals because
all appeals will be processed at the Department level and not at the
agency level. We expanded the definition of ``you'' to include an
operating rights holder, a designated operator of the lessee(s), a
designated agent of the lessee(s), a pipeline right-of-way holder, or a
State lessee granted a right-of-use and easement.
Comment: Should the U.S. Coast Guard (USCG), rather than
MMS, be the recipient of such reports (Evacuation Statistics at
proposed Sec. 250.123(b)).
Response: The requirement at Sec. 250.192 relates to our need to
know, for national security reasons, the amount of production shut-in.
Comment: Question duplicative accident reporting to both
MMS and USCG.
Response: We deleted the proposed accident reporting table (at
proposed Sec. 250.120(a)). We retained the requirement in current
regulations (at Sec. 250.119(a)) under Sec. 250.191 in this final rule.
We will propose a separate rule to establish a joint MMS-USCG web-based
system for reporting incidents to either agency. The rule will also
give more guidance on thresholds for fires and factors that impair
safety. (See comments and our responses in comment/response table.)
II. Disqualifying an Operator
Industry asked that we delete this new section. Environmental
groups supported it. In response to a comment to provide adequate
notice before disqualifying an operator, we inserted language in the
rule at Sec. 250.135. A commenter wanted to know what would happen if
we revoked a company's designation as operator, and it was the sole
lessee. If an operator is the sole lessee and designated operator of a
lease, and has been disqualified from operating a facility on that
lease, then the onus is on the lessee to find a new and acceptable
designated operator and submit the change for our approval.
On March 24, 1998, we held a public meeting to consult on
establishing criteria for the disqualification provision in the
proposed rule. At the meeting we explained the disqualification
process. The principal goal of the disqualification process is to
improve performance and operational safety on the OCS by focusing on
the designated operators. We analyze performance based on either a
periodic assessment of specific measures or because of an event or
performance concern.
At a minimum, we will analyze every operator's performance
annually. Compliance history and accidents are the two primary areas of
measurement we use to determine performance. In addition, we use other
information gathered during annual performance reviews to determine an
operator's overall performance. Using this information, we decide
whether operators are acceptable or unacceptable performers.
We may also assess operator performance through a safety meeting.
Several things may trigger a safety meeting--an accident, a bad
inspection, failing a 30 CFR 250, subpart O training audit, or a civil
penalty. During the meeting, we will discuss the triggering event with
the operator and may also review their general performance if the
situation warrants. We may issue a directed suspension if we perceive
the triggering event as a continued threat to human safety or the
environment. The actual event could lead us to determine that the
operator is unacceptable.
In general, operators who exhibit unacceptable performance would
undergo an incremental approach to improving their overall performance.
At the annual performance review meeting, we would take the opportunity
to highlight areas of concern regarding an operator's performance. The
District Supervisor or Regional Supervisor for Field Operations may
make specific recommendations to the operator for improving the safety
of its operations.
It may be necessary for us to issue a directed suspension for a
given facility because it poses an imminent threat to safety or the
environment. A directed suspension or chronic poor performance could
lead us to place an operator on probation. Four things then occur:
1. We notify the designated operator and all relevant lessees in
writing that the operator is on probation for a specific period. The
Regional Director will determine the length of probation.
2. We prohibit the designated operator from becoming the designated
operator on leases during its probation.
3. We require the designated operator to submit a Performance
Improvement Plan (PIP) to address the performance concerns and detail
how the operator will bring its inventory of facilities into
compliance.
4. We have the discretion to increase the number of performance
review meetings as necessary.
Through additional performance analysis, we may determine that an
operator's overall performance is improving, and the operator could be
removed from probation. Conversely, an operator's performance could
remain poor or worsen, and we may take more stringent actions such as:
A facility-specific disqualification as designated
operator for a period of time set by the Regional Director;
A district-specific disqualification as designated
operator for a period of time set by the Associate Director for
Offshore Minerals Management (AD/OMM);
A region-specific disqualification as designated operator
for a period of time set by the AD/OMM; and
An OCS-wide disqualification as designated operator for a
period of time set by the Director of MMS.
We will not take these disqualification actions without the
operator having the opportunity for a review by MMS officials. These
actions require that an operator submit a PIP to us that details its
efforts to improve the safety of its operations and bring its
facilities back into regulatory compliance. The primary purpose of this
rule is to ensure that operators who demonstrate a disregard for safety
are unable to direct operations on leases on the OCS. We will pursue
Department of the Interior debarment proceedings if we determine that
it is appropriate to disqualify an operator from acquiring new leases/
assignments on an OCS-wide basis.
These adverse actions may take place sequentially or in any order
that the Director of MMS deems appropriate.
III. Granting a Right-of-Use and Easement
Comment: Trustees commented that the proposed rule did not
provide sufficient rationale for the need to expand our authority to
issue rights-of-use and easement in the OCS to accommodate State
lessees and questioned the statutory authority for this expansion of
the regulation. Specifically, Trustees do not believe
[[Page 72759]]
that we have the legal authority to allow the placement of exploratory
or production drill rigs or authorize other related uses in areas where
we have not authorized OCS leasing, or where there are no active
leases. (``As written, the proposed regulatory change might arguably
allow exploration and related activities even in areas currently
covered by OCS leasing moratoria, contrary to the expressed intent of
Congress and recent Presidential actions.'')
Response: This rule simply clarifies our authority; the rule does
not expand our authority. Between May 10, 1954, and December 13, 1979,
Sec. 250.18 specifically authorized the Regional Supervisor to grant a
Federal or State lessee a ``right-of-use and easement'' on leased or
unleased lands ``for the conduct of operations on any other lease,
State or Federal.'' On October 26, 1979, the U.S. Geological Survey
(USGS) published a final rule (44 FR 61889) revising 30 CFR part 250 to
implement the statutory changes of the OCSLA Amendments of September
18, 1978, and for other purposes. Instead of continuing its authority
to grant rights-of-use and easement to State lessees, it stated that
``State lessees wishing to obtain a right-of-way across the OCS must
apply for a grant from the Bureau of Land Management (BLM).'' In
October of 1979, USGS exercised the Secretary's authority to grant
rights-of-use and the authority to grant easements while BLM exercised
the Secretary's authority to grant pipeline rights-of-way. BLM had
convinced the USGS that it should stop granting rights-of-use and
easement for lessee-owned pipelines that extended from the OCS to
shore. The change in the 1979 rulemaking recognized the agreement
between the USGS and BLM that the USGS would no longer grant a right-
of-use and easement for lessees to construct and operate a pipeline
from the OCS to shore.
Neither the OCSLA, nor the 1978 amendments, makes a distinction
that permits the Secretary to grant a State lessee a right-of-way but
not a right-of-use and easement. Furthermore, there is little reason
for a State lessee to apply for a right-of-way across the OCS. The
right-of-way provisions of section 5 seem to require that the right-of-
way be granted for the transportation of oil and gas produced from
areas leased under the OCSLA. MMS has always had the authority to grant
rights-of-use and easements, but it was inadvertently dropped from the
regulations in 1979. We are simply reinserting it specifically in the
regulations.
We may grant a right-of-use or easement to authorize the grantee to
construct and maintain one or more platforms, fixed structures, or
artificial islands on areas of the OCS; to drill a directional well or
wells to be bottomed under the lease area; to produce and rework the
well or wells; and to handle, treat, and store the production from the
well or wells. Normally, we grant a right-of-use and easement to permit
a lessee to conduct leasehold-type activities at a more advantageous
location off the leasehold. There has to be an existing Federal or
State lease that entitles the lessee to conduct oil and gas activities
before a right-of-use and easement could even be considered. This
regulation change does not allow us to authorize the initiation of
exploration or production drilling or related activities into areas
where the driller does not already have active lease and rights to
drill. In addition, MMS would not issue authority to conduct operations
that are not consistent with the policy of the Department and the
President.
Comment: Trustees also expressed concern that the proposed
new language on rights-of-use and easement appears to arbitrarily
broaden the rights of lessees without justifying the need for such a
change. They felt that we had not identified where and for what purpose
the regulations were being modified. Trustees specifically asked ``* *
* does it cover gravel mining, placement of gravel mining, placement of
gravel islands, disposal of dredge spoils, oil and natural gas pipeline
construction and operation, processing platforms, seawater treatment
plants, underground injection well sites, placement of exploratory
drill ships or concrete island drilling structures?''
Response: The rule does not broaden the rights of lessees. Lessees
must apply for a right-of-use and easement and show the need for
conducting lease-related activities off the leasehold. We will continue
to grant rights-of-use and easement to provide authority to conduct
those leasehold-type activities that must be conducted off the leased
areas; i.e., activities that would normally be approved under the
authority of a lease (Federal OCS or State submerged lands) such as the
ones listed in the comment.
Comment: Trustees expressed concern that the new language
in the regulations on right-of-use and easement may further reduce the
environmental standards and opportunities for public involvement in
controversial oil drilling projects. They gave the example of ARCO's
Warthog well that was drilled from Federal OCS leases into State leases
off the coast of the Arctic National Wildlife Refuge.
Response: The Warthog exploration program was conducted from an OCS
lease and received a complete technical and environmental review
through the exploration plan review process established under 30 CFR
250.204. The Warthog program did not involve a right-of-use and
easement. The new rule will not circumvent the lease sale, Exploration
Plan (EP) and Development and Production Plan (DPP) review process to
allow production from facilities located on unleased OCS areas without
the benefit of public, National Environmental Policy Act (NEPA), and
Coastal Zone Management Act (CZMA) consistency review.
The rule prescribes that any drilling under a right-of-use and
easement must comply with the requirements of our regulations which, in
turn, implement NEPA, CZMA, and the OCSLA requirements for public
review; thus EP/DPP, NEPA, and CZMA consistency review and technical
standards continue to apply. Consideration for a right-of-use and
easement on unleased OCS lands, to conduct activity into adjoining
State lands, will still require that a State lease would be in place
and the issuance of that State lease would have included a public
review/or equivalent process. The State lessee must also obtain State
authorization for activities under a right-of-use and easement into or
under the State lease before any exploration or development activity
could begin.
The regulation will call for MMS officials to vigilantly ensure
that the operations on Federal and State leases are conducted in an
equitable way. We may have to verify that officials of the regulatory
agency for the adjacent coastal State will permit wells to be drilled
from State lands to reservoirs underlying Federal OCS leases that are
located near or adjacent to the Federal and State boundary.
The regulation requires payment of fees and includes special
bonding provisions to ensure that wells drilled from Federal OCS lands
to explore for or develop and produce oil and gas from State leases are
properly plugged and abandoned, that platforms and other facilities are
removed, and that the seafloor is cleared of obstructions to other uses
of the ocean.
Comment: Trustees also suggested that, ``The failure to
better define `right-of-use' in the regulations may be the nub of this
problem.''
Response: The definition of ``right-of-use'' provided in the rule
simply refers a reader to the regulations and is broadly defined since
the regulations are clear on the use of this term. We have also
provided a definition for the term ``easement.''
[[Page 72760]]
IV. Comments from SBA
SBA commented on the Regulatory Flexibility Act (RFA) section in
the proposed rule preamble and pointed out that it was devoid of
specific data on firm size and receipts. They also pointed out that
although we discussed the economic effects of the rule (factual
statement), a more thorough analysis was needed. In response to those
comments, we have rewritten the RFA portion of the preamble.
Table of MMS Responses to American Petroleum Institute/Offshore
Operator's Committee (API/OOC) Comments to 30 CFR Part 250, Subpart
A
In the table, under the comments column, we show words in
``brackets'' that were in bold/strikeout in the original comments. We
show in ``italics'' words that were underscored in bold type. We have
provided the new citations in the MMS response column.
----------------------------------------------------------------------------------------------------------------
Section API/OOC comments API/OOC rationale MMS response
----------------------------------------------------------------------------------------------------------------
218.154(a)(1)........................... (1) Directs the The MMS proposal would We simplified the
suspension of [both] require lessees to wording to make clear
operations [and] or pay rental or minimum that rentals and
production; or royalty if an SOO is minimum royalties are
granted on a lease due when a suspension
when there is no is granted, or when
production but there directed due to the
is a producible well. lessee's failure to
This is contrary to comply with
existing practice in applicable law,
which there is a regulation, order, or
distinction and provision of a lease
obligation to pay or permit.
based on ``who''
directed or requested
the suspension. It is
entirely possible to
have an MMS-directed
suspension on the
lease with a
producible well in
its history but no
production. In such
case, lessees should
be relieved of the
responsibility to pay.
218.154(a)(2)........................... (2) Directs the Safety and See comment to Sec.
suspension of environmental 218.154(a)(1).
operations on a lease requirements have
on which there is no been excluded on a
producible well under lease with no
the provisions of 30 producible well. It
CFR 250.19(j)(1), is entirely possible
(j)(2), (j)(3), that such a
(j)(4) or (k)(2). requirement could be
imposed by an agency
with authority over
such area near the
end of a lease term.
In such an instance a
drilling rig might
need to be re-
outfitted. This could
require a
mobilization to a
shore location (such
as a shipyard) to
add, for example,
zero-discharge
required equipment.
Lessees should not be
required to pay under
these circumstances.
This would be a
departure from
current practice
since the suspension
would be granted at
the direction of the
agency.
250.2................................... Best available and The Regional Director We changed the
safest technology and the Regional authority from
(BAST) means the best Staff customarily Secretary to the MMS
available and safest analyze what Director (Sec.
technologies which equipment is best 250.105 and Sec.
the [Secretary] suited to protect 250.107(d)).
Regional Director or safety, health, and
his designee the environment. The
determines to be Regional Offices
economically feasible consult with
wherever failure of Headquarters Staff
equipment would have when necessary in
a significant effect cases that require
on safety, health, or additional input.
the environment.
Competitive reservoir Clarification......... We made the suggested
means a reservoir in changes (Sec.
which there are one 250.105)
or more producible or
producing well
completions on each
of two or more leases
or portions of
leases, with
different lease
operating interests,
from which the
lessees plan future
production.
[[Page 72761]]
Conservation means The term conservation We deleted the
preservation, as proposed is too definition since it
[economy], and vague. Generally is not defined in the
avoidance of waste of speaking, it is the OCSLA or our
economically viable preservation and regulations. The
hydrocarbons. [It is prevention of waste OCSLA gives us the
especially important of economically authority to issue
in the petroleum viable hydrocarbons, regulations and rules
industry, since oil which is intended. in the interest of
and gas are conservation. The DOI
irreplaceable.]. needs the broad
authority to allow
for flexibility in
regulating the
Federal offshore
program (Sec.
250.105).
Development means Clarification......... We made the suggested
those activities changes (Sec.
which take place 250.105).
following discovery
of minerals in paying
quantities, including
but not limited to
geophysical activity,
drilling, platform
construction, and
operation of all
directly related
onshore support
facilities, and which
are for the purpose
of ultimately
producing the
minerals discovered.
Easement means an The proposed We made the suggested
authorization to use definition is a new change with respect
a portion of an OCS one. OCS tract is now to the term
lease block which is an archaic term. The ``tract.'' We
non-possessory and use of the phrase disagree with the
non-exclusive. [for a ``non-possessory and suggested wording
non-possessory, non- non-exclusive changes and have not
exclusive interest in interest'' is made them (Sec.
a portion of an OCS misleading since the 250.105).
tract, whether leased basic nature of
or unleased, which easement is right-of-
specifies the rights use as opposed to
of the holder to use interest which
the area embraced in appears to focus more
the easement in a on a possessory right.
manner consistent
with] The easement
may be granted on
leased or unleased
blocks and the rights
of the holder to use
shall be specified
and limited to the
terms and conditions
of the granting
authority.
Facility, as used in The word onshore must We deleted the
Sec. 250.11 be a typo, otherwise, reference to
concerning this new definition ``onshore'' and
inspections, means would improperly inserted (per
any installation expand MMS's comments from IADC) a
permanently or jurisdiction in the reference to MODUs.
temporarily attached area of inspection to We also revised the
to the seabed on the onshore facilities. definition of
OCS (that includes This would allow the facility as used in
manmade islands, and MMS to inspect gas Sec. 250.303 to
bottom-sitting plants that process clarify that ``during
structures)[and any OCS gas, coastal production, multiple
onshore installation] facilities that installations or
used for oil, gas, or separate oil/gas/ devices are a single
sulphur drilling, water, and other facility if the
production, or similar facilities installations or
related activities. for which the MMS devices are at a
It also includes does not have single site'' (Sec.
facilities for jurisdiction. Also 250.105).
product measurement the MMS does not have
and royalty jurisdiction over the
verification (e.g., State Agencies that
LACT units, gas already perform these
meters) of OCS functions. The
production located on recommended change
installations not on clarifies that
the OCS. Any group of facilities are on the
OCS installations OCS.
that is
interconnected with
walkways, or any
group of
installations that
includes a central or
primary installation
with processing
equipment and one or
more satellite or
secondary
installations, is a
single facility
unless the Regional
Supervisor determines
that the complexity
of the individual
installations
justifies their
classification as
separate facilities.
Lessee means a person Clarification......... We made the suggested
who has entered into changes and expanded
a lease, [or who is the definition (Sec.
the MMS-approved 250.105).
assignee of, a lease]
with the United
States to explore
for, develop, and
produce the leased
minerals. The term
lessee also includes
an owner of operating
rights for that lease
and the MMS-approved
assignee of that
lease.
[[Page 72762]]
[Of] Archaeological The words ``capable We did not make the
interest means that of'' are unclear when suggested changes
it directly leads to used in the context except to delete the
[capable of] of this definition word ``of'' to be
providing scientific and can be consistent with 30
or humanistic misinterpreted. The CFR part 251. We
understanding of past proposed words defined the terms
human behavior. provide clarification. ``Archaeological
resource, Of
archaeological
interest, Material
remains, and
Significant
archaeological
resource'' in a final
rule published on 10/
21/94 (59 FR 53091).
The National Trust
for Historic
Preservation and the
Office of the
Department Consulting
Archaeologist both
commented that we
define the term
``archaeological
resource'' to be
consistent with the
definition provided
in the implementing
regulations for the
Archaeological
Resources Protection
Act of 1979 (16
U.S.C. 470, aa-mm, 43
CFR 7.3) (Sec.
250.105).
Operating rights means By including borehole We made the suggested
any interest held in in this definition, changes (Sec.
a lease with right to the proposed language 250.105).
explore for, develop, is too specific.
and produce leased There are more cases
substances. Any when operating rights
assignment or are assigned or
transfer of operating transferred to a
rights may specify stratigraphic depth
the depth [of the or other point,
borehole down] to without a borehole
which the operating descriptor.
rights extend.
Producing in paying Two separate sets of We deleted this
quantities means tests have been definition (Sec.
[that] a well is specified which will 250.105).
producing in paying lead to ambiguity.
quantities when it The proposed
meets the criteria definition suggests
set out in Section an economic test.
250.9 [able to Section 250.9
produce oil, gas, or suggests specific
both in a cost- tests which in most
effective manner. cases lead to
This means that the economic production.
production quantities However, there is no
must yield a greater guarantee that the
return than the total two definitions will
costs, including well- always be equal and
completion costs, of overlap. This may
producing the lead over time to
hydrocarbons at the great confusion in
wellhead]. administering minimum
royalty payment and
in determining lease
status for possible
suspension.
Production Areas are Need to add We made the suggested
those areas where clarification. changes (Sec.
flammable petroleum Definition is from 250.105).
gas and volatile API RP 500.
liquids are produced,
processed (e.g.
compressed), stored,
transferred (e.g.
pumped), or otherwise
handled prior to
entering the
transportation
process.
Sensitive reservoir The word ``initially'' We made the suggested
means a reservoir in in this definition is changes (Sec.
which high reservoir ambiguous. The 250.105).
production rates will classification of a
decrease ultimate sensitive reservoir
recovery. For the can be defined in the
submittal of the first MER and if
first MER necessary, the MMS
[Initially], all oil can determine after
reservoirs with an that point if the
associated gas cap treatment as a
are classified as sensitive reservoir
sensitive. should continue.
Suspension means a Clarification......... We made the suggested
[granted or directed changes with minor
deferral of the modifications (Sec.
requirement] deferral 250.105).
granted at the
request of the lessee
or directed by the
MMS of the
requirement to
produce (Suspension
of Production (SOP))
or to conduct
leaseholding
operations
(Suspension of
Operations (SOO)).
Well bay is the Clarification. Since a perimeter is
perimeter of the Definition was from just an outer border,
outer most wellheads. an MMS workshop in we modified the
conjunction with the suggested definition
implementation of to read: ``Wellbay is
regulations in 1988. the area on a
platform within the
perimeter of the
outermost wellheads'
(Sec. 250.105)
[[Page 72763]]
250.3................................... (b) Prevent loss of Suggested changes We inserted ``injury
life. include the word or'' before ``loss of
(c [b]) Prevent unreasonable when life.'' We did not
unreasonable damage considering damage to add the word
to or waste of any natural resources, ``unreasonable' (Sec.
natural resource, property, or 250.106).
property, or the environment
environment; and. recognizing that oil
(d [e]) Cooperate and and gas developments
consult with affected can not avoid some
States, local minimal amount of
governments, other damages.
interested parties, Prevent losses of life
and relevant Federal does not have the
agencies. unreasonableness test.
250.5................................... What standards must There is no technical We agree and deleted
crane operations or safety the paragraph on the
meet? justification for Pacific Region
To ensure the safety requiring more requirements. We also
of the facility stringent completed the section
operations, you must requirements in the so that it is a
meet the requirements Pacific Region. performance-based
of paragraph (a) of Varying regulatory regulation (Sec.
this section. [If requirements for 250.108).
your facility is operating areas
located in the creates confusion
Pacific OCS Region, with no measurable
you must also meet value.
the requirements of
paragraph (b) of this
section.].
[(b)This paragraph
applies if your
facility is located
in the Pacific OCS
Region. You may use .
* * * ].
250.6(a)................................ You must submit a It should not be We reworded the
Welding, Burning, and necessary to keep a paragraph. It is
Hot Tapping Safe copy of the plan and important for the
Practices and approval letter at welder on each
Procedures Plan to all facilities and facility to be
the District drilling rigs for familiar with the
Supervisor before you their life. A copy in plan. We changed the
begin drilling or the field, similar to wording to be clear
production activities the requirement for that the plan is
on a lease. You may H2S Contingency needed at the site
not begin welding Plans, should be where welding occurs.
activities until the sufficient.
