Oil and Gas and Sulphur Operations in the Outer Continental Shelf--Incident Reporting Requirements

Note: EPA no longer updates this information, but it may be useful as a reference or resource.

[Federal Register: April 17, 2006 (Volume 71, Number 73)]
[Rules and Regulations]
[Page 19640-19646]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ap06-10]

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DEPARTMENT OF THE INTERIOR
Minerals Management Service
30 CFR Part 250
RIN 1010-AC57

Oil and Gas and Sulphur Operations in the Outer Continental
Shelf--Incident Reporting Requirements

AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Final rule.

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SUMMARY: This final rule revises the MMS requirements for reporting
incidents associated with Outer Continental Shelf (OCS) oil and gas and
sulphur operations. The revisions will clarify the requirements, and
provide more precise definitions and reporting timeframes. This will
result in a more consistent incident reporting program and the
collection of more reliable incident information.

DATES: Effective Date: This rule becomes effective on July 17, 2006.

FOR FURTHER INFORMATION CONTACT: Richard Ensele, Rules and Standards
Branch, (703) 787-1583.

SUPPLEMENTARY INFORMATION: On July 8, 2003, MMS published a Notice of
Proposed Rulemaking (68 FR 40585), titled ``Oil and Gas and Sulphur
Operations in the Outer Continental Shelf--Incident Reporting
Requirements.'' The proposed rule had an initial 90-day comment period
that was extended by 60 days (68 FR 44910, July 31, 2003) to December
5, 2003. The proposed rule addressed amendments to MMS' regulations
related to reporting accidents and other incidents on platforms and
other facilities on oil and gas and sulphur leases and related rights-
of-way on the OCS.

Comments on the Proposed Rule

We received 19 sets of comments on the proposed rule. Three of the
commenters were industry trade organizations (Offshore Operators
Committee (OOC), International Association of Drilling Contractors
(IADC), and National Ocean Industries Association (NOIA)). We also
received comments from one individual, two drilling contractors, ten
operators, and one consultant. All of the comments received are
available for review on the MMS Web site at:
http://www.mms.gov/federalregister/PublicComments/rulecomm.htm.
Most of the commenters stated that the proposed rule was overly
prescriptive and burdensome to the industry and MMS. In addition, most
commenters expressed concern that MMS and the U.S. Coast Guