[Federal Register Volume 60, Number 100 (Wednesday, May 24, 1995)]
[Notices]
[Pages 27546-27552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12633]
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DEPARTMENT OF THE INTERIOR
DEPARTMENT OF THE INTERIOR
Minerals Management Service
DEPARTMENT OF TRANSPORTATION
Research and Special Programs Administration
Offshore Pipelines
AGENCIES: Minerals Management Service (MMS), Interior. Research and
Special Programs Administration (RSPA), Transportation.
ACTION: Notice of proposed revision of memorandum of understanding
(MOU) and public meeting.
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SUMMARY: The Department of the Interior (DOI) and the Department of
Transportation (DOT) are proposing to revise their May 6, 1976, MOU on
their respective responsibilities concerning offshore pipelines. This
action will redefine the boundary lines over which MMS and RSPA
exercise their inspection and enforcement roles, giving MMS greater
inspection responsibilities over offshore pipelines previously
inspected by RSPA. The intent of the new MOU is to put, to the extent
practicable, all flowlines and gathering lines under DOI
responsibility, while transmission lines remain under DOT
responsibility. This will result in more efficient utilization of
government resources for offshore pipeline inspection. DOI and DOT will
hold a public meeting on this proposed revision in New Orleans,
Louisiana, on August 1, 1995.
DATES: Comments must be submitted on or before August 22, 1995.
ADDRESSES: Written comments should be directed concurrently to: (a)
Department of the Interior; Minerals Management Service; Mail Stop
4700; 381 Elden Street; Herndon, Virginia 22070-4817; Attention: Chief,
Engineering and Standards Branch, and (b) Department of Transportation;
Office of Pipeline Safety Regulatory Programs, Research and Special
Programs Administration; 400 Seventh Street SW.; Room 2335; Washington,
D.C. 20590; Attention: L.E. Herrick.
PUBLIC MEETING: DOI and DOT will hold a public meeting to receive
comments and to discuss the proposed MOU on August 1, 1995, 8:30 a.m.
to 5:00 p.m., Room 111; Minerals Management Service; Gulf of Mexico
Outer Continental Shelf Region; 1201 Elmwood Park Boulevard; New
Orleans, Louisiana 70123-2394.
FOR FURTHER INFORMATION CONTACT:
Carl W. Anderson, Engineering and Standards Branch, MMS; telephone
(703) 787-1600; or L.E. Herrick, Office of Pipeline Safety Regulatory
Programs; telephone (202) 366-5523.
SUPPLEMENTARY INFORMATION:
Introduction
There are about 18,300 miles of active Outer Continental Shelf
(OCS) oil and gas pipelines jointly regulated by DOI and DOT under an
MOU agreed upon in 1976 (41 FR 23746; June 11, 1976). Under the
existing MOU, DOI has [[Page 27547]] primary responsibility for about
4,500 miles of these pipelines delegated to the Minerals Management
Service (MMS). DOT has primary responsibility for about 13,800 miles of
these pipelines delegated to RSPA. The MMS regulations for pipelines in
the OCS are in 30 CFR part 250, Subpart J. The RSPA pipeline safety
regulations are in 49 CFR parts 190-199.
The primary concerns with operating pipelines offshore include
protecting life and property offshore, and protecting the OCS from
environmental damage resulting from pipeline spills. These issues are
of paramount importance to both MMS and RSPA. The National Academy of
Sciences reported that while offshore oil and gas production operations
contribute less than 2 percent by volume of the oil that is spilled
into the sea, pipelines accounted for over 97 percent by volume of that
oil spilled from OCS operations. These spills resulted almost entirely
from anchors, construction operations, or fishing trawls that struck
the pipelines and caused them to rupture.
Corrosion-related pipeline spills tend to be minor compared to
spills resulting from external damage; however, because the pipeline
system is extensive and aging, MMS and RSPA are also concerned about
oil spills resulting from corrosion.
Separate MOU on Oil-Spill Response
Under a separate MOU among DOI, DOT, and the U.S. Environmental
Protection Agency pursuant to the Oil Pollution Act of 1990, the
agencies have divided their respective responsibilities for oil-spill
prevention and response according to the definition of ``coast line''
contained in the Submerged Lands Act, 43 U.S.C. 1301(c). (See 59 FR
9494; February 28, 1994.) Nothing herein is intended to affect the
implementation or administration of that MOU.
