[Federal Register: July 8, 2003 (Volume 68, Number 130)]
[Proposed Rules]
[Page 40585-40615]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08jy03-24]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Parts 250 and 254
RIN 1010-AC57
Oil and Gas and Sulphur Operations in the Outer Continental
Shelf--Incident Reporting Requirements
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Notice of Proposed Rulemaking.
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SUMMARY: This proposed rule revises and clarifies MMS requirements for
reporting incidents associated with Outer Continental Shelf (OCS) oil
and gas and other mineral operations. It adds a requirement for written
reports and proposes the use of two new MMS report forms. The written
reports must be submitted electronically. MMS has developed these
reporting requirements in conjunction with the U.S. Coast Guard (USCG)
and intends them to be as consistent as possible with USCG requirements
for incidents where the two agencies have mutual interest and
responsibilities. MMS is also working with the USCG to develop a single
point electronic reporting system that would allow incident reports
submitted through this single point to be sent to both agencies. This
will help minimize duplicative reporting required by the two agencies.
DATES: We will consider all comments we receive by October 6, 2003. We
will begin reviewing comments then and may not fully consider comments
we receive after October 6, 2003.
ADDRESSES: If you wish to comment, mail or hand-carry comments (three
copies) to the Department of the Interior; Minerals Management Service;
Mail Stop 4024; 381 Elden Street; Herndon, Virginia 20170-4817;
Attention: Rules Processing Team (Comments). If you wish to respond by
e-mail, the e-mail address is: rules.comments@MMS.gov. Use the term
``Incident Reporting'' in your e-mail subject line. Include your name
and address in your e-mail message and mark your message for return
receipt.
[[Page 40586]]
You may submit comments with respect to the information collection
burden of the proposed rule either by fax (202) 395-5806 or email
(Ruth_Solomon@omb.eop.gov) directly to the Office of Information and
Regulatory Affairs, Office of Management and Budget; Attention: Desk
Officer for the Department of the Interior (OMB control number 1010-
0XXX).
FOR FURTHER INFORMATION CONTACT: Melinda Mayes at 703-787-1063 or Staci
Atkins at 703-787-1620, Engineering and Operations Division.
SUPPLEMENTARY INFORMATION: Current MMS incident reporting requirements
at 30 CFR 250.191 do not include detailed reporting thresholds and
definitions. This allows a range of interpretations by the lessees/
operators as to what should be reported. It is difficult to conduct
meaningful incident analyses on data that are not consistently
reported. Additionally, MMS does not currently require the submission
of written incident reports. This also makes it more difficult to
gather consistent information about each incident. The OCS lessees/
operators have the best and most immediate access to information about
incidents that are associated with their operations.
MMS's top priority is that OCS operations be conducted in a safe
and environmentally sound manner. We must continue to identify unsafe
equipment and procedures, as well as the human and organizational
factors that cause incidents. To do this effectively, we need to
upgrade our incident data analysis, investigation, and information
publication functions. MMS uses incident data analyses and
investigations to identify incident causes and trends. We also use it
to evaluate both industry and individual operator performance. With
this knowledge, we can develop strategies for promoting safety on the
OCS. Strategies may include: developing regulatory initiatives,
performing needed research, working with industry to develop new
standards, conducting risk-based inspections, holding joint MMS/
industry workshops to address specific safety issues, working with
individual lessees/operators to address particular safety concerns, or
other appropriate actions. Publishing information on incident causes
and trends also allows industry to identify potentially unsafe
equipment, conditions, or procedures so that lessees and operators can
take appropriate steps to improve the safety of their operations.
Current MMS incident reporting requirements are not consistent with
the USCG reporting requirements for OCS activities. This creates
confusion for OCS lessees/operators in determining what incidents to
report to each agency and makes it more difficult for MMS and the USCG
to coordinate their respective responsibilities on the OCS as agreed to
in a Memorandum of Understanding (MOU) signed December 16, 1998. The
purpose of the MOU is to minimize duplication and promote consistent
regulation of OCS facilities. This proposed rule will help achieve that
goal in the area of incident investigation, data collection, and
analysis.
This proposed rule revises and clarifies MMS requirements for
reporting incidents associated with OCS oil and gas and other mineral
operations:
a. Several definitions are added, including the term ``incident''
which replaces the term ``accident'' currently used in the regulations;
b. More specific incident reporting thresholds for various incident
types are established;
c. Written reports are required and must be submitted
electronically; and
d. Two new MMS forms are proposed so that consistent information
will be reported to MMS for all incidents.
MMS is working with the USCG to develop a single point electronic
reporting system that would allow reports submitted through a single
point to fulfill the requirements of both MMS and the USCG.
Relationship of This Rule to USCG Reporting Requirements
On December 7, 1999, the USCG published a Notice of Proposed
Rulemaking (NPR) (64 FR 68416) amending its regulations at 33 CFR parts
140-147, Outer Continental Shelf Activities. Among many other things,
the USCG NPR revises requirements for reporting incidents related to
OCS facilities and vessels engaged in OCS activities. After several
extensions, the comment period closed on November 30, 2000. MMS has
worked with the USCG to ensure that the MMS proposed reporting
requirements are as consistent as possible with the USCG's proposed
rule.
This MMS proposed rule revises reporting requirements for all
incidents that must be reported to MMS. The proposed rule also lists
USCG reporting requirements for incidents where the two agencies have
mutual interest and responsibility. We listed the USCG requirements so
that both agencies' reporting requirements for these incidents can be
found in one location. Our goal is for OCS lessees/operators to be able
to submit reports to both agencies through one electronic system for
those incidents where the two agencies have mutual interest and
responsibility. Since this is an MMS rule, we can require that
incidents be reported to MMS, but cannot require that the incidents be
reported to the USCG. The USCG's regulations impose that requirement.
The USCG will need to take some action that will allow the appropriate
segments of its regulated community to report incidents electronically
according to the MMS regulation. We have discussed this with the USCG,
and we will continue to work closely with the USCG as we review the
comments to the proposed rule and finalize the MMS incident reporting
regulation.
During the comment period for this rule, MMS will hold a workshop
to discuss the rule and the development of an electronic reporting
system. We will publish information on the workshop in the Federal
Register. MMS and USCG encourage your comments on any aspect of this
proposed rule and your participation in the workshop.
Background
On January 5, 1998, (63 FR 256), MMS and the USCG published
proposed revisions to the MMS/USCG MOU in the Federal Register.
On February 13, 1998 (63 FR 7335), MMS published a proposed rule to
revise MMS regulations for Postlease Operations Safety. The revisions
were, among other things, intended to upgrade our incident
investigation, data collection, and analysis functions. Some of the
comments expressed concerns that were similar to those raised at an
April 22, 1998, USCG-sponsored National Offshore Safety Advisory
Committee (NOSAC) meeting. At that NOSAC meeting, industry expressed
concerns about the duplicative and inconsistent incident reporting
requirements of MMS and the USCG and the lack of specific reporting
definitions and thresholds contained in the MMS February 1998 proposed
rule. Because of these concerns, NOSAC formed an Incident Reporting
Subcommittee to develop recommendations for a consistent approach to
incident reporting between the two agencies. MMS, USCG, and industry
representatives served on this subcommittee.
On May 29, 1998 (63 FR 29478), MMS published a final rule that
redesignated sections of 30 CFR part 250 to provide additional section
numbers for future revisions. This redesignation did not change any
requirements. Former Sec. 250.19, dealing with incident
[[Page 40587]]
reporting, was redesignated as Sec. 250.119.
At a November 5, 1998, NOSAC meeting, the Incident Reporting
Subcommittee presented a framework and recommendations for MMS and the
USCG to use in developing incident reporting regulations.
Recommendations included:
[sbull] Delay the portion of the final rule for Postlease
Operations Safety dealing with incident reporting regulations (to allow
MMS and USCG time to address inconsistencies between the two agencies'
requirements);
[sbull] Improve the cycle time to provide better feedback of
incident data (incident analysis, faster safety alerts, trend
analysis);
[sbull] Establish a USCG/MMS team to focus on the incident
reporting process;
[sbull] Include stakeholders in the process;
[sbull] Use, wherever possible, common definitions for like terms;
[sbull] Strive for a process that requires single agency reporting;
[sbull] Explore the value of a single form with multiple data
needs;
[sbull] Investigate alternate reporting methods and timing for
reports; and
[sbull] Clarify and identify who is responsible for initiating the
reports.
MMS and the USCG concurred with the NOSAC Subcommittee's
recommendations, and in December 1998 met to begin developing mutually
agreeable reporting requirements and an electronic reporting system.
The two agencies developed a draft set of requirements and, in June
1999, invited industry representatives from the NOSAC Subcommittee to
meet and discuss the draft requirements.
On December 16, 1998, MMS and the USCG signed a new MOU, which was
published in the Federal Register on January 15, 1999 (64 FR 2660). The
purpose of the MOU is to minimize duplication and promote consistent
regulation of OCS facilities. In the Federal Register notice, we also
described several actions that the two agencies would consider in
implementing the MOU. Several were related to incident investigation,
data collection, and analysis, and they included:
[sbull] Work on safety management, including accident
investigations to promote safe practices;
[sbull] Continue to work on single point reporting;
[sbull] Communicate electronically;
[sbull] Improve the process of reporting and collecting incident
data; and
[sbull] Share incident data to prevent accidents, particularly
fatalities.
On December 28, 1999 (64 FR 72756), MMS published the final rule
for Postlease Operations Safety (30 CFR 250, subpart A). In the final
rule, the section relating to incident reporting, 30 CFR 250.119, was
renumbered as 30 CFR 250.191. We addressed a few of the comments on the
proposed incident reporting requirements in that final rule. However,
we did not make changes to incident reporting requirements (except for
rewriting them in plain English) and deferred the issue to a separate
rulemaking process, i.e., this MMS proposed rule.
Discussion of Proposed Changes in This MMS Proposed Rule
1. Renumbering
We propose to renumber 30 CFR 250.190 as 250.186.
We propose to revise 30 CFR 250.191 into several sections as
follows:
Section 250.187--What is the scope of the incident reporting
requirements?
Section 250.188--What incidents must I immediately report to MMS,
USCG, National Response Center (NRC), or the Responsible Party?
Section 250.189--What other incidents must I report to MMS?
Section 250.190--What reporting procedures must I follow?
Section 250.191--How does MMS conduct incident investigations?
2. Definitions (Sec. 250.105)
Twelve new definitions are proposed. Five definitions are proposed
to clarify specific MMS incident reporting requirements. Seven are
proposed to clarify both MMS and USCG requirements.
Definitions that clarify specific MMS reporting requirements:
[sbull] Collision--We developed this definition to clarify the
types of collisions that should be reported. The USCG does not have a
definition for collision.
[sbull] Gas release--Reporting these incidents is a new proposed
requirement, so a definition was added.
[sbull] Loss of well control--Loss of well control incidents have
the potential to result in very serious consequences from both a safety
and environmental standpoint. Because of the potential consequences,
MMS needs to investigate and understand the causes of all of these
incidents so that appropriate measures to prevent them can be
identified. Currently, MMS regulations require reporting of all
``blowouts,'' and the term ``blowout'' is undefined. Because of the
seriousness of loss of well control incidents, we believe most of these
incidents are already being reported under current MMS regulations.
However, a small number of lessees/operators may not be reporting all
types of loss of well control incidents. In particular, some lessees/
operators may not be reporting incidents where the well is put on a
diverter and subsequently controlled. MMS proposes to replace the term
``blowout'' with ``loss of well control'' and has defined ``loss of
well control'' as broadly as possible, including diverter incidents.
[sbull] Reportable releases of H2S-- Sec. 250.490(l)
currently requires lessees/operators to notify MMS of these incidents.
We are retaining that requirement and are providing a definition for
``Reportable Releases of H2S'' that uses the same wording found in
Sec. 250.490(l).