District Supervisor
has approved your
plan. A copy of the
plan and its approval
letter must be kept
in the field
[available at the
facility for the life
of the facility
(platform or drilling
rig).].
(b)(4).............................. [Drawings showing any Drawings of safe- We have reworded the
d] Designated safe- welding areas of all paragraph and have
welding areas; facilities covered by addressed the
drawings showing the plan should not commenter's concern.
designated safe- be required in the
welding areas shall plan. A drawing
be maintained on the showing the
facility; and designated safe-
welding area
developed by
following the
procedures identified
in the plan should be
maintained on the
facility and should
not be required with
the plan. This is
consistent with
existing regulations.
(e)................................. Before you weld, you Clarification......... We made the suggested
must move any changes (Sec.
equipment containing 250.113(a)).
hydrocarbons or other
flammable substances
at least 35 feet
horizontally from the
welding area [work
site. * * *].
(g)(1).............................. You may not begin Including welding We made the suggested
welding until the supervisor is changes (Sec.
welding supervisor or consistent with 250.113(c)).
designated person-in- 250.6(c).
charge has authorized
in writing that it is
safe to proceed with
the welding activity.
Before beginning
welding, the
designated person-in-
charge and the
welder(s) must
inspect the work area
and areas below the
work area for
potential fire and
explosion hazards.
(g)(4).............................. You may not weld [in, Provides clarification We made the suggested
or] within 10 feet of shut-in changes (Sec.
of[,] a well-bay [or requirements. 250.113(c)).
production area]
unless you have shut
in all producing
wells in that [area]
wellbay. You may not
weld within 10 feet
of a production area,
unless you have shut-
in that production
area.
[[Page 72764]]
(g)(5).............................. You may not weld while Clarification......... We made the suggested
you drill, complete, changes and added the
workover, or conduct words ``either by
wireline operations mechanical means or''
unless the fluids in (Sec. 250.113(c)(6))
the well are .
noncombustible and
you have precluded
the entry of
formation
hydrocarbons into the
wellbore by a
positive overbalance
toward the formation.
This does not apply
to welding in an
approved safe-welding
area.
250.7................................... What requirements Recognizes the latest We are proposing a
apply to electrical edition of API RP500 rule to incorporate
equipment? The APIRP 505 as an by reference API RP
requirements in this alternative. 505, first edition.
section apply to all Distribution systems We made most of the
electrical equipment are just one of many suggested change to
on all platforms, parts of the (b) and (d) (Sec.
artificial islands, electrical system and 250.114).
fixed structures, and do not need to be
their facilities. separately identified.
(a) You must classify ......................
all areas in
accordance with
either API RP 500,
Recommended Practice
for Classification of
Locations for
Electrical
Installations at
Petroleum Facilities
Classified as Class
I, Division 1 and
Division 2, or API RP
505, Recommended
Practice for
Classification of
Locations for
Electrical
Installations at
Petroleum Facilities
Classified as Class
I, Zone 0, Zone 1 and
Zone 2.
(b)You must use ......................
trained and
experienced personnel
to maintain your
electrical systems.
They must have
expertise in area
classification,
[distribution
systems,] and the
performance
characteristics and
operation of
electrical equipment,
as well as [and]
associated hazards.
(c) You must install ......................
all electrical
systems in accordance
with API RP 14F,
Recommended Practice
for Design and
Installation of
Electrical Systems
for Offshore
Production Platforms.
You do not have to
comply with Sections
7.4, Emergency
Lighting, and 9.4,
Aids to Navigation
Equipment.
(d) On each engine
that has electric
ignition system,
[Y]you must use an
[low tension]
ignition system [on
each engine that has
electric ignition.
You must.] that is
designed and
maintained [the
ignition system] to
minimize the release
of electrical energy.
250.8................................... (b) Whenever Adds flexibility We made the suggested
practicable, y[Y]ou consistent with changes and further
must use BAST on existing regulations. clarified the
existing operations language (Sec.
to avoid failure of 250.107(c)).
equipment that would
have a significant
effect on safety,
health, or the
environment if the
Director determines
that:
[[Page 72765]]
250.9................................... To determine whether a This is consistent We made the suggested
well is capable of with the present change of alternative
producing in paying regulation found in determination of well
quantities, submit a Section 250.11(b). producibility to
written request to The intent is to apply to the GOM
the District provide an region. We rewrote
Supervisor. You must alternative this section for
then meet the mechanism, not to clarity with no new
criteria in require additional requirements. Another
paragraphs (a) and requirements. If a change is that the
(b) of this section. well test is written request for
Once a lease has a unavailable, the determining well
well that MMS operator can submit producibility must be
determines is capable data; it is not submitted to the
of producing in necessary to have Regional Supervisor.
paying quantities, no both a well test and The District
further determination data. The present Supervisor will
of well producibility regulation states continue to carry the
will be made on the ``In the Gulf of function of
lease. A Mexico OCS Region, witnessing tests
determination of well the following shall (Sec. 250.116).
producibility invokes also be considered
minimum royalty collectively as
status on the lease reliable evidence
as provided in 30 CFR that a well is
202.53. If your well capable of producing
is located in the oil and gas in paying
Gulf of Mexico (GOM), quantities.''
you [must also] may
alternatively meet
the requirements of
paragraph (c) of this
section.
250.9(c)(1)............................. [The producible The reason for the We did not delete the
section must not deletion is that all sentence that ensures
include any interval reservoir rocks are that several thin
which appears to be to some extent water sands with a water
water saturated.] saturated. This would contact are not
disqualify all grouped into a
reservoir rocks. producible interval
(Sec. 250.116(c)).
250.9(c)(1)(iii)........................ A minimum true This would clarify We made the correction
resistivity ratio of this definition which (Sec. 250.116(d)(1))
the producible has been incorrect in .
section to the the existing
nearest clean or regulations.
water-bearing sand of
at least 5:1.
250.9(c)(4)............................. A wireline formation This language which We did not make the
test and/or mud- was left out in the suggested changes. We
logging analysis rewrite is very do not agree with the
which indicates that critical and should suggestion. We
the section is be included. It is deleted the language
capable of producing not unusual for in the proposed rule
oil or gas or wildcat/exploratory because the wording
evidence that an wells to have hole- was very vague. We
attempt was made to problems when pay is use several ways to
obtain such tests. exposed. qualify a well using
standard practices.
Keeping this wording
would dilute the
qualification process
and make it a rubber
stamp exercise (Sec.
250.116 (b)(3)).
250.11.................................. (1) MMS conducts a Operating properly We made the suggested
scheduled onsite needs further change. Also, in Sec.
inspection of each definition to 250.130(b), we
offshore facility preclude differing removed the words
that is subject to interpretations. The ``at least once a
environmental or current language in year'' as this limits
safety regulations Subpart A clarifies the scope of
under the Act at that operating scheduling and added
least once a year. properly means in the words ``according
The inspection accordance with the to the
determines whether requirements of this requirements.'' In
environmental part. This current Sec. 250.132(a) we
protection and safety language should be removed the words
equipment designed to maintained. ``at all reasonable
prevent or ameliorate times'' as the phrase
blowouts, fires, is subjective and not
spillages, or other necessary (Sec.
major accidents has 250.130).
been installed and is
operating properly in
accordance with the
requirements of this
part.
250.12.................................. Delete this section... The MMS proposed We disagree with the
language is opinion that the
inconsistent with the language is
OCS Lands Act and inconsistent with the
should be deleted. If OCSLA. We explained
MMS plans to include the disqualification
this section in the process in the
final rulemaking, preamble of this
then it should rule. In response to
include the criteria the comment, we added
for determining the sentence ``MMS
disqualification as will provide adequate
well as the specific notice and
procedures which opportunity for a
includes prior notice review by MMS
and opportunity for a officials before
hearing. imposing a
disqualification
procedure'' (Secs.
250.135 and 250.136).
250.14(c)............................... Approval for Clarification......... We made the suggested
departures. If changes (Sec.
certain aspects of 250.142).
your operations
deviate from
[proposed procedure
or equipment deviate
from or are not
covered by] MMS
regulations, MMS may
prescribe or approve
exceptions from the
operating
requirements of this
part.
[[Page 72766]]
250.15(a)............................... You must provide the The existing We did not make the
Regional Supervisor regulation in 250.8 suggested change.
an executed allows the designated With the move towards
Designation of operator to begin performance based
Operator form unless operations on the regulations, we are
you are the only lease after the responsible for
lessee and are the Regional Supervisor ensuring that
only person ``receives'' the designated operators
conducting lease designation of are acceptable (Sec.
operations. When operator. The revised 250.143).
there is more than version contained in
one lessee then the 250.15(a) does not
Regional Supervisor allow operations to
must receive [and begin until after the
approve] the Regional Supervisor
Designation of has ``received and
Operator form from approved'' the
each lessee before designation. Thus,
the designated the new version
operator may commence appears to have
operations on the imposed an additional
leasehold. requirement on
lessees. In addition,
the MMS may typically
be delayed in
processing these
approvals and would
delay changes which
should take place as
soon as the operators
are ready.
250.15(a)(2)............................ When you are no longer It is recommended that We made the suggested
the designated this requirement not change (Sec.
operator, you must be included in this 250.146).
immediately provide section and be placed
in writing the in the Royalty
termination of your Management Program
Designation of part of the MMS
Operator to the regulations, since
Regional Supervisor. the royalty payment
If you are also a staff of operators do
designated royalty not look at this 30
payor and will not CFR 250 which is an
continue to be in the operational
future, you must also regulation.
notify the Royalty
Management Program of
the termination of
your Designation of
Operator.
250.15(d)............................... Whenever the As written, this We did not make the
regulations in 30 CFR section overstates suggested changes as
parts 250 to 282 the obligations of paragraphs (a), (b),
require the lessee to the co-lessee. and (c) are needed to
meet a requirement or Subpart (b) of the clarify the various
perform an action, same section already conditions when
all persons who makes the co-lessee responsibility needs
conduct lease responsible for to be spelled out
activities on behalf fulfilling the (Sec. 250.146).
of the lessee or obligation of the
operator must also lessee in case of
comply with the failure by the
regulations. [the operator. The
lessee, operator (if recommended language
one has been adds clarification
designated), and the that is consistent
person actually with the intent of
performing the the preamble.
activity to which the
requirement applies
are jointly and
severally responsible
for compliance with
the regulation.].
250.16.................................. Naming and Identifying The word ``platform'' We made the suggested
[Platforms] implies a multiple changes. For detailed
Facilities and Wells legged fixed descriptions on
(does not include structure. With the naming and numbering
MODUS). use of caissons, wells for reporting,
How do I name spars, TLP's and operators should
[platforms] FPS's a more refer to the Notice
facilities and wells? appropriate term to Lessees (NTL) No.
would be 97-2N (issued on 8/1/
``facilities.'' An 97) ``Well Naming and
alternative to this Numbering Standards''
recommended change and to any later
would be to include revisions of this
an applicable NTL. We will issue
definition of another NTL to
platform. This provide more
section should not instructions for the
apply to MODUs that well naming and
may be considered a numbering to be used
facility when for reports and
attached to the sea digital data (Secs.
floor. 250.150 through
250.153).
250.16(a)............................... In the Gulf of Mexico The word ``platform'' We made the suggested
Region: (1) Assign was changed to changes (Sec.
each [platform] ``facility'' for 250.150)
facility a letter consistency (see
designation except above rational [sic])
for those types of for the recommended
facilities identified change). Furthermore,
in paragraph the statement
(a)(3)(i) of this ``except for those
section. For example, type facilities
A, B, CA, or CB. identified in
paragraph (a)(3)(i)
of this section'' was
added in the
recommended changes
because Sec.
250.16(a)(3)(I)[i]
allows a numeric
representation of
single well caissons
without production
facilities.
[[Page 72767]]
250.16(a)(i)............................ After a [platform] The word ``platform'' We made the suggested
facility is was changed to changes (Sec.
installed, rename ``facility'' for 250.150(a)(1)).
each pre-drilled well consistency (see
that was assigned above rational [sic])
only a number and was for the recommended
temporarily suspended change). The word
at the mudline or at ``template'' would
the surface. [drilled only account for
through a template those wells drilled
and was assigned a through a drilling
number.] Use a letter template, when in
and number fact, most pre-
designation. The drilled wells are
letter used should be suspended at mudline
the same as that of as casing stubs, or
the production suspended as a
facility and number caisson at the
used should surface, while
correspond to the awaiting platform
order which the well installation. The
was completed, not recommend change
necessarily the would account for all
number assigned when pre-drilled wells.
it was drilled. For The wells drilled,
example, the first for completion as
well completed for producers, are not
production on necessarily the first
Facility A would be wells drilled on a
renamed Well A-1, the lease and would have
second would be Well an assigned number
A-2, and so on [For higher than one (1).
example, rename Well Therefore, to account
No. 1: A-1, B-1, or C- for this, we
1]; and. recommended that the
well be assigned the
sequential number
given in the order it
was completed for
production, after the
facility is
installed, starting
with the number one
(1).
250.16(a)(ii)........................... When you have more See comments for We made the suggested
than one [platform in 250.16(a)(iii). changes (Sec.
a field (excluding 250.150(a)(2)).
complexes), include
the designations for
the field and use a
different letter
designation for each
platform.] facility
on a block, each
facility installed,
and not bridge-
connected to another
facility, should be
named using a
different letter in
sequential order. For
example, [EC 221-A,
EC 222-B, EC 223-C]
EC222A, EC222B,
EC222C.
250.16(a)(iii).......................... ADD: (iii) When you The proposed draft We made the suggested
have more than one only addresses more changes (Sec.
facility on multiple than one facility on 250.150(a)(3)).
blocks in a local multiple blocks or in
area that are being a field. However, the
co-developed, each recommended change
facility installed, accounts for multiple
and not connected facilities on a
with a walkway to single block. We
another facility, recommend that a
should be named using separate paragraph be
a different letter in added to address this
sequential order with scenario. The word
the block number ``field'' and the
corresponding to the word ``complexes''
block on which the have very broad
platform is located. definitions.
For example, EC 221 Therefore, we
A, EC 222 B and EC recommend the
223 C. language change or an
accurate definition
of these terms as
they apply to this
section be added to
this subpart.
250.16(a)(3)(i)......................... For single well Clarification......... We made the suggested
caissons that are not change (Sec.
attached to a 250.150(c)(1)).
[platform] facility
with a walkway, use
the well designation.
For example, Well No.
1;
250.16(a)(3)(ii)........................ For single well Clarification......... We made the suggested
caissons that are change (Sec.
attached to a 250.150(c)(2)).
[platform] facility
with a walkway, use
the same designation
as the platform. For
example, rename Well
No. 10 as A-10; and
250.16(a)(3)(iii)....................... For single well The intention of this We made the suggested
caissons with paragraph is to use changes (Sec.
production equipment the letter 250.150(c)(3)).
use a letter designation for those
designation for the caissons with
facility name and a substantial
letter plus number processing equipment.
designation for the Furthermore, this
well. For example, requirement should
the Well No. 1 not only outline the
caisson would be requirement for well
designated as naming but also the
Facility A, and the facility name. As
well would be Well proposed, the caisson
[as] A-1. would be named Well A-
1, not Facility A.
[[Page 72768]]
250.16(d)............................... ADDITION: All Due to the enormous We made the suggested
facilities installed administrative and changes and added
and wells drilled economic burden that ``unless required by
prior to the would be placed on the Regional
effective date of the industry and the Director'' to the end
this revision do not MMS, existing of the sentence. This
need to be renamed if structures should be gives the Regional
they do not meet the allowed to retain Director the
naming criteria their current names, discretion to require
outlined in this if they do meet the renaming in case of a
section. requirements outlined well numbering
herein. problem (Sec.
250.153).
250.17(a)............................... You must identify all Clarification......... We made the suggested
facilities change (Sec.
[platforms, 250.154).
structures],
artificial islands,
and mobile drilling
units with a sign.
250.17(a)(2)............................ (2) When helicopter Weight capacity is not We responded to this
landing facilities necessary for suggestion by adding
are present, you must platform the words ``unless
display an additional identification and noted on the top of
identification sign would not be visible the helipad'' after
that is visible from on the signs. Weight the words ``and must
the air. The sign capacity is also display the
must use at least 12- customarily noted on weight capacity of
inch letters and the top of the the helipad (Sec.
figures[, and must helipad. 250.154(a)(2))
also display the
weight capacity of
the helipad]. If this
sign is visible to
both helicopter and
boat traffic, then
the sign in paragraph
(a)(1) of this
section is not
required.
250.17(a)(3)(ii)........................ In the GOM OCS Region, This requirement We made the suggested
list the area applies to both change (Sec.
designation or mobile drilling units 250.154(a)(3)(ii)).
abbreviation and the and all facilities.
block number of the
[platform] facility
location as depicted
on OCS Official
Protraction Diagrams
or leasing maps;
250.17(b)(2)............................ For wells with We recommend the We made the suggested
multiple completions, inclusion of downhole changes (Sec.
downhole splitter splitter wells and 250.154(c)(3)(ii)).
wells, and multilateral wells
multilateral wells, which are unique
identify each completions
completion in identified by the MMS
addition to the well in NTL 97-2N.
name and lease number Furthermore, we
individually on the believe the lease and
well flowline at the well name need to be
wellhead; and identified in
addition to the
completion code on
the flowline of each
completion.
250.17(b)(3)............................ For subsea [wellheads] The recommended change We made the suggested
wells which flow lends clarity to changes (Sec.
individually into situations where 250.154(b)(3)).
separate pipelines, numerous subsea wells
affix the required flow into a single
sign on the pipeline pipeline.
or surface flowline Furthermore, we
that [connects to the believe it is not
pipeline] is practical to
dedicated to that separately identify
subsea well at a each subsea well
convenient location flowing into a single
on the receiving pipeline.
platform. For
multiple subsea wells
which flow into a
common pipeline or
pipelines, no sign is
required.
250.17(c)............................... Each identifying sign Redundant............. We deleted this
[must be visible to section.
approaching traffic
and] maintained in a
legible condition.
250.18(a)(1)(ii)........................ Used for conducting Limiting the right-of- We made the suggested
exploration, way and easement to change. It is noted
development, and an owned lease is too that the comment uses
production activities limiting. In deep the term ``right-of-
or other operations water subsea way'' (as in pipeline
[on your lease]. projects, development right-of-way) whereas
may dictate that the section referred
several leases flow to (Sec. 250.18)
to a single platform. related to granting a
Under these ``right-of-use and
circumstances, the easement.''
right-of-way may
continue and be
needed even after the
platform owner has
ceased production.
250.19(i)............................... MMS must receive the The way that this We did not make the
request before the subsection was suggested change
lease term ends reworded, this since a suspension
unless the lease is existing provision would not be needed
held by operations. was omitted. It is if the lease were
possible to have a held by operations.
lease that is about We further clarified
to expire held by the sections
operations (such as (``Suspensions''
drilling) which sections).
automatically extends
the term of the lease
until that period
ends.
[[Page 72769]]
250.19(j)(1)............................ (6) When needed to In recent times, We did not make the
comply with a Presidential decrees suggested change
Presidential decree have required since a Presidential
or directive. cessation of activity decree or directive
on the West Coast, would be implemented
portions of Offshore via a policy
Florida, and the East statement from the
Coast. When the Director
Executive Department (''Suspensions''
requires this, it sections).
should be included as
a cause for an MMS-
directed suspension
which extends the
lease term.
250.19(j)(2)............................ When activities pose a This requirement to We did not make this
threat of serious, perform an on-site change. This is not a
irreparable, or specific study should new requirement, and
immediate harm. This be founded on we are retaining this
would include damage something other than authority so that we
to life (including the discretionary can require a study
fish and other authority of the MMS when it is necessary
aquatic life), to grant a (``Suspensions''
property, any mineral suspension. The cost sections).
deposit, or the of on-site surveys
marine, coastal, or can be quite high,
human environment. often benefit the
[MMS may require you entire area as
to do a site-specific opposed to an
study (see Sec. individual lease, and
250.19(o)(1));] MMS has demonstrated
no statutory
authority to impose
such excess costs as
a condition of
exercising leaseholds
rights granted under
the lease.
250.19(l)............................... The Regional This change is We did not add the
Supervisor may grant necessary in order to words ``and/or an
or direct an SOP and/ correctly mirror SOO'' because SOOs do
or an SOO when: the current 30 CFR 250.10 not apply to this set
suspension is in the which provides for of regulations. We
national interest; not only suspension deleted the phrase
[you have exercised of production but a ``you have exercised
diligence in pursuing suspension of diligence in pursuing
production]; the operations as well. production.'' Since
lease was drilled and The requirement to diligence is not
a well was determined exercise diligence in easily defined, we
to be producible in production appears to place more emphasis
accordance with 30 already have been met on the lessee's
CFR 250.9 or 250.253; by the requirement to commitment to
and it is necessary have the producible production and a
because the well present. No sound activity
suspension will meet criteria have been schedule when
one of the following identified to analyzing SOP
criteria: determine diligence requests
in production. Once (''Suspensions''
the lease is in a sections).
producible status, by
declaration of a
producible well, this
criteria seems to
have already been met.
250.19(l)(3)............................ It will allow you a In today's gas We did not make the
reasonable amount of environment, the change as
time to enter a sales transportation transportation is
or transportation contract is as covered
contract for oil, important as a sales (``Suspensions''
gas, or sulphur. You contract; therefore sections).
must show that you the regulatory
are making a good language should
faith effort to enter include both.
into the contract(s);
250.19(o)(1)............................ [Conduct a site- This requirement to We did not make this
specific study(s);]. perform an on-site change. This is not a
specific study should new requirement, and
be founded on we are retaining this
something other than authority so that we
the discretionary can require a study
authority of the MMS when it is necessary
to grant a (``Suspensions''
suspension. The cost sections).
of on-site surveys
can be quite high,
often benefit the
entire area as
opposed to an
individual lease, and
MMS has demonstrated
no statutory
authority to impose
such excess costs as
a condition of
exercising leaseholds
rights granted under
the lease.