Background
The DOT and DOI are proposing to revise the current MOU that
delineates DOI's and DOT's respective boundaries with respect to
inspection of offshore pipelines in the OCS. The MOU has never been
updated, even though there have been many legislative, regulatory, and
administrative changes during the past 19 years affecting the
respective inspection responsibilities that each agency performs. These
changes, coupled with the differing regulatory priorities and operating
responsibilities of the two organizations (MMS and RSPA) charged with
promulgating and enforcing regulation over pipeline safety and
environmental protection in the OCS, have rendered the MOU outdated.
For example, the current MOU predates the following legislative and
regulatory developments:
(1) The formation of RSPA in 1977,
(2) The 1978 OCS Lands Act Amendments,
(3) The formation of MMS in 1982,
(4) Amendments to the pipeline safety laws (see 49 U.S.C. 60101 et
seq.), and
(5) The Federal Water Pollution Control Act as amended by the Oil
Pollution Act of 1990 and implemented under Executive order 12777 of
October 1991.
Under the current MOU, RSPA is responsible for enforcing its
design, construction, operation, and maintenance requirements on
pipelines transporting hazardous liquids and natural gas ``to the shore
from the outlet flange at----
(i) Each OCS facility where hydrocarbons are produced, or
(ii) Each OCS facility where produced hydrocarbons are first
separated, dehydrated, or otherwise processed, whichever facility is
farther downstream, including subsequent on-line transmission equipment
but not including any subsequent production equipment.''
Also under the current MOU, MMS is responsible for enforcing its
design, construction, operation, and maintenance regulations on
offshore pipelines extending upstream from the outlet flange described
above into each production well in the OCS. In this regard, MMS has
responsibilities for promulgating and enforcing regulations for the
prevention of waste, protection of the environment, conservation of
natural resources, production measurement, and safety of OCS lessee and
right-of-way holder activities.
MMS has regulatory responsibilities relating to activities
performed in the OCS. RSPA has responsibilities for inspecting and
enforcing its regulations over all onshore pipeline systems in the
country. The revised MOU would result in MMS assuming a greater
inspection responsibility for pipelines currently under DOT
responsibility. MMS would integrate these additional pipelines into its
current inspection program.
Because the revised MOU would shift the boundaries being used by
MMS and RSPA in inspecting under their regulations, some OCS pipelines
that are currently subject to DOT regulations governing their design,
construction, maintenance, and operations, would become subject to DOI
regulations governing such requirements. This shift in boundary for
areas of responsibility--generally from the first OCS facility where
hydrocarbons are produced, separated, dehydrated, or otherwise
processed to the last such facility--will require subsequent public
rulemaking changes by both DOT and DOI. Following the final approval
and signing of the revised MOU, DOT and DOI will separately propose
changes to their respective regulations to reflect the new regulatory
boundaries. The principal regulations that would be affected are found
at 49 CFR parts 191.1, 192.1, 195.1 and 199 for DOT and at 30 CFR part
250.150 for DOI.
DOI anticipates that existing offshore pipelines that shift from
DOT to DOI responsibility will not be immediately subject to MMS design
and construction requirements unless: (1) those requirements were a
condition of MMS approval for the right-of-way on which the pipelines
are located, or (2) the pipeline undergoes major repair or
modification. Design and construction requirements are those
requirements that are established when the pipeline is initially
designed and constructed, such as pipe specifications, design of
pipeline components, and welding procedures. Retrofitting existing
pipelines to conform to different design and construction standards can
involve considerable risk to personnel and be extremely costly.
Therefore, DOI will be cautious in imposing changes of this type on
pipeline operators heretofore operating under DOT design and
construction requirements. On the other hand, DOI operation and
maintenance regulations, such as corrosion protection, operation and
maintenance plans, periodic inspections, and periodic tests are
requirements that can be applied to pipelines any time after
construction. There are differences between DOT and DOI regulations
with respect to these types of requirements and their compliance costs.
therefore, any operator currently under DOT responsibility who is
shifted to DOI responsibility--after implementation of the revised MOU
and appropriate changes are promulgated for 30 CFR part 250.150--will
immediately become subject to DOI operation, maintenance, and
inspection requirements.
Operators of pipelines that will become subject to MMS regulatory
responsibility are reminded that MMS has regulatory procedures under
which departures from its requirements may be granted on a case-by-case
basis, provided there is sound engineering analysis that shows the
operation, practice, or situation will provide an equal or greater
level of operational safety or of environmental protection.
Comments are invited concerning (1) the effect that the new MOU
will have [[Page 27548]] on offshore oil and gas lessees and pipeline
operators, (2) the time required for operations currently operating
under DOT regulations to come into compliance with DOI regulations, (3)
regulatory difficulties that may be involved in complying with new
regulations, and (4) changes to the proposed MOU that would facilitate
the implementation of the MOU.
Upon signing the proposed revised MOU by both the Secretary of the
Interior and Secretary of Transportation, the 1976 MOU will be
terminated and revised MOU will become effective. The revised MOU will
be published final in a subsequent Federal Register Notice.
Dated: April 4, 1995.
Cynthia Quarterman,
Director, MMS.
Dated: May 16, 1995.
D.K. Sharma,
Administrator, RSPA.
The proposed revised MOU is as follows:
Memorandum of Understanding Between the Department of Transportation
and the Department of the Interior Regarding Offshore Pipelines
I. Introduction
This memorandum of Understanding (MOU) replaces the MOU between the
Department of Transportation (DOT) and the Department of the Interior
(DOI) regarding offshore pipelines which was signed and became
effective May 6, 1976, and which terminates as of the effective date of
this MOU. Nothing in this MOU relieves an offshore pipeline owner or
operator from complying with the regulations of any State or Federal
agency.
In recognition of each of the parties' respective regulatory
responsibilities, DOI and DOT agree that an MOU is needed to assure
coordination and consultation during the development and implementation
of regulatory requirements and to facilitate comparable regulatory
requirements for all offshore pipelines whether under DOI or DOT
jurisdiction.
II. Legislative and Regulatory Responsibilities of the Parties
The DOT has the responsibility for promulgating and enforcing
regulations for the safe and environmentally sound transportation of
gases and hazardous liquids by pipeline. DOT administers the following
laws as they relate to pipelines: (1) the pipeline safety laws (49
U.S.C. 60101 et seq.), (2) the Deepwater Port Act of 1974 (33 U.S.C.
1501-1524), and (3) the Federal Water Pollution Control Act (FWPCA) (33
U.S.C. 1251-1375), as amended by the Oil Pollution Act of 1990 (OPA)
(Pub. L. 101-380) and implemented under Executive Order (E.O.) 12777.
The DOI has responsibilities for promulgating and enforcing
regulations for the prevention of waste, protection of the environment,
and conservation of the natural resources of the Outer Continental
Shelf (OCS) as that area is defined in the OCS Lands Act (OCSLA) (43
U.S.C. 1331 et seq.). These responsibilities include production
measurement and safety of OCS lessee and right-of-way holder
activities, including transportation of oil and natural gas by
pipeline. DOI also has certain responsibilities for granting rights-of-
way and rights of use and easement for the construction of pipelines
and associated facilities in the OCS. DOI administers the following
laws as they relate to offshore piplines: (1) the OCSLA for the
production of minerals which includes their transportation to shore,
(2) the Federal Oil and Gas Royalty Management Act of 1982 for oil and
gas production measurement, and (3) the FWPCA, as amended by OPA and
implemented under E.O. 12777.
Under a separate MOU pursuant to the OPA, DOI and DOT have divided
their respective responsibilities for oil-spill prevention and response
according to the definition of ``coast line'' contained in the
Submerged Lands Act, 43 U.S.C. 1301(c).
III. Division of Responsibilities
DOI and DOT agree to the following division of off shore pipeline
regulatory responsibilities with respect to design, construction,
operations, and maintenance regulations for all pipelines in the OCS
pursuant to OCSLA. The Appendix contains nine hypothetical cases to
illustrate how this MOU would be interpreted in practice.
DOI Responsibilities
1. DOI will establish and enforce design, construction, operation,
and maintenance and regulations and investigate significant accidents
pursuant to the OCSLA for all pipelines that connect to downstream
production or processing facilities in the OCS. The DOI area of
responsibility will extend from producing wells to 50 meters (164 feet)
downstream from the base of the departing pipeline riser on the last
OCS production or processing facility (Cases 1, 7, and 9).
Additionally, DOI will have responsibility for the following pipelines:
a. That portion of a pipeline otherwise subject to DOT
responsibility that crosses an OCS production or processing facility
from 50 meters upstream of the base of the incoming riser to 50 meters
downstream of the base of the department riser (Case 2).
b. A pipeline from an OCS producing well or production or
processing facility to the first subsea tie-in with a larger-diameter
pipeline in the OCS (Cases 3, 7, and 9). However, if the first subsea
tie-in with a larger-diameter pipeline is in State waters, DOI
responsibility extends to the Federal-State boundary (Case 6).
c. The OCS portion of a pipeline that connects directly to a
production well or a production or processing facility in State waters
(Cases 4, 8, and 9).
d. The OCS portion of a pipeline from an OCS producing well that
connects directly to production or processing facilities located
onshore (Case 5).
e. OCS production service and water lines.