[sbull] Fire--Industry comments on the MMS proposed rule for
Postlease Operations Safety (February 13, 1998, 63 FR 7335) requested
that MMS provide a definition for fires and identify what types of
fires are to be reported. In response to these comments, we are
proposing a definition of fire. We started with the definition from the
American Petroleum Institute's (API) Recommended Practice 14G, Third
Edition, December 1, 1993. It is likely the one used by most OCS
lessees/operators. To this definition, MMS has specifically added
incidents involving smoke with no visible flame. This addition is in
response to industry questions about whether ``smoke only'' incidents
must be reported.
Definitions needed to clarify both MMS and USCG requirements:
[sbull] Incident--We propose to replace the term ``accident'' with
the term ``incident'' and have proposed a definition. Current MMS
regulations refer to ``accidents.'' Many people think of an accident as
an event that results in serious personal injury or involves
significant damage to property, while the term ``incident'' connotes a
broader range of events. This proposed rule, like the current rule,
includes reporting of events that result in serious injury or damage to
property and events that result in minor or no injuries and little or
no property damage. Thus, we believe the term ``incident'' is more
appropriate. We do not intend to require reporting of illnesses and
injuries arising from causes other than operational incidents, such as
communicable diseases, food poisoning, etc. The definition of
``incident'' is designed to exclude these types of events.
The current USCG regulations and the USCG proposed rule use the
term ``casualty'' or ``marine casualty'' to refer to events that must
be reported. The definition of incident in this MMS proposed rule
includes these terms.
[[Page 40588]]
[sbull] Mobile Offshore Drilling Unit (MODU)--Current MMS
regulations do not include a definition for MODU. The definition
proposed in this NPR is taken from the USCG NPR (33 CFR 140.25) with
one change. We have eliminated the exclusion of MIDUs (Mobile Inland
Drilling Units) that appears in the USCG NPR. The USCG proposed rule
specifies the limited locations where MIDUs may operate on the OCS (33
CFR 145.505) and also proposes some requirements for MIDUs that are
different than those for MODUs (33 CFR, part 145, Subpart F).
Therefore, the USCG proposed rule includes separate definitions for
MODUs and MIDUs. However, for the purpose of incident reporting, this
distinction is not needed. Therefore, in this MMS NPR we have
eliminated the exclusion of MIDUs from the USCG NPR defintion of MODUs,
so that the reporting requirements apply to both MODUs and MIDUs when
they operate on the OCS.
[sbull] OCS Activity--A definition of ``OCS activity'' is added to
help define other terms. This proposed definition is taken directly
from the MMS/USCG MOU with a minor editorial change.
[sbull] OCS Facility--A definition of ``OCS facility'' is added to
clarify reporting requirements for vessels in relation to these
facilities. Current MMS regulations include three definitions for
facility. However, their applications are limited to specific sections
of the 30 CFR part 250 regulations. The USCG proposed rule definition
of ``facility'' (33 CFR 140.25) does not include pipelines, which MMS
needs to include in this rulemaking. In this MMS proposed rule, we
added a definition for OCS facility that is taken from the MMS/USCG
MOU, which does include pipelines. To this definition, we added a
phrase that specifies when MODUs are considered to be an OCS facility.
We are also correcting a typographical error in the MMS/USCG MOU
definition by replacing the word ``and'' with the word ``or'' to
indicate that the purpose of an OCS facility is ``exploring for,
developing, producing, or transporting resources from the OCS.''
[sbull] Property Damage--Since some of the proposed incident
reporting thresholds are based on the dollar amount of property damage,
a definition is needed. At 33 CFR 143.110(a)(6), the USCG NPR
incorporates a description of what ``property damage'' includes. We
have used the USCG wording for our proposed definition with minor
editorial changes and one additional change. We have replaced the term
``facility'' with the term ``OCS facility.'' The USCG NPR includes a
definition for ``facility,'' which is not the same as our proposed
definition of ``OCS facility.'' The definition of ``OCS facility'' is
broader in scope than the USCG proposed rule definition of
``facility,'' particularly because it includes pipelines and MODUs. For
incident reporting purposes, the use of the broader term, ``OCS
facility,'' in relation to property damage is more appropriate and
should satisfy the needs of both agencies.
[sbull] Vessel--We are proposing reporting of certain incidents
involving vessels (boats, barges, etc.) and need to define the term
``vessel.'' The USCG NPR definition for vessel (33 CFR 140.25) does not
specifically exclude atmospheric or pressurized vessels used for
containing liquids and gases. We propose to use the definition from the
MMS/USCG MOU, which does specifically exclude atmospheric and pressure
vessels. We have made minor editorial changes to this definition.
[sbull] Vessels engaged in OCS activities--This definition is
needed to help identify the scope of the proposed reporting
requirements (Sec. 250.187). There is no definition for these vessels
in current MMS or USCG regulations, proposed USCG regulations, or the
MMS/USCG MOU. The definition in this proposed rule is based on a
vessel's distance from an OCS facility.
3. Scope (Sec. 250.187)
We propose to expand the scope of the current regulations and
provide additional guidance. Current regulations do not specify when
incidents involving vessels are related to operations on a lease,
easement, right-of-way, or other permit. As a result, it is unclear
when these incidents must be reported to MMS. Numerous crew, supply,
and other vessels transit the OCS daily. They visit OCS facilities to
load/unload crew and supplies and to provide fuel and other services to
those facilities. The USCG has jurisdiction over vessel operations on
the OCS. However, to coordinate response and investigation
responsibilities, both MMS and the USCG need to know about incidents
where vessels may be involved with or pose a threat to an OCS facility.
We have identified these situations as incidents involving ``vessels
engaged in OCS activities,'' and have added a reporting requirement. A
definition of ``vessels engaged in OCS activities'' is also proposed
and is based on the distance of the vessel from an OCS facility.
As noted earlier in the preamble, we list the USCG's reporting
requirements in this MMS proposed rule so that reports for both
agencies can be made through one electronic system. Since MMS cannot
require that incidents be reported to the USCG, the USCG will need to
take some action to allow its regulated community to report incidents
according to MMS regulations. This issue is also addressed in the scope
of this MMS proposed rule.
The following table compares the scope of current MMS regulations
and this MMS proposed rule.
Scope of MMS Current and Proposed Regulations
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MMS proposed rule MMS current regulations
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Sec. 250.187(a) 250.191(a)
Incidents that:......................... [Accidents] connected with any
(1) Occur on the area covered by your activities or operations on
lease, easement, right-of-way, or other the lease.
permit; and. Sec. 250.191(b)
(2) Are related to operations resulting If you hold an easement, right-
from the exercise of your rights under of-way, or other permit, and
your lease, easement, right-of-way, or your operation is related to
permit. This includes incidents the exercise of the easement,
involving vessels engaged in OCS right-of-way, or other
activities as defined in Sec. 250.105. permit, you must comply with
paragraph (a) for any
accident occurring on the
area covered by the easement,
right-of-way, or other
permit.
Sec. 250.187(b)
You may be required to report incidents Not addressed in current
described in Sec. Sec. 250.188 and regulations.
250.190 to the USCG under USCG rules.
You may use the notifications and
reports that you make to MMS under
those sections to satisfy USCG incident
reporting requirements if and to the
extent allowed by USCG regulations.
Sec. 250.187(c)
[[Page 40589]]
Nothing in this subpart relieves you Not addressed in current
from making notifications and reports regulations.
of incidents that may be required by
other regulatory agencies.
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4. Reporting Thresholds (Sec. 250.188 through Sec. 250.189)
Three reporting categories are proposed based on the seriousness of
the outcome of the incident. Those categories are ``Immediate,'' ``12-
Hour,'' and ``15-Day'' and are named for the time when the first
notification or report is due. Within each of these categories,
reporting thresholds are proposed for various incident types (fires,
explosions, injuries, gas releases, etc.).
We are proposing three reporting categories to ensure that MMS and
the USCG receive timely notification of incidents so that we may
respond appropriately. For incidents in the ``Immediate'' category, one
or both agencies need to be notified right away because they may need
to take one or more of the following actions: (1) Be involved in or
monitor the ongoing response to the incident; (2) determine if the
incident jeopardizes ongoing operational safety and take appropriate
action; or (3) initiate an incident investigation. Although incidents
in the ``12-Hour'' category are less serious in terms of outcome, MMS
still needs to be notified to determine if any of the actions
previously listed are needed. Incidents in the ``15-Day'' category are
not likely to require immediate action from MMS. However, the agency
still needs to know about them because they involve unsafe conditions
or actions related to offshore operations that we may need to address.
The following discussion summarizes the thresholds we are proposing
for each incident type. A table comparing these proposed thresholds
with those in the current regulation is found at the end of this
discussion.
For some incident types, the proposed overall reporting threshold
is the same as in MMS current regulations. For other incident types,
reporting thresholds have been modified through proposed definitions or
more specific reporting thresholds. Other incident types included in
this proposed rule are not specifically addressed in the current
regulations. One incident type in the current regulation is not
specifically addressed in this proposed rule.
Incidents--No change to the current reporting thresholds. Although
the language may be different for the following four incident types,
the reporting thresholds remain the same.
[sbull] Death--Current regulations and the proposed rule both
require reporting any death. In the proposed rule, all deaths other
than deaths due to natural causes would have to be reported to MMS and
would be reported in the ``Immediate'' category. Although current
regulations do not specifically exclude deaths due to natural causes,
they do indicate that reportable incidents are those that are connected
with any activities or operations on the lease or operations that are
related to the exercise of rights under an easement, right-of-way, or
other permit. We therefore believe that the reporting threshold in this
proposed rule is essentially the same as that in the current
regulation.
[sbull] Explosions--Current regulations and the proposed rule
require reporting all explosions. In the proposed rule, explosions are
reported in either the ``Immediate'' or ``12 Hour'' category, depending
on the amount of property damage resulting from the explosion.
[sbull] H2S Releases--The current regulations at Sec.
250.490(l) and the proposed rule require reporting of H2S
releases. The reporting threshold of both the current and proposed rule
is also the same. In the proposed rule, all H2S releases are
reported in the ``Immediate'' category.
[sbull] Oil spills--The reporting threshold in the current
regulation and the proposed rule is the same. In the proposed rule, all
oil spills are reported in the ``Immediate'' category.
Incidents where current reporting thresholds are modified. Overall
reporting thresholds for the following three incident types have been
modified.
[sbull] Fires--Current regulations require reporting of all fires,
and the term fire is undefined. As noted earlier, MMS, in response to
industry comments, is proposing a definition for fire based on the
definition from API Recommended Practice 14G, Third Edition, December
1, 1993. Incidents involving smoke with no visible flame are also
included to address questions we have received from the industry. The
proposed rule requires reporting of all fires except those that are
completely contained in the living quarters and result in $25,000 or
less in property damage. This exception eliminates the need to report
minor fires that pose little risk to safety. In this proposed rule,
fires are reported in the ``Immediate,'' ``12-Hour,'' or ``15-Day''
categories, depending on the amount of property damage or number of
injuries resulting from the fire.
[sbull] Loss of well control--Current regulations require reporting
of all blowouts, and the term ``blowout'' is undefined. Because of the
potential risks associated with these incidents, the term ``loss of
well control'' is proposed as a substitute for ``blowout,'' and has
been broadly defined to ensure all of these incidents are included. The
proposed rule requires that all losses of well control be reported in
the ``Immediate'' category.
[sbull] Injuries--Current MMS regulations require reporting of all
serious injuries, without defining the term ``serious.'' In this MMS
NPR, we have maintained the current MMS requirement to report all
serious injuries. We have specified what constitutes a serious injury,
using the same criteria that the USCG has included in its NPR. Although
the USCG NPR does not include a requirement for reporting less serious
injuries, MMS has determined that it is important for us to develop a
better understanding of the causes of these incidents as precursors or
``near misses'' to the more serious injury incidents. To do this, we
need to examine more than just the most serious incidents. Examining
the causes of less serious incidents will enable us to work with the
industry to identify effective ways for preventing serious injury
incidents. When MMS began to prepare this proposed rule, we decided to
use the Occupational Safety and Health Administration (OSHA) terms
``lost workdays'' and ``first aid'' to define reporting thresholds
because these were widely used by the petroleum and other industries
and had been in place for many years. For calendar year 1997, many OCS
operators submitted incident data for the voluntary MMS/USCG/Industry
performance measures program. Data from the resulting report (Outer
Continental Shelf Performance Measures; Safety, Environmental and
Regulatory Compliance Indicators from the U.S. Offshore Oil and Gas
Industry, Report for 1996-1998), published in August 1999, indicated
that there were 507 ``lost workday'' cases in 1997. In
[[Page 40590]]
that same year, MMS received reports for 83 injuries, or only about 16
percent of the ``lost workday'' cases reported by the performance
measures participants.
[sbull] ``Lost workdays,'' as defined by OSHA, encompassed
relatively minor injuries and illnesses up through the most serious
ones. To eliminate the more minor injuries and illnesses included under
the OSHA definition of ``lost workdays,'' MMS considered establishing a
reporting threshold based on a certain number of ``lost workdays.''
Discussions with offshore industry representatives indicated that the
industry keeps basic information about lost workday cases, but that
tracking the number of ``lost workdays'' for each case in order to
determine which cases should be reported to MMS would be very
burdensome. Therefore, we decided not to set the threshold at a certain
number of ``lost workdays.'' Instead, we decided to propose that all
``lost workday'' cases as defined by OSHA be reported while minimizing
the amount of information requested for these incidents.
On January 19, 2001, OSHA published a final rule for occupational
injury and illness recording and reporting requirements (29 CFR 1904.7,
66 FR 5916) which became effective on January 1, 2002. In that rule,
the term ``lost workday'' was eliminated. We have adopted the terms
from OSHA's final rule that replace ``lost workdays.'' Therefore, to
define reporting thresholds for injuries, we are proposing the use of
``days away from work'' and ``restricted work or job transfer'' where
we originally had decided to use ``lost workdays.'' Similarly, to
define a threshold for fires involving injuries, we are proposing
OSHA's new term ``medical treatment beyond first aid'' instead of
referring to ``first aid'' as defined in the previous version of OSHA's
regulations. We have adopted these terms as defined by OSHA, to be
consistent with these already existing recording requirements and
definitions rather than promulgating requirements with different
criteria.
In this proposed rule, an injury threshold for each reporting
category is proposed. The most serious injuries would be reported in
the ``Immediate'' category, and the reporting threshold is defined by
the nature of the injury.
In the ``12-Hour'' category, we propose the reporting of: (1)
incidents resulting in injuries or illnesses to more than one person
that involve ``days away from work'' or ``restricted work or job
transfer `` and (2) all fires resulting in injuries or illnesses to
more than one person that involve ``medical treatment beyond first
aid.'' Incidents already reported under the ``Immediate'' category are
excluded.
In the ``15-Day'' category, we propose the reporting of all
incidents resulting in injuries or illnesses to one person that involve
``days away from work'' or ``restricted work or job transfer.''
Incidents already reported in the ``Immediate'' or ``12-Hour'' category
are excluded.
Incident types that are not addressed in the current regulations.
The following eight incident types are not addressed in current MMS
regulations. Six of these must be reported to MMS; the others must be
reported to the USCG or NRC.
[sbull] Collision--Because these incidents have potentially serious
consequences, MMS wants to ensure that they are reported. A specific
requirement is included to report collisions and sets the reporting
threshold at those incidents resulting in more than $25,000 of property
damage. All collisions are reported in either the ``Immediate'' or
``12-Hour'' category, depending on whether the amount of property
damage is more or less than $100,000.
[sbull] Incidents Involving Property Damage--Although incidents
involving property damage alone do not result in serious outcomes in
terms of personal injury, they do represent unsafe conditions that have
the potential for more serious consequences, including personal injury.
Receiving information about these incidents will help MMS identify
safety concerns and work with industry on appropriate preventative
measures. The dollar amount of property damage is proposed as a
reporting threshold for specific incidents such as collisions, fires,
and explosions, as well as a general threshold for other incidents. The
proposed rule requires that incidents resulting in property damage
greater than $25,000 be reported. They are reported in either the
``Immediate'' or ``12-Hour'' category, depending on the amount of
property damage.
[sbull] Gas Releases--Because of the potential hazard that a
release of flammable gas poses to an offshore facility as a precursor
to an explosion, MMS needs to determine how often and under what
circumstances these incidents are occurring on the OCS. This
information will enable us to work with the industry to determine if
additional prevention measures are needed. The proposed rule defines
gas releases as unintentional releases that without correction could
raise gas concentrations to the lower flammable (explosive) limit. Gas
releases do not include gas that is vented or flared. These events have
their own reporting requirements. In this proposed rule, gas releases
are reported in the ``15-day'' category.
[sbull] Non-weather-related incidents where personnel muster for
evacuation--Incidents where personnel prepare for evacuation represent
situations that have the potential to become serious. MMS needs to
determine how often and under what circumstances these incidents are
occurring on the OCS. This information will enable us to identify
additional safety concerns that may need to be addressed and to work
with the industry on prevention measures. The proposed rule requires
that these incidents be reported in the ``15-day'' category.
[sbull] Incidents that impair the operation of an OCS facility's
primary firefighting and lifesaving equipment--Firefighting and
lifesaving equipment are critical to the protection of offshore
operations, personnel, property, and the environment. If this equipment
is impaired, MMS and the USCG need to know immediately to coordinate
appropriate response. Therefore, we are proposing that these incidents
be reported.
[sbull] Vessels engaged in OCS activities that are involved in
incidents listed in the USCG regulations at 46 CFR 4.05-1(a)(1) through
4.05-1(a)(4)--These incidents involve things such as a vessel's loss of
main propulsion, etc., and are the responsibility of the USCG. If such
incidents occur near an OCS facility, they have the potential to
jeopardize the safety of operations, personnel, or property, on the
facility or the surrounding environment. In these situations, both MMS
and the USCG need to know about the incident to coordinate appropriate
response and investigation actions. As noted earlier, MMS is proposing
a definition for ``vessels engaged in OCS activities.'' This definition
is based on the vessel being within 500 meters of an OCS facility.
Because vessels within this distance have the potential to be involved
with or affect the safety of both the vessel and the facility, these
incidents would be immediately reported to both agencies.
[sbull] Vessels not engaged in OCS activities that are involved in
accidents listed in the USCG regulations at 46 CFR 4.05--This NPR is
intended to address both MMS and the USCG reporting requirements for
incidents where we have mutual interest. However, this NPR also
includes a statement that nothing in this subpart would relieve the
obligation for any vessel not engaged in OCS activities to provide
notices or reports to the USCG as required by 46 CFR 4.05. These
incidents are beyond the scope of MMS interest and
[[Page 40591]]
responsibility and fall within the USCG's jurisdiction, but we added
this statement to ensure that there is no ambiguity between MMS and
USCG requirements.
[sbull] Hazardous spills--Current regulations do not specifically
address reporting of hazardous spills. MMS is interested in these
incidents as they relate to the safety of OCS operations and protection
of the environment but does not have direct jurisdiction or expertise
over hazardous substances. MMS is able to get initial reports from the
NRC for incidents involving these substances. Therefore, this proposed
rule reminds lessees/operators that all hazardous spills must be
reported to the NRC as currently required by Environmental Protection
Agency (EPA) regulations.
Incident type that is addressed in the current regulation, but not
in this NPR.
[sbull] Serious accidents--The current regulation requires
reporting of all serious accidents but does not define this term. We
wrote this proposed rule to provide more specific reporting definitions
and thresholds. We believe that these definitions and thresholds
encompass the incidents that MMS would consider serious. Therefore, the
general category of serious incidents is no longer needed, and we have
not included it in the proposed rule.
The following table compares the reporting thresholds in current
regulations with the ones that are proposed.
Reporting Thresholds of MMS Proposed and Current Regulations
------------------------------------------------------------------------
MMS proposed rule MMS current regulations
------------------------------------------------------------------------
Sec. 250.188(a)(1) ``Immediate'' Sec. 250.191(a)
Category
All deaths, except for deaths due to Any death.
natural causes.
Sec. 250.188(a)(4) ``Immediate'' Sec. 250.191(a)
Category
All explosions resulting in property All explosions.
damage greater than $100,000.
Sec. 250.189(a)(2) ``12-Hour''
Category.
All explosions resulting in property
damage equal to or less than $100,000.
Sec. 250.188(a)(7) ``Immediate'' Sec. 250.490(l)
Category.
All reportable releases of H2S. These Reporting required of H2S
releases are defined using the same releases, which result in a
wording as in the current MMS 15-minute time weighted
regulation at Sec. 250.490(l). average atmospheric
concentration of H2S of 20
ppm or more anywhere on the
facility.
Sec. 250.188(a)(8)-250.188(a)(10) Sec. 250.191(a)
``Immediate'' Category.
The thresholds for reporting spills Report all spills of oil or
utilize the current criteria at Sec. other liquid pollutants
254.46 and therefore are the same as according to 30 CFR Part 254.
the current MMS rule.
Sec. 250.188(a)(4) ``Immediate'' Sec. 250.191(a)
Category.
All fires resulting in property damage All fires (undefined).
greater than $100,000.
Fire is defined at Sec. 250.105 as:
`` `* * * the phenomenon of combustion
manifested in light, flame, and heat'
and has the same meaning as in API RP
14G, Third Edition, December 1, 1993.
In addition, the term `fire' as used in
this part includes incidents of
combustion involving smoke with no
visible flame''
Sec. 250.189(a)(3) and Sec.
250.189(a)(4) ``12-Hour'' Category.
[sbull] Sec. 250.189(a)(3)--All fires
(defined at Sec. 250.105) not
reported in Sec. 250.188(a) that
result in property damage equal to or
less than $100,000 but greater than
$25,000
[sbull] Sec. 250.189(a)(4)--All fires
(defined at Sec. 250.105) not
reported in Sec. 250.188(a) or Sec.
250.189(a)(3) resulting in injuries or
illnesses that involve medical
treatment beyond first aid to more than
one person
Sec. 250.189(a)(6) ``15-Day'' Category
All other fires (defined at Sec.
250.105) not reported under Sec.
250.188(a) or Sec. Sec.
250.189(a)(3)--250.189(a)(4), excluding
those completely contained in the
living quarters
Sec. 250.188(a)(3) ``Immediate'' Sec. 250.191(a)
Category.
All losses of well control.............. All blowouts (undefined).
Loss of well control is defined at Sec.
250.105 as either of the following:
[sbull] (1) Uncontrolled flow of
formation or other well fluids. The
flow may be between two or more exposed
formations or it may be at or above the
mudline. This includes uncontrolled
flow resulting from failures of either
surface or subsurface equipment or
procedures
[sbull] (2) Flow of formation or other
well fluids through a diverter
Sec. 250.188(a)(2) ``Immediate'' Sec. 250.191(a)
Category.
Injuries resulting in one or more of the Any serious injury
following:. (undefined).
[bull] Hospitalization of a person for
more than 48 hours within 5 days of the
incident;
[bull] Fractured bone (other than in a
finger, toe, or nose);
[bull] Loss of limb;
[bull] Severe hemorrhaging;
[bull] Severe damage to a muscle, nerve,
or tendon;
[bull] Damage to an internal organ; or
[bull] Evacuation to shore of three or
more people
Sec. 250.189(a)(1) ``12-Hour''
Category
[bull] Sec. 250.189(a)(1) All
incidents not reported under Sec.
250.188(a) resulting in injuries or
illnesses to more than one person that
involve either:
(i) Days away from work; or
(ii) Restricted work or job transfer
Sec. 250.189(a)(5) ``15-Day'' Category
All incidents not reported under Sec.
250.188(a) or paragraph Sec. Sec.
250.189(a)(1)-250.189(a)(4) resulting
in an injury or illness to one person
that involves either:
[[Page 40592]]
(i) Days away from work; or
(ii) Restricted work or job transfer
Sec. 250.188(a)(5) ``Immediate'' Not addressed in current MMS
Category. regulations
All collisions resulting in property
damage greater than $100,000
Collision is defined at Sec. 250.105
as the striking of:
(1) an ``OCS facility'' by a ``vessel''
or helicopter; or
(2) two ``vessels'' together where at
least one is engaged in OCS activities,
regardless of whether one or both
``vessels'' are in motion
Sec. 250.189(a)(3) ``12-Hour''
Category
All collisions not reported in Sec.