[[Page 72770]]
250.20.................................. Except for Definitions of We deleted the
requirements to accidents are accident reporting
report oil spills, inconsistent with table at proposed
delete all other those used in SEMP Sec. 250.120(a). We
reporting (NTL 98 -6N) and will propose a
requirements and those required by the separate rule to
incorporate USCG for similar establish a joint MMS-
recommendations of incidents. These USCG web-based
the USCG NOSAC proposed regulations reporting system for
Incident Reporting in many cases incidents that have
Subcommittee duplicate reporting to be reported to
established on April requirements of the either agency. We
22, 1998 consisting United States Coast retained the current
of MMS, USCG and Guard. At a meeting requirement at Sec.
industry personnel. of NOSAC (National 250.119(a) (Sec.
Offshore Advisory 250.191).
Committee) in
Washington on April
22, 1998, a
Subcommittee was
established to review
and recommend changes
to improve the
process of defining
and reporting
incidents to the MMS
and the USCG. This
effort was endorsed
by Carolita Kallaur,
Associate Director
for Offshore Minerals
Management.
Recommendations will
be completed by
October 1998.
Significant
administrative burden
would be added to all
operators if this
proposed regulation
was implemented. This
would be the most
expedient method to
resolve this issue
and avoid OMB and
other intervention in
adding this
administrative burden
to operators and
contractors.
250.20(a)............................... Industry has expressed To avoid uncertainty, We will propose a
concerns to the MMS the rule should separate rule on
that ``fires'' needs include the incident reporting
to be better defined definition, (see response to
since industry has especially when the previous comment).
confusion on what MMS is planning to The rule will give
needs to be reported. use fires as one of more guidance on
We recommend that the the criteria included thresholds for fires
MMS include a with the and factors that
description or disqualification impair safety.
definition for what a procedures found in
fire is and what this proposed rule in
types of fires they Section 250.12. The
expect to receive in preamble states that
the reports. more guidance will be
given in an NTL. We
prefer that the
language be included
in a rule.
The MMS should include The MMS should respect We will propose a
language that allows the confidentiality separate rule on
the Operator to and sensitivity of incident reporting
submit this information marked (see response to
information marked ``Confidential'' as previous comment) and
``Confidential'' and they do with other consider the comment
the MMS to maintain information they in that rulemaking.
it in such a way receive from
without divulging the operators.
details that may be
involved in legal
action.
250.20(a)(1)............................ We recommend that this It would be impossible We made the suggested
subsection qualify for a pipeline right- changes (Sec.
that the operation of-way owner to be 250.191(b)).
must be related to aware of any
the exercise of the accidents which might
easement, right-of- happen to occur
way, or other permit. within the pipeline
right-of-way corridor
which did not
directly influence or
impact the exercise
of the right-of-way
itself.
250.20(a)(2)............................ We recommend that the The cited portions of We made the suggested
final rule qualify the OCS Lands Act changes (Sec.
the investigative specify that either 250.191(c)).
authority so that it the Secretary or the
is not exercised by U.S. Coast Guard may
both the Department institute
of Transportation's investigations but
United States Coast not both. This
Guard and the limitation must be
Department of [the] contained in the
Interior's MMS. regulations in order
for them to be lawful.
[[Page 72771]]
250.20(a)(2)............................ We recommend that the This provision We did not make the
striking of the violates the suggested changes.
provision which only provisions of Section However, since
allows panel members 22(f) of the OCS commenters have
and panel experts to Lands Act which objection to the
address questions to requires that the proposed wording, we
the person giving production of used the wording
testimony. documents and the exactly as it is in
handling of testimony our current
and witnesses be regulations (Sec.
analogous to the 250.191(c)).
Federal Rules of
Civil Procedure. The
Federal Rules Of
Civil Procedure give
the party at risk for
citation the
opportunity to
participate in
questioning of
witnesses in the
course of any hearing.
250.20(b)............................... The MMS should clarify The MMS should clarify We listed evacuation
that they want to get what they need since statistics needs as
personnel evacuation the word the following:
numbers only, to ``statistics'' is not facilities and rigs
avoid uncertainty. defined. In addition, evacuated and the
Also, the MMS should the MMS needs to amount of production
add the words ``as understand the shut-in for oil and
conditions allow'' critical nature and gas. We inserted ``as
immediately after plans that require conditions allow''
(b)(2) after ``11 full operator (Sec. 250.192).
AM'' in this sentence. attention for safe
evacuation of
personnel, ensuring
the operations are
safely and
environmentally shut-
in, housing the
evacuated personnel,
and ensuring the
safety of office
management/staff.
This process must
have higher priority
than reporting
``statistics'' by 11
AM during the period
of shut-in and
evacuation. MMS
offices are also
evacuated when
natural events such
as hurricanes
approach populated
areas, so the
``statistics'' would
probably not be
accessible.
250.21.................................. Any person may report This will prevent the We have not made the
to MMS an apparent MMS from being forced changes because MMS
violation or failure to investigate procedures will
to comply with any frivolous or baseless determine the
provision of the Act, allegations which are validity (Sec.
any provision of a apparent on their 250.193).
lease, license, or face.
permit issued under
the Act, or any
provision of any
regulation or order
issued under the Act.
When MMS receives a
report of an apparent
violation, or when an
MMS employee detects
an apparent
violation, after
making a
determination of the
validity, MMS will
investigate in
accordance with its
procedures.
[[Page 72772]]
250.23(a)............................... Your lease expires at Ordinary oil and gas We deleted the word
the end of its principles extend a continuous from this
primary term unless lease provided a section (Sec.
you are producing in continuous 250.180).
paying quantities or exploratory drilling
conducting drilling program is in
or well-reworking operation. The
operations on your present wording does
lease (see 30 CFR not appear to include
part 256). The this fact, but
objective of the instead focuses
drilling or well- solely on production
reworking operations or the re-institution
must be to establish of production itself.
continuous production A lessee could
on the lease. For maintain a lease by a
purposes of this continual and
section, the term diligent exploratory
operations means program through
[continuous] continuous drilling
production, drilling, activity. This
or well-reworking. concept is missing in
the proposed rule. In
addition, the last
sentence as is will
cause confusion and
it contradicts the
remainder of Section
250.23. It is
possible during
drilling or well-
reworking to start
and stop operations
within the 180-day
clock, such as to get
different equipment,
personnel, other
operations on the
platform, etc. As
long as the word
``continuous'' is
there, it can be
interpreted as being
on-going and not
allowing for start
and stops. This is
unrealistic with
regard to how
offshore operations
take place.
250.25.................................. When will MMS Since the We made Sec. 250.195
reimburse me for reimbursement parallel to 30 CFR
reproduction, provision is for part 251. This
processing, and other other areas than section only refers
costs? reproduction, it will to reimbursements for
be easier for the G&G data and
operator to find this information.
section.
250.27(b) Table......................... When your lease Ten years is not We have not made the
terminates or [10] 15 enough in the case of suggested change. To
years after the date deepwater leases change the release
you submit the data (deep water leases time for these data
whichever is earlier. have a 10 year would make releasing
[10] 15 years after primary term) where data and information
the date you submit an exploratory well more complicated and
it. is drilled, an SOP make it extremely
obtained pending difficult to track
development. Same as properly. Following
above. In addition, our current
there could exist regulations, we have
open acreage next to already released deep-
a lease that has not water data. The
been fully developed suggested change
since operations in would not enhance our
deep water tend to be ability to get fair
more complex. market value for
leases (Sec.
250.196).
MMS will disclose Operator should have We did not make this
information not the opportunity to change. This change
collected on MMS review the current would mean that we
forms in accordance situation and decide would have to go to
with the following whether or not the lessee before we
table: if--The release of the data transfer proprietary
director determines would jeopardize its data and information
that data and competitive position. (paleo reports, etc.)
information are to anyone doing work
needed for specific on our behalf. This
scientific or is not a good idea.
research purposes for It limits our ability
the Government MMS and rights to do
will release-- research and detailed
Geophysical data, studies (Sec.
geological data, 250.196).
interpreted G&G
information,
processed and
reprocessed
geophysical
information, analyzed
geological
information. At this
time--Anytime
Additional
provisions--MMS will
release data and
information with the
review and consent of
the lessee only if
release would further
the national interest
without unduly
damaging the
competitive position
of the lessee.
[[Page 72773]]
[2] 10 years after you Two years is not We have not made the
submit it or 60 days enough in the case of suggested change. To
after a lease sale if deepwater leases change the release
any portion of an (deep water leases time for these data
offered block is have a 10 year would make releasing
within 50 miles of a primary term) where data/information more
well, whichever is an exploratory well complicated and make
later. is drilled, an SOP it extremely
obtained pending difficult to track
development. Same as properly. Following
above. In addition, our current
there could exist regulations, we have
open acreage next to already released deep-
a lease that has not water data.
been fully developed Additionally, the
since operations in suggested change
deep water tend to be would not enhance our
more complex. ability to get fair
market value for
leases (Sec.
250.196).
256.73(a)............................... (a) [Normally,] a A The existing Section We have deleted the
suspension extends 256.73(a) clearly word ``normally'' and
the term of a lease. states the primary rewritten the entire
The extension is term of the lease section for clarity.
equal to the length will be extended if
of time the the lessee is granted
suspension is in an SOO or SOP
effect. The pursuant to 30 CFR
suspension will not 250.10(a), (b)(2)
extend the lease term through (b)(7), or
when the Regional (c). This very clear
Supervisor directs a and concise provision
suspension because has been rewritten to
of: state that a
suspension
``normally'' extends
the term of a lease.
Since the term
``normally'' is not
defined, the net
result of this change
is a provision that
is less specific.
----------------------------------------------------------------------------------------------------------------
API/OOC Comments and MMS Responses on Documents Incorporated By
Reference
In addition to the comments in the preceding table, API/OOC
provided numerous suggestions to update the documents incorporated by
reference in proposed Sec. 250.28. Some have already been updated; this
final rule will make the recommended changes to most of the others; and
we will consider the remaining few for future rulemaking.
The following is a list of the documents incorporated by reference
that we updated in the table in Sec. 250.198(e):
API MPMS, Chapter 2, Section 2B
API MPMS, Chapter 3, Section 1B
API MPMS, Chapter 4, Section 7
API MPMS, Chapter 6
API MPMS, Chapter 6, Section 6
API MPMS, Chapter 7, Section 3
API MPMS, Chapter 10, Section 4; also available as ANSI/ASTM D 96
API MPMS, Chapter 11
API MPMS, Chapter 11.1; also available as ANSI/ASTM D1250
API MPMS, Chapter 14, Section 3, Part 1; also available as ANSI/API
2530, Part 1
API MPMS, Chapter 14, Section 3, Part 2; also available as ANSI/API
2530, Part 2
API MPMS, Chapter 14, Section 6
API RP 2A
API RP 2A, Supplement 1
API Spec Q1
API Standard 2545 incorporated as MPMS, Chapters 3.1A and 3.1B
API Standard 2551
API Standard 2552
API Standard 2555
The following is a list of documents incorporated by reference that
we have already addressed through other rulemakings published on July
9, 1998 (63 FR 37066) and May 12, 1998 (63 FR 26365):
API MPMS, Chapter 14, Section 8
API MPMS, Chapter 20
API MPMS, Chapter 21
API RP 14C
API Spec 14D
We are considering, or will consider, the following for future
changes in documents incorporated by reference:
API MPMS, Chapter 14, Section 1
API RP 500 (proposed rule published 3/19/99, 64 FR 13535)
API RP 505 (proposed rule published 3/19/99, 64 FR 13535)
API 510 (currently under review)
API Specification 6D, Supplement 2
API Specification 14A, Supplement 1
Procedural Matters
Takings Implication Assessment Executive Order (E.O.) 12630
MMS certifies that this rule does not represent a governmental
action capable of interference with constitutionally protected property
rights.
Federalism (E.O. 13132)
According to E.O. 13132, this rule does not have Federalism
implications. This rule:
(a) Does not substantially and directly affect the relationship
between the Federal and State governments;
(b) Does not impose costs on States or localities;
(c) Does not preempt State law.
Regulatory Planning and Review (E.O. 12866)
This document is not a significant rule and is not subject to
review by the Office of Management and Budget (OMB) under E.O. 12866.
(1) This rule will not have an effect of $100 million or more on
the economy. It will 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. The new or expanded requirements in the rule are designed
to safeguard lives, property, and the environment. They do not impose
extensive burdens. The economic effects of the rule will be minimal.
The revised regulations will allow lessees of a State lease located
adjacent to the OCS to apply for a right-of-use and easement. Although
MMS has always had the authority to grant rights-of-use and easements,
it was inadvertently dropped from the regulations in 1979, and we are
simply reinserting it specifically in the regulations. We anticipate
very few situations occurring when a State lessee would need to take
advantage of this provision in the regulations. Therefore, we estimate
possibly one application from a State lessee annually. If a State
lessee applies for a right-of-use and easement, they will be required
to pay a $2,350 application fee and $500 in annual rental. The fee and
rental are the same as those required for pipeline right-of-way grants
in our current
[[Page 72774]]
regulations. We used this as the cost basis because of the similarity
in complexity between approving current pipeline right-of-way grants
and the new right-of-use and easement applications allowed under this
regulation.
The total reporting and recordkeeping burdens on all entities
affected are minimal (less than $400,000 per year).
(2) This rule will not create a serious inconsistency or otherwise
interfere with an action taken or planned by another agency. The
proposed rule had a new accident reporting table that raised a question
of duplicative accident reporting to both MMS and USCG. We have deleted
the table from the final rule. We will propose a separate rule to
establish a joint MMS-USCG web-based system for reporting accidents/
incidents to either agency.
(3) This rule does not alter the budgetary effects or entitlements,
grants, user fees, or loan programs or the rights or obligations of
their recipients. This rule will only have a minimal effect with
respect to user fees. State lessees will have to pay a small fee and
hold a bond for the benefit of receiving the right-of-use and easement
in the OCS.
(4) This rule does not raise novel legal or policy issues. The new
or expanded requirements in the rule are based on the longstanding
legal authority of the OCSLA and other laws. As previously stated, the
rule emphasizes MMS's commitment towards ensuring safe operations.
Civil Justice Reform (E.O. 12988)
DOI has certified to OMB that the rule meets the applicable reform
standards provided in sections 3(a) and 3(b)(2) of E.O. 12988.
National Environmental Policy Act
DOI has determined that this action does not constitute a major
Federal action affecting the quality of the human environment;
therefore, an Environmental Impact Statement is not required.
Paperwork Reduction Act of 1995 (PRA)
We examined the proposed and final rule under the PRA. We
determined that the approved information collection requirements remain
unchanged for 30 CFR part 218; 30 CFR part 250, subparts E and F; and
30 CFR part 256.
With respect to 30 CFR part 250, subpart D, the rule removes
sections that contain approved collections of information and relocates
them to 30 CFR part 250, subpart A. We will submit an inventory
correction to OMB to update the approved 30 CFR part 250, subpart D
information collection requirements (OMB control number 1010-0053).
Because of the changes in 30 CFR part 250, subpart A, as part of
the proposed rulemaking process, we submitted the information
collection requirements (including form MMS-132) to OMB for approval.
The final rule made very few changes in the collection of information,
but we resubmitted the revisions to OMB for approval under section
3507(d) of the PRA. OMB has approved the collection of information
under OMB control number 1010-0114. The title of this collection of
information is ``30 CFR 250, Subpart A--General.'' 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.
The minor differences in the information collection requirements in
the proposed rulemaking from those approved for the final rule are:
Eliminated the requirement to submit information on the
use of BAST-requests would be considered under new or alternative
procedures.
Clarified the recordkeeping retention requirements for
crane operator qualifications to be consistent with the standards in
the document incorporated by reference for this activity.
Eliminated the ``proposed'' accident reporting
requirements and retained the ``current'' subpart A accident reporting
and estimated burden.
In responding to comments, we have concluded that the procedures
leading to disqualification of an operator could result in respondents
submitting a performance improvement plan to avoid disqualification.
Although this is part of our internal enforcement process and not
specifically identified in the regulations, the ICR approved for the
final rule includes the burden for this contingency.
We use the collection of information required by this rule to
ensure that operations on the OCS are carried out in a manner that is
safe, pollution-free, does not interfere with the rights of other users
on the OCS, and balances the protection and development of OCS
resources. The frequency of submission varies according to requirement
but is generally ``on occasion.'' Responses are mandatory.
We estimate there are approximately 131 respondents to this
collection of information--130 Federal OCS lessees and operators and
one State lessee.
Reporting and Recordkeeping ``Hour'' Burden: The approved annual
burden of this collection of information is 7,231 reporting hours and
3,485 recordkeeping hours, for a total of 10,716 burden hours. Based on
$35 per hour, we estimate the total hour burden cost to respondents to
be $375,060.
Reporting and Recordkeeping ``Non-Hour Cost'' Burden: The approved
paperwork non-hour cost burden remained unchanged in the final rule. We
still anticipate that only one State lessee per year might apply for a
right-of-use and easement. The respondent is required to pay a cost
recovery application fee of $2,350.
Regulatory Flexibility Act
The changes proposed in 30 CFR part 250, subpart A, will not have a
significant economic effect on offshore lessees and operators,
including those that are classified as small businesses. The Small
Business Administration (SBA) defines a small business as having:
Annual revenues of $5 million or less for exploration
service and field service companies.
Fewer than 500 employees for drilling companies and for
companies that extract oil, gas, or natural gas liquids.
The Small Business Administration's Office of Advocacy in
commenting on this rule referred to Standard Industrial Classification
(SIC) 1381, Drilling Oil and Gas Wells. Under this SIC code, MMS
estimates that there is a total of 1,380 firms that drill oil and gas
wells onshore and offshore. Of these, approximately 130 companies are
offshore lessees/operators, based on current estimates. According to
SBA estimates, 39 companies qualify as large firms, leaving 91
companies qualified as small firms with fewer than 500 employees.
The primary economic effect of the revised subpart A on small
businesses is the cost associated with information collection
activities. The rule is a plain language rewrite of 30 CFR 250, subpart
A, and contains virtually all of the same reporting and recordkeeping
requirements and attendant costs as the existing regulations. The
changes in reporting requirements will not significantly increase the
information collection hour burden on respondents--large or small.
Based on the average number of lessees being 130, we estimate a
combined annual burden of 10,716 hours for all entities. Using a
standard average hourly cost of $35.00 to determine the paperwork
burden, the total hourly cost burden is $375,060. This reflects an
increase in the paperwork burden from the current regulation of 2,288
hours, for a cost burden increase of $80,080 or $616 per
[[Page 72775]]
entity (large or small) from the current regulation.
There is also a reporting cost burden associated with one of the
new benefits to State lessees that requires a fee of $2,350, but only
if a State lessee/operator chooses to apply for a right-of-use and
easement. If a State lessee applies for a right-of-use and easement,
they will be required to pay a $2,350 application fee and $500 in
annual rental. We do not anticipate more than one application for a
right-of-use and easement from a State lessee annually.
Based on these calculations, this rule has no significant economic
impact on the small entities.
Your comments are important. The Small Business and Agriculture
Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were
established to receive comments from small business 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 enforcement actions of MMS,
call toll-free (888) 734-3247.
Small Business Regulatory Enforcement Fairness Act (SBREFA)
This rule is not a major rule under 5 U.S.C. 804(2), SBREFA. This
rule:
(a) Does not have an annual effect on the economy of $100 million
or more. The proposed rule will not cause any significant costs to
lessees or operators. The primary purpose of this rule is to
restructure it for better reorganization and to simplify regulatory
language. The restructuring and plain language revisions will not
result in any economic effects to small or large entities. The only
costs will be for the purchase of the new documents incorporated by
reference and minor revisions to some operating procedures. The minor
revisions to operating procedures may result in some minor costs or may
actually result in minor costs savings.
(b) Will not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions. The new costs associated with this
rule are minimal. State lessees will have to pay a fee and rental to
obtain the benefits of a right-of-use and easement in the Federal OCS.
(c) Does 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
regulation will not have any adverse effects on competition or other
business/commercial aspects of the regulated industry. It contains a
few new requirements that are not burdensome and that ensure that
operations in the OCS remain safe and environmentally sound.
Unfunded Mandates Reform Act of 1995
DOI has determined and certifies under the Unfunded Mandates Reform
Act, 2 U.S.C. 1502 et seq. that this rule will not impose a cost of
$100 million or more in any given year on State, local, and tribal
governments, or the private sector.
List of Subjects
30 CFR Part 218
Continental shelf, Electronic funds transfers, Geothermal energy,
Government contracts, Indians--lands, Mineral royalties, Oil and gas
exploration, Public lands--mineral resources, Reporting and
recordkeeping requirements.
30 CFR Part 250
Continental shelf, Environmental impact statements, Environmental
protection, Government contracts, Incorporation by reference,
Investigations, Mineral royalties, Oil and gas development and
production, Oil and gas exploration, Oil and gas reserves, Penalties,
Pipelines, Public lands--mineral resources, Public lands--rights-of-
way, Reporting and recordkeeping requirements, Sulphur, Surety bonds.
30 CFR Part 252
Continental shelf, Freedom of information, Intergovernmental
relations.
30 CFR Part 253
Continental shelf, Environmental protection, Insurance, Oil and gas
exploration, Oil pollution, Penalties, Pipelines, Public lands--mineral
resources, Public lands--rights-of-way, Reporting and recordkeeping
requirements, Surety bonds.
30 CFR Part 256
Administrative practice and procedure, Continental shelf,
Environmental protection, Government contracts, Mineral royalties, Oil
and gas exploration, Pipelines, Public lands--mineral resources, Public
lands--rights-of-way, Reporting and recordkeeping requirements, Surety
bonds.
30 CFR Part 282
Continental shelf, Prospecting, Public lands--mineral resources,
Reporting and recordkeeping requirements, Surety bonds.
Dated: November 5, 1999.
Sylvia V. Baca,
Acting Assistant Secretary, Land and Minerals Management.
For the reasons stated in the preamble, the Minerals Management
Service (MMS) amends 30 CFR parts 218, 250, 252, 253, 256 and 282 as
follows:
PART 218--COLLECTION OF ROYALTIES, RENTALS, BONUSES AND OTHER
MONIES DUE THE FEDERAL GOVERNMENT
1. The authority citation continues to read as follows:
Authority: 25 U.S.C. 396 et seq.; 396a et seq.; 2101 et seq.; 30
U.S.C. 181 et seq.; 351 et seq.; 1001 et seq.; 1701 et seq.; 31
U.S.C.A. 3335; 43 U.S.C. 1301 et seq.; 1331 et seq.; 1801 et seq.
2. In Sec. 218.154 paragraphs (a) and (b) are revised to read as
follows:
Sec. 218.154 Effect of suspensions on royalty and rental.
(a) MMS will not relieve the lessee of the obligation to pay rental
or minimum royalty for or during the suspension if the Regional
Supervisor:
(1) Grants a suspension of operations or production, or both, at
the request of the lessee; or
(2) Directs a suspension of operations or production, or both,
under 30 CFR 250.173(a).
(b) MMS will not require a lessee to pay rental or minimum royalty
for or during the suspension if the Regional Supervisor directs a
suspension of operations or production, or both, except as provided in
(a)(2) of this section.
* * * * *
PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
3. The authority citation for part 250 continues to read as
follows:
Authority: 43 U.S.C. 1331 et seq.
4. Subpart A is revised to read as follows:
Subpart A--General
Authority and Definition of Terms
Sec.
250.101 Authority and applicability.
250.102 What does this part do?
250.103 Where can I find more information about the requirements
in this part?
250.104 How may I appeal a decision made under MMS regulations?
250.105 Definitions.
[[Page 72776]]
Performance Standards
250.106 What standards will the Director use to regulate lease
operations?
250.107 What must I do to protect health, safety, property, and the
environment?
250.108 What requirements must I follow for cranes and other
material-handling equipment?
250.109 What documents must I prepare and maintain related to
welding?
250.110 What must I include in my welding plan?
250.111 Who oversees operations under my welding plan?
250.112 What standards must my welding equipment meet?
250.113 What procedures must I follow when welding?
250.114 How must I install and operate electrical equipment?
250.115 How do I determine well producibility?
250.116 How do I determine producibility if my well is in the Gulf
of Mexico?
250.117 How does a determination of well producibility affect
royalty status?
250.118 Will MMS approve gas injection?
250.119 Will MMS approve subsurface gas storage?
250.120 How does injecting, storing, or treating gas affect my
royalty payments?
250.121 What happens when the reservoir contains both original gas
in place and injected gas?
250.122 What effect does subsurface storage have on the lease term?
250.123 Will MMS allow gas storage on unleased lands?
250.124 Will MMS approve gas injection into the cap rock containing
a sulphur deposit?
Inspection of Operations
250.130 Why does MMS conduct inspections?
250.131 Will MMS notify me before conducting an inspection?
250.132 What must I do when MMS conducts an inspection?
250.133 Will MMS reimburse me for my expenses related to
inspections?
Disqualification
250.135 What will MMS do if my operating performance is
unacceptable?
250.136 How will MMS determine if my operating performance is
unacceptable?
Special Types of Approvals
250.140 When will I receive an oral approval?
250.141 May I ever use alternate procedures or equipment?
250.142 How do I receive approval to use alternate procedures or
equipment for departures?
250.143 How do I designate an operator?
250.144 How do I designate a new operator when a designation of
operator terminates?
250.145 How do I designate an agent or a local agent?
250.146 Who is responsible for fulfilling leasehold obligations?
Naming and Identifying Facilities and Wells (Does Not Include MODUs)
250.150 How do I name facilities and wells in the Gulf of Mexico
Region?
250.151 How do I name facilities in the Pacific Region?
250.152 How do I name facilities in the Alaska Region?
250.153 Do I have to rename an existing facility or well?
250.154 What identification signs must I display?
Right-of-Use and Easement
250.160 When will MMS grant me a right-of-use and easement, and
what requirements must I meet?
250.161 What else must I submit with my application?
250.162 May I continue my right-of-use and easement after the
termination of any lease on which it is situated?
250.163 If I have a State lease, will MMS grant me a right-of-use
and easement?
250.164 If I have a State lease, what conditions apply for a right-
of-use and easement?
250.165 If I have a State lease, what fees do I have to pay for a
right-of-use and easement?
250.166 If I have a State lease, what surety bond must I have for a
right-of-use and easement?
Suspensions
250.168 May operations or production be suspended?
250.169 What effect does suspension have on my lease?
250.170 How long does a suspension last?
250.171 How do I request a suspension?
250.172 When may the Regional Supervisor grant or direct an SOO or
SOP?
250.173 When may the Regional Supervisor direct an SOO or SOP?
250.174 When may the Regional Supervisor grant or direct an SOP?
250.175 When may the Regional Supervisor grant an SOO?
250.176 Does a suspension affect my royalty payment?
250.177 What additional requirements may the Regional Supervisor
order for a suspension?
Primary Lease Requirements, Lease Term Extensions, and Lease
Cancellations
250.180 What am I required to do to keep my lease term in effect?
250.181 When may the Secretary cancel my lease and when am I
compensated for cancellation?
250.182 When may the Secretary cancel a lease at the exploration
stage?
250.183 When may MMS or the Secretary extend or cancel a lease at
the development and production stage?
250.184 What is the amount of compensation for lease cancellation?
250.185 When is there no compensation for a lease cancellation?
Information and Reporting Requirements
250.190 What reporting information and report forms must I submit?
250.191 What accident reports must I submit?
250.192 What evacuation statistics must I submit?
250.193 Reports and investigations of apparent violations.
250.194 What archaeological reports and surveys must I submit?
250.195 Reimbursements for reproduction and processing costs.
250.196 Data and information to be made available to the public.
References
250.198 Documents incorporated by reference.
250.199 Paperwork Reduction Act statements--information collection.
Subpart A--General
Authority and Definition of Terms
Sec. 250.101 Authority and applicability.
The Secretary of the Interior (Secretary) authorized the Minerals
Management Service (MMS) to regulate oil, gas, and sulphur exploration,
development, and production operations on the outer Continental Shelf
(OCS). Under the Secretary's authority, the Director requires that all
operations:
(a) Be conducted according to the OCS Lands Act (OCSLA), the
regulations in this part, MMS orders, the lease or right-of-way, and
other applicable laws, regulations, and amendments; and
(b) Conform to sound conservation practice to preserve, protect,
and develop mineral resources of the OCS to:
(1) Make resources available to meet the Nation's energy needs;
(2) Balance orderly energy resource development with protection of
the human, marine, and coastal environments;
(3) Ensure the public receives a fair and equitable return on the
resources of the OCS;
(4) Preserve and maintain free enterprise competition; and
(5) Minimize or eliminate conflicts between the exploration,
development, and production of oil and natural gas and the recovery of
other resources.
Sec. 250.102 What does this part do?
(a) 30 CFR part 250 contains the regulations of the MMS Offshore
program that govern oil, gas, and sulphur exploration, development, and
production operations on the OCS. When you conduct operations on the
OCS, you must submit requests, applications, and notices, or provide
supplemental information for MMS approval.
[[Page 72777]]
(b) The following table of general references shows where to look
for information about these processes.
Table--Where To Find Information for Conducting Operations
------------------------------------------------------------------------
For information about Refer to
------------------------------------------------------------------------
(1) Abandoning wells........................ Sec. 250.701.
(2) Applications for Permit to Drill........ Sec. 250.414.
(3) Development and Production Plans (DPP).. Sec. 250.204.
(4) Downhole commingling.................... Sec. 250.1106.
(5) Exploration Plans (EP).................. Sec. 250.203.
(6) Flaring................................. Sec. 250.1105.
(7) Gas measurement......................... Sec. 250.1203.
(8) Off-lease geological and geophysical 30 CFR 251.
permits.
(9) Oil spill financial responsibility 30 CFR 253.
coverage.
(10) Oil and gas production safety systems... Sec. 250.802.
(11) Oil spill response plans................ 30 CFR 254.
(12) Oil and gas well-completion operations.. Sec. 250.513.
(13) Oil and gas well-workover operations.... Sec. 250.613.
(14) Platforms and structures................ Sec. 250.901.
(15) Pipelines............................... Sec. 250.1009.
(16) Pipeline right-of-way................... Sec. 250.1010.
(17) Sulphur operations...................... Sec. 250.1604.
(18) Training................................ Sec. 250.1500.
(19) Unitization............................. Sec. 250.1300.
------------------------------------------------------------------------
Sec. 250.103 Where can I find more information about the requirements
in this part?
MMS may issue Notices to Lessees and Operators (NTLs) that clarify,
supplement, or provide more detail about certain requirements. NTLs may
also outline what you must provide as required information in your
various submissions to MMS.
Sec. 250.104 How may I appeal a decision made under MMS regulations?
To appeal orders or decisions issued under MMS regulations in 30
CFR parts 250 to 282, follow the procedures in 30 CFR part 290.
Sec. 250.105 Definitions.
Terms used in this part will have the meanings given in the Act and
as defined in this section:
Act means the OCS Lands Act, as amended (43 U.S.C. 1331 et seq.).
Affected State means with respect to any program, plan, lease sale,
or other activity proposed, conducted, or approved under the provisions
of the Act, any State:
(1) The laws of which are declared, under section 4(a)(2) of the
Act, to be the law of the United States for the portion of the OCS on
which such activity is, or is proposed to be, conducted;
(2) Which is, or is proposed to be, directly connected by
transportation facilities to any artificial island or installation or
other device permanently or temporarily attached to the seabed;
(3) Which is receiving, or according to the proposed activity, will
receive oil for processing, refining, or transshipment that was
extracted from the OCS and transported directly to such State by means
of vessels or by a combination of means including vessels;
(4) Which is designated by the Secretary as a State in which there
is a substantial probability of significant impact on or damage to the
coastal, marine, or human environment, or a State in which there will
be significant changes in the social, governmental, or economic
infrastructure, resulting from the exploration, development, and
production of oil and gas anywhere on the OCS; or
(5) In which the Secretary finds that because of such activity
there is, or will be, a significant risk of serious damage, due to
factors such as prevailing winds and currents to the marine or coastal
environment in the event of any oil spill, blowout, or release of oil
or gas from vessels, pipelines, or other transshipment facilities.
Air pollutant means any airborne agent or combination of agents for
which the Environmental Protection Agency (EPA) has established, under
section 109 of the Clean Air Act, national primary or secondary ambient
air quality standards.
Analyzed geological information means data collected under a permit
or a lease that have been analyzed. Analysis may include, but is not
limited to, identification of lithologic and fossil content, core
analysis, laboratory analyses of physical and chemical properties, well
logs or charts, results from formation fluid tests, and descriptions of
hydrocarbon occurrences or hazardous conditions.
Archaeological interest means capable of providing scientific or
humanistic understanding of past human behavior, cultural adaptation,
and related topics through the application of scientific or scholarly
techniques, such as controlled observation, contextual measurement,
controlled collection, analysis, interpretation, and explanation.
Archaeological resource means any material remains of human life or
activities that are at least 50 years of age and that are of
archaeological interest.
Attainment area means, for any air pollutant, an area that is shown
by monitored data or that is calculated by air quality modeling (or
other methods determined by the Administrator of EPA to be reliable)
not to exceed any primary or secondary ambient air quality standards
established by EPA.
Best available and safest technology (BAST) means the best
available and safest technologies that the Director determines to be
economically feasible wherever failure of equipment would have a
significant effect on safety, health, or the environment.
Best available control technology (BACT) means an emission
limitation based on the maximum degree of reduction for each air
pollutant subject to regulation, taking into account energy,
environmental and economic impacts, and other costs. The Regional
Director will verify the BACT on a case-by-case basis, and it may
include reductions achieved through the application of processes,
systems, and
[[Page 72778]]
techniques for the control of each air pollutant.
Coastal environment means the physical, atmospheric, and biological
components, conditions, and factors that interactively determine the
productivity, state, condition, and quality of the terrestrial
ecosystem from the shoreline inward to the boundaries of the coastal
zone.
Coastal zone means the coastal waters (including the lands therein
and thereunder) and the adjacent shorelands (including the waters
therein and thereunder) strongly influenced by each other and in
proximity to the shorelands of the several coastal States. The coastal
zone includes islands, transition and intertidal areas, salt marshes,
wetlands, and beaches. The coastal zone extends seaward to the outer
limit of the U.S. territorial sea and extends inland from the
shorelines to the extent necessary to control shorelands, the uses of
which have a direct and significant impact on the coastal waters, and
the inward boundaries of which may be identified by the several coastal
States, under the authority in section 305(b)(1) of the Coastal Zone
Management Act (CZMA) of 1972.
Competitive reservoir means a reservoir in which there are one or
more producible or producing well completions on each of two or more
leases or portions of leases, with different lease operating interests,
from which the lessees plan future production.
Correlative rights when used with respect to lessees of adjacent
leases, means the right of each lessee to be afforded an equal
opportunity to explore for, develop, and produce, without waste,
minerals from a common source.
Data means facts and statistics, measurements, or samples that have
not been analyzed, processed, or interpreted.
Departures means approvals granted by the appropriate MMS
representative for operating requirements/procedures other than those
specified in the regulations found in this part. These requirements/
procedures may be necessary to control a well; properly develop a
lease; conserve natural resources, or protect life, property, or the
marine, coastal, or human environment.
Development means those activities that take place following
discovery of minerals in paying quantities, including but not limited
to geophysical activity, drilling, platform construction, and operation
of all directly related onshore support facilities, and which are for
the purpose of producing the minerals discovered.
Director means the Director of MMS of the U.S. Department of the
Interior, or an official authorized to act on the Director's behalf.
District Supervisor means the MMS officer with authority and
responsibility for operations or other designated program functions for
a district within an MMS Region.
Easement means an authorization for a nonpossessory, nonexclusive
interest in a portion of the OCS, whether leased or unleased, which
specifies the rights of the holder to use the area embraced in the
easement in a manner consistent with the terms and conditions of the
granting authority.
Eastern Gulf of Mexico means all OCS areas of the Gulf of Mexico
the Director decides are adjacent to the State of Florida. The Eastern
Gulf of Mexico is not the same as the Eastern Planning Area, an area
established for OCS lease sales.
Emission offsets means emission reductions obtained from
facilities, either onshore or offshore, other than the facility or
facilities covered by the proposed Exploration Plan (EP) or Development
and Production Plan (DPP).
Enhanced recovery operations means pressure maintenance operations,
secondary and tertiary recovery, cycling, and similar recovery
operations that alter the natural forces in a reservoir to increase the
ultimate recovery of oil or gas.
Existing facility, as used in Sec. 250.303, means an OCS facility
described in an Exploration Plan or a Development and Production Plan
approved before June 2, 1980.
Exploration means the commercial search for oil, gas, or sulphur.
Activities classified as exploration include but are not limited to:
(1) Geophysical and geological (G&G) surveys using magnetic,
gravity, seismic reflection, seismic refraction, gas sniffers, coring,
or other systems to detect or imply the presence of oil, gas, or
sulphur; and
(2) Any drilling conducted for the purpose of searching for
commercial quantities of oil, gas, and sulphur, including the drilling
of any additional well needed to delineate any reservoir to enable the
lessee to decide whether to proceed with development and production.
Facility means:
(1) As used in Sec. 250.130, any installation permanently or
temporarily attached to the seabed on the OCS (including manmade
islands and bottom-sitting structures). It includes mobile offshore
drilling units (MODUs) or other vessels engaged in drilling or downhole
operations, used for oil, gas, or sulphur drilling, production, or
related activities. It also includes facilities for product measurement
and royalty determination (e.g., Lease Automatic Custody Transfer
units, gas meters) of OCS production on installations not on the OCS.
Any group of OCS installations interconnected with walkways, or any
group of installations that includes a central or primary installation
with processing equipment and one or more satellite or secondary
installations is a single facility. The Regional Supervisor may decide
that the complexity of the individual installations justifies their
classification as separate facilities.
(2) As used in Sec. 250.303, means any installation or device
permanently or temporarily attached to the seabed. It includes mobile
offshore drilling units (MODUs), even while operating in the ``tender
assist'' mode (i.e. with skid-off drilling units) or other vessels
engaged in drilling or downhole operations. They are used for
exploration, development, and production activities for oil, gas, or
sulphur and emit or have the potential to emit any air pollutant from
one or more sources. During production, multiple installations or
devices are a single facility if the installations or devices are at a
single site. Any vessel used to transfer production from an offshore
facility is part of the facility while it is physically attached to the
facility.
(3) As used in Sec. 250.417(b), means a vessel, a structure, or an
artificial island used for drilling, well-completion, well-workover,
and/or production operations.
Gas reservoir means a reservoir that contains hydrocarbons
predominantly in a gaseous (single-phase) state.
Gas-well completion means a well completed in a gas reservoir or in
the associated gas-cap of an oil reservoir.
Governor means the Governor of a State, or the person or entity
designated by, or under, State law to exercise the powers granted to
such Governor under the Act.
H2S absent means:
(1) Drilling, logging, coring, testing, or producing operations
have confirmed the absence of H2S in concentrations that
could potentially result in atmospheric concentrations of 20 ppm or
more of H2S; or
(2) Drilling in the surrounding areas and correlation of geological
and seismic data with equivalent stratigraphic units have confirmed an
absence of H2S throughout the area to be drilled.
H2S present means drilling, logging, coring, testing, or
producing operations
[[Page 72779]]
have confirmed the presence of H2S in concentrations and
volumes that could potentially result in atmospheric concentrations of
20 ppm or more of H2S.
H2S unknown means the designation of a zone or geologic
formation where neither the presence nor absence of H2S has
been confirmed.
Human environment means the physical, social, and economic
components, conditions, and factors that interactively determine the
state, condition, and quality of living conditions, employment, and
health of those affected, directly or indirectly, by activities
occurring on the OCS.
Interpreted geological information means geological knowledge,
often in the form of schematic cross sections, 3-dimensional
representations, and maps, developed by determining the geological
significance of data and analyzed geological information.
Interpreted geophysical information means geophysical knowledge,
often in the form of schematic cross sections, 3-dimensional
representations, and maps, developed by determining the geological
significance of geophysical data and analyzed geophysical information.
Lease means an agreement that is issued under section 8 or
maintained under section 6 of the Act and that authorizes exploration
for, and development and production of, minerals. The term also means
the area covered by that authorization, whichever the context requires.
Lease term pipelines means those pipelines owned and operated by a
lessee or operator that are completely contained within the boundaries
of a single lease, unit, or contiguous (not cornering) leases of that
lessee or operator.
Lessee means a person who has entered into a lease with the United
States to explore for, develop, and produce the leased minerals. The
term lessee also includes the MMS-approved assignee of the lease, and
the owner or the MMS-approved assignee of operating rights for the
lease.
Major Federal action means any action or proposal by the Secretary
that is subject to the provisions of section 102(2)(C) of the National
Environmental Policy Act of 1969, 42 U.S.C. (2)(C) (i.e., an action
that will have a significant impact on the quality of the human
environment requiring preparation of an environmental impact statement
under section 102(2)(C) of the National Environmental Policy Act).
Marine environment means the physical, atmospheric, and biological
components, conditions, and factors that interactively determine the
productivity, state, condition, and quality of the marine ecosystem.
These include the waters of the high seas, the contiguous zone,
transitional and intertidal areas, salt marshes, and wetlands within
the coastal zone and on the OCS.
Material remains means physical evidence of human habitation,
occupation, use, or activity, including the site, location, or context
in which such evidence is situated.
Maximum efficient rate (MER) means the maximum sustainable daily
oil or gas withdrawal rate from a reservoir that will permit economic
development and depletion of that reservoir without detriment to
ultimate recovery.
Maximum production rate (MPR) means the approved maximum daily rate
at which oil or gas may be produced from a specified oil-well or gas-
well completion.
Minerals includes oil, gas, sulphur, geopressured-geothermal and
associated resources, and all other minerals that are authorized by an
Act of Congress to be produced.
Natural resources includes, without limiting the generality
thereof, oil, gas, and all other minerals, and fish, shrimp, oysters,
clams, crabs, lobsters, sponges, kelp, and other marine animal and
plant life but does not include water power or the use of water for the
production of power.
Nonattainment area means, for any air pollutant, an area that is
shown by monitored data or that is calculated by air quality modeling
(or other methods determined by the Administrator of EPA to be
reliable) to exceed any primary or secondary ambient air quality
standard established by EPA.
Nonsensitive reservoir means a reservoir in which ultimate recovery
is not decreased by high reservoir production rates.
Oil reservoir means a reservoir that contains hydrocarbons
predominantly in a liquid (single-phase) state.
Oil reservoir with an associated gas cap means a reservoir that
contains hydrocarbons in both a liquid and gaseous (two-phase) state.
Oil-well completion means a well completed in an oil reservoir or
in the oil accumulation of an oil reservoir with an associated gas cap.
Operating rights means any interest held in a lease with the right
to explore for, develop, and produce leased substances.
Operator means the person the lessee(s) designates as having
control or management of operations on the leased area or a portion
thereof. An operator may be a lessee, the MMS-approved designated agent
of the lessee(s), or the holder of operating rights under an MMS-
approved operating rights assignment.
Outer Continental Shelf (OCS) means all submerged lands lying
seaward and outside of the area of lands beneath navigable waters as
defined in section 2 of the Submerged Lands Act (43 U.S.C. 1301) whose
subsoil and seabed appertain to the United States and are subject to
its jurisdiction and control.
Person includes, in addition to a natural person, an association
(including partnerships and trusts), a State, a political subdivision
of a State, or a private, public, or municipal corporation.
Pipelines are the piping, risers, and appurtenances installed for
transporting oil, gas, sulphur, and produced waters.
Processed geological or geophysical information means data
collected under a permit or a lease that have been processed or
reprocessed. Processing involves changing the form of data to
facilitate interpretation. Processing operations may include, but are
not limited to, applying corrections for known perturbing causes,
rearranging or filtering data, and combining or transforming data
elements. Reprocessing is the additional processing other than ordinary
processing used in the general course of evaluation. Reprocessing
operations may include varying identified parameters for the detailed
study of a specific problem area.
Production means those activities that take place after the
successful completion of any means for the removal of minerals,
including such removal, field operations, transfer of minerals to
shore, operation monitoring, maintenance, and workover operations.