2. DOI will consult with DOT during the development of regulatory
requirements and will send a copy of each draft notice of proposed
rulemaking (NPR) concerning offshore pipelines to DOT for review at
least 30 days before the NPR is published in the Federal Register.
Publication of the NPR by DOI is not contingent upon the concurrence of
DOT with the proposal contained in the NPR.
3. Upon approval of right-of-way applications for pipelines under
DOT responsibility, DOI will provide copies of its approval letters to
DOT. When DOI grants rights-of-way for pipelines which are under DOT
responsibility, DOI will condition its approval on the pipelines being
designed, constructed, operated, and maintained in compliance with DOT
regulations.
4. The DOI will allow DOT to utilize, on a reimbursable basis, DOI-
contracted helicopters for the inspection of offshore pipelines,
subject to helicopter availability.
5. For pipelines under DOT responsibility, DOI will report to DOT
in writing any apparent violation of DOT regulations that is identified
during the course of DOI inspections.
DOT Responsibilities
1. DOT will establish and enforce design, construction, operation,
and maintenance regulations and investigate significant accidents for
all offshore pipelines beginning 50 meters (164 feet) downstream from
the base of the departing pipeline riser on the last OCS production or
processing facility, except as provided for in paragraphs 1, 1(a),
1(b), 1(c), 1(d), and 1(e) under ``DOI Responsibilities;'' and
paragraph 7 under ``Joint Responsibilities.'' [[Page 27549]]
2. DOT will consult with DOI during the development of regulatory
requirements and will send a copy of each draft NPR concerning offshore
pipelines to DOI for review at least 30 days before the NPR is
published in the Federal Register. Publication of the NPR by DOT is not
contingent upon the concurrence of DOI with the proposal contained in
the NPR.
3. For pipelines under DOI responsibility, DOT will report to DOI
in writing any apparent violation of DOI regulations that is identified
during the course of DOT inspections.
Joint Responsibilities
1. DOI and DOT will consult and coordinate all of their respective
rulemaking efforts affecting offshore pipelines. Supporting regulatory
analyses (e.g., Determination of Effects of Rules, Regulatory Impact
Analyses, and information collection burdens, etc.) will also be
coordinated, although the analyses will be appropriate for each agency
and the industry segments it regulates.
2. DOI and DOT will coordinate all of their respective research and
development projects concerning offshore pipelines.
3. DOI and DOT may perform joint inspections of pipeline segments
that are subject to both DOI and DOT regulations.
4. DOI and DOT may perform joint or independent investigations of
accidents involving offshore pipeline segments that are subject to
either or both DOI and DOT responsibility.
5. DOI and DOT will provide each other with any agreement or MOU
with any Federal or State agency concerning offshore pipelines.
6. At least once each calendar year, DOI and DOT will jointly
review existing standards, regulations, orders, operating practices,
and environmental and safety issues concerning offshore pipelines.
7. The DOI and DOT may, through their enforcement agencies, agree
to exceptions to this MOU on a facility by facility or area by area
basis. Affected parties shall be notified of such exceptions.
IV. Implementation
Within 120 days of the signing of this MOU, DOI and DOT will
develop and initiate a joint implementation plan. The plan will take
into account differences in the regulatory requirements of DOI and DOT
that could cause regulatory conflicts or incompatible requirements for
those offshore pipeline segments that are subject to both DOI and DOT
jurisdiction.
The respective points of contact for the provisions of this MOU
are:
Associate Administrator for Pipeline Safety, Research and Special
Programs Administration, Department of Transportation, 400 7th Street,
SW., Washington, D.C. 20590
Associate Director for Offshore Minerals Management, Minerals
Management Service, Mail Stop 4000, 1849 C Street, NW., Washington,
D.C. 20240
Thereafter, DOI and DOT will meet periodically to review and update
the joint implementation plan and to review this MOU for any needed
revisions.
V. Modification
Either party to this agreement may propose modifications by
submitting them in writing to the head of the other Department. No
modification may be adopted except with the consent of both parties.
Both parties shall indicate their consent to or disagreement with any
proposed modification within 60 days of receipt. Upon the request of
either party, representatives of both parties shall meet for the
purpose of considering modifications to this agreement.
VI. Termination
This MOU may be terminated by either party upon 60-day written
notice to the other party.
VII. Administration
This MOU will be administered by DOI's Minerals Management Service
and DOT's Research and Special Programs Administration or such
successor agencies as may be designated by the respective Secretaries.
VIII. Effective Date
This MOU is in effect upon signature.
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[FR Doc. 95-12633 Filed 5-23-95; 8:45 am]
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