250.189(a)(3) that result in property
damage equal to or less than $100,000
but greater than $25,000
Sec. 250.188(a)(4) ``Immediate''
Category
All incidents resulting in property
damage greater than $100,000
Sec. 250.189(a)(3) ``12-Hour''
Category
All incidents resulting in property
damage greater than $25,000 but equal
to or less than $100,000
Sec. 250.189(a)(7) ``15-Day'' Category
Gas releases
Sec. 250.189(a)(8) ``15-Day'' Category
All non-weather-related incidents when
personnel muster for evacuation
Sec. 250.188(a)(6) ``Immediate''
Category
Any incident that impairs the operation
of any OCS facility's primary
firefighting or lifesaving equipment
Sec. 250.188(a)(11) ``Immediate''
Category
Vessels engaged in OCS activities that
are involved in the incidents listed in
46 CFR 4.05-(1)(a)(1) through 4.05-
(1)(a)(4)
Sec. 250.188(a)(12) ``Immediate''
Category
All releases of hazardous substances in
reportable quantities as required by
EPA regulations at 40 CFR Sec. 302.6.
Hazardous substances and reportable
quantities are listed at 40 CFR Sec.
302.4 (report to National Response
Center (NRC) only)
Sec. 250.188(c)
Nothing in this subpart relieves the
obligation for any vessel that is not
engaged in OCS activities to provide
notification and reports to the USCG as
required by 46 CFR 4.05 (report to USCG
only)
Not specifically addressed in this Sec. 250.191(a)
proposed rule. All serious accidents
(underfined).
------------------------------------------------------------------------
5. Reporting Procedures (Sec. 250.190)
Except for oil spills, current MMS regulations do not require
submission of written incident reports. Since written reports would be
required under this proposed rule, we have included procedures for the
timing, method, and format for these reports. Written reports must be
submitted electronically. We are working with the USCG to develop an
electronic reporting system that would allow lessees/operators to
submit reports to both agencies through a single point.
[sbull] ``Immediate'' Reporting Category (Sec. 250.188). This
category includes incidents that must be reported to both agencies. MMS
and the USCG have worked together to make the reporting procedures as
consistent as possible with the USCG proposed rule for these incidents.
Most incidents listed in this section require immediate oral
notification to both MMS and the USCG. This dual notification is
essential so each agency can determine what immediate response,
investigation, and coordination is needed. Written Follow-up Reports
for most incidents in this category would be required. Some Follow-up
Reports must be submitted to MMS and some to both MMS and the USCG.
Written Final Reports must be submitted to MMS for the most serious
incidents in this category.
Current USCG regulations require submission of written reports
either in a narrative form or on their existing form CG-2692. Form CG-
2692 provides some of the information that MMS needs, but not all. We
have developed a new form, MMS-142, to supplement form CG-2692. Form
MMS-142 is divided into four sections. For incidents where Follow-up
Reports must be submitted to MMS or to both agencies, submission of a
form CG-2692 and form MMS-142 (sections 1-3) is required.
We would require a complete form MMS-142 (sections 1-4) for
incidents for which you must submit a Final Report to MMS. Company
reports may be used to substitute for the Final Report if they contain
the information requested by form MMS-142.
The USCG NPR proposes a new form, CG-RMAID, to submit written
reports for fixed and floating facilities. We have not incorporated
this form for incident reporting because it is still a proposed form
subject to final USCG regulations. We may be ready to finalize our
incident reporting rule before the form CG-RMAID is approved for use.
Also, as recommended by NOSAC, MMS will continue to work with the USCG
to develop a single incident reporting form for incidents that are of
interest to both agencies. Although most of the information requested
by form MMS-142 is not duplicative of information requested by form CG-
2692, both agencies agree that a single incident reporting form will
provide more efficient data submission for the regulated community and
data collection and analysis for the agencies. Before developing a
joint incident reporting form, both MMS and the USCG would like to
consider comments we receive about the incident reporting requirements
in our respective proposed rules.
[sbull] ``12-Hour'' and ``15-Day'' Reporting Categories. Incidents
listed in Sec. Sec. 250.189(a)(1)--250.189(a)(8) are reported only to
MMS. No oral notifications are required. For incidents listed in
Sec. Sec. 250.189(a)(1)--250.189(a)(4),
[[Page 40593]]
Initial and Follow-up written reports must be submitted using the forms
CG-2692 and MMS-142 (sections 1-3). For incidents listed in Sec. Sec.
250.189(a)(5)--250.189(a)(8), a ``15-Day'' written report must be
submitted on a new MMS form, MMS-143.
The table in Sec. 250.190(a)(4) specifies the forms that must be
submitted for the various written report requirements. Forms CG-2692,
MMS-142, and MMS-143 are included in the Appendix to this proposed
rule.
A comparison between reporting procedures in the current MMS
regulation and the proposed rule is shown in the table below.
------------------------------------------------------------------------
MMS proposed rule MMS current regulations
------------------------------------------------------------------------
Who Reports
------------------------------------------------------------------------
Sec. 250.105 You--defined the same as in Sec. 250.105 You--
the current MMS regulations. defined as a lessee, the
owner or holder of
operating rights, a
designated agent of the
lessee(s), a pipeline
right-of-way holder, or
State lessee granted a
right-of-use and
easement.
Sec. 250.188(a), Sec. 250.189(a)(1)--Sec. Sec. 250.191(a), Sec.
250.189(a)(8), For these incidents, ``You 250.191(b), Sec.
must notify/submit....''. 250.490(I), and Sec.
254.46 For these
incidents, ``You must
notify/report....''
Sec. 250.188(b) Notifications and written Not addressed in current
reports made by the owner, agent, master, MMS regulations.
operator, or person in charge of a vessel
will satisfy the reporting requirements for
that vessel.
----------------------------------------------
Oral Notifications Required
------------------------------------------------------------------------
Sec. 250.188(a)(1)--Sec. 250.188(a)(6) Sec. 250.191(a)
and Sec. 250.188(a)(11) ``Immediate'' Reportable incidents
category These reportable incidents require require notification to
oral notification to the MMS District the MMS District
Supervisor. Most of these incidents would Supervisor.
also be reported to the nearest USCG Marine
Safety Office (or Marine Inspection Office
or Coast Guard Group Office).
Sec. 250.188(a)(7) ``Immediate'' category Sec. 250.490(I)
Reportable releases of H2S require oral Reportable releases of
notification to the MMS District Supervisor. H2S require notification
to MMS.
Sec. 254.188(a)(8), Sec. 254.188(a)(9), Sec. 254.46 All spills
Sec. 254.188(a)(10) ``Immediate'' category require notification to
All spills require oral notification to the the MMS Regional
MMS District Supervisor, the NRC, and/or the Supervisor, the NRC, and/
responsible party (as appropriate for the or the responsible party
incident) per Sec. 254.46. (as appropriate for the
incident).
Sec. 250.190(a)(2)(i) You must make oral Not addressed in current
notification within 24 hours and submit the regulations, except for
appropriate written reports for incidents spills of a barrel or
that are not reported, but later found to be more. Per Sec.
reportable. 254.46(b)(1): You must
Sec. 250.190(a)(2)(ii) You must make the report a spill from your
appropriate oral notifications and submit facility not originally
the appropriate reports for incidents that reported, but
have been reported, but are later found to subsequently found to be
be reportable under a different section or one barrel or more.
paragraph..
Sec. 250.188(a)(12)--``Immediate'' category Not addressed in current
These incidents require oral notification to regulations.
the NRC.
----------------------------------------------
Written Reports Required
------------------------------------------------------------------------
Sec. 250.188(a)(1)--Sec. 250.188(a)(6) Sec. 250.191(a), Sec.
and Sec. 250.188(a)(11) ``Immediate'' 250.191(b), No written
category These incidents require written reports are required for
Follow-up Reports to MMS or to the MMS and any of these incidents
USCG. that are reportable
under current MMS
regulations.
Sec. 250.188(a)(1)--Sec. 250.188(a)(4) Sec. 250.191(a), Sec.
``Immediate'' category These incidents 250.191(b), No written
require written Final Reports to MMS. reports are required for
any of these incidents
that are reportable
under current MMS
regulations.
Sec. 250.188(a)(1)--Sec. 250.188(a)(4)
``Immediate'' category These incidents
require written Final Reports to MMS.
Sec. 250.189(a)(1)--Sec. 250.189(a)(4)
``12-Hour'' category All of these incidents
require written Initial and Follow-up
Reports to MMS.
Sec. 250.189(a)(5)-- Sec. 250.189(a)(8)
category ``15-Day'' All of these incidents
require written ``15-Day'' Reports to MMS.
Sec. 250.188(a)(7) ``Immediate'' category Sec. 250.490(I) No
Reportable releases of H2S require a written written report required
Follow-up Report to MMS. for reportable releases
of H2S.
Sec. 254.188(a)(9) ``Immediate'' category Sec. 254.46(b)(2)
Written report requirements for spills are Spills of a barrel or
the same as in the current MMS regulation, more require a written
except that spills of 200 barrels or more Follow-up Report to the
require a written Final Report to MMS. Regional Supervisor,
MMS.
Sec. 250.190(b)(1) If you are submitting Not addressed in current
reports under Sec. 250.188 to fulfill USCG regulation.
requirements, you must make a written report
for each OCS facility and vessel involved in
the incident.
----------------------------------------------
Written Reporting Forms
------------------------------------------------------------------------
Sec. 250.190(a)(4)(i) ``Immediate'' Sec. 254.46(b)(2) Only
category Written reports are submitted to spills of a barrel or
MMS or to both MMS and the USCG. Follow-up more require a written
Reports to MMS require the use of forms CG- Follow-up report. No
2692 and MMS-142, Sections 1-3. Incidents particular report form
reported to the MMS under Sec. is required.
250.188(a)(11) only require submission of
the CG-2692 for the Follow-up Report.
Sec. 250.190(a)(4)(ii) ``Immediate''
category Final Report to MMS must be
submitted using the form MMS-142, Sections 1-
4.
Sec. 250.190(b)(2) Company reports may be
used for the Final Report if they include
all of the information requested by form MMS-
142.
[[Page 40594]]
Sec. 250.190(a)(4)(iii) ``12-Hour'' Initial
Reports must be submitted to MMS on Forms CG-
2692 and MMS-142, Sections 1-2.
Sec. 250.190(a)(4)(iv) ``12-Hour'' category
Follow-up Reports must be submitted to MMS
on Forms CG-2692 and MMS-142, Sections 1-3.
Sec. 250.190(a)(4)(v) ``15-Day'' category
15-Day Reports must be submitted to MMS on
Form MMS-143.
----------------------------------------------
Written Report Timing
------------------------------------------------------------------------
Sec. 250.188 (a) ``Immediate'' category Sec. 254.46(b)(2) Only
Follow-up Reports within 5 days; Final spills of a barrel or
Report within 60 days; Follow-up Report for more require a written
spills of 1 barrel or more within 15 days Follow-up report. The
after the spillage has been stopped. report is due within 15
days after the spillage
has been stopped.
Sec. 250.190(b)(3) If Final Report is
submitted within the timeframe for the
Follow-up Report, no additional reporting is
required.
Sec. Sec. 250.189(a)(1) 250.189(a)(4) ``12-
Hour'' category Initial Report within 12
hours; Follow-up Report within 5 days.
Sec. Sec. 250.189(a)(5)--250.189(a)(8)
``15-Day'' category 15-Day Report within 15
days.
----------------------------------------------
Other Requirements
------------------------------------------------------------------------
Sec. 250.190(a)(3) MMS District Supervisor Sec. 254.46(b)(2) For
may require additional information on a case- spills, the Regional
by-case basis if the District Supervisor Supervisor can require
concludes that the information is needed to additional information
determine the cause of the incident (for all if it is determined that
reported incidents). an analysis of the
response is necessary.
Sec. 250.190(a)(1) Requires electronic Not addressed in current
submission of all written reports. regulations.
Sec. 250.190(b)(1) If reports are being
submitted under Sec. 250.188 to fulfill
USCG requirements, a written report for each
OCS facility and vessel involved in the
incident is required.
------------------------------------------------------------------------
6. Incident Investigations--Proposed Sec. 250.191
The proposed revisions to this section include:
[sbull] Placement of the information about incident investigations
in a separate section;
[sbull] Removing the reference to the USCG in relation to incident
investigations;
[sbull] Removing the reference to the panel's legal advisors; and
[sbull] Removing the reference to ``no civil and criminal issues.''
The first three revisions were made in response to comments on the
previous proposed rule on ``Postlease Safety Operations,'' published on
February 13, 1998 (63 FR 7335). For additional information, please
refer to the ``Response to Comments Section.''
In the fourth revision, we propose to remove the existing version's
reference to ``no civil and criminal issues'' from this section. We
believe that the presence of this language could be misconstrued by
some as an exemption from MMS enforcement actions associated with
incidents.
The sole purpose of MMS incident investigations is to find the
facts relevant to the incident, draw conclusions from the facts with
respect to the cause, and make recommendations to prevent incidents in
the future. MMS strongly believes that the best way to accomplish this
is to conduct our investigations in a non-adversarial manner. MMS
incident investigations are not a forum for either potential plaintiffs
or potential defendants in any civil action (tort, etc.) that may arise
from the incident. However, regulatory violations may come to light as
a result of the investigation, and MMS reserves the right to pursue any
such violation according to the Outer Continental Shelf Lands Act and
the procedures in 30 CFR 250, Subpart N.
We do not anticipate that removal of this language in the
regulation will make any significant difference in the way we conduct
our incident investigations.
7. Hydrogen Sulfide--Conforming Changes to Sec. 250.490
Revisions to 30 CFR 250.490(l) are proposed so that this section
conforms to the proposed reporting requirements. They include:
[sbull] Revision of the term ``facility'' to read ``OCS facility'';
[sbull] Addition of a requirement to submit a written Follow-up
Report; and
[sbull] Clarification that notifications and reports must be made
according to Sec. Sec. 250.187 through 250.188 and Sec. 250.190.
8. Oil Spills--Conforming Changes to Sec. 254.46
Revisions to 30 CFR 254.46 are proposed so that this section
conforms to the proposed reporting requirements. They include:
[sbull] Clarification that oil spill notifications must be made to
the appropriate MMS ``District'' Supervisor rather than the MMS
``Regional'' Supervisor;
[sbull] Addition of a requirement to submit a written Final Report
for spills of 200 barrels or more; and
[sbull] Clarification that notifications and reports must be made
according to Sec. Sec. 250.187 through 250.188 and Sec. 250.190.
Request for Comments on Issues Related to the Proposed Rule
In addition to comments on the proposed rule, we specifically
solicit comments on the following questions:
1. Should MMS require operators to submit information on the total
number of hours worked by their employees and contractors offshore? If
so, what recommendations do you have for MMS collecting the data, and
how can we minimize the collection burden?
The Bureau of Labor Statistics uses a formula based on the total
number of hours worked to normalize injury/illness data and calculate
incident rates. MMS currently does not require ``collection of hours
worked'' information for offshore workers and, therefore, cannot
normalize the raw injury data we receive to produce comparable rates
for the OCS. Through the voluntary joint Government/industry OCS
Performance Measures Program, MMS does receive total hours worked for
company employees and
[[Page 40595]]
contractors (about \2/3\ of all OCS operators participated in 1998).
From these data, we are able to calculate rates for the data submitted.
Receiving information on hours worked from all OCS operators would
allow MMS to produce normalized injury/illness analyses and trend data
for all injury incidents reported to MMS.
2. What kind of information should MMS collect about contractor
performance on the OCS?
According to 1998 OCS Performance Measures data, contractors
represented about 80 percent of the total hours worked on the OCS and
were involved in over 80 percent of the recordable and lost workday
injury and illness cases. Gathering and analyzing data specific to
contractors and contract operations might provide insight to operators,
contractors, and MMS about ways to decrease injuries to contractors and
enhance the safety of contract operations.
3. What specific incident data analyses could MMS publish to help
lessees/operators enhance the safety of their operations?
MMS intends to provide OCS lessees, operators, and others with the
most useful incident data analyses possible. Are there specific
analyses that would be particularly helpful to the industry or other
regulators in preventing incidents and promoting safety?
4. What kind of electronic reporting methods are most accessible to
you as an OCS lessee/operator? What recommendations do you have for
developing an electronic system?
Response to Comments On the February 13, 1998, Proposed Rule
The table below lists the several comments (by organization) we
received about incident reporting requirements in response to the
February 13, 1998, proposed rule on ``Postlease Operations Safety.''
The ``MMS Response'' column provides our response with respect to this
proposed rule. Letters from Chevron, Independent Petroleum Association
of America, National Ocean Industries Association, and Shell Offshore
Inc., indicated that they supported the comments submitted jointly by
the API/Offshore Operators Committee.
----------------------------------------------------------------------------------------------------------------
Previous proposed rule
section Comment Rationale MMS response
----------------------------------------------------------------------------------------------------------------
Trustees for Alaska
----------------------------------------------------------------------------------------------------------------
Sec. 250.20(a)............. We support the requirement A requirement for written
for written accident reports is included
reports (Sec. 250.188-190).
------------------------------
Sec. 250.20................ We encourage the MMS to Offshore operators should MMS and the USCG
revise the accident not be required to report participated in the
reporting requirements incidents using two NOSAC Subcommittee and
that are being discussed different forms to two subsequently worked
by the USCG National separate Federal together to develop this
Offshore Safety Advisory Agencies. In addition, MMS proposed rule. The
Committee Subcommittee the definition of fire is reporting requirements
which includes MMS still an issue of in this MMS proposed
members. confusion between regulation are as
operations, and an consistent as possible
explanation may be with the requirements in
appropriate in the the USCG's proposed
regulations. rule, so that the USCG
will be able to allow
reporting under the MMS
regulation for incidents
where both agencies have
mutual interest and
responsibility. The
requirement to submit
written reports
electronically would
allow reports submitted
through a single point
to satisfy the
requirements of both
agencies.
While proposing the use
of an MMS form in
conjunction with form CG-
2692, most of the
information on the MMS
form is not duplicative
of information requested
on form CG-2692. MMS and
the USCG agree that a
joint incident form
would be beneficial to
both the industry and
our agencies. We will
continue to work on
developing one.
A definition and
reporting thresholds for
fires are included (Sec.
250.105 and Sec.
250.187-190).
------------------------------
[[Page 40596]]
International Association of Drilling Contractors
----------------------------------------------------------------------------------------------------------------
Sec. 250.20................ We note that the preamble Incident reporting
indicates that ``MMS will definitions and
provide more guidance on thresholds are included
thresholds for fires, and to specify what we are
factors that impair proposing so you can
safety, through Notices examine and comment on
to Lessees.'' While we the potential reporting
concur that additional burden (Sec. 250.105
guidance should be and Sec. 250.187-190).
provided, we are
concerned that the
reporting burden may be
substantially altered in
this manner without
appropriate review and
accounting under the
provisions of the
Paperwork Reduction Act.
Sec. 250.20(a)............. We are opposed to Sec. Much of the information MMS and the USCG have
250.20 as proposed. We required by MMS is worked to develop
are not fundamentally already required by the reporting requirements
opposed to MMS requiring Coast Guard under 33 CFR in this MMS proposed
the collection and 146 (casualties) or 33 rule that are as
reporting of this CFR 151 (oil spills). consistent as possible
information; however, we Such duplicative with the USCG proposed
are opposed to both the reporting requirements rule for incidents where
MMS and the USCG are contrary to the both agencies have
requiring collection and Presidential Statement of mutual interest and
reporting of duplicative Regulatory Philosophy and responsibility. The
information. Principles as set forth electronic reporting
in Executive Order 12866. proposed in this MMS
It is particularly proposed rule would
perplexing that the MMS allow reports submitted
is proposing new through a single point
information collection to satisfy the
requirements with respect requirements of both
to casualties at a time agencies.
when the Coast Guard has
already announced a
rewrite of its
regulations in 33 CFR 146.
After twenty years of While this MMS proposed
joint jurisdiction it is rule proposes the use of
time for the two agencies an MMS form in
to coordinate their conjunction with form CG-
activities and develop 2692, most of the
procedures for inter- information on the MMS
Agency exchange of form is not duplicative
information rather than of information requested
require duplicative on form CG-2692. MMS and
reports. the USCG agree that a
joint incident form
would be beneficial to
both the industry and
our agencies. We will
continue to work on
developing one (Sec.
250.105 and Sec.
250.187-190).
Sec. 250.20................ For the sake of clarity we While there is certainly a We made the recommended
would suggest that the linkage between MMS (or change. Information on
provisions regarding the Coast Guard) conducting
investigations be placed receiving information investigations is in a
in a separate paragraph. regarding major fires, separate section (Sec.
major oil spillage, death 250.191).
or serious injury and
their mandate to conduct
an investigation and make
a public report, both
Agencies are authorized,
on their own discretion,
to investigate lesser
incidents, reportable or
not. This could be made
clearer if the
regulations regarding
investigations were not
included within the
provisions on reporting.
------------------------------
[[Page 40597]]
American Petroleum Institute/Offshore Operators Committee
----------------------------------------------------------------------------------------------------------------
Sec. 250.20................ Except for requirements to Definitions of accidents MMS and the USCG
report oil spills, delete are inconsistent with participated in the
all other reporting those used in SEMP (NTL NOSAC Subcommittee. In
requirements and 98-6N) and those required response to the
incorporate by the USCG for similar subcommittee's
recommendations of the incidents. These proposed recommendations, the two
USCG NOSAC Incident regulations in many cases agencies have worked to
Reporting Subcommittee duplicate reporting make the proposed
established on April 22, requirements of the reporting requirements
1998, consisting of MMS, United States Coast as consistent as
USCG and industry Guard. At a meeting of possible with those in
personnel. NOSAC in Washington on the USCG's proposed rule
April 22, 1998, a for incidents that are
Subcommittee was of interest to both
established to review and agencies. The electronic
recommend changes to reporting would allow
improve the process of reports submitted at a
defining and reporting single point to satisfy
incidents to the MMS and the requirements of both
the USCG. This effort was agencies.
endorsed by Carolita
Kallaur, Associate
Director for Offshore
Minerals Management.
Recommendations will be
completed by October 1998.
Significant administrative Most of the information
burden would be added to requested in the MMS
all operators if this form is not duplicative
proposed regulation was of the information
implemented. This would requested in form CG-
be the most expedient 2692. We will continue
method to resolve this to work with the USCG on
issue and avoid OMB and developing a joint
other intervention in incident reporting form
adding this (Sec. 250.105 and Sec.
administrative burden to 250.187-190).
operators and contractors.
Sec. 250.20(a)............. Industry has expressed To avoid uncertainty, the Definitions and
concerns to the MMS that rule should include the thresholds are included
``fires'' needs to be definition, especially so that operators/
better defined since when the MMS is planning lessees can comment on
industry has confusion on to use fires as one of what is proposed,
what needs to be the criteria included including fires (Sec.
reported. We recommend with the disqualification 250.105 and Sec.
that the MMS include a procedures found in this 250.187-190).
description or definition proposed rule in Section
for what a fire is and 250.12. The preamble
what types of fires they states that more guidance
expect to receive in the will be given in an NTL.
reports. We prefer that the
language be included in a
rule.
Sec. 250.20(a)............. MMS should include MMS should respect the We did not make the
language that allows the confidentiality and recommended change. MMS
Operator to submit this sensitivity of protects proprietary
information marked information marked information submitted by
``Confidential'' and the ``Confidential'' as they lessees and operators to
MMS to maintain it in do with other information protect their
such a way without they receive from competitive interests.
divulging the details operators. Information that might
that may be involved in be involved in legal
legal action. action at some unknown
time in the future can
only be protected it if
falls within one of the
exceptions to the
Freedom of Information
Act and Privacy Act
(Sec. 250.191).
Sec. 250.20(a)(1).......... We recommend that this It would be impossible for We included recommended
subsection qualify that a pipeline right-of-way changes in Sec.
the operation must be owner to be aware of any 250.191(b) of the final
related to the exercise accidents which might rule for Subpart A,
of the easement, right-of- happen to occur within Postlease Operations
way, or other permit. the pipeline right-of-way Safety (64 FR 72756,
corridor which did not December 28, 1999).
directly influence or Similar language is
impact the exercise of included at Sec.
the right-of-way itself. 250.187(a) in this
proposed rule.
Sec. 250.20(a)(2).......... We recommend that the The cited portions of the We included recommended
final rule qualify the OCS Lands Act specify changes in Sec.
investigative authority that either the Secretary 250.191(c) of the final
so that it is not of the U.S. Coast Guard rule for Subpart A,
exercised by both the may institute Postlease Operations
Department of investigations, but not Safety (64 FR 72756,
Transportation's United both. This limitation December 28, 1999).
States Coast Guard, and must be contained in the
the Department of regulations in order for
Interior's MMS. them to be lawful.
[[Page 40598]]
However, in this proposed
rule, we deleted the
reference to the USCG
because procedures
outlined in Sec.
250.191 apply only to
MMS investigations. The
MOU between MMS and the
USCG,, signed on
December 16, 1998,
outlines how the two
agencies will coordinate
their incident
investigation activities
conducted under the
authority of the OCS
Lands Act, as amended
(43 U.S.C. 1331 et seq.)
(Sec. 250.191).
Sec. 250.20(a)(2).......... We recommend that [sic] This provision violates We did not make the
the striking of the the provisions of Section proposed changes.
provision which only 22(f) of the OCS Lands Incident investigations
allows panel members and Act which requires that are fact-finding
panel experts to address the production of proceedings without
questions to the person documents and the adverse parties. The
giving testimony. handling of testimony and purpose of the
witnesses be analogous to investigation is to
the Federal Rules of prepare a public report
Civil Procedures. The that determines the
Federal Rules Of Civil cause of the incident.
Procedures give the party Persons who are not
at risk for citation the panel members or panel
opportunity to experts may have
participate in interests other than
questioning of witnesses finding the cause of the
in the course of any incident. Allowing them
hearing. to question the person
giving testimony could
easily lead to an
adversarial proceeding.
However, in response to
the comment, we have
deleted the reference to
the panel's legal
advisors as being one of
the categories of people
who can question the
person giving testimony
(Sec. 250.191(b)). As
noted earlier in the
Preamble, we also
propose to remove the
reference to civil or
criminal issues (Sec.
250.191). That proposed
deletion does not change
MMS's commitment to
conduct investigations
as fact-finding
proceedings in a non-
adversarial manner.
However, MMS does retain
its right to pursue any
regulatory violations
that may come to light
as a result of the
incident investigation
in a separate penalty
proceeding. Procedural
safeguards to alleviate
the commenters' concerns
are already incorporated
into MMS regulations
(see 30 CFR 250, Subpart
N).
----------------------------------------------------------------------------------------------------------------
Appendices
The following appendices will not appear in the Code of Federal
Regulations. Appendix A is included for reference. We solicit your
comments on the new MMS forms in Appendices B and C.
Appendix A--U.S. Coast Guard Form CG-2692, ``Report of Marine Accident,
Injury or Death''
Appendix B--Department of the Interior Form MMS 142, ``Report of OCS
Incident--Immediate and 12 Hour''
Appendix C--Department of the Interior Form MMS-143, ``Report of OCS
Incident--15 Day''
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[[Page 40609]]
Procedural Matters
Public Comments Procedures
Our practice is to make comments, including the names and home
addresses of respondents, available for public review during regular
business hours. Individual respondents may request that we withhold
their home address from the rulemaking record, which we will honor to
the extent allowable by law. There may be circumstances in which we
would withhold from the rulemaking record a respondent's identity, as
allowable by the law. If you wish us to withhold your name and/or
address, you must state this prominently at the beginning of your
comment. However, we will not consider anonymous comments. We will make
all submissions from organizations or businesses, and from individuals
identifying themselves as representatives or officials of organizations
or businesses, available for public inspection in their entirety.
Regulatory Planning and Review (Executive Order 12866)
According to the criteria in Executive Order 12866, this rule is
not a significant regulatory action.
(1) This proposed rule will not have an annual economic effect of
$100 million or adversely affect an economic sector, productivity,
jobs, the environment, or other units of government. A cost-benefit and
economic analysis is not required. Current incident reporting
regulations require that MMS be notified of certain types of incidents.
This proposed rule revises these requirements by providing more
specific definitions and thresholds for which incidents must be
reported and by requiring submission of written incident reports. It
provides more consistency with USCG reporting requirements for
incidents where the two agencies have mutual interest and
responsibility. Written reports must be submitted electronically. MMS
and the USCG continue to work on changes to their procedures that would
allow a report to be sent to both agencies in one submission. The
proposed rule will have an economic effect, but it is much less than
$100 million per year. Costs to comply with this proposed rule involve
the cost of making the appropriate notifications and reports. These
costs include some one-time set-up costs that we have estimated at
$491,000 and an annual incremental reporting cost for making the oral
notifications and submitting the written reports over and above the
annual reporting cost in the current MMS regulations. The annual
incremental reporting cost is estimated at $64,512. These costs are
explained in the following Regulatory Flexibility Act section.
(2) This proposed rule will not create inconsistencies with other
agencies' actions. The only agency affected is the USCG. As noted, MMS
and the USCG have worked together on this proposed rule to minimize
incident reporting inconsistencies between the two agencies and are
working to develop a single point electronic reporting system to
streamline the reporting process between the two agencies.
(3) This proposed rule will not materially affect entitlements,
grants, user fees, loan programs, or the rights and obligations of
their recipients. It only deals with incident reporting requirements
for OCS lessees/operators and pipeline right-of-way holders.
(4) This proposed rule will not raise novel legal or policy issues.
MMS worked with the USCG to make the requirements as consistent as
possible with their requirements and is working with them to develop an
electronic reporting system that would allow written reports to be
submitted through a single point to both agencies. This proposed rule
does have a unique feature--it lists USCG reporting requirements for
incidents where both agencies have mutual interest and responsibility.
We included the USCG requirements so that both MMS and USCG
requirements for these incidents can be found in one location. However,
this is an MMS proposed rule. It does not require reporting to the
USCG. Those requirements are found in the USCG regulations. The USCG
will also need to take some action that allows the appropriate segments
of their regulated community to report incidents electronically
according to the MMS regulation.
We will work closely with the USCG as we review the comments to the
proposed rule and finalize the incident reporting regulation. As a
result of this continued coordination, we anticipate that at an
appropriate time, the USCG will issue a regulation, or other
appropriate notice, that describes how electronic reporting under the
MMS regulation can be used to satisfy USCG requirements. Once the USCG
has issued this notice, submission of the required incident reports
through the electronic system should satisfy both MMS and USCG
requirements for incidents when both agencies have a mutual interest
and responsibility. This should provide for continued coordination
between the two agencies, while allowing each agency the flexibility to
exercise its statutory responsibilities.
Regulatory Flexibility (RF) Act
The Department of the Interior certifies that this proposed rule
will not have a significant economic effect on a substantial number of
small entities as defined under the RF Act (5 U.S.C. 601 et seq.). An
RF analysis is not required. Accordingly, a Small Entity Compliance
Guide is not required.
This rule applies to all lessees/operators and pipeline right-of-
way holders operating on the OCS. Lessees/operators fall under the
Small Business Administration's North American Industry Classification
System (NAICS) code 211111, Crude Petroleum and Natural Gas Extraction.
Under this NAICS code, companies with less than 500 employees are
considered small businesses. MMS estimates that 130 lessees/operators
explore for and produce oil and gas on the OCS; approximately 70
percent of them (91 companies) fall into the small business category.
A pipeline company (non-producer) is a small entity if it is a
liquid pipeline company with fewer than 1,500 employees, or a natural
gas pipeline company with gross annual receipts of $25 million or less.
MMS's database indicates that there are 88 pipeline right-of-way
holders who do not own an interest in any oil and gas leases on the
OCS. Fifty-seven of these companies are either major energy companies
(large oil and gas or pipeline transmission companies), or wholly owned
subsidiaries of these companies. Another 13 entities were either formed
by partnerships among major producers and transporters or have ``arms-
length'' contractual relationships with several major producers on the
OCS for which they provide transportation services. It is our
understanding that in such relationships one of the major partners
usually serves as the ``managing partner'' of the entity so that the
entity (whether a partnership or a corporation) is not actually
independent in the usual sense. The remaining 18 entities could be
categorized as small independent pipeline companies in the sense that
they provide transportation services for several non-major oil or gas
producers with which they have an ``arms-length'' but symbiotic
business relationship. These companies are represented by NAICS code
213112, ``Support Activities for Oil and Gas Operations.''
Thus, there are 218 companies affected by this proposed rule, of
which 109 would be considered small businesses. The costs to comply
with the reporting requirements proposed in
[[Page 40610]]
this rule include: (1) some one-time set-up costs and, (2) an annual
incremental reporting cost for making the required notifications and
written reports over and above the reporting cost in the current MMS
regulation. This proposed rule does not include any recordkeeping
requirements.
This proposed rule will affect both small and large businesses. All
companies, large and small, will incur some one-time costs to modify
their incident reporting systems to incorporate the new requirements.
And all companies, both large and small, will have to notify MMS and
submit the appropriate reports when they have an incident on the OCS
that falls within the scope of the regulation.
Although 109 of these companies are technically small, we believe
that only those small businesses that do not have adequate computer
equipment (one-time set-up costs) or Internet/email access (annual
cost) at the location from where they will initiate or submit their
written reports will incur some extra costs. We estimate that only 5
percent of the small companies (or 11 companies) would incur these
costs. These 11 companies might incur $5,000 per company for one-time
set-up costs and $360 per company for annual Internet/email
maintenance. The estimated cost to be paid only by the 11 small
companies compared to the estimated total cost for all companies is
shown below. These costs are based on the portion of the costs that are
over and above costs of the current regulations.
------------------------------------------------------------------------
Total cost
that would be
Cost type Total cost to paid only by
all companies 11 small
companies
------------------------------------------------------------------------
Total One Time Set-Up Costs............. $491,000 $55,000
=================
Annual Costs:
Internet/Email Cost............. 3,960 3,960
Incremental Cost of Notification 60,552 0
and submission of Reports......
Total Annual Incremental 64,512 3,960
Costs......................
------------------------------------------------------------------------
Your comments are important. The Small Business and Agriculture
Regulatory Enforcement Ombudsman and 10 Regional Fairness boards were
established to receive comments from small businesses about Federal
agency enforcement actions. The Ombudsman will annually evaluate the
enforcement activities and rate each agency's responsiveness to small
business. If you wish to comment on the enforcement actions of MMS,
call toll-free (888) 734-3247.
Small Business Regulatory Enforcement Fairness Act (SBREFA)
This proposed rule is not a major rule under 5 U.S.C. 804(2), the
SBREFA. This rule:
(1) Does not have an annual effect on the economy of $100 million
or more. Costs to comply with these revisions involve some one-time
set-up costs and an annual incremental reporting cost (for making the
oral notifications and submitting written reports) over and above the
cost in the current MMS regulations. The total set-up costs were
estimated at $491,000. The incremental annual reporting costs were
estimated at $64,512.
(2) Will not cause a major increase in costs or prices for
consumers, individual industries, federal, state, or local government
agencies, or geographic regions. The minor costs involved in complying
with the revised MMS reporting requirements will not change the way the
oil and gas industry conducts business, nor will it affect regional oil
and gas prices. Therefore, it will not cause major cost increases for
consumers, the oil and gas industry, or any government agencies.
(3) Does not have significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
United States based enterprises to compete with foreign-based
enterprises. All lessees/operators and pipeline right-of-way holders,
regardless of nationality, will have to comply with the reporting
requirements of this rule. The rule will not affect competition,
employment, investment, productivity, innovation, or the ability of the
United States-based enterprises to compete with foreign-based
enterprises.
