On April 1, 1988, revised regulations (30 CFR 250 and 256) that restructured and consolidated the rules governing OCS exploration, development, and production activities were published in the Federal Register and became effective May 31, 1988. The former Gulf of Mexico OCS Orders, which dealt with the technical aspects of OCS activities, have been incorporated into the new rules (53 FR 10596-10777).

Permits and Applications

Wells

Prior to conducting drilling operations, the operator is required, pursuant to 30 CFR 250.414, to submit and obtain approval for an Application for Permit to Drill (APD) (Form MMS-123). The lessee is required to take precautions to keep all exploratory well drilling under control at all times. The APD is filed by the lessee/operator along with or following submission of the EP or DOCD and supporting information. The APD requires detailed information about the drilling program for evaluation with respect to operational safety and pollution-prevention measures. Approval of an APD requires an MMS-approved EP or DOCD, and receipt or presumption of CZM consistency concurrence. The approved APD constitutes the drilling permit. The APD is reviewed for conformance with the requirements of 30 CFR 250.414 and other engineering considerations. In addition, other information--including project layout at a scale of 24,000:1, design criteria for well control and casing, specifications for blowout preventors, and a mud program--is required. The lessee must use the best available and safest technology in order to enhance the evaluation of abnormal pressure conditions and to minimize the potential for uncontrolled well flow. Specific requirements for sundry notices for well workovers, completions, and abandonments are detailed in Subparts D-G of the revised regulations.

Platforms

The lessee must design, fabricate, install, use, inspect, and maintain all platforms and structures on the OCS to assure their structural integrity for the safe conduct of operations at specific locations. Applications for platform approval are filed in accordance with 30 CFR 250.901. Design requirements are presented in detail at 30 CFR 250.904-250.903. The lessee evaluates characteristic environmental conditions associated with operational functions to be performed. Factors such as waves, wind, currents, tides, temperature, and the potential for marine growth on the structure are considered. In addition, pursuant to 30 CFR 250.902 and 250.903, a program has been established by the MMS to assure that new structures meeting the conditions listed under 30 CFR 250.900(c) are designed, fabricated, and installed using standardized procedures to prevent structural failures. This program facilitates review of such structures and utilizes third-party expertise and technical input in the verification process through the use of a Certified Verification Agent. After installation, platforms are required to be inspected under 30 CFR 250.912.

Production Facilities

Production safety equipment used on the OCS must be designed, installed, used, maintained, and tested in a manner to assure the safety and protection of the human, marine, and coastal environments. All tubing installations open to hydrocarbon-bearing zones below the surface must be equipped with safety devices that will shut off the flow from the well in the event of an emergency, unless the well is incapable of flowing. All surface production facilities, including separators, treaters, compressors, headers, and flowlines must be designed, installed, and maintained in a manner that provides for efficiency, safety of operations, and protection of the environment. Surface- and subsurface-controlled safety valves and locks must conform to the requirements of 30 CFR 250.801. Production facilities also have stringent requirements concerning electrical systems, flowlines, engines, and firefighting systems. The safety-system devices are tested by the lessee at specified intervals and must be in accordance with API RP 14 C, Appendix D, and other measures.

Pipelines

Regulatory processes and jurisdictional authority concerning pipelines on the OCS and in coastal areas are shared by several Federal agencies, including DOI, the Department of Transportation (DOT), U.S. Army Corps of Engineers (COE), the Federal Energy Regulatory Commission (FERC), and U.S. Coast Guard (USCG). Aside from pipeline regulations, these agencies have the responsibility of overseeing and regulating the following areas: the placement of structures on the OCS and pipelines in areas that affect navigation; the certification of proposed projects involving the transportation or sale of interstate natural gas, including OCS gas; and the right of eminent domain exercised by pipeline companies. In addition, the Office of Pipeline Safety (DOT) is responsible for promulgating and enforcing safety regulations for the transportation in or affecting interstate commerce of natural gas, liquefied natural gas (LNG), and hazardous liquids by pipeline. This includes all offshore pipelines on State lands beneath navigable waters and on the OCS. The regulations are contained in 49 CFR 191-193 and 195. In the past, MMS requested that affected States render a CZM consistency determination for offshore right-of-way pipeline applications. However, since the publication of 30 CFR 250, Subpart J, on April 1, 1988, MMS has not requested such determinations from the affected States. In a Memorandum of Understanding (MOU) between DOT and DOI dated May 6, 1976, each party's respective regulatory responsibilities are outlined. The DOT is responsible for establishing and enforcing design, construction, operation, and maintenance regulations for pipelines extending to the shore from the outlet flange of an offshore facility. The DOI's responsibility extends upstream from the outlet flange at each facility where produced hydrocarbons are first separated, dehydrated, or otherwise processed to each production well in the OCS. In addition, those pipelines necessary for the development of a lease are under DOI's exclusive jurisdiction.

Pipeline permit applications to MMS are filed under Subpart J of 30 CFR 250. Detailed requirements for filing the applications are found at 30 CFR 250.1007 and 30 CFR 250.1010. Normally, each permit application will contain the pipeline location drawing, profile drawing, safety schematic drawing, and the pipe design data to scale. Information submitted as part of the shallow hazard survey report/analysis and/or archaeological report is used for MMS environmental evaluations. Provisions governing offshore pipelines under the revised rulemaking include expanded requirements governing design, installation, testing, safety equipment, abandonment, and reporting. A Gulf of Mexico Region LTL dated April 18, 1991, further details and interprets pipeline regulations.

In considering applications for pipeline permits, MMS approves the design and fabrication of the pipeline and prepares a CER, EA, and/or EIS in accordance with applicable policies and guidelines. The MMS prepares an EA and/or an EIS on all pipeline rights-of-way that go ashore (pursuant to 516 DM 6, Appendix 10). The FWS reviews and provides comments on applications for pipelines that are near certain sensitive biological communities. No pipeline route will be approved by MMS if any bottom-disturbing activities (from the pipeline itself or from the anchors of lay barges and support vessels) encroach on any biologically sensitive areas, such as stipulation-established No Activity Zones (Sections II.A.1.c.(1) and II.B.1.c.(1)). The operators are required to inspect their routes at time intervals and by methods prescribed by the Regional Supervisor for any indication of pipeline leakage (30 CFR 250.1005(a)). Pipelines routes in the Gulf of Mexico are inspected monthly for leakage through flyovers. In October 1990, Congress amended (through H.R. 4888) Section 3 of the Natural Gas Pipeline Safety Act of 1968 (49 U.S.C. App. 1672) relating to offshore pipeline inspection and burial. In the future, operators of offshore pipeline facilities in the Gulf and its inlets shall inspect the facility and report to the Secretary on any portion of the pipeline facility that is exposed or is a hazard to navigation. This legislation applies only to pipeline facilities between the mean high-water mark and the point where the surface is under 4.6 m of water as measures from mean low water. Pipelines may be abandoned in place if they do not constitute a hazard to navigation and commercial fishing or unduly interfere with other uses of the OCS. Procedures for pipeline abandonment and pipeline reporting requirements are outlined in detail at 30 CFR 250.1006 and 250.1008.