Production areas are those areas where flammable petroleum gas,
volatile liquids or sulphur are produced, processed (e.g., compressed),
stored, transferred (e.g., pumped), or otherwise handled before
entering the transportation process.
Projected emissions means emissions, either controlled or
uncontrolled, from a source or sources.
Regional Director means the MMS officer with responsibility and
authority for a Region within MMS.
Regional Supervisor means the MMS officer with responsibility and
authority for operations or other designated program functions within
an MMS Region.
Right-of-use means any authorization issued under this part to use
OCS lands.
Right-of-way pipelines are those pipelines that are contained
within:
[[Page 72780]]
(1) The boundaries of a single lease or unit, but are not owned and
operated by a lessee or operator of that lease or unit;
(2) The boundaries of contiguous (not cornering) leases that do not
have a common lessee or operator;
(3) The boundaries of contiguous (not cornering) leases that have a
common lessee or operator but are not owned and operated by that common
lessee or operator; or
(4) An unleased block(s).
Routine operations, for the purposes of subpart F, means any of the
following operations conducted on a well with the tree installed:
(1) Cutting paraffin;
(2) Removing and setting pump-through-type tubing plugs, gas-lift
valves, and subsurface safety valves that can be removed by wireline
operations;
(3) Bailing sand;
(4) Pressure surveys;
(5) Swabbing;
(6) Scale or corrosion treatment;
(7) Caliper and gauge surveys;
(8) Corrosion inhibitor treatment;
(9) Removing or replacing subsurface pumps;
(10) Through-tubing logging (diagnostics);
(11) Wireline fishing;
(12) Setting and retrieving other subsurface flow-control devices;
and
(13) Acid treatments.
Sensitive reservoir means a reservoir in which high reservoir
production rates will decrease ultimate recovery. For submitting the
first MER, all oil reservoirs with an associated gas cap are classified
as sensitive.
Significant archaeological resource means those archaeological
resources that meet the criteria of significance for eligibility to the
National Register of Historic Places as defined in 36 CFR 60.4, or its
successor.
Suspension means a granted or directed deferral of the requirement
to produce (Suspension of Production (SOP)) or to conduct leaseholding
operations (Suspension of Operations (SOO)).
Waste of oil, gas, or sulphur means:
(1) The physical waste of oil, gas, or sulphur;
(2) The inefficient, excessive, or improper use, or the unnecessary
dissipation of reservoir energy;
(3) The locating, spacing, drilling, equipping, operating, or
producing of any oil, gas, or sulphur well(s) in a manner that causes
or tends to cause a reduction in the quantity of oil, gas, or sulphur
ultimately recoverable under prudent and proper operations or that
causes or tends to cause unnecessary or excessive surface loss or
destruction of oil or gas; or
(4) The inefficient storage of oil.
Welding means all activities connected with welding, including hot
tapping and burning.
Wellbay is the area on a facility within the perimeter of the
outermost wellheads.
Well-completion operations means the work conducted to establish
production from a well after the production-casing string has been set,
cemented, and pressure-tested.
Well-control fluid means drilling mud, completion fluid, or
workover fluid as appropriate to the particular operation being
conducted.
Western Gulf of Mexico means all OCS areas of the Gulf of Mexico
except those the Director decides are adjacent to the State of Florida.
The Western Gulf of Mexico is not the same as the Western Planning
Area, an area established for OCS lease sales.
Workover operations means the work conducted on wells after the
initial well-completion operation for the purpose of maintaining or
restoring the productivity of a well.
You means a lessee, the owner or holder of operating rights, a
designated agent of the lessee(s), a pipeline right-of-way holder, or a
State lessee granted a right-of-use and easement.
Performance Standards
Sec. 250.106 What standards will the Director use to regulate lease
operations?
The Director will regulate all operations under a lease, right-of-
use and easement, or right-of-way to:
(a) Promote orderly exploration, development, and production of
mineral resources;
(b) Prevent injury or loss of life;
(c) Prevent damage to or waste of any natural resource, property,
or the environment; and
(d) Cooperate and consult with affected States, local governments,
other interested parties, and relevant Federal agencies.
Sec. 250.107 What must I do to protect health, safety, property, and
the environment?
(a) You must protect health, safety, property, and the environment
by:
(1) Performing all operations in a safe and workmanlike manner; and
(2) Maintaining all equipment in a safe condition.
(b) You must immediately control, remove, or otherwise correct any
hazardous oil and gas accumulation or other health, safety, or fire
hazard.
(c) You must use the best available and safest technology (BAST)
whenever practical on all exploration, development, and production
operations. In general, we consider your compliance with MMS
regulations to be the use of BAST.
(d) The Director may require additional measures to ensure the use
of BAST:
(1) To avoid the failure of equipment that would have a significant
effect on safety, health, or the environment;
(2) If it is economically feasible; and
(3) If the benefits outweigh the costs.
Sec. 250.108 What requirements must I follow for cranes and other
material-handling equipment?
(a) If you operate a crane installed on fixed platforms you must:
(1) Follow the American Petroleum Institute (API) Recommended
Practice (RP) for Operation and Maintenance of Offshore Cranes (API RP
2D);
(2) Keep inspection, testing, and maintenance records at the OCS
facility for at least 2 years; and
(3) Keep crane operator qualifications at the facility for at least
4 years.
(b) You must operate and maintain all other material-handling
equipment in a manner that ensures safe operations and prevents
pollution.
Sec. 250.109 What documents must I prepare and maintain related to
welding?
(a) You must submit a Welding Plan to the District Supervisor
before you begin drilling or production activities on a lease. You may
not begin welding until the District Supervisor has approved your plan.
(b) You must keep the following at the site where welding occurs:
(1) A copy of the plan and its approval letter; and
(2) Drawings showing the designated safe-welding areas.
Sec. 250.110 What must I include in my welding plan?
You must include all of the following in the Welding Plan that you
prepare under Sec. 250.109:
(a) Standards or requirements for welders;
(b) How you will ensure that only qualified personnel weld;
(c) Practices and procedures for safe welding that address:
(1) Welding in designated safe areas;
(2) Welding in undesignated areas, including wellbay;
(3) Fire watches;
(4) Maintenance of welding equipment; and
(5) Plans showing all designated safe-welding areas.
(d) How you will prevent spark-producing activities (i.e.,
grinding, abrasive blasting/cutting and arc-welding) in hazardous
locations.
[[Page 72781]]
Sec. 250.111 Who oversees operations under my welding plan?
A welding supervisor or a designated person in charge must be
thoroughly familiar with your welding plan. This person must ensure
that each welder is properly qualified according to the welding plan.
This person also must inspect all welding equipment before welding.
Sec. 250.112 What standards must my welding equipment meet?
Your welding equipment must meet the following requirements:
(a) All engine-driven welding equipment must be equipped with spark
arrestors and drip pans;
(b) Welding leads must be completely insulated and in good
condition;
(c) Hoses must be leak-free and equipped with proper fittings,
gauges, and regulators; and
(d) Oxygen and fuel gas bottles must be secured in a safe place.
Sec. 250.113 What procedures must I follow when welding?
(a) Before you weld, you must move any equipment containing
hydrocarbons or other flammable substances at least 35 feet
horizontally from the welding area. You must move similar equipment on
lower decks at least 35 feet from the point of impact where slag,
sparks, or other burning materials could fall. If moving this equipment
is impractical, you must protect that equipment with flame-proofed
covers, shield it with metal or fire-resistant guards or curtains, or
render the flammable substances inert.
(b) While you weld, you must monitor all water-discharge-point
sources from hydrocarbon-handling vessels. If a discharge of flammable
fluids occurs, you must stop welding.
(c) If you cannot weld in one of the designated safe-welding areas
that you listed in your safe welding plan, you must meet the following
requirements:
(1) You may not begin welding until:
(i) The welding supervisor or designated person in charge advises
in writing that it is safe to weld.
(ii) You and the designated person in charge inspect the work area
and areas below it for potential fire and explosion hazards.
(2) During welding, the person in charge must designate one or more
persons as a fire watch. The fire watch must:
(i) Have no other duties while actual welding is in progress;
(ii) Have usable firefighting equipment;
(iii) Remain on duty for 30 minutes after welding activities end;
and
(iv) Maintain a continuous surveillance with a portable gas
detector during the welding and burning operation if welding occurs in
an area not equipped with a gas detector.
(3) You may not weld piping, containers, tanks, or other vessels
that have contained a flammable substance unless you have rendered the
contents inert and the designated person in charge has determined it is
safe to weld. This does not apply to approved hot taps.
(4) You may not weld within 10 feet of a wellbay unless you have
shut in all producing wells in that wellbay.
(5) You may not weld within 10 feet of a production area, unless
you have shut in that production area.
(6) You may not weld while you drill, complete, workover, or
conduct wireline operations unless:
(i) The fluids in the well (being drilled, completed, worked over,
or having wireline operations conducted) are noncombustible; and
(ii) You have precluded the entry of formation hydrocarbons into
the wellbore by either mechanical means or a positive overbalance
toward the formation.
Sec. 250.114 How must I install and operate electrical equipment?
The requirements in this section apply to all electrical equipment
on all platforms, artificial islands, fixed structures, and their
facilities.
(a) You must classify all areas according to API RP 500,
Recommended Practice for Classification of Locations for Electrical
Installations at Petroleum Facilities classified as Class I, Division 1
and Division 2.
(b) Employees who maintain your electrical systems must have
expertise in area classification and the performance, operation and
hazards of electrical equipment.
(c) You must install all electrical systems according to API RP
14F, Recommended Practice for Design and Installation of Electrical
Systems for Offshore Production Platforms. You do not have to comply
with Sections 7.4, Emergency Lighting, and 9.4, Aids to Navigation
Equipment.
(d) On each engine that has an electric ignition system, you must
use an ignition system designed and maintained to reduce the release of
electrical energy.
Sec. 250.115 How do I determine well producibility?
You must follow the procedures in this section to determine well
producibility if your well is not in the GOM. If your well is in the
GOM you must follow the procedures in either this section or in
Sec. 250.116 of this subpart.
(a) You must write to the Regional Supervisor asking for permission
to determine producibility.
(b) You must either:
(1) Allow the District Supervisor to witness each test that you
conduct under this section; or
(2) Receive the District Supervisor's prior approval so that you
can submit either test data with your affidavit or third party test
data.
(c) If the well is an oil well, you must conduct a production test
that lasts at least 2 hours after flow stabilizes.
(d) If the well is a gas well, you must conduct a deliverability
test that lasts at least 2 hours after flow stabilizes, or a four-point
back pressure test.
Sec. 250.116 How do I determine producibility if my well is in the
Gulf of Mexico?
If your well is in the GOM, you must follow either the procedures
in Sec. 250.115 of this subpart or the procedures in this section to
determine producibility.
(a) You must write to the Regional Supervisor asking for permission
to determine producibility.
(b) You must provide or make available to the Regional Supervisor,
as requested, the following log, core, analyses, and test criteria that
MMS will consider collectively:
(1) A log showing sufficient porosity in the producible section.
(2) Sidewall cores and core analyses that show that the section is
capable of producing oil or gas.
(3) Wireline formation test and/or mud-logging analyses that show
that the section is capable of producing oil or gas.
(4) A resistivity or induction electric log of the well showing a
minimum of 15 feet (true vertical thickness except for horizontal
wells) of producible sand in one section.
(c) No section that you count as producible under paragraph (b)(4)
of this section may include any interval that appears to be water
saturated.
(d) Each section you count as producible under paragraph (b)(4) of
this section must exhibit:
(1) A minimum true resistivity ratio of the producible section to
the nearest clean or water-bearing sand of at least 5:1; and
(2) One of the following:
(i) Electrical spontaneous potential exceeding 20-negative
millivolts beyond the shale baseline; or
(ii) Gamma ray log deflection of at least 70 percent of the maximum
gamma ray deflection in the nearest clean
[[Page 72782]]
water-bearing sand--if mud conditions prevent a 20-negative millivolt
reading beyond the shale baseline.
Sec. 250.117 How does a determination of well producibility affect
royalty status?
A determination of well producibility invokes minimum royalty
status on the lease as provided in 30 CFR 202.53.
Sec. 250.118 Will MMS approve gas injection?
The Regional Supervisor may authorize you to inject gas on the OCS,
on and off-lease, to promote conservation of natural resources and to
prevent waste.
(a) To receive MMS approval for injection, you must:
(1) Show that the injection will not result in undue interference
with operations under existing leases; and
(2) Submit a written application to the Regional Supervisor for
injection of gas.
(b) The Regional Supervisor will approve gas injection applications
that:
(1) Enhance recovery;
(2) Prevent flaring of casinghead gas; or
(3) Implement other conservation measures approved by the Regional
Supervisor.
Sec. 250.119 Will MMS approve subsurface gas storage?
The Regional Supervisor may authorize subsurface storage of gas on
the OCS, on and off-lease, for later commercial benefit. To receive MMS
approval you must:
(a) Show that the subsurface storage of gas will not result in
undue interference with operations under existing leases; and
(b) Sign a storage agreement that includes the required payment of
a storage fee or rental.
Sec. 250.120 How does injecting, storing, or treating gas affect my
royalty payments?
(a) If you produce gas from an OCS lease and inject it into a
reservoir on the lease or unit for the purposes cited in
Sec. 250.118(b), you are not required to pay royalties until you remove
or sell the gas from the reservoir.
(b) If you produce gas from an OCS lease and store it according to
Sec. 250.119, you must pay royalty before injecting it into the storage
reservoir.
(c) If you produce gas from an OCS lease and treat it at an off-
lease or off-unit location, you must pay royalties when the gas is
first produced.
Sec. 250.121 What happens when the reservoir contains both original
gas in place and injected gas?
If the reservoir contains both original gas in place and injected
gas, when you produce gas from the reservoir you must use an MMS-
approved formula to determine the amounts of injected or stored gas and
gas original to the reservoir.
Sec. 250.122 What effect does subsurface storage have on the lease
term?
If you use a lease area for subsurface storage of gas, it does not
affect the continuance or expiration of the lease.
Sec. 250.123 Will MMS allow gas storage on unleased lands?
You may not store gas on unleased lands unless the Regional
Supervisor approves a right-of-use and easement for that purpose, under
Secs. 250.160 through 250.166 of this subpart.
Sec. 250.124 Will MMS approve gas injection into the cap rock
containing a sulphur deposit?
To receive the Regional Supervisor's approval to inject gas into
the cap rock of a salt dome containing a sulphur deposit, you must show
that the injection:
(a) Is necessary to recover oil and gas contained in the cap rock;
and
(b) Will not significantly increase potential hazards to present or
future sulphur mining operations.
Inspection of Operations
Sec. 250.130 Why does MMS conduct inspections?
MMS will inspect OCS facilities and any vessels engaged in drilling
or other downhole operations. These include facilities under
jurisdiction of other Federal agencies that we inspect by agreement. We
conduct these inspections:
(a) To verify that you are conducting operations according to the
Act, the regulations, the lease, right-of-way, the approved Exploration
Plan or Development and Production Plans; or right-of-use and easement,
and other applicable laws and regulations; and
(b) To determine whether equipment designed to prevent or
ameliorate blowouts, fires, spillages, or other major accidents has
been installed and is operating properly according to the requirements
of this part.
Sec. 250.131 Will MMS notify me before conducting an inspection?
MMS conducts both scheduled and unscheduled inspections.
Sec. 250.132 What must I do when MMS conducts an inspection?
(a) When MMS conducts an inspection, you must provide:
(1) Access to all platforms, artificial islands, and other
installations on your leases or associated with your lease, right-of-
use and easement, or right-of-way; and
(2) Helicopter landing sites and refueling facilities for any
helicopters we use to regulate offshore operations.
(b) You must make the following available for us to inspect:
(1) The area covered under a lease, right-of-use and easement,
right-of-way, or permit;
(2) All improvements, structures, and fixtures on these areas; and
(3) All records of design, construction, operation, maintenance,
repairs, or investigations on or related to the area.
Sec. 250.133 Will MMS reimburse me for my expenses related to
inspections?
Upon request, MMS will reimburse you for food, quarters, and
transportation that you provide for MMS representatives while they
inspect lease facilities and operations. You must send us your
reimbursement request within 90 days of the inspection.
Disqualification
Sec. 250.135 What will MMS do if my operating performance is
unacceptable?
If your operating performance is unacceptable, MMS may disapprove
or revoke your designation as operator on a single facility or multiple
facilities. We will give you adequate notice and opportunity for a
review by MMS officials before imposing a disqualification.
Sec. 250.136 How will MMS determine if my operating performance is
unacceptable?
In determining if your operating performance is unacceptable, MMS
will consider, individually or collectively:
(a) Accidents and their nature;
(b) Pollution events, environmental damages and their nature;
(c) Incidents of noncompliance;
(d) Civil penalties;
(e) Failure to adhere to OCS lease obligations; or
(f) Any other relevant factors.
Special Types of Approvals
Sec. 250.140 When will I receive an oral approval?
When you apply for MMS approval of any activity, we normally give
you a written decision. The following table shows circumstances under
which we may give an oral approval.
[[Page 72783]]
----------------------------------------------------------------------------------------------------------------
When you We may And
----------------------------------------------------------------------------------------------------------------
(a) Request approval orally............. Give you an oral approval. You must then confirm the oral request by
sending us a written request within 72
hours.
(b) Request approval in writing......... Give you an oral approval We will send you a written approval
if quick action is needed. afterward. It will include any
conditions that we place on the oral
approval.
(c) Request approval orally for gas Give you an oral approval. You don't have to follow up with a
flaring. written request unless the Regional
Supervisor requires it. When you stop
the approved flaring, you must promptly
send a letter summarizing the location,
dates and hours, and volumes of liquid
hydrocarbons produced and gas flared by
the approved flaring. (See 30 CFR 250,
subpart K.)
----------------------------------------------------------------------------------------------------------------
Sec. 250.141 May I ever use alternate procedures or equipment?
You may use alternate procedures or equipment after receiving
approval as described in this section.
(a) Any alternate procedures or equipment that you propose to use
must provide a level of safety and environmental protection that equals
or surpasses current MMS requirements.
(b) You must receive the District or Regional Supervisor's written
approval before you can use alternate procedures or equipment.
(c) To receive approval, you must either submit information or give
an oral presentation to the appropriate Supervisor. Your presentation
must describe the site-specific application(s), performance
characteristics, and safety features of the proposed procedure or
equipment.
Sec. 250.142 How do I receive approval to use alternate procedures or
equipment for departures?
We may approve departures to the operating requirements. You may
apply for a departure by writing to the Regional Supervisor.
Sec. 250.143 How do I designate an operator?
(a) You must provide the Regional Supervisor an executed
Designation of Operator form unless you are the only lessee and are the
only person conducting lease operations. When there is more than one
lessee, each lessee must submit the Designation of Operator form and
the Regional Supervisor must approve the designation before the
designated operator may begin operations on the leasehold.
(b) This designation is authority for the designated operator to
act on your behalf and to fulfill your obligations under the Act, the
lease, and the regulations in this part.
(c) You, or your designated operator, must immediately provide the
Regional Supervisor a written notification of any change of address.
Sec. 250.144 How do I designate a new operator when a designation of
operator terminates?
(a) When a Designation of Operator terminates, the Regional
Supervisor must approve a new designated operator before you may
continue operations. Each lessee must submit a new executed Designation
of Operator form.
(b) If your Designation of Operator is terminated, or a controversy
develops between you and your designated operator, you and your
designated operator must protect the lessor's interests.
Sec. 250.145 How do I designate an agent or a local agent?
(a) You or your designated operator may designate for the Regional
Supervisor's approval, or the Regional Director may require you to
designate an agent empowered to fulfill your obligations under the Act,
the lease, or the regulations in this part.
(b) You or your designated operator may designate for the Regional
Supervisor's approval a local agent empowered to receive notices and
submit requests, applications, notices, or supplemental information.
Sec. 250.146 Who is responsible for fulfilling leasehold obligations?
(a) When you are not the sole lessee, you and your co-lessee(s) are
jointly and severally responsible for fulfilling your obligations under
the provisions of 30 CFR parts 250 through 282, unless otherwise
provided in these regulations.
(b) If your designated operator fails to fulfill any of your
obligations under 30 CFR parts 250 through 282, the Regional Supervisor
may require you or any or all of your co-lessees to fulfill those
obligations or other operational obligations under the Act, the lease,
or the regulations.
(c) Whenever the regulations in 30 CFR parts 250 through 282
require the lessee to meet a requirement or perform an action, the
lessee, operator (if one has been designated), and the person actually
performing the activity to which the requirement applies are jointly
and severally responsible for complying with the regulation.
Naming and Identifying Facilities and Wells (Does Not Include
MODUs)
Sec. 250.150 How do I name facilities and wells in the Gulf of Mexico
Region?
(a) Assign each facility a letter designation except for those
types of facilities identified in paragraph (c)(1) of this section. For
example, A, B, CA, or CB.
(1) After a facility is installed, rename each predrilled well that
was assigned only a number and was suspended temporarily at the mudline
or at the surface. Use a letter and number designation. The letter used
must be the same as that of the production facility, and the number
used must correspond to the order in which the well was completed, not
necessarily the number assigned when it was drilled. For example, the
first well completed for production on Facility A would be renamed Well
A-1, the second would be Well A-2, and so on; and
(2) When you have more than one facility on a block, each facility
installed, and not bridge-connected to another facility, must be named
using a different letter in sequential order. For example, EC 222A, EC
222B, EC 222C.
(3) When you have more than one facility on multiple blocks in a
local area being co-developed, each facility installed and not
connected with a walkway to another facility should be named using a
different letter in sequential order with the block number
corresponding to the block on which the platform is located. For
example, EC 221A, EC 222B and EC 223C.
(b) In naming multiple well caissons, you must assign a letter
designation.
(c) In naming single well caissons, you must use certain criteria
as follows:
(1) For single well caissons not attached to a facility with a
walkway, use the well designation. For example, Well No. 1;
(2) For single well caissons attached to a facility with a walkway,
use the same designation as the facility. For example, rename Well
No.10 as A-10; and
(3) For single well caissons with production equipment, use a
letter designation for the facility name and a
[[Page 72784]]
letter plus number designation for the well. For example, the Well No.
1 caisson would be designated as Facility A, and the well would be Well
A-1.
