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Oil and Gas and Sulphur Operations in the Outer Continental Shelf Documents Incorporated by Reference--API RP 14F and API RP 14FZ
Note: EPA no longer updates this information, but it may be useful as a reference or resource.
[Federal Register: July 22, 2003 (Volume 68, Number 140)]
[Rules and Regulations]
[Page 43295-43298]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jy03-8]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Part 250
RIN 1010-AC89
Oil and Gas and Sulphur Operations in the Outer Continental Shelf
Documents Incorporated by Reference--API RP 14F and API RP 14FZ
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Final rule.
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SUMMARY: MMS is publishing this final rule to incorporate by reference
into our regulations the 4th edition of American Petroleum Institute
(API) Recommended Practice (RP) 14F (API RP 14F), ``Recommended
Practice for Design and Installation of Electrical Systems for Fixed
and Floating Offshore Petroleum Facilities for Unclassified and Class
I, Division 1 and Division 2 Locations.'' The updated document, 4th
edition, will replace the 3rd edition of API RP 14F, which is already
incorporated by reference into MMS regulations. The final rule will
also add another document to be incorporated by reference for the first
time into our regulations. The new document, API RP 14FZ, 1st edition,
is titled ``Recommended Practice for Design and Installation of
Electrical Systems for Fixed and Floating Offshore Petroleum Facilities
for Unclassified and Class I, Zone 0, Zone 1 and Zone 2 Locations.''
These revisions will ensure that lessees use the best available and
safest technologies while operating in the Outer Continental Shelf
(OCS).
EFFECTIVE DATE: This rule becomes effective on August 21, 2003. The
incorporation by reference of the publication listed in the regulation
is approved by the Director of the Federal Register as of August 21,
2003.
FOR FURTHER INFORMATION CONTACT: David Nedorostek, Operations Analysis
Branch, at (703) 787-1029.
SUPPLEMENTARY INFORMATION: We use standards, specifications, and
recommended practices developed by standard-setting organizations and
the oil and gas industry for establishing requirements for activities
in the OCS. This practice, known as incorporation by reference, allows
us to incorporate the provisions of technical standards into the
regulations without increasing the volume of the Code of Federal
Regulations. The legal effect of incorporation by reference is that the
material is treated as if it were published in the Federal Register.
This material, like any other properly issued regulation, then has the
force and effect of law. We hold operators/lessees accountable for
complying with the documents incorporated by reference in our
regulations. The regulations, found at 1 CFR part 51, govern how MMS
and other Federal agencies incorporate various documents by reference.
Agencies can only incorporate by reference through publication in the
Federal Register. Agencies must also gain approval from the Director of
the Federal Register for each publication incorporated by reference.
Incorporation by reference of a document or publication is limited to
the specific edition or to the specific edition and supplement or
addendum cited in the regulations.
Both API RP 14F and API RP 14FZ are incorporated by reference at 30
CFR 250.114. The requirements under this section apply only to
platforms, artificial islands, fixed structures, and their facilities
and not to electrical systems on floating facilities. Electrical
systems on floating facilities are regulated by the U. S. Coast Guard
(USCG). A Memorandum of Understanding (MOU) between MMS, U.S.
Department of the Interior, and USCG, U.S. Department of
Transportation, dated December 16, 1998, gave USCG the responsibility
for electrical systems on floating facilities. Additionally, according
to the MOU, USCG is responsible for aids to navigation, emergency
lighting (standby lighting), survival craft, and general alarms,
procedures for which, though included in both documents, are not under
MMS regulations.
We have reviewed these documents and have determined that the
latest editions of both documents should be incorporated into MMS
regulations to ensure the use of the best available and
[[Page 43296]]
safest technologies. The title of API RP 14F has been changed in the
4th edition to conform with API RP 500, ``Recommended Practice for
Classification of Locations for Electrical Installations at Petroleum
Facilities Classified as Class I, Division 1 and Division 2,'' which is
currently incorporated into MMS regulations. Our review shows that the
changes between the old (3rd) edition and the new (4th) edition are
minor. Most of the changes apply to floating facilities and are,
therefore, not part of this rulemaking for the reasons cited above.
Also, the 3rd edition is not readily available to affected parties
because it is out of print. The oil and gas industry is already
building new structures in accordance with the provisions of the 4th
edition of this standard. The 4th edition has been revised using an API
standard editorial format.
Summary of the Changes in the 4th Edition of API RP 14F Pertaining to
Platforms, Artificial Islands, Fixed Structures, and Their Facilities
In the 4th edition of 14F, several subsections that were contained
in the 3rd edition have been consolidated into one subsection titled
``Protection Techniques Related to Equipment Installed in Locations
Classified as Division 1 and Division 2.'' This new subsection includes
explosion proof equipment, hermetically sealed devices, intrinsically
safe devices, nonincendive equipment, and purged enclosures. No new
requirements were imposed.
In the 4th edition of 14F, cable-shielding considerations have been
added to the Electrical Distribution Systems section. This allows for
the installation of metal clad cables in lieu of sealed conduits for
electrical wiring. The use of metal clad cables could result in savings
to industry of up to 40 percent over the use of sealed conduits and
conventional wiring practices. Both methods of cable shielding provide
for equal safety.
Subsections have been added to the 4th edition of 14F to cover
advances in technology in battery-powered DC supply systems
(uninterruptible power supplies), electric oil-immersion heaters,
cathodic protection, and hand-held electronic devices. These four new
subsections cover equipment that is now in standard use on OCS
structures, but that was not in the early 1990's when the 3rd edition
was completed. These new subsections should not impose any new costs on
the industry since operators are already using this equipment.
Review of API RP 14FZ
The two recommended practices addressed by this rulemaking are
nearly identical. The original version (14F) is to be used with the
electrical classification system contained in API RP 500. This system
of electrical classification differentiates locations by ``Divisions.''
This document (API RP 500) is already incorporated by reference into
the regulations. A similar document, API RP 505, ``Recommended Practice
for Classification of Locations for Electrical Installations at
Petroleum Facilities Classified as Class I, Zone 0, Zone 1, and Zone
2,'' is also currently incorporated by reference into the regulations.
This system classifies hazardous locations by ``Zones'' based on how
long a hazardous vapor is present. The new 14FZ document is to be used
with API RP 505. The difference between the two pairs of documents,
14F/500 and 14FZ/505, is that 14F/500 uses two ``Divisions'' to
classify hazardous areas while 14FZ/505 uses three ``Zones'' to define
these classified hazardous areas. The 14F document defines techniques
for protection from fires in the Division system. The 14FZ document
defines protection techniques in the Zone system for hazardous
locations. Both systems provide for safe work environments for
personnel. The protection techniques identified for the Division system
are not all acceptable for the Zone system and vice versa. The Zone
system identifies more protection techniques than the Division system;
however, both systems have proven their safety by comparisons of both
systems through the National Electrical Code, Factory Mutual, and
Underwriters Laboratories. The operator could realize cost savings if
the Zone system (14FZ/505) is used in classifying and designing
electrical systems.
We are incorporating the new 14FZ to complete the set of documents
in the regulations and give lessees a choice in installing electrical
systems. The incorporation of 14FZ will not impose any additional costs
on the industry since it is nearly identical to RP 14F and may result
in cost savings. The operators must use one set of documents or the
other to design and install electrical systems on their facilities. The
costs for complying with the documents are similar. We are merely
giving the industry some flexibility with regard to classifying and
installing electrical systems under either the API RP 500 system or the
API RP 505 system.
Discussion and Analysis of Comments
The updated document API RP 14F 4th edition and the new document
API RP 14FZ were published as a proposed rule on January 14, 2003.
Four organizations submitted comments on the proposed rulemaking.
They are the (1) Shell Exploration and Production Company (Shell); (2)
Waldemar S. Nelson & Co., Inc.; (3) Offshore Operators Committee (OOC);
and (4) Department of Environmental Protection (Florida). All four
commenters favor the incorporation of API RP 14F (4th edition) and 14FZ
(1st edition).
Shell supports the incorporation of API RP14F and 14FZ into MMS
regulations.
Waldemar S. Nelson & Co., Inc., strongly feel that incorporating
the latest editions of API RP 14F and 4FZ enhances everyone's goal to
provide for safer temporary and permanent electrical installations and
more easily understood code wording, as well as enabling MMS rules to
more closely reflect the latest code wording and philosophy of the
National Electrical Code. All parties gain from this move as design and
installation practices become more uniform and more economical without
compromising safety. In many cases, safety is enhanced. By keeping up
with the latest available technology and materials, offshore electrical
installations can be designed to be more corrosion resistant than in
the past.
The OOC commends the MMS for incorporating industry standards into
its offshore operating regulations to ensure the use of the best
available and safest technologies on the OCS. The incorporation of
these two documents ensures that MMS regulations remain current with
present design and installation requirements and guidelines for
electrical systems on offshore production facilities.
The Department of Environmental Protection promotes the
incorporation of API RP 14F and 14FZ into MMS regulations.
Procedural Matters
Public Comments Procedure
Our practice is to make comments, including names and home
addresses of respondents, available for public review during regular
business hours. Individual respondents may request that we withhold
their home addresses from the rulemaking record, which we will honor to
the extent allowable by the 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 the
[[Page 43297]]
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)
This document is not a significant rule and is not subject to
review by the Office of Management and Budget (OMB) under Executive
Order 12866.
(1) This rule will not have an effect of $100 million or more on
the economy. It will not adversely affect in a material way the
economy; productivity; competition; jobs; the environment; public
health or safety; or State, local, or tribal governments or
communities.
The rule may have a positive economic impact because of the cost
savings from using shielded cables in lieu of sealed conduits.
Otherwise, the documents do not contain any significant revisions that
will cause lessees or operators to change their business practices. The
documents will not require the retrofitting of any facilities.
(2) This rule will not create a serious inconsistency or otherwise
interfere with an action taken or planned by another agency.
(3) This rule does not alter the budgetary effects or entitlements,
grants, user fees, or loan programs or the rights or obligations of
their recipients.
(4) This rule does not raise novel legal or policy issues.
Regulatory Flexibility (RF) Act
The Department of the Interior (DOI) certifies that this final 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.). This
rule applies to all lessees that operate on the OCS. Small lessees that
operate under this rule would fall under the Small Business
Administration's (SBA) North American Industry Classification System
Codes 211111, Crude Petroleum and Natural Gas Extraction, and 213111,
Drilling Oil and Gas Wells. The provisions of this rule will not have a
significant economic effect on offshore lessees and operators,
including those that are classified as small businesses. The SBA
defines small business as having:
? Annual revenues of $5 million or less for exploration
service and field service companies.
? Fewer than 500 employees for drilling companies and for
companies that extract oil, gas, or natural gas liquids.
The incorporation of API documents into MMS regulations cover
electrical installations on offshore structures. The documents to be
incorporated by this rule have been used by the industry for many
years, and the latest editions represent state-of-the-art industry
equipment and practices. The structures currently being built are being
constructed according to the requirements in either API RP 14F (4th
edition) or API RP 14FZ.
The final rule's purpose is to update one document that is
currently incorporated by reference in the regulations and to
incorporate by reference a new, nearly identical document into the
regulations. The differences between the newer document and the older
document are very minor. The updated document consolidates several
subsections in a new subsection covering protection techniques. In
addition, cable shielding considerations were added to the updated
document. This allows for the installation of metal clad cables in lieu
of sealed conduits. The use of metal clad cables could result in
savings to industry of up to 40 percent over the use of sealed conduits
and conventional wiring practices. Other subsections have been added to
the updated document to cover advances in technology. New subsections
cover equipment that is now in standard use on OCS facilities, but that
was not in use in the early 1990's when the older 3rd edition was
completed and incorporated into the regulations. These new subsections
should not impose any additional costs to industry since operators are
already using this new equipment and technology. By incorporating both
14F and 14FZ, which are nearly identical, but utilize different
classification systems, we are giving the industry a choice in
electrical classification methods.
Under the North American Industry Classification System Code
211111, Crude Petroleum and Natural Gas Extraction, MMS estimates that
a total of 1,380 firms drill oil and gas wells onshore and offshore.
The group affected by this rule is the approximately 130 companies that
are offshore lessees/operators. According to SBA criteria,
approximately 90 companies are small businesses (70 percent). As
discussed above, this rule imposes no new operational requirements,
reporting burdens, or other measures that would increase costs to
lessees/operators, large or small. Therefore, this rule has no
significant economic impact on small entities.
Comments from the public are important to us. 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. You may
comment to the SBA without fear of retaliation. Disciplinary action for
retaliation by an MMS employee may include suspension or termination
from employment with the Department of the Interior.
Small Business Regulatory Enforcement Fairness Act (SBREFA)
This rule is not a major rule under 5 U.S.C. 804(2), SBREFA. This
rule:
(a) Does not have an annual effect on the economy of $100 million
or more. The rule will not cause any significant costs to lessees or
operators. The only costs will be the purchase of the new documents and
minor revisions to some operating and maintenance procedures. The minor
revisions to operating and maintenance procedures may result in some
minor costs or may actually result in minor cost savings.
(b) Will not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions.
(c) Does not have significant adverse effect on competition,
employment, investment, productivity, innovation, or the ability of
United States-based enterprises to compete with foreign-based
enterprises.
Paperwork Reduction Act (PRA) of 1995
This regulation does not require an information collection from 10
or more parties, and a submission under the Paperwork Reduction Act is
not required. An OMB Form 83-I is not required.
Federalism (Executive Order 13132)
According to Executive Order 13132, the rule does not have
significant Federalism effects. This rule will not substantially and
directly affect the relationship between the Federal and State
governments. This rule will simply update one document and add one
document incorporated by reference to ensure that the industry uses the
best and safest technologies. This rule does not impose costs on States
or localities. Any costs incurred affect only the oil industry and will
be minor.
[[Page 43298]]
Unfunded Mandate Reform Act (UMRA) of 1995 (Executive Order 12866)
This rule does not impose an unfunded mandate on State, local, or
tribal governments or the private sector of more than $100 million per
year. The rule does not have a significant or unique effect on State,
local, or tribal governments or the private sector. A statement
containing the information required by the UMRA (2 U.S.C. 1531 et seq.)
is not required.
Takings Implication Assessment (Executive Order 12630)
According to Executive Order 12630, this rule does not have
significant Takings implications. A Takings Implication Assessment is
not required.
Federalism (Executive Order 13132)
According to Executive Order 13132, this rule does not have
Federalism implications. This rule will not substantially or directly
affect the relationship between the Federal and State governments
because it deals strictly with technical standards that the offshore
oil and gas industry must use in designing, fabricating, and installing
fixed offshore facilities. This rule will not impose costs on States or
localities, nor will it require any action on the part of States or
localities.
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 meets the requirements of sections 3(a) and 3(b)(2) of the Order.
National Environmental Policy Act (NEPA)
This rule does not constitute a major Federal action significantly
affecting the quality of the human environment. A detailed statement
under the NEPA of 1969 is not required.
Consultation and Coordination with Indian Tribal Governments (Executive
Order 13175)
In accordance with Executive Order 13175, this rule does not have
tribal implications that impose substantial direct compliance costs on
Indian tribal governments.
List of Subjects in 30 CFR Part 250
Continental shelf, Environmental impact statements, Environmental
protection, Government contracts, Incorporation by reference,
Investigations, Mineral royalties, Oil and gas development and
production, Oil and gas exploration, Oil and gas reserves, Penalties,
Pipelines, Public lands--mineral resources, Public lands--rights-of-
way, Reporting and recordkeeping requirements, Sulphur development and
production, Sulphur exploration, Surety bonds.
Dated: June 23, 2003.
Rebecca W. Watson,
Assistant Secretary, Land and Minerals Management.
? For the reasons stated in the preamble, MMS amends 30 CFR Part 250 as
follows:
PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
? 1. The authority citation for part 250 continues to read as follows:
Authority: 43 U.S.C. 1331 et seq.
? 2. In Sec. 250.114, paragraph (c) is revised to read as follows:
Sec. 250.114 How must I install and operate electrical equipment?
* * * * *
(c) You must install all electrical systems according to API RP
14F, Recommended Practice for Design and Installation of Electrical
Systems for Fixed and Floating Offshore Petroleum Facilities for
Unclassified and Class I, Division 1, and Division 2 Locations
(incorporated by reference as specified in Sec. 250.198), or API RP
14FZ, Recommended Practice for Design and Installation of Electrical
Systems for Fixed and Floating Offshore Petroleum Facilities for
Unclassified and Class I, Zone 0, Zone 1, and Zone 2 Locations
(incorporated by reference as specified in Sec. 250.198).
* * * * *
? 3. In Sec. 250.198, in the table in paragraph (e), the entry for API
RP 14F is revised and a new entry for document API RP 14FZ is added in
alphanumeric order to read as follows:
Sec. 250.198 Documents incorporated by reference.
* * * * *
(e) * * *
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Incorporated by reference
Title of document at
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* * * * * * *
API RP 14F, Recommended Practice for Design Sec. 250.114(c);
and Installation of Electrical Systems for Sec. 250.803(b)(9)(v);
Fixed and Floating Offshore Petroleum Sec. 250.1629(b)(4)(v).
Facilities for Unclassified and Class I,
Division 1 and Division 2 Locations, 4th
edition, June 1999, API Stock No. G14F04.
API RP 14FZ, Recommended Practice for Sec. 250.114(c);
Design and Installation of Electrical Sec. 250.803(b)(9)(v);
Systems for Fixed and Floating Offshore Sec. 250.1629(b)(4)(v).
Petroleum Facilities for Unclassified and
Class I, Zone 0, Zone 1 and Zone 2
Locations, 1st edition, September 2001,
API Stock No. G14FZ1.
* * * * * * *
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? 4. In Sec. 250.803, paragraph (b)(9)(v) is revised to read as follows:
Sec. 250.803 Additional production system requirements.
* * * * *
(9) * * *
(v) Fire- and gas-detection systems must be an approved type,
designed and installed according to API RP 14C, API RP 14G, and either
API RP 14F or API RP 14FZ (the preceding four documents incorporated by
reference as specified in Sec. 250.198).
* * * * *
? 5. In Sec. 250.1629, paragraph (b)(4)(v) is revised to read as
follows:
Sec. 250.1629 Additional production and fuel gas system requirements.
* * * * *
(4) * * *
(v) Fire- and gas-detection systems must be an approved type,
designed and installed according to API RP 14C, API RP 14G, and either
API RP 14F or API RP 14FZ (the preceding four documents incorporated by
reference as specified in Sec. 250.198).
* * * * *
[FR Doc. 03-18451 Filed 7-21-03; 8:45 am]