Paperwork Reduction Act (PRA) of 1995
The proposed rule requires information collection. According to
section 3507(d) of the PRA we have submitted an information collection
request (ICR) (form OMB 83-I) to the OMB for review and approval of the
proposed MMS reporting requirements.
The title of the MMS ICR for the proposed rule is ``Proposed
Rulemaking--30 CFR 250, Subpart A--Incident Reporting Requirements.''
Potential respondents are approximately 130 Federal OCS lessees and
operators, and 88 pipeline right-of-way holders who do not own an
interest in any oil and gas leases on the OCS. Responses are mandatory.
This collection of information does not include proprietary information
and, for MMS reporting purposes, does not include questions of a
sensitive nature.
It should be noted that the proposed rule does refer to, but does
not require, reporting to the USCG on form CG-2692. OMB has approved
the USCG form CG-2692 information collection requirements under OMB
Control Number 2115-0003, with a current expiration date of January 31,
2005. To avoid duplicate reporting requirements as much as possible,
the proposed rule allows respondents to use form CG-2692 to report
certain incidents to MMS. Respondents would submit the form
electronically to provide simultaneous transmission to both MMS and
USCG. Our ICR to OMB includes the burden for completing this form when
it is required by MMS. Although this might result in a small double
counting of the burden hours, it would be very insignificant. The USCG
estimates receiving 7,000 CG-2692/2692A forms each year, and we
estimate only 124 of those 7,000 forms would apply to MMS reporting
requirements.
As explained earlier in the preamble, the CG-2692 form does not
cover all of the incidents pertinent to MMS nor does it contain certain
information that MMS needs. Therefore, we are proposing two new MMS
forms that would be submitted only to MMS. The forms are designed to
avoid, to the extent possible, duplicating information captured on form
CG-2692. The proposed new forms are:
Form MMS-142, Report of OCS Incident (Immediate and 12 Hour)
Form MMS-143, Report of OCS Incident (15 Day)
[[Page 40611]]
It also should be noted that the proposed rule does allow
respondents to submit copies of internal reports in lieu of form MMS-
142 as their ``final report,'' if the company report covers all of the
required information.
Hour Burden
The information collected on form CG-2692 and the new MMS forms
expand and add to the currently approved notification and reporting
requirements in 30 CFR 250.191 on accidents (994 burden hours), Sec.
250.490 on H2S releases (26 burden hours), and 30 CFR 254.46
on oil spills (59 burden hours). We would reduce the respective
reporting burdens for requirements in those sections in conjunction
with final regulations becoming effective. The ICR submitted to OMB for
this proposed rulemaking covers the total estimated burden for MMS
reporting requirements. There are no proposed recordkeeping
requirements. The following chart summarizes the estimated hour burden
(column 4 has been rounded to the nearest hour) of the proposed rule.
----------------------------------------------------------------------------------------------------------------
Estimated
number of Estimated hour Annual hour Annual hour
Reporting requirement notices or burden (rounded) burden cost @
reports per calculated in burden $50/hour
year minutes
----------------------------------------------------------------------------------------------------------------
Oral notification of incident................... 142 10 24 $1,200
``Immediate'' Category Follow-up Report using 124 220 455 22,750
form CG-2692 and MMS-142, Sections 1-3.........
``Immediate'' Category Final Report using form 65 160 173 8,650
MMS-142, Sections 1-4 (or company report)......
``12-Hour'' Category Initial Report using form 89 145 215 10,750
CG-2692 and MMS-142, Sections 1-2..............
``12-Hour'' Category Follow-up Report using form 89 115 171 8,550
MMS-142, Sections 1-3..........................
``15-Day'' Category Report using form MMS-143... 750 85 1,063 53,150
Submit additional information for clarification 186 60 186 9,300
when requested by MMS..........................
-----------------
Totals...................................... 1,445 .............. 2,287 *114,350
----------------------------------------------------------------------------------------------------------------
*Due to ``rounding'' of hours, this cost is slightly lower than costs shown in other sections which were
calculated in fractions of hours. OMB requires ICRs to be submitted in whole hours.
Non-Hour Cost Burden
As discussed in previous sections of the Preamble, in order to
submit reports electronically, all companies may experience some one-
time set-up costs. A few of the smaller companies may incur additional
set-up costs and new annual Internet/email access costs.
Most companies already have reporting and data-gathering systems to
investigate and report incidents internally. Most also have systems and
procedures in place to notify MMS and the USCG of incidents and to
submit required USCG written reports. These established systems may
need to be modified and personnel trained to address the change in
reporting thresholds and new MMS written report requirements. We
estimate this may take 40 hours per company. At a cost of $50 per hour,
the total cost for the 218 companies is estimated at $436,000 for one-
time set-up costs.
Some of the approximately 109 small entities affected by the
proposed rule may need to purchase additional computer equipment with
Internet access at the location from where they will initiate or submit
written reports. We estimate about 5 percent (11 companies) may
experience an additional one-time investment of approximately $5,000
for a total of $55,000 that would not be a ``usual and customary''
business expense for these companies.
These same 11 companies would also incur a monthly Internet/email
account expense of approximately $30 per month or $360 per year/company
for a total recurring annual operation and maintenance cost of $3,960.
PRA Comments
As part of our continuing effort to reduce paperwork and respondent
burdens, MMS invites the public and other Federal agencies to comment
on any aspect of the reporting burden in the proposed rule. You may
submit your comments directly to the Office of Information and
Regulatory Affairs, OMB. Send a copy of your comments to MMS. Refer to
the ``Addresses'' section for mailing instructions. MMS will summarize
written comments and address them in the final rule preamble. The PRA
provides that an agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless it displays
a currently valid OMB control number. OMB is required to make a
decision concerning the collection of information contained in these
proposed regulations between 30 to 60 days after publication of this
document in the Federal Register. Therefore, a comment to OMB is best
assured of having its full effect if OMB receives it by August 7, 2003.
This does not affect the deadline for the public to comment to MMS on
the proposed regulations.
a. We specifically solicit comments on the following questions:
(1) Is the proposed collection of information necessary for MMS to
properly perform its functions, and will it be useful?
(2) Are the estimates of the burden hours of the proposed
collection reasonable?
(3) Do you have any suggestions that would enhance the quality,
clarity, or usefulness of the information to be collected?
(4) Is there a way to minimize the information collection burden on
those who are to respond, including the use of appropriate automated
electronic, mechanical, or other forms of information technology?
b. In addition, the PRA requires agencies to estimate the total
annual reporting and recordkeeping ``non-hour cost'' burden resulting
from the collection of information. We solicit your comments on this
item, including the accuracy of our estimates previously discussed or
any others we have not identified. For reporting and recordkeeping
only, your response should split the cost estimate into two components:
(1) the total capital and start-up cost component and, (2) annual
operation, maintenance, and purchase of services component. Your
estimates should consider the costs to generate, maintain, and disclose
or provide the information. You should describe the methods you use to
estimate major cost factors, including system and
[[Page 40612]]
technology acquisition, expected useful life of capital equipment,
discount rate(s), and the period over which you incur costs. Generally,
your estimates should not include equipment or services purchased:
before October 1, 1995; to comply with requirements not associated with
the information collection; for reasons other than to provide
information or keep records for the Government; or as part of customary
and usual business or private practice.
Federalism (Executive Order 13132)
According to Executive Order 13132, this rule does not have
Federalism implications. It does not substantially and directly affect
the relationship between the Federal and State governments. This rule
applies to lessees/operators and pipeline right-of way holders on the
OCS. It does not impose costs on States or localities. Any costs will
be the responsibility of the lessees/operators and pipeline right-of
way holders.
Takings Implication Assessment (Executive Order 12630)
According to Executive Order 12630, this proposed rule does not
have significant Takings implications. A Takings Implication Assessment
is not required. This rule revises existing incident reporting
regulations. It does not prevent any lessee, operator, or pipeline
right-of-way holder from performing operations on the OCS, provided
they follow the regulations.
Civil Justice Reform (Executive Order 12988)
According to Executive Order 12988, the Office of the Solicitor has
determined that this rule does not unduly burden the judicial system
and does meet the requirements of sections 3(a) and 3(b)(2) of the
Order.
National Environmental Policy Act of 1969
This rule does not constitute a major Federal action significantly
affecting the quality of the human environment. An environmental
assessment is not required. This rule only revises reporting
requirements for incidents on the OCS through oral notification and
electronic submission of written reports. It does not require, promote,
or modify the conduct of operations or activities on the OCS.
Unfunded Mandates Reform Act (UMRA)
According to the UMRA (2 U.S.C. 1501 et seq.):
(1) This rule will not ``significantly or uniquely'' affect small
governments. A Small Government Agency Plan is not required. This rule
revises reporting regulations for oil and gas operations and does not
involve the activities of any small governments, so no small
governments are affected.
(2) This rule will not produce a Federal mandate of $100 million or
greater in any year, i.e., it is not a ``significant regulatory
action'' under the UMRA. This rule does not have any Federal mandates.
Government-to-Government Relationship With Tribes
According to the President's memorandum of April 29, 1994,
``Government-to-Government Relations with Native American Tribal
Governments'' (59 FR 22951) and 512 DM 2, we have evaluated potential
effects on federally recognized Indian tribes and have determined that
there are no potential effects because the OCS operating regulations
have no effect on any Indian tribe.
Clarity of the Regulation
Executive Order 12866 requires each agency to write regulations
that are easy to understand. We invite your comments on how to make
this proposed rule easier to understand, including answers to
questions, such as the following:
(1) Are the requirements in the proposed rule clearly stated?
(2) Does the proposed rule contain technical language or jargon
that interfere with its clarity?
(3) Is the description in the Supplementary Information section of
this preamble helpful in understanding the proposed rule? What else can
we do to make it easier to understand?
Send a copy of any comments that concern how we could make this
proposed rule easier to understand to: Office of Regulatory Affairs,
Department of the Interior, Room 7229, 1849 C Street, NW., Washington,
DC 20240. You may also e-mail the comments to this address:
Exsec@ios.doi.gov.
List of Subjects
30 CFR Part 250
Continental shelf; Environmental impact statements; Environmental
protection; Government contracts; 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 development and production; Sulphur exploration;
Surety bonds.
30 CFR Part 254
Continental shelf; Environmental protection; Oil and gas
development and production; Oil and gas exploration; Pipelines; Public
lands--mineral resources; Public lands--rights-of-way; Reporting and
recordkeeping requirements.
Dated: May 21, 2003.
Rebecca W. Watson,
Assistant Secretary, Land and Minerals Management.
For the reasons stated in the preamble, the MMS proposes to amend
30 CFR Part 250 and Part 254 as follows:
PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
1. The authority citation for 30 CFR Part 250 continues to read as
follows:
Authority: 43 U.S.C. 1331 et seq.
2. In Sec. 250.105 the following definitions are added in
alphabetical order:
Sec. 250.105 Definitions
* * * * *
Collision means the striking of:
(1) An OCS facility by a vessel or helicopter; or
(2) Two vessels together where at least one is engaged in OCS
activities, regardless of whether one or both vessels are in motion.
* * * * *
Fire means the phenomenon of combustion manifested in light, flame,
and heat and has the same meaning as in the American Petroleum
Institute, Recommended Practice 14G, Third Edition, December 1, 1993.
In addition, the term fire as used in this part includes incidents of
combustion that involve smoke with no visible flame.
Gas release means any unintentional release of gas at an OCS
facility that could, without corrective action, raise hydrocarbon or
other gas concentrations to the lower flammable (explosive) limit. Gas
releases do not include events where gas is successfully released
through the vent or flare system.
* * * * *
Incident means an accident or unexpected event occurring in the
course of an OCS activity that affects or is likely to affect
operational safety or environmental protection. ``Incident'' includes
the term ``casualty'' and ``marine casualty'' used in United States
Coast Guard (USCG) regulations.
* * * * *
Loss of well control means either of the following:
(1) Uncontrolled flow of formation or other well fluids. The flow
may be
[[Page 40613]]
between two or more exposed formations or it may be at or above the
mudline. This includes uncontrolled flow resulting from failures of
either surface or subsurface equipment or procedures.
(2) Flow of formation or other well fluids through a diverter.