Sec. 250.151 How do I name facilities in the Pacific Region?
The operator assigns a name to the facility.
Sec. 250.152 How do I name facilities in the Alaska Region?
Facilities will be named and identified according to the Regional
Director's directions.
Sec. 250.153 Do I have to rename an existing facility or well?
You do not have to rename facilities installed and wells drilled
before January 27, 2000, unless the Regional Director requires it.
Sec. 250.154 What identification signs must I display?
(a) You must identify all facilities, artificial islands, and
mobile offshore drilling units with a sign maintained in a legible
condition.
(1) You must display an identification sign that can be viewed from
the waterline on at least one side of the platform. The sign must use
at least 3-inch letters and figures.
(2) When helicopter landing facilities are present, you must
display an additional identification sign that is visible from the air.
The sign must use at least 12-inch letters and figures and must also
display the weight capacity of the helipad unless noted on the top of
the helipad. If this sign is visible to both helicopter and boat
traffic, then the sign in paragraph (a)(1) of this section is not
required.
(3) Your identification sign must:
(i) List the name of the lessee or designated operator;
(ii) In the GOM OCS Region, list the area designation or
abbreviation and the block number of the facility location as depicted
on OCS Official Protraction Diagrams or leasing maps;
(iii) In the Pacific OCS Region, list the lease number on which the
facility is located; and
(iv) List the name of the platform, structure, artificial island,
or mobile offshore drilling unit.
(b) You must identify singly completed wells and multiple
completions as follows:
(1) For each singly completed well, list the lease number and well
number on the wellhead or on a sign affixed to the wellhead;
(2) For wells with multiple completions, downhole splitter wells,
and multilateral wells, identify each completion in addition to the
well name and lease number individually on the well flowline at the
wellhead; and
(3) For subsea wells that flow individually into separate
pipelines, affix the required sign on the pipeline or surface flowline
dedicated to that subsea well at a convenient location on the receiving
platform. For multiple subsea wells that flow into a common pipeline or
pipelines, no sign is required.
Right-of-use and Easement
Sec. 250.160 When will MMS grant me a right-of-use and easement, and
what requirements must I meet?
MMS may grant you a right-of-use and easement on leased and
unleased lands on the OCS, if you meet these requirements:
(a) You must need the right-of-use and easement to construct and
maintain platforms, artificial islands, and installations and other
devices at an OCS site other than an OCS lease you own, that are:
(1) Permanently or temporarily attached to the seabed; and
(2) Used for conducting exploration, development, and production
activities or other operations on or off lease; or
(3) Used for other purposes approved by MMS.
(b) You must exercise the right-of-use and easement according to
the regulations of this part;
(c) You must meet the requirements at 30 CFR 256.35 (Qualification
of lessees); establish a regional Company File as required by MMS; and
must meet bonding requirements;
(d) If you apply for a right-of-use and easement on a leased area,
you must notify the lessee and give her/him an opportunity to comment
on your application; and
(e) You must receive MMS approval for all platforms, artificial
islands, and installations and other devices permanently or temporarily
attached to the seabed.
Sec. 250.161 What else must I submit with my application?
With your application, you must describe the proposed use giving:
(a) Details of the proposed uses and activities including access
needs and special rights of use that you may need;
(b) A description of all facilities for which you are seeking
authorization;
(c) A map or plat describing primary and alternate project
locations; and
(d) A schedule for constructing any new facilities, drilling or
completing any wells, anticipated production rates, and productive life
of existing production facilities.
Sec. 250.162 May I continue my right-of-use and easement after the
termination of any lease on which it is situated?
If your right-of-use and easement is on a lease, you may continue
to exercise the right-of-use and easement after the lease on which it
is situated terminates. You must only use the right-of-use and easement
for the purpose that the grant specifies. All future lessees of that
portion of the OCS on which your right-of-use and easement is situated
must continue to recognize the right-of-use and easement for the
purpose that the grant specifies.
Sec. 250.163 If I have a State lease, will MMS grant me a right-of-use
and easement?
(a) MMS may grant a lessee of a State lease located adjacent to or
accessible from the OCS a right-of-use and easement on the OCS.
(b) MMS will only grant a right-of-use and easement under this
paragraph to enable a State lessee to conduct and maintain a device
that is permanently or temporarily attached to the seabed (i.e., a
platform, artificial island, or installation). The lessee must use the
device to explore for, develop, and produce oil and gas from the
adjacent or accessible State lease and for other operations related to
these activities.
Sec. 250.164 If I have a State lease, what conditions apply for a
right-of-use and easement?
(a) A right-of-use and easement granted under the heading of
``Right-of-use and easement'' in this subpart is subject to MMS
regulations, 30 CFR parts 250 through 282, and any terms and conditions
that the Regional Director prescribes.
(b) For the whole or fraction of the first calendar year, and
annually after that, you must pay to MMS, in advance, an annual rental
payment.
Sec. 250.165 If I have a State lease, what fees do I have to pay for a
right-of-use and easement?
When you apply for a right-of-use and easement, you must pay:
(a) A nonrefundable filing fee as specified in Sec. 250.1010(a);
and (b) The first year's rental as specified in Sec. 250.1009(c)(2).
Sec. 250.166 If I have a State lease, what surety bond must I have for
a right-of-use and easement?
(a) Before MMS issues you a right-of-use and easement on the OCS,
you must furnish the Regional Director a surety bond for $500,000.
(b) The Regional Director may require additional security from you
(i.e., security above the prescribed $500,000) to cover additional
costs and liabilities
[[Page 72785]]
for regulatory compliance. This additional surety:
(1) Must be in the form of a supplemental bond or bonds meeting the
requirements of Sec. 256.54 (General requirements for bonds) or an
increase in the coverage of an existing surety bond.
(2) Covers additional costs and liabilities for regulatory
compliance, including well abandonment, platform and structure removal,
and site clearance from the seafloor of the right-of-use and easement.
Suspensions
Sec. 250.168 May operations or production be suspended?
(a) You may request approval of a suspension, or the Regional
Supervisor may direct a suspension (Directed Suspension), for all or
any part of a lease or unit area.
(b) Depending on the nature of the suspended activity, suspensions
are labeled either Suspensions of Operations (SOO) or Suspensions of
Production (SOP).
Sec. 250.169 What effect does suspension have on my lease?
(a) A suspension may extend the term of a lease (see
Sec. 250.180(b)). The extension is equal to the length of time the
suspension is in effect, except as provided in paragraph (b) of this
section.
(b) A Directed Suspension does not extend the term of a lease when
the Regional Supervisor directs a suspension because of:
(1) Gross negligence; or (2) A willful violation of a provision of
the lease or governing statutes and regulations.
Sec. 250.170 How long does a suspension last?
(a) MMS may issue suspensions for up to 5 years per suspension. The
Regional Supervisor will set the length of the suspension based on the
conditions of the individual case involved. MMS may grant consecutive
suspension periods.
(b) An SOO ends automatically when the suspended operation
commences.
(c) An SOP ends automatically when production begins.
(d) A Directed Suspension normally ends as specified in the letter
directing the suspension.
(e) MMS may terminate any suspension when the Regional Supervisor
determines the circumstances that justified the suspension no longer
exist or that other lease conditions warrant termination. The Regional
Supervisor will notify you of the reasons for termination and the
effective date.
Sec. 250.171 How do I request a suspension?
You must submit your request for a suspension to the Regional
Supervisor, and MMS must receive the request before the end of the
lease term (i.e., end of primary term, end of the 180-day period
following the last leaseholding operation, and end of a current
suspension).
(a) The justification for the suspension including the length of
suspension requested;
(b) A reasonable schedule of work leading to the commencement or
restoration of the suspended activity;
(c) A statement that a well has been drilled on the lease and
determined to be producible according to Secs. 250.115, 250.116, or
250.1603 (SOP only); and
(d) A commitment to production (SOP only).
Sec. 250.172 When may the Regional Supervisor grant or direct an SOO
or SOP?
The Regional Supervisor may grant or direct an SOO or SOP under any
of the following circumstances:
(a) When necessary to comply with judicial decrees prohibiting any
activities or the permitting of those activities. The effective date of
the suspension will be the effective date required by the action of the
court;
(b) When activities pose a threat of serious, irreparable, or
immediate harm or damage. This would include a threat to life
(including fish and other aquatic life), property, any mineral deposit,
or the marine, coastal, or human environment. MMS may require you to do
a site-specific study. (See Sec. 250.177(a).)
(c) When necessary for the installation of safety or environmental
protection equipment;
(d) When necessary to carry out the requirements of NEPA or to
conduct an environmental analysis; or
(e) When necessary to allow for inordinate delays encountered in
obtaining required permits or consents, including administrative or
judicial challenges or appeals.
Sec. 250.173 When may the Regional Supervisor direct an SOO or SOP?
The Regional Supervisor may direct a suspension when:
(a) You failed to comply with an applicable law, regulation, order,
or provision of a lease or permit; or
(b) The suspension is in the interest of national security or
defense.
Sec. 250.174 When may the Regional Supervisor grant or direct an SOP?
The Regional Supervisor may grant or direct an SOP when the
suspension is in the national interest, and it is necessary because the
suspension will meet one of the following criteria:
(a) It will allow you to properly develop a lease, including time
to construct and install production facilities;
(b) It will allow you time to obtain adequate transportation
facilities;
(c) It will allow you time to enter a sales contract for oil, gas,
or sulphur. You must show that you are making an effort to enter into
the contract(s); or
(d) It will avoid continued operations that would result in
premature abandonment of a producing well(s).
Sec. 250.175 When may the Regional Supervisor grant an SOO?
The Regional Supervisor may grant an SOO when necessary to allow
you time to begin drilling or other operations when you are prevented
by reasons beyond your control, such as unexpected weather, unavoidable
accidents, or drilling rig delays.
Sec. 250.176 Does a suspension affect my royalty payment?
A directed suspension may affect the payment of rental or royalties
for the lease as provided in Sec. 218.154.
Sec. 250.177 What additional requirements may the Regional Supervisor
order for a suspension?
If MMS grants or directs a suspension under paragraph
Sec. 250.172(b), the Regional Supervisor may require you to:
(a) Conduct a site-specific study.
(1) The Regional Supervisor must approve or prescribe the scope for
any site-specific study that you perform.
(2) The study must evaluate the cause of the hazard, the potential
damage, and the available mitigation measures.
(3) You must pay for the study unless you request, and the Regional
Supervisor agrees to arrange, payment by another party.
(4) You must furnish copies and results of the study to the
Regional Supervisor.
(5) MMS will make the results available to other interested parties
and to the public.
(6) The Regional Supervisor will use the results of the study and
any other information that becomes available:
(i) To decide if the suspension can be lifted; and
(ii) To determine any actions that you must take to mitigate or
avoid any damage to the environment, life, or property.
(b) Submit a revised Exploration Plan (including any required
mitigating measures);
(c) Submit a revised Development and Production Plan (including any
required mitigating measures); or
[[Page 72786]]
(d) Submit a revised Development Operations Coordination Document
according to 30 CFR Part 250, subpart B.
Primary Lease Requirements, Lease Term Extensions, and Lease
Cancellations
Sec. 250.180 What am I required to do to keep my lease term in effect?
(a) If your lease is in its primary term:
(1) You must submit a report to the District Supervisor according
to paragraphs (h) and (i) of this section whenever production begins
initially, whenever production ceases during the last 180 days of the
primary term, and whenever production resumes during the last 180 days
of the primary term.
(2) Your lease expires at the end of its primary term unless you
are conducting operations on your lease (see 30 CFR part 256). For
purposes of this section, the term operations means, drilling, well-
reworking, or production in paying quantities. The objective of the
drilling or well-reworking must be to establish production in paying
quantities on the lease.
(b) If you stop conducting operations during the last 180 days of
your primary lease term, your lease will expire unless you either
resume operations or receive an SOO or an SOP from the Regional
Supervisor under Secs. 250.172, 250.173, 250.174, or 250.175 before the
end of the 180th day after you stop operations.
(c) If you extend your lease term under paragraph (b) of this
section, you must pay rental or minimum royalty, as appropriate, for
each year or part of the year during which your lease continues in
force beyond the end of the primary lease term.
(d) If you stop conducting operations on a lease that has continued
beyond its primary term, your lease will expire unless you resume
operations or receive an SOO or an SOP from the Regional Supervisor
under Sec. 250.172, 250.173, 250.174, or 250.175 before the end of the
180th day after you stop operations.
(e) You may ask the Regional Supervisor to allow you more than 180
days to resume operations on a lease continued beyond its primary term
when operating conditions warrant. The request must be in writing and
explain the operating conditions that warrant a longer period. In
allowing additional time, the Regional Supervisor must determine that
the longer period is in the national interest, and it conserves
resources, prevents waste, or protects correlative rights.
(f) When you begin conducting operations on a lease that has
continued beyond its primary term, you must immediately notify the
District Supervisor either orally or by fax or e-mail and follow up
with a written report according to paragraph (g) of this section.
(g) If your lease is continued beyond its primary term, you must
submit a report to the District Supervisor under paragraphs (h) and (i)
of this section whenever production begins initially, whenever
production ceases, whenever production resumes before the end of the
180-day period after having ceased, or whenever drilling or well-
reworking operations begin before the end of the 180-day period.
(h) The reports required by paragraphs (a) and (g) of this section
must contain:
(1) Name of lessee or operator;
(2) The well number, lease number, area, and block;
(3) As appropriate, the unit agreement name and number; and
(4) A description of the operation and pertinent dates.
(i) You must submit the reports required by paragraphs (a) and (g)
of this section within the following timeframes:
(1) Initialization of production--within 5 days of initial
production.
(2) Cessation of production--within 15 days after the first full
month of zero production.
(3) Resumption of production--within 5 days of resuming production
after ceasing production under paragraph (i)(2) of this section.
(4) Drilling or well reworking operations--within 5 days of
beginning and completing the leaseholding operations.
(j) For leases continued beyond the primary term, you must
immediately report to the District Supervisor if operations do not
begin before the end of the 180-day period.
Sec. 250.181 When may the Secretary cancel my lease and when am I
compensated for cancellation?
If the Secretary cancels your lease under this part or under 30 CFR
part 256, you are entitled to compensation under Sec. 250.184. Section
250.185 states conditions under which you will receive no compensation.
The Secretary may cancel a lease after notice and opportunity for a
hearing when:
(a) Continued activity on the lease would probably cause harm or
damage to life (including fish and other aquatic life), property, any
mineral deposits (in areas leased or not leased), or the marine,
coastal, or human environment;
(b) The threat of harm or damage will not disappear or decrease to
an acceptable extent within a reasonable period of time;
(c) The advantages of cancellation outweigh the advantages of
continuing the lease in force; and (d) A suspension has been in effect
for at least 5 years or you request termination of the suspension and
lease cancellation.
Sec. 250.182 When may the Secretary cancel a lease at the exploration
stage?
MMS may not approve an exploration plan (EP) under 30 CFR part 250,
subpart B, if the Regional Supervisor determines that the proposed
activities may cause serious harm or damage to life (including fish and
other aquatic life), property, any mineral deposits, the national
security or defense, or to the marine, coastal, or human environment,
and that the proposed activity cannot be modified to avoid the
condition(s). The Secretary may cancel the lease if:
(a) The primary lease term has not expired (or if the lease term
has been extended) and exploration has been prohibited for 5 years
following the disapproval; or
(b) You request cancellation at an earlier time.
Sec. 250.183 When may MMS or the Secretary extend or cancel a lease at
the development and production stage?
(a) MMS may extend your lease if you submit a DPP and the Regional
Supervisor disapproves the plan according to the regulations in 30 CFR
part 250, subpart B. Following the disapproval:
(1) MMS will allow you to hold the lease for 5 years, or less time
at your request;
(2) Any time within 5 years after the disapproval, you may reapply
for approval of the same or a modified plan; and
(3) The Regional Supervisor will approve, disapprove, or require
modification of the plan under 30 CFR part 250, subpart B.
(b) If the Regional Supervisor has not approved a DPP or required
you to submit a DPP for approval or modification, the Secretary will
cancel the lease:
(1) When the 5-year period in paragraph (a)(1) of this section
expires; or
(2) If you request cancellation at an earlier time.
Sec. 250.184 What is the amount of compensation for lease
cancellation?
When the Secretary cancels a lease under Secs. 250.181, 250.182 or
250.183 of this subpart, you are entitled to receive compensation under
43 U.S.C. 1334 (a)(2)(C). You must show the Director that the amount of
compensation claimed is the lesser of paragraph (a) or (b) of this
section:
[[Page 72787]]
(a) The fair value of the cancelled rights as of the date of
cancellation, taking into account both:
(1) Anticipated revenues from the lease; and
(2) Costs reasonably anticipated on the lease, including:
(i) Costs of compliance with all applicable regulations and
operating orders; and
(ii) Liability for cleanup costs or damages, or both, in the case
of an oil spill.
(b) The excess, if any, over your revenues from the lease (plus
interest thereon from the date of receipt to date of reimbursement) of:
(1) All consideration paid for the lease (plus interest from the
date of payment to the date of reimbursement); and
(2) All your direct expenditures (plus interest from the date of
payment to the date of reimbursement):
(i) After the issue date of the lease; and
(ii) For exploration or development, or both.
(c) Compensation for leases issued before September 18, 1978, will
be equal to the amount specified in paragraph (a) of this section.
Sec. 250.185 When is there no compensation for a lease cancellation?
You will not receive compensation from MMS for lease cancellation
if:
(a) MMS disapproves a DPP because you do not receive concurrence by
the State under section 307(c)(3)(B) (i) or (ii) of the CZMA, and the
Secretary of Commerce does not make the finding authorized by section
307(c)(3)(B)(iii) of the CZMA;
(b) You do not submit a DPP under 30 CFR part 250, subpart B or do
not comply with the approved DPP;
(c) As the lessee of a nonproducing lease, you fail to comply with
the Act, the lease, or the regulations issued under the Act, and the
default continues for 30 days after MMS mails you a notice by overnight
mail;
(d) The Regional Supervisor disapproves a DPP because you fail to
comply with the requirements of applicable Federal law; or
(e) The Secretary forfeits and cancels a producing lease under
section 5(d) of the Act (43 U.S.C. 1334(d)).
Information and Reporting Requirements
Sec. 250.190 What reporting information and report forms must I
submit?
(a) You must submit information and reports as MMS requires.
(1) You may obtain copies of forms from, and submit completed forms
to, the Regional or District Supervisor.
(2) Instead of paper copies of forms available from the Regional or
District Supervisor, you may use your own computer-generated forms that
are equal in size to MMS's forms. You must arrange the data on your
form identical to the MMS form. If you generate your own form and it
omits terms and conditions contained on the official MMS form, we will
consider it to contain the omitted terms and conditions.
(3) You may submit digital data when the Region/District is
equipped to accept it.
(b) When MMS specifies, you must include, for public information,
an additional copy of such reports.
(1) You must mark it Public Information.
(2) You must include all required information, except information
exempt from public disclosure under Sec. 250.196 or otherwise exempt
from public disclosure under law or regulation.
Sec. 250.191 What accident reports must I submit?
(a) You must notify the District Supervisor of all serious
accidents, any death or serious injury, and all fires, explosions, and
blowouts connected with any activities or operations on the lease. You
must report all spills of oil or other liquid pollutants according to
30 CFR part 254.
(b) If you hold an easement, right-of-way, or other permit, and
your operation is related to the exercise of the easement, right-of-
way, or other permit, you must comply with paragraph (a) by notifying
and reporting to the Regional Supervisor any accidents occurring on the
area covered by the easement, right-of-way, or other permit.
(c) Any investigation that the Secretary or the U.S. Coast Guard
(USCG) conducts under the authority of sections 22(d)(1) and (2) of the
Act (43 U.S.C. 1348 d(1) and (2)), is a fact-finding proceeding with no
civil or criminal issues and no adverse parties. The purpose of the
investigation is to prepare a public report that determines the cause
or causes of the accident. The investigation may involve panel meetings
conducted by a chairperson appointed by MMS. The following requirements
must be met for any panel meetings involving persons giving testimony:
(1) A person giving testimony may have legal and/or other
representative(s) present to provide advice or counsel while the person
is giving testimony. The chairperson may require a verbatim transcript
to be made of all oral testimony. The chairperson also may accept a
sworn written statement in lieu of oral testimony.
(2) Only panel members, panel's legal advisors, and any experts the
panel deems necessary may address questions to any person giving
testimony.
(3) The chairperson may issue subpoenas to persons to appear and
provide testimony and/or documents at a panel meeting. A subpoena may
not require a person to attend a panel meeting held at a location more
than 100 miles from where a subpoena is served.
(4) Any person giving testimony may request compensation for
mileage and fees for service within 90 days after the panel meeting.
The compensated expenses must be similar to mileage and fees the U.S.
District Courts allow.
Sec. 250.192 What evacuation statistics must I submit?
You must submit evacuation statistics to the Regional Supervisor
for a natural occurrence such as an earthquake or hurricane. MMS will
notify local and national authorities and the public, as appropriate.
Statistics include facilities and rigs evacuated and amount of
production shut-in for gas and oil. You must:
(a) Submit the statistics by fax or e-mail as soon as possible when
evacuation occurs;
(b) Submit statistics on a daily basis by 11:00 a.m., as conditions
allow, during the period of shut-in and evacuation;
(c) Inform MMS when you resume production; and
(d) Submit statistics either by MMS district or the total figures
for your operations in the Region.
Sec. 250.193 Reports and investigations of apparent violations.
Any person may report to MMS an apparent violation or failure to
comply with any provision of the Act, any provision of a lease,
license, or permit issued under the Act, or any provision of any
regulation or order issued under the Act. When MMS receives a report of
an apparent violation, or when an MMS employee detects an apparent
violation after making an initial determination of the validity, MMS
will investigate according to MMS procedures.
Sec. 250.194 What archaeological reports and surveys must I submit?
(a) If it is likely that an archaeological resource exists in the
lease area, the Regional Director will notify you in writing. You must
include an archaeological report in the EP or DPP. If the
archaeological report suggests that an archaeological resource may be
present, you must either:
[[Page 72788]]
(1) Locate the site of any operation so as not to adversely affect
the area where the archaeological resource may be; or
(2) Establish to the satisfaction of the Regional Director that an
archaeological resource does not exist or will not be adversely
affected by operations. This requires further archaeological
investigation, conducted by an archaeologist and a geophysicist, using
survey equipment and techniques the Regional Director considers
appropriate. You must submit the investigation report to the Regional
Director for review.
(b) If the Regional Director determines that an archaeological
resource is likely to be present in the lease area and may be adversely
affected by operations, the Regional Director will notify you
immediately. You must not take any action that may adversely affect the
archaeological resource until the Regional Director has told you how to
protect the resource.
(c) If you discover any archaeological resource while conducting
operations in the lease area, you must immediately halt operations
within the area of the discovery and report the discovery to the
Regional Director. If investigations determine that the resource is
significant, the Regional Director will tell you how to protect it.
Sec. 250.195 Reimbursements for reproduction and processing costs.
(a) MMS will reimburse you for costs of reproducing data and
information that the Regional Director requests if:
(1) You deliver geophysical and geological (G&G) data and
information to MMS for the Regional Director to inspect or select and
retain;
(2) MMS receives your request for reimbursement and the Regional
Director determines that the requested reimbursement is proper; and
(3) The cost is at your lowest rate or at the lowest commercial
rate established in the area, whichever is less.
(b) MMS will reimburse you for the costs of processing geophysical
information (that does not include cost of data acquisition):
(1) If, at the request of the Regional Director, you processed the
geophysical data or information in a form or manner other than that
used in the normal conduct of business; or
(2) If you collected the information under a permit that MMS issued
to you before October 1, 1985, and the Regional Director requests and
retains the information.
(c) When you request reimbursement, you must identify reproduction
and processing costs separately from acquisition costs.
(d) MMS will not reimburse you for data acquisition costs or for
the costs of analyzing or processing geological information or
interpreting geological or geophysical information.
Sec. 250.196 Data and information to be made available to the public.
MMS will protect data and information you submit under this part,
as described in this section. The tables in paragraphs (a) and (b) of
this section describe what data and information will be made available
to the public without the consent of the lessee and under what
circumstances and in what time period.
(a) MMS will disclose data and information you submit on MMS forms
according to the following table:
----------------------------------------------------------------------------------------------------------------
Data and information that you
submit on form In the following items Will be released And
----------------------------------------------------------------------------------------------------------------
(1) MMS-123, Application for Permit All entries except At any time........... The data and information in
to Drill. items 17, 24, and 25. items 17, 24, and 25 will
be released according to
the table in paragraph (b)
of this section or when
the well goes on
production, whichever is
earlier.
(2) MMS-124, Sundry Notices and All entries except At any time........... The data and information in
Reports on Wells. item 36. item 36 will be released
according to the table in
paragraph (b) or when the
well goes on production,
whichever is earlier.
(3) MMS-125, Well Summary Report... All entries except At any time........... The data and information in
items 17, 24, 34, 37, the excepted items will be
and 46 through 87. released according to the
table in paragraph (b) of
this section or when the
well goes on production,
whichever is earlier.
However, items 78 through
87 will not be released
when the well goes on
production unless the
period of time in the
table in paragraph (b) has
expired
(4) MMS-126, Well Potential Test All entries except When the well goes on The data and information in
Report. item 101. production. item 101 will be released
2 years after you submit
it.
(5) MMS-127, Request for Reservoir All entries except At any time........... The data and information in
Maximum Efficient Rate (MER). items 124 through 168. items 124 through 168 will
be released according to
the time periods in the
table in paragraph (b) of
this section.
(6) MMS-128, Semiannual Well Test All entries........... At any time...........
Report.
----------------------------------------------------------------------------------------------------------------
(b) MMS will disclose lease data and information that you submit,
but that are not usually submitted on MMS forms, according to the
following table:
----------------------------------------------------------------------------------------------------------------
If MMS will release At this time Special provisions
----------------------------------------------------------------------------------------------------------------
(1) The Director determines that Geophysical data, At any time........... Data and information will
data and information are needed to Geological data, be shown only to persons
unitize operations on two or more Interpreted (G&G) with an interest in the
leases, to determine whether a information, issue.
reservoir is competitive to ensure Processed G&G
proper plans of development for information, Analyzed
competitive reservoirs, or to geological
promote operational safety or information.
protect the environment.
[[Page 72789]]
(2) The Director determines that Geophysical data, At any time........... MMS will release data and
data and information are needed Geological data information only if
for specific scientific or Interpreted G&G release would further the
research purposes for the information, national interest without
Government. Processed G&G unduly damaging the
information, Analyzed competitive position of
geological the lessee.
information.
(3) Data or information is Geophysical data, 60 days after MMS MMS will release the data
collected with high-resolution Geological data, receives the data or and information earlier
systems (e.g., bathymetry, side- Interpreted G&G information, if the than 60 days if the
scan sonar, subbottom profiler, information, Regional Supervisor Regional Supervisor
and magnetometer) to comply with Processed geological deems it necessary. determines it is needed by
safety or environmental protection information, Analyzed affected States to make
requirements. geological decisions under subpart B.
information. The Regional Supervisor
will reconsider earlier
release if you satisfy him/
her that it would unduly
damage your competitive
position.
(4) Your lease is no longer in Geophysical data, When your lease This release time applies
effect. Geological data, terminates. only if the provisions in
Processed G&G this table governing high-
information resolution systems and the
Interpreted G&G provisions in Sec. 252.7
information, Analyzed do not apply. The release
geological time applies to the
information. geophysical data and
information only if
acquired postlease for a
lessee's exclusive use.
(5) Your lease is still in effect.. Geophysical data 10 years after you This release time applies
Processed geophysical submit the data and only if the provisions in
information, information. this table governing high-
Interpreted G&G resolution systems and the
information. provisions in Sec. 252.7
do not apply. This release
time applies to the
geophysical data and
information only if
acquired postlease for a
lessee's exclusive use.
(6) Your lease is still in effect Geological data, 2 years after the These release times apply
and within the primary term Analyzed geological required submittal only if the provisions in
specified in the lease. information. date or 60 days after this table governing high-
a lease sale if any resolution systems and the
portion of an offered provisions in Sec. 252.7
lease is within 50 do not apply. If the
miles of a well, primary term specified in
whichever is later. the lease is extended
under the heading of
``Suspensions'' in this
subpart, the extension
applies to this provision.
(7) Your lease is in effect and Geological data, 2 years after the None.
beyond the primary term specified Analyzed geological required submittal
in the lease. information. date.
(8) Data is released to the owner Directional survey If the lessee from None.
of an adjacent lease under subpart data. whose lease the
D of part 250. directional survey
was taken consents.
(9) Data and information are Any data or At any time........... None.
obtained from beneath unleased information obtained.
land as a result of a well
deviation that has not been
approved by the Regional or
District Supervisor.
(10) Data and information acquired Geophysical data, Geophysical data: 50 None.
by a permit under part 251 is Processed geophysical years, Geophysical
submitted by a lessee under part information, information: 25 years
250. Interpreted after you submit it.
geophysical
information.
----------------------------------------------------------------------------------------------------------------
References
Sec. 250.198 Documents incorporated by reference.
(a) MMS is incorporating by reference the documents listed in the
table in paragraph (e) of this section. The Director of the Federal
Register has approved this incorporation by reference according to 5
U.S.C. 552(a) and 1 CFR part 51.
(1) MMS will publish any changes to these documents in the Federal
Register.
(2) MMS may make the rule amending the document effective without
prior opportunity for public comment when MMS determines:
(i) That the revisions to a document result in safety improvements
or represent new industry standard technology and do not impose undue
costs on the affected parties; and
(ii) MMS meets the requirements for making a rule immediately
effective under 5 U.S.C. 553.
(b) MMS incorporated each document or specific portion by reference
in the sections noted. The entire document is incorporated by
reference, unless the text of the corresponding sections in this part
calls for compliance with specific portions of the listed documents. In
each instance, the applicable document is the specific edition or
specific edition and supplement or addendum cited in this section.
(c) Under Secs. 250.141 and 250.142, you may comply with a later
edition of a specific document incorporated by reference, provided:
(1) You show that complying with the later edition provides a
degree of protection, safety, or performance equal to or better than
would be achieved by compliance with the listed edition; and
[[Page 72790]]
(2) You obtain the prior written approval for alternative
compliance from the authorized MMS official.
(d) You may inspect these documents at the Minerals Management
Service, 381 Elden Street, Room 3313, Herndon, Virginia; or at the
Office of the Federal Register, 800 North Capitol Street, NW, Suite
700, Washington, DC. You may obtain the documents from the publishing
organizations at the addresses given in the following table:
------------------------------------------------------------------------
For Write to
------------------------------------------------------------------------
ACI Standards................... American Concrete Institute, P. O. Box
19150, Detroit, MI 48219.
AISC Standards.................. American Institute of Steel
Construction, Inc., P.O. Box 4588,
Chicago, IL 60680.
ANSI/ASME Codes................. American National Standards Institute,
Attention Sales Department, 1430
Broadway, New York, NY 10018; and/or
American Society of Mechanical
Engineers, United Engineering Center,
345 East 47th Street, New York, NY
10017.
API Recommended Practices, American Petroleum Institute, 1220 L
Specs, Standards, Manual of Street, NW, Washington, DC 20005-
Petroleum Measurement Standards 4070.
(MPMS) chapters.
ASTM Standards.................. American Society for Testing and
Materials, 100 Barr Harbor Drive,
West Conshohocken, PA 19428-2959.
AWS Codes....................... American Welding Society, 550 NW,
LeJeune Road, P.O. Box 351040, Miami,
FL 33135.
NACE Standards.................. National Association of Corrosion
Engineers, P.O. Box 218340, Houston,
TX 77218.
------------------------------------------------------------------------
(e) This paragraph lists documents incorporated by reference. To
easily reference text of the corresponding sections with the list of
documents incorporated by reference, the list is in alphanumerical
order by organization and document.
------------------------------------------------------------------------
Incorporated by
Title of documents reference at
------------------------------------------------------------------------
ACI Standard 318-95, Building Code Requirements Sec. 250.908(b)(4)(i)
for Reinforced Concrete, plus Commentary on , (b)(6)(i), (b)(7),
Building Code Requirements for Reinforced (b)(8)(i), (b)(9),
Concrete (ACI 318R-95). (b)(10), (c)(3),
(d)(1)(v), (d)(5),
(d)(6), (d)(7),
(d)(8), (d)(9),
(e)(1)(i), (e)(2)(i).
ACI Standard 357R-84, Guide for the Design and Sec. 250.900(g); Sec.
Construction of Fixed Offshore Concrete 250.908(c)(2),
Structures, 1984. (c)(3).
AISC Standard Specification for Structural Steel Sec. 250.907(b)(1)(ii
Buildings, Allowable Stress Design and Plastic ), (c)(4)(ii),
Design, June 1, 1989, with Commentary. (c)(4)(vii).
ANSI/ASME Boiler and Pressure Vessel Code, Sec. 250.803(b)(1),
Section I, Power Boilers, including Appendices, (b)(1)(i); Sec.
1995 Edition. 250.1629(b)(1),
(b)(1)(i).
ANSI/ASME Boiler and Pressure Vessel Code, Sec. 250.803(b)(1),
Section IV, Heating Boilers including (b)(1)(i); Sec.
Nonmandatory Appendices A, B, C, D, E, F, H, I, 250.1629(b)(1),
and J, and the Guide to Manufacturers Data (b)(1)(i).
Report Forms, 1995 Edition.
ANSI/ASME Boiler and Pressure Vessel Code, Sec. 250.803(b)(1),
Section VIII, Pressure Vessels, Divisions 1 and (b)(1)(i); Sec.
2, including Nonmandatory Appendices, 1995 250.1629(b)(1),
Edition. (b)(1)(i).
ANSI/ASME B 16.5-1988 (including Errata) and B Sec. 250.1002(b)(2).
16.5a-1992 Addenda, Pipe Flanges and Flanged
Fittings.
ANSI/ASME B 31.8-1995, Gas Transmission and Sec. 250.1002(a).
Distribution Piping Systems.
ANSI/ASME SPPE-1-1994 and SPPE-1d-1996 ADDENDA, Sec. 250.806(a)(2)(i)
Quality Assurance and Certification of Safety .
and Pollution Prevention Equipment Used in
Offshore Oil and Gas Operations.
ANSI Z88.2-1992, American National Standard for Sec. 250.417(g)(4)(iv
Respiratory Protection. ), (j)(13)(ii).
API MPMS, Chapter 1, Vocabulary, Second Edition, Sec. 250.1201.
July 1994, API Stock No., H01002..
API MPMS, Chapter 2, Tank Calibration, Section Sec. 250.1202(1)(4).
2A, Measurement and Calibration of Upright
Cylindrical Tanks by the Manual Strapping
Method, First Edition, February 1995, API Stock
No. H022A1.
API MPMS, Chapter 2, Section 2B, Calibration of Sec. 250.1202(1)(4).
Upright Cylindrical Tanks Using the Optical
Reference Line Method, First Edition, March
1989, reaffirmed May 1997, API Stock No. H30023.
API MPMS, Chapter 3, Tank Gauging, Section 1A, Sec. 250.1202(1)(4).
Standard Practice for the Manual Gauging of
Petroleum and Petroleum Products, First
Edition, December 1994, API Stock No. H031A1.
API MPMS, Chapter 3, Section 1B, Standard Sec. 250.1202(1)(4).
Practice for Level Measurement of Liquid
Hydrocarbons in Stationary Tanks by Automatic
Tank Gauging, First Edition, April 1992,
reaffirmed January 1997, API Stock No. H30060.
API MPMS, Chapter 4, Proving Systems, Section 1, Sec. 250.1202(a)(3),
Introduction, First Edition, July 1988, (f)(1).
reaffirmed October 1993, API Stock No. H30081.
API MPMS, Chapter 4, Section 2, Conventional Sec. 250.1202(a)(3),
Pipe Provers, First Edition, October 1988, (f)(1).
reaffirmed October 1993, API Stock No. H30082.
API MPMS, Chapter 4, Section 3, Small Volume Sec. 250.1202(a)(3),
Provers, First Edition, July 1988, reaffirmed (f)(1).
October 1993, API Stock No. H30083.
API MPMS, Chapter 4, Section 4, Tank Provers, Sec. 250.1202(a)(3),
First Edition, October 1988, reaffirmed October (f)(1).
1993, API Stock No. H30084.
API MPMS, Chapter 4, Section 5, Master-Meter Sec. 250.1202(a)(3),
Provers, First Edition, October 1988, (f)(1).
reaffirmed October 1993, API Stock No. H30085.
API MPMS, Chapter 4, Section 6, Pulse Sec. 250.1202(a)(3),
Interpolation, First Edition, July 1988, (f)(1).
reaffirmed October 1993, API Stock No. H30086.
API MPMS, Chapter 4, Section 7, Field-Standard Sec. 250.1202(a)(3),
Test Measures, First Edition, October 1988, (f)(1).
reaffirmed March 1993, API Stock No. H30087.
[[Page 72791]]
API MPMS, Chapter 5, Metering, Section 1, Sec. 250.1202(a)(3).
General Considerations for Measurement by
Meters, Third Edition, September 1995, API
Stock No. H05013.
API MPMS, Chapter 5, Section 2, Measurement of Sec. 250.1202(a)(3).
Liquid Hydrocarbons by Displacement Meters,
Second Edition, November 1987, reaffirmed
October 1992, API Stock No. H30102.
API MPMS, Chapter 5, Section 3, Measurement of Sec. 250.1202(a)(3).
Liquid Hydrocarbons by Turbine Meters, Third
Edition, September 1995, API Stock No. H05033.
API MPMS, Chapter 5, Section 4, Accessory Sec. 250.1202(a)(3).
Equipment for Liquid Meters, Third Edition,
September 1995, with Errata, March 1996, API
Stock No. H05043.
API MPMS, Chapter 5, Section 5, Fidelity and Sec. 250.1202(a)(3).
Security of Flow Measurement Pulsed-Data
Transmission Systems, First Edition, June 1982,
reaffirmed October 1992, API Stock No. H30105.
API MPMS, Chapter 6, Metering Assemblies, Sec. 250.1202(a)(3).
Section 1, Lease Automatic Custody Transfer
(LACT) Systems, Second Edition, May 1991,
reaffirmed July 1996, API Stock No. H30121.
API MPMS, Chapter 6, Section 6, Pipeline Sec. 250.1202(a)(3).
Metering Systems, Second Edition, May 1991,
reaffirmed July 1996, API Stock No. H30126.
API MPMS, Chapter 6, Section 7, Metering Viscous Sec. 250.1202(a)(3).
Hydrocarbons, Second Edition, May 1991, API
Stock No. H30127.
API MPMS, Chapter 7, Temperature Determination, Sec. 250.1202(a)(3),
Section 2, Dynamic Temperature Determination, (l)(4).
Second Edition, March 1995, API Stock No.
H07022.
API MPMS, Chapter 7, Section 3, Static Sec. 250.1202(a)(3),
Temperature Determination Using Portable (l)(4).
Electronic Thermometers, First Edition, July
1985, reaffirmed May 1996, API Stock No. H30143.
API MPMS, Chapter 8, Sampling, Section 1, Sec. 250.1202(b)(4)(i
Standard Practice for Manual Sampling of ), (l)(4).
Petroleum and Petroleum Products, Third
Edition, October 1995; also available as ANSI/
ASTM D 4057-88, API Stock No. H30161.
API MPMS, Chapter 8, Section 2, Standard Sec. 250.1202(a)(3),
Practice for Automatic Sampling of Liquid (l)(4).
Petroleum and Petroleum Products, Second
Edition, October 1995; also available as ANSI/
ASTM D 4177, API Stock No. H30162.
API MPMS, Chapter 9, Density Determination, Sec. 250.1202(a)(3),
Section 1, Hydrometer Test Method for Density, (l)(4).
Relative Density (Specific Gravity), or API
Gravity of Crude Petroleum and Liquid Petroleum
Products, First Edition, June 1981, reaffirmed
October 1992; also available as ANSI/ASTM D
1298, API Stock No. H30181.
API MPMS, Chapter 9, Section 2, Pressure Sec. 250.1202(a)(3),
Hydrometer Test Method for Density or Relative (l)(4).
Density, First Edition, April 1982, reaffirmed
October 1992, API Stock No. H30182.
API MPMS, Chapter 10, Sediment and Water, Sec. 250.1202(a)(3),
Section 1, Determination of Sediment in Crude (l)(4).
Oils and Fuel Oils by the Extraction Method,
First Edition, April 1981, reaffirmed December
1993; also available as ANSI/ASTM D 473, API
Stock No. H30201.
API MPMS, Chapter 10, Section 2, Determination Sec. 250.1202(a)(3),
of Water in Crude Oil by Distillation Method, (l)(4).
First Edition, April 1981, reaffirmed December
1993; also available as ANSI/ASTM D 4006, API
Stock No. H30202.
API MPMS, Chapter 10, Section 3, Determination Sec. 250.1202(a)(3),
of Water and Sediment in Crude Oil by the (l)(4).
Centrifuge Method (Laboratory Procedure), First
Edition, April 1981, reaffirmed December 1993;
also available as ANSI/ASTM D 4007, API Stock
No. H30203.
API MPMS, Chapter 10, Section 4, Determination Sec. 250.1202(a)(3),
of Sediment and Water in Crude Oil by the (l)(4).
Centrifuge Method (Field Procedure), Second
Edition, May 1988, reaffirmed May 1998; also
available as ANSI/ASTM D 96, API Stock No.
H30204.
API MPMS, Chapter 11.1, Volume Correction Sec. 250.1202(a)(3),
Factors, Volume 1, Table 5A--Generalized Crude (g)(3), (l)(4).
Oils and JP-4 Correction of Observed API
Gravity to API Gravity at 60 deg.F, and Table
6A--Generalized Crude Oils and JP-4 Correction
of Observed API Gravity to API Gravity at 60
deg.F, First Edition, August 1980, reaffirmed
March 1997; also available as ANSI/ASTM D 1250,
API Stock No. H27000.
API MPMS, Chapter 11.2.1, Compressibility Sec. 250.1202(a)(3),
Factors for Hydrocarbons: 0-90 deg. API Gravity (g)(4).
Range, First Edition, August 1984, reaffirmed
May 1996, API Stock No. H27300.
API MPMS, Chapter 11.2.2, Compressibility Sec. 250.1202(a)(3),
Factors for Hydrocarbons: 0.350-0.637 Relative (g)(4).
Density (60 deg.F/60 deg.F) and -50 deg.F to
140 deg.F Metering Temperature, Second Edition,
October 1986, reaffirmed October 1992; also
available as Gas Processors Association (GPA)
8286-86, API Stock No. H27307.
API MPMS, Chapter 11, Physical Properties Data, Sec. 250.1202(a)(3).
Addendum to Section 2.2, Compressibility
Factors for Hydrocarbons, Correlation of Vapor
Pressure for Commercial Natural Gas Liquids,
First Edition, December 1994, reaffirmed March
1997; also available as GPA TP-15, API Stock
No. H27308.
API MPMS, Chapter 11.2.3, Water Calibration of Sec. 250.1202(f)(1).
Volumetric Provers, First Edition, August 1984,
reaffirmed, May 1996, API Stock No. H27310.
API MPMS, Chapter 12, Calculation of Petroleum Sec. 250.1202(a)(3),
Quantities, Section 2, Calculation of Petroleum (g)(1), (g)(2).
Quantities Using Dynamic Measurement Methods
and Volumetric Correction Factors, Including
Parts 1 and 2, Second Edition, May 1995; also
available as ANSI/API MPMS 12.2-1981, API Stock
No. H30302.
API MPMS, Chapter 14, Natural Gas Fluids Sec. 250.1203(b)(2).
Measurement, Section 3, Concentric Square-Edged
Orifice Meters, Part 1, General Equations and
Uncertainty Guidelines, Third Edition,
September 1990, reaffirmed August 1995; also
available as ANSI/API 2530, Part 1, 1991, API
Stock No. H30350.
API MPMS, Chapter 14, Section 3, Part 2, Sec. 250.1203(b)(2)).
Specification and Installation Requirements,
Third Edition, February 1991, reaffirmed May
1996; also available as ANSI/API 2530, Part 2,
1991, reaffirmed May 1996; API Stock No. H30351.
API MPMS, Chapter 14, Section 3, Part 3, Natural Sec. 250.1203(b)(2).
Gas Applications, Third Edition, August 1992,
also available as ANSI/API 2530, Part 3, API
Stock No. H30353.
API MPMS, Chapter 14, Section 5, Calculation of Sec. 250.1203(b)(2).
Gross Heating Value, Relative Density, and
Compressibility Factor for Natural Gas Mixtures
From Compositional Analysis, Revised, 1996;
also available as ANSI/API MPMS 24.5-1981,
order from Gas Processors Association, 6526
East 60th Street, Tulsa, Oklahoma 74145.Sec.
250.1203(b)(2).API MPMS, Chapter 14, Section 6,
Continuous Density Measurement, Second Edition,
April 1991, reaffirmed May 1998, API Stock No.
H30346.
[[Page 72792]]
API MPMS, Chapter 14, Section 8, Liquefied Sec. 250.1203(b)(2).
Petroleum Gas Measurement, Second Edition, July
1997; reaffirmed May 1996, API Stock No. H14082.
API MPMS, Chapter 20, Section 1, Allocation Sec. 250.1202(k)(1).
Measurement, First Edition, September 1993, API
Stock No. H30730.
API MPMS, Chapter 21, Section 1, Electronic Gas Sec. 250.1203(b)(4).
Measurement, First Edition, September 1993, API
Stock No. H30730.
API RP 2A, Recommended Practice for Planning, Sec. 250.900(g); Sec.
Designing and Constructing Fixed Offshore 250.912(a).
Platforms Working Stress Design, Nineteenth
Edition, August 1, 1991, API Stock No. 811-
00200.
API RP 2A-WSD, Recommended Practice for Sec. 250.900(g); Sec.
Planning, Designing and Constructing Fixed 250.912(a).
Offshore Platforms-Working Stress Design;
Twentieth Edition, July 1, 1993, API Stock No.
G00200.
API RP 2A-WSD, Recommended Practice for Sec. 250.900(g); Sec.
Planning, Designing and Constructing Fixed 250.912(a).
Offshore Platforms-Working Stress Design;
Twentieth Edition, July 1, 1993, Supplement 1,
December 1996, Effective Date, February 1,
1997, API Stock No. G00205.
API RP 2D, Recommended Practice for Operation Sec. 250.120(c); Sec.
and Maintenance of Offshore Cranes, Third 250.1605(g).
Edition, June 1, 1995, API Stock No. G02D03.
API RP 14B, Recommended Practice for Design, Sec. 250.801(e)(4);
Installation, Repair and Operation of Sec. 250.804(a)(1)(i
Subsurface Safety Valve Systems, Fourth ).
Edition, July 1, 1994, with Errata dated June
1996, API Stock No. G14B04.
API RP 14C, Recommended Practice for Analysis, Sec. 250.802(b),
Design, Installation and Testing of Basic (e)(2); Sec.
Surface Safety Systems for Offshore Production 250.803(a),
Platforms, Sixth Edition, March 1998, API Stock (b)(2)(i), (b)(4),
No. G14C06. (b)(5)(i), (b)(7),
(b)(9)(v), (c)(2);
Sec. 250.804(a),
(a)(5); Sec.
250.1002(d); Sec.
250.1004(b)(9); Sec.
250.1628(c), (d)(2);
Sec. 250.1629(b)(2),
(b)(4)(v); Sec.
250.1630(a).
API RP 14E, Recommended Practice for Design and Sec. 250.802(e)(3);
Installation of Offshore Production Platform Sec. 250.1628(b)(2),
Piping Systems, Fifth Edition, October 1, 1991, (d)(3).
API Stock No. G07185.
API RP 14F, Recommended Practice for Design and Sec. 250.114(c); Sec.
Installation of Electrical Systems for Offshore 250.803(b)(9)(v);
Production Platforms, Third Edition, September Sec. 250.1629(b)(4)(
1, 1991, API Stock No. G07190. v).
API RP 14G, Recommended Practice for Fire Sec. 250.803(b)(8),
Prevention and Control on Open Type Offshore (b)(9)(v); Sec.
Production Platforms, Third Edition, December 250.1629(b)(3),
1, 1993, API Stock No. G07194. (b)(4)(v).
API RP 14H, Recommended Practice for Sec. 250.802(d).
Installation, Maintenance and Repair of Surface
Safety Valves and Underwater Safety Valves
Offshore, Fourth Edition, July 1, 1994, API
Stock No. G14H04.
API RP 500, Recommended Practice for Sec. 250.114(a); Sec.
Classification of Locations for Electrical 250.802(e)(4)(i);
Installations at Petroleum Facilities, First Sec. 250.803(b)(9)(i
Edition, June 1, 1991, API Stock No. G06005. ); Sec.
250.1628(b)(3);
(d)(4)(i); Sec.
250.1629(b)(4)(i).
API RP 2556, Recommended Practice for Correcting Sec. 250.1202(l)(4).
Gauge Tables for Incrustation, Second Edition,
August 1993, API Stock No. H25560; also
available under the umbrella of the MPMS.
API Spec Q1, Specification for Quality Programs, Sec. 250.806(a)(2)(ii
Fifth Edition, December 1994, API Stock No. ).
GQ1005.
API Spec 6A, Specification for Wellhead and Sec. 250.806(a)(3);
Christmas Tree Equipment, Seventeenth Edition, Sec. 250.1002
February 1, 1996, API Stock No. G06A17. (b)(1), (b)(2).
API Spec 6AV1, Specification for Verification Sec. 250.806(a)(3).
Test of Wellhead Surface Safety Valves and
Underwater Safety Valves for Offshore Service,
First Edition, February 1, 1996, API Stock No.
G06AV1..
API Spec 6D, Specification for Pipeline Valves Sec. 250.1002(b)(1).
(Gate, Plug, Ball, and Check Valves), Twenty-
first Edition, March 31, 1994, API Stock No.
G03200.
API Spec 14A, Specification for Subsurface Sec. 250.806(a)(3).
Safety Valve Equipment, Ninth Edition, July 1,
1994, API Stock No. G14A09.
API Standard 2551, Standard Method for Sec. 250.1202(l)(4).
Measurement and Calibration of Horizontal
Tanks, First Edition, 1965, reaffirmed January
1997; API Stock No. H25510; also available
under the umbrella of the MPMS.
API Standard 2552, Measurement and Calibration Sec. 250.1202(l)(4).
of Spheres and Spheroids, First Edition, 1966,
reaffirmed January 1997, API Stock No. H25520;
also available under the umbrella of the MPMS.
API Standard 2555, Method for Liquid Calibration Sec. 250.1202(l)(4).
of Tanks, September 1966, reaffirmed January
1997, API Stock No. H25550; also available
under the umbrella of the MPMS.
ASTM Standard C33-93, Standard Specification for Sec. 250.908(b)(4)(i)
Concrete Aggregates including Nonmandatory
Appendix.
ASTM Standard C94-96, Standard Specification for Sec. 250.908(e)(2)(i)
Ready-Mixed Concrete. .
ASTM Standard C150-95a, Standard Specification Sec. 250.908(b)(2)(i)
for Portland Cement. .
ASTM Standard C330-89, Standard Specification Sec. 250.908(b)(4)(i)
for Lightweight Aggregates for Structural .
Concrete.
ASTM Standard C595-94, Standard Specification Sec. 250.908(b)(2)(i)
for Blended Hydraulic Cements. .
AWS D1.1-96, Structural Welding Code--Steel, Sec. 250.907(b)(1)(i)
1996, including Commentary.
AWS D1.4-79, Structural Welding Code-- Sec. 250.908(e)(3)(ii
Reinforcing Steel, 1979. )
NACE Standard MR.01-75-96, Sulfide Stress Sec. 250.417(p)(2)
Cracking Resistant Metallic Materials for Oil
Field Equipment, January 1996.
NACE Standard RP 01-76-94, Standard Recommended Sec. 250.907(d).
Practice, Corrosion Control of Steel Fixed
Offshore Platforms Associated with Petroleum
Production.
------------------------------------------------------------------------
Sec. 250.199 Paperwork Reduction Act statements--information
collection.
(a) OMB has approved the information collection requirements in
part 250 under 44 U.S.C. 3501 et seq. The table in paragraph (e) of
this section lists the subpart in the rule requiring the information
and its title, provides the OMB control number, and summarizes the
reasons for collecting the information and how MMS uses the
information. The associated MMS forms required by this part are listed
at the end of this table with the relevant information.
[[Page 72793]]
(b) Respondents are OCS oil, gas, and sulphur lessees and
operators. The requirement to respond to the information collections in
this part is mandated under the Act (43 U.S.C. 1331 et seq.) and the
Act's Amendments of 1978 (43 U.S.C. 1801 et seq.). Some responses are
also required to obtain or retain a benefit or may be voluntary.
Proprietary information will be protected under Sec. 250.196, Data and
information to be made available to the public; parts 251 and 252; and
the Freedom of Information Act (5 U.S.C. 552) and its implementing
regulations at 43 CFR part 2.
(c) The Paperwork Reduction Act of 1995 requires us to inform the
public that an agency may not conduct or sponsor, and you are not
required to respond to, a collection of information unless it displays
a currently valid OMB control number.
(d) Send comments regarding any aspect of the collections of
information under this part, including suggestions for reducing the
burden, to the Information Collection Clearance Officer, Minerals
Management Service, Mail Stop 4230, 1849 C Street, NW, Washington, DC
20240.
(e) MMS is collecting this information for the reasons given in the
following table:
------------------------------------------------------------------------
30 CFR 250 subpart/title (OMB control Reasons for collecting
No.) information and how used
------------------------------------------------------------------------
(1) Subpart A, General (1010-0114)..... To inform MMS of actions taken
to comply with general
operational requirements on
the OCS. To ensure that
operations on the OCS meet
statutory and regulatory
requirements, are safe and
protect the environment, and
result in diligent
exploration, development, and
production on OCS leases. To
support the unproved and
proved reserve estimation,
resource assessment, and fair
market value determinations.
(2) Subpart B, Exploration and To inform MMS, States, and the
Development and Production Plans (1010- public of planned exploration,
0049). development, and production
operations on the OCS. To
ensure that operations on the
OCS are planned to comply with
statutory and regulatory
requirements, will be safe and
protect the human, marine, and
coastal environment, and will
result in diligent
exploration, development, and
production of leases.
(3) Subpart C, Pollution Prevention and To inform MMS of measures to be
Control (1010-0057). taken to prevent water and air
pollution. To ensure that
appropriate measures are taken
to prevent water and air
pollution.
(4) Subpart D, Oil and Gas Drilling To inform MMS of the equipment
Operations (1010-0053). and procedures to be used in
drilling operations on the
OCS. To ensure that drilling
operations are safe and
protect the human, marine, and
coastal environment.
(5) Subpart E, Oil and Gas Well- To inform MMS of the equipment
Completion Operations (1010-0067). and procedures to be used in
well-completion operations on
the OCS. To ensure that well-
completion operations are safe
and protect the human, marine,
and coastal environment.
(6) Subpart F, Oil and Gas Well- To inform MMS of the equipment
Workover Operations (1010-0043). and procedures to be used
during well-workover
operations on the OCS. To
ensure that well-workover
operations are safe and
protect the human, marine, and
coastal environment.
(7) Subpart G, Abandonment of Wells To inform MMS of procedures to
(1010-0079). be used during the temporary
and permanent abandonment of
wells. To ensure that wells
are abandoned in a manner that
is safe and minimizes
conflicts with other uses of
the OCS.
(8) Subpart H, Oil and Gas Production To inform MMS of the equipment
Safety Systems (1010-0059). and procedures to be used
during production operations
on the OCS. To ensure that
production operations are safe
and protect the human, marine,
and coastal environment.
(9) Subpart I, Platforms and Structures To provide MMS with information
(1010-0058). regarding the design,
fabrication, and installation
of platforms on the OCS. To
ensure the structural
integrity of platforms
installed on the OCS.
(10) Subpart J, Pipelines and Pipeline To provide MMS with information
Rights-of-Way (1010-0050). regarding the design,
installation, and operation of
pipelines on the OCS. To
ensure that pipeline
operations are safe and
protect the human, marine, and
coastal environment.
(11) Subpart K, Oil and Gas Production To inform MMS of production
Rates (1010-0041). rates for hydrocarbons
produced on the OCS. To ensure
economic maximization of
ultimate hydrocarbon recovery.
(12) Subpart L, Oil and Gas Production To inform MMS of the
Measurement, Surface Commingling, and measurement of production,
Security (1010-0051). commingling of hydrocarbons,
and site security plans. To
ensure that produced
hydrocarbons are measured and
commingled to provide for
accurate royalty payments and
security is maintained.
(13) Subpart M, Unitization (1010-0068) To inform MMS of the
unitization of leases. To
ensure that unitization
prevents waste, conserves
natural resources, and
protects correlative rights.
(14) Subpart N, Remedies and Penalties The requirements in subpart N
(1010-0121). are exempt from the Paperwork
Reduction Act of 1995
according to 5 CFR 1320.4.
(15) Subpart O, Training (1010-0078)... To inform MMS of training
program curricula, course
schedules, and attendance. To
ensure that training programs
are technically accurate and
sufficient to meet safety and
environmental requirements,
and that workers are properly
trained to operate on the OCS.
[[Page 72794]]
(16) Subpart P, Sulphur Operations To inform MMS of sulphur
(1010-0086). exploration and development
operations on the OCS. To
ensure that OCS sulphur
operations are safe; protect
the human, marine, and coastal
environment; and will result
in diligent exploration,
development, and production of
sulphur leases.
(17) Forms MMS-123, Application for To inform MMS of the procedures
Permit to Drill, and MMS-123S, and equipment to be used in
Supplemental APD Information Sheet, drilling operations. To ensure
Subparts D, E, P (1010-0044 and 1010- that drilling and well-
0131). completion are safe and
protect the environment, use
adequate equipment, conform
with provisions of the lease,
and the public is informed.
(18) Form MMS-124, Sundry Notices & To inform MMS of well-
Reports on Wells, Subparts D, E, F, G, completion and well-workover
P (1010-0045). operations, changes to any
ongoing well operations, and
well abandonment operations.
To ensure that MMS has up-to-
date and accurate information
on OCS drilling and other
lease operations; operations
are safe and protect the
human, marine, and coastal
environment; abandoned sites
are cleared of obstructions;
and the public is informed.
(19) Form MMS-125, Well Summary Report, To inform MMS of the results of
Subparts D, E, F, P (1010-0046). well-completion or well-
workover operations or changes
in well status or condition.
To ensure that MMS has up-to-
date and accurate information
on the status and condition of
wells.
(20) Form MMS-126, Well Potential Test To inform MMS of the production
Report, Subpart K (1010-0039). potential of an oil or gas
well and to verify a requested
production rate. To ensure
that production results in
ultimate full recovery of
hydrocarbons, and energy
resources are produced at a
prudent rate.
(21) Form MMS-127, Request for To inform MMS of data
Reservoir Maximum Efficiency Rate concerning oil and gas well-
(MER), Subpart K (1010-0018). completion in a rate-sensitive
reservoir and to verify
requested efficiency rate. To
ensure that reservoirs are
classified correctly and the
requested production rate will
not waste oil or gas.
(22) Form MMS-128, Semiannual Well Test To inform MMS of the status and
Report, Subpart K (1010-0017). capacity of gas wells and
verify production capacity. To
ensure that depletion of
reservoirs results in greatest
ultimate recovery of
hydrocarbons.
(23) Form MMS-131, Performance Measures To collect data related to a
Data (Voluntary) (1010-0112). set of performance measures.
To evaluate the effectiveness
of industry's continued
improvement of safety and
environmental management in
the OCS.
(24) Form MMS-132, Evacuation To inform MMS in the event of a
Statistics (used in the GOM Region), major disruption in the
Subpart A (1010-0114). availability and supply of
natural gas and oil due to
natural occurrences/
hurricanes. To advise the USCG
of rescue needs, and to alert
the news media and interested
public entities when
production is shut in and when
resumed.
(25) Form MMS-133, Weekly Activity To inform MMS of well status,
Report (used in the GOM Region), well and casing tests, and
Subpart D (1010-0132). well casing configuration
data. To have accurate data
and information on the wells
under MMS jurisdiction to
ensure compliance with
approved plans.
------------------------------------------------------------------------
5. In Sec. 250.203(m), the citation ``250.112'' is revised to read
``250.182''.
6. In Sec. 250.204(p) and (r), the citation ``250.112'' is revised
to read ``250.183''.
7. In Sec. 250.304(e)(2), the citation ``250.110'' is revised to
read ``250.174''.
8. Sections 250.402, 250.403, 250.507, 250.508, 250.607, and
250.608 are removed and reserved.
9. In Sec. 250.414(a), the citation ``250.106(a)'' is revised to
read ``250.140'' and in Sec. 250.414(g), the citation ``250.117'' is
revised to read ``250.190''.
10. In Sec. 250.415(d), the citation ``250.117'' is revised to read
``250.190''.
11. In Sec. 250.416(b), the citation ``250.110'' is revised to read
``250.170''.
12. In Sec. 250.513(d), the citation ``250.117'' is revised to read
``250.190''.
13. In Sec. 250.1102(a) (9), (b)(8), and (b)(9), the citation
``250.117'' is revised to read ``250.190''.
14. In the introductory text of Sec. 250.1201, the citation
``250.101'' is revised to read ``250.198''.
15. In Sec. 250.1202(a)(3), (b)(4)(i), the introductory text of
(g), (k)(1), (l)(4), the citation ``250.101'' is revised to read
``250.198''.
16. In Sec. 250.1203(b)(2) and (b)(4), the citation ``250.101'' is
revised to read ``250.198''.
17. In Sec. 250.1301(d), (g)(1), (g)(2)(ii), the citation
``250.110'' is revised to read ``250.170'' and the citation ``250.113''
in (d) and (g)(1) is revised to read ``250.180''.
18. In Sec. 250.1507, in the table, the second column for the entry
``Welding and burning'' is revised to ``A''.
19. In Sec. 250.1617(a), the citation ``250.106(a)'' is revised to
read ``250.140'' and in paragraph (d), the citation ``250.117'' is
revised to read ``250.190''.
20. In Sec. 250.1618(a), the citation ``250.106(a)'' is revised to
read ``250.140''.
21. In Sec. 250.1619(b), the citation ``250.110'' is revised to
read ``250.170''.
22. In Sec. 250.1629(a), the citation ``250.291'' is revised to
read ``250.1628''.
PART 252--OUTER CONTINENTAL SHELF (OCS) OIL AND GAS INFORMATION
PROGRAM
23. The authority citation continues to read as follows:
Authority: OCS Lands Act, 43 U.S.C. 1331 et seq., as amended, 92
Stat. 629; Freedom of Information Act, 5 U.S.C. 552.
24. In Sec. 252.7(a)(2)(i) and (ii), the citation ``250.4'' is
revised to read ``250.106''.
PART 253--OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE
FACILITIES
25. The authority citation continues to read as follows:
Authority: 33 U.S.C. 2701 et seq.
26. In Sec. 253.11(b)(2), the citation ``250.108'' is revised to
read ``250.143''.
27. In Sec. 253.51(d), the citation ``250.110'' is revised to read
``250.170''.
[[Page 72795]]
PART 256--LEASING OF SULPHUR OR OIL AND GAS IN THE OUTER
CONTINENTAL SHELF
28. The authority citation for part 256 is revised to read as
follows:
Authority: 43 U.S.C. 1331 et seq., 42 U.S.C. 6213.
29. Section 256.1 is revised to read as follows:
Sec. 256.1 Purpose.
The purpose of the regulations in this part is to establish the
procedures under which the Secretary of the Interior (Secretary) will
exercise the authority to administer a leasing program for oil, gas and
sulphur. The procedures under which the Secretary will exercise the
authority to administer a program to grant rights-of-way, rights-of-use
and easements are addressed in other parts .
30. Section 256.4, Authority, is revised to read as follows:
Sec. 256.4 Authority.
The outer Continental Shelf Lands Act (OCSLA) (43 U.S.C. 1331 et
seq.) authorizes the Secretary of the Interior to issue, on a
competitive basis, leases for oil and gas, and sulphur, in submerged
lands of the outer Continental Shelf (OCS). The Act authorizes the
Secretary to grant rights-of-way, rights-of-use and easements through
the submerged lands of the OCS. The Energy Policy and Conservation Act
of 1975 (42 U.S.C. 6213), prohibits joint bidding by major oil and gas
producers.
31. Section 256.35 is amended by adding paragraph (c) as follows:
256.35 Qualifications of lessees.
* * * * *
(c) MMS may disqualify you from acquiring any new leaseholdings or
lease assignments if your operating performance is unacceptable
according to 30 CFR 250.135.
32-33. In Sec. 256.70, the citation ``250.113'' is revised to read
``250.180''.
34. Section 256.73 is revised to read as follows:
Sec. 256.73 Effect of suspensions on lease term.
(a) A suspension may extend the term of a lease (see 30 CFR
250.171) with the extension being the length of time the suspension is
in effect except as provided in paragraph (b) of this section.
(b) A Directed Suspension does not extend the lease term when the
Regional Supervisor directs a suspension because of:
(1) Gross negligence; or (2) A willful violation of a provision of
the lease or governing regulations.
(c) MMS may issue suspensions for a period of up to 5 years per
suspension. The Regional Supervisor will set the length of the
suspension based on the conditions of the individual case involved. MMS
may grant consecutive suspensions. For more information on suspension
of operations or production refer to the section under the heading
``Suspensions'' in 30 CFR part 250, subpart A.
35. In Sec. 256.77(d)(3), the citation ``250.112'' is revised to
read ``250.182''.
PART 282--OPERATIONS IN THE OUTER CONTINENTAL SHELF FOR MINERALS
OTHER THAN OIL, GAS, AND SULPHUR
36. The authority citation for part 282 continues to read as
follows:
Authority: 43 U.S.C. 1331 et seq.
37. In Sec. 282.28(a), the citation ``250.126'' is revised to read
``250.194''.
[FR Doc. 99-31869 Filed 12-27-99; 8:45 am]
BILLING CODE 4310-MR-P