* * * * *
Mobile Offshore Drilling Unit (MODU) means a vessel, other than a
public vessel of the United States, that is capable of engaging in
drilling operations for exploration or exploitation of subsea
resources.
* * * * *
OCS activity means any activity on the OCS associated with
exploration, development, production, transporting, or processing of
OCS mineral resources, including but not limited to, oil and gas.
OCS facility means any artificial island, installation, pipeline,
or other device permanently or temporarily attached to the seabed,
erected for the purpose of exploring for, developing, producing, or
transporting resources from the OCS. This term does not include ships
or vessels for transporting produced hydrocarbons. A MODU is an OCS
facility when it is located on the area covered by a lease, easement,
right-of-way, or permit and is engaged in operations related to the
exercise of rights under that lease, easement, right-of-way, or permit.
* * * * *
Property damage means the cost of labor and material to restore all
affected items, including, but not limited to, OCS facilities, vessels,
or helicopters, to their condition before the damage. Property damage
does not include the cost of salvage, cleaning, gas-freeing,
drydocking, or demurrage of an OCS facility, vessel, or helicopter.
* * * * *
Reportable releases of H2S gas means a gas release that
results in a 15-minute time-weighted average atmospheric concentration
of H2S of 20 ppm or more anywhere on the facility, as
defined in 30 CFR 250.490(l).
* * * * *
Vessel means any watercraft or other artificial contrivance used,
or capable of being used, as a means of transportation on the water.
The term ``vessel'' does not include atmospheric or pressure vessels
used for containing liquids or gases.
Vessel engaged in OCS activities means any vessel that is located
within 500 meters of an OCS facility and is engaged in any OCS
activity.
* * * * *
3. Section 250.190 is redesignated Sec. 250.186.
4. New Sec. Sec. 250.187 through 250.190 are added to read as set
forth below:
Sec. 250.187 What is the scope of the incident reporting
requirements?
(a) The reporting requirements in Sec. Sec. 250.188 through
250.190 apply to incidents that:
(1) Occur on the area covered by your lease, easement, right-of-
way, or other permit; and
(2) Are related to operations resulting from the exercise of your
rights under your lease, easement, right-of-way, or permit. This
includes incidents involving vessels engaged in OCS activities as
defined in Sec. 250.105.
(b) You may be required to report incidents described in Sec. Sec.
250.188 and 250.190 to the USCG under USCG rules. You may use the
notifications and reports that you make to MMS under those sections to
satisfy USCG incident reporting requirements if and to the extent
allowed by USCG regulations.
(c) Nothing in this subpart relieves you from making notifications
and reports of incidents that may be required by other regulatory
agencies.
Sec. 250.188 What incidents must I immediately report to MMS, USCG,
National Response Center (NRC), or the Responsible Party?
(a) After aiding the injured and stabilizing the situation, you
must immediately make the following oral notifications and written
reports for any of the incidents indicated in the following table.
----------------------------------------------------------------------------------------------------------------
And provide the following written reports to:
------------------------------------------------------
If the following incident You must make immediate Follow-up report (within 5
occurs: oral notification to: days unless otherwise Final report (within 60
specified) to: days) to:
----------------------------------------------------------------------------------------------------------------
(1) All incidents resulting MMS MMS MMS
in death, except for deaths USCG USCG
due to natural causes.
(2) All incidents involving MMS MMS MMS
injuries that result in one USCG USCG
or more of the following:.
(i) Hospitalization of a
person for more than 48
hours within 5 days of the
incident;
(ii) Fractured bone (other
than in a finger, toe, or
nose);
(iii) Loss of limb;
(iv) Severe hemorrhaging;
(v) Severe damage to a
muscle, nerve, or tendon;
(vi) Damage to an internal
organ; or
(vii) Evacuation to shore of
three or more people
(3) All losses of well MMS MMS MMS
control
(4) All fires, explosions, or MMS MMS MMS
other incidents that result USCG USCG
in property damage greater
than $100,000.
(5) All collisions resulting MMS MMS No report.
in property damage greater USCG USCG
than $100,000.
(6) Any incident that impairs MMS MMS No report.
the operation of any OCS USCG USCG
facility's primary:.
(i) Lifesaving equipment; or
(ii) Firefighting equipment.
(7) All reportable releases MMS MMS No report.
of H2S gas..
(8) All oil spills (per Sec. NRC No report No report.
254.46(a)) which includes:.
(i) A spill from your
facility;
(ii) A spill from another
offshore facility; or
(iii) An offshore spill of
unknown origin.
[[Page 40614]]
(9) Oil spills from your .......................... .......................... .........................
facility of one barrel or MMS NRC MMS Report due within 15 MMS For spills of 200
more (per Sec. 254.46(b)) days after the spillage barrels or more only.
includes: has been stopped
(i) Spills of one barrel or
more;
(ii) Spills of unknown size
but thought to be one barrel
or more; or
(iii) Spills not originally
reported, but subsequently
found to be one barrel or
more.
(10) Oil spills resulting MMS and the No report No report.
from operations at another Responsible Party
offshore facility (per Sec.
254.46(c)).
(11) Vessels engaged in OCS MMS USCG MMS USCG No report.
activities that are involved
in the incidents listed in
46 CFR 4.05-(1)(a)(1)
through 4.05-(1)(a)(4).
(12) All releases of NRC No report No report.
hazardous substances in
reportable quantities as
required by the
Environmental Protection
Agency regulations at 40 CFR
Sec. 302.6. Hazardous
Substances and reportable
quantities are listed at 40
CFR Sec. 302.4.
----------------------------------------------------------------------------------------------------------------
MMS = the appropriate Minerals Management Service District Supervisor
NRC = the National Response Center (NRC)--toll free number: 1-800-424-8802
USCG = the nearest United States Coast Guard Marine Safety Office, Marine Inspection Office, or Coast Guard
Group Office
(b) Notifications and written reports made by the owner, agent,
master, operator, or person in charge of a vessel will satisfy the
reporting requirements for that vessel.
(c) Nothing in this subpart relieves the obligation for any vessel
that is not engaged in OCS activities to provide notification and
reports to the USCG as required by 46 CFR 4.05.
Sec. 250.189 What other incidents must I report to MMS?
(a) You must submit the following written reports to MMS for any of
the incidents indicated in the following table.
----------------------------------------------------------------------------------------------------------------
Provide the following written reports:
-----------------------------------------------
If the following incident occurs: Initial report Followup 15-day report
(within 12 report (within (within 15
hours) 5 days) days)
----------------------------------------------------------------------------------------------------------------
(1) All incidents not reported under Sec. 250.188(a) resulting X X ..............
in injuries or illnesses to more than one person that involve
either:........................................................
(i) Days away from work; or
(ii) Restricted work or job transfer
(2) All explosions that result in property damage equal to or X X ..............
less than $100,000.............................................
(3) All fires, collisions, and other incidents not reported in X X ..............
Sec. 250.188(a) that result in property damage equal to or
less than $100,000 but greater than $25,000....................
(4) All fires not reported in Sec. 250.188(a) or paragraph (3) X X ..............
of this section resulting in injuries or illnesses that involve
medical treatment beyond first aid to more than one person.....
(5) All incidents not reported under Sec. 250.188(a) or .............. .............. X
paragraphs (1)-(4) of this section resulting in an injury or
illness to one person that involves either:....................
(i) Days away from work; or
(ii) Restricted work or job transfer.
(6) All other fires not reported under Sec. 250.188(a) or .............. .............. X
paragraphs (3)-(4) of this section, excluding those completely
contained in the living quarters...............................
(7) Gas Releases................................................ .............. .............. X
(8) All non-weather-related incidents when personnel muster for .............. .............. X
evacuation.....................................................
----------------------------------------------------------------------------------------------------------------
(b) To determine if an injury or illness involves ``days away from
work,'' ``restricted work or job transfer,'' or ``medical treatment
beyond first aid,'' you should use the recording criteria in the
Occupational Health and Safety Administration's regulations at 29 CFR
1904.7(b)(1)(ii), 1904.7(b)(1)(iii), and 1904.7(b)(1)(iv),
respectively.
Sec. 250.190 What reporting procedures must I follow?
(a) General procedures.
(1) You must submit all written reports electronically.
(2)(i) You must make an oral notification within 24 hours and
submit the appropriate written reports for incidents that are not
reported, but are later found to be reportable.
(ii) You must make the appropriate oral notifications and submit
the appropriate reports for incidents that have been reported but are
later found to be reportable under a different section or paragraph.
(3) MMS District Supervisor may require additional information on a
case-by-case basis, if the District Supervisor concludes that the
information is needed to determine the cause of the incident.
[[Page 40615]]
(4) You must submit written reports on the appropriate forms as
indicated in the following table.
--------------------------------------------------------------------------------------------------------------------------------------------------------
If you are reporting under and making this type of report for incidents reported to MMS or to MMS and USCG, use:
--------------------------------------------------------------------------------------------------------------------------------------------------------
(i) Sec. 250.188........................ Follow-up....................... CG-2692 and MMS-142, Sections 1-3.
(ii) Sec. 250.188....................... Final........................... MMS-142, Sections 1-4; or company reports as indicated in Sec.
250.190(b)(2).
(iii) Sec. 250.189(a)(l)-Sec. Initial......................... CG-2692 and MMS-142, Sections 1-2.
250.189(a)(4).
(iv) Sec. 250.189(a)(l)-Sec. Follow-up....................... MMS-142, Sections 1-3.
250.189(a)(4).
(v) Sec. 250.189(a)(5)-Sec. 15-Day.......................... MMS-143.
250.189(a)(8).
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: For incidents reported to the MMS and USCG under Sec. 250.188(a)(11), you need only submit a form CG-2692 for the Follow-up Report.
(b) Reporting procedures for incidents listed in Sec. 250.188.
(1) If you are submitting reports under Sec. 250.188 to fulfill
USCG requirements, you must make a written report for each OCS facility
and vessel involved in the incident.
(2) You may submit copies of company incident reports to fulfill
the Final Report requirement as long as all the information requested
by form MMS-142 is included.
(3) If you submit a Final Report within the timeframe listed for
the Follow-up Report, no additional reporting is required.
5. In Sec. 250.191, the following changes are made:
A. The section heading is revised and new introductory text is
added as set forth below.
B. Paragraphs (a), (b), and (c)(2) are removed.
C. Paragraphs (c)(1), (c)(3), and (c)(4) are redesignated
paragraphs (a), (c), and (d), respectively.
D. New paragraph (b) is added to read as set forth below.
Sec. 250.191 How does MMS conduct incident investigations?
Any investigation that MMS 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 adverse parties. The purpose of the
investigation is to prepare a public report that determines the cause
or causes of the incident. 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.
* * * * *
(b) Only panel members and any experts the panel deems necessary
may address questions to any person giving testimony.
* * * * *
6. In Sec. 250.490 the following changes are made:
A. In paragraph (l), the last word ``facility'' is revised to read
``OCS facility'.
B. Two new sentences are added to the end of the paragraph to read
as set forth below.
Sec. 250.490 Hydrogen sulfide.
* * * * *
(l) * * *You must submit a written Follow-up Report for these gas
releases. All notifications and reports required in this paragraph must
be made according to Sec. Sec. 250.187 through 250.188 and Sec.
250.190.
* * * * *
PART 254--OIL-SPILL RESPONSE REQUIREMENTS FOR FACILITIES LOCATED
SEAWARD OF THE COAST LINE
7. The authority citation for part 254 continues to read as
follows:
Authority: 33 U.S.C. 1321
8. In Sec. 254.46, the following changes are made:
A. In paragraphs (b), (b)(1), (b)(2) and (c), the word ``Regional''
is revised to read ``District''.
B. New paragraphs (b)(3) and (d) are added to read as follows:
Sec. 254.46 Whom do I notify if an oil spill occurs?
* * * * *
(b) * * *
(3) You must submit a written final report for any spill from your
facility of 200 barrels or more.
* * * * *
(d) You must make all notifications and reports required in this
section according to Sec. Sec. 250.187 through 250.188 and Sec.
250.190 of this chapter.
[FR Doc. 03-16782 Filed 7-7-03; 8:45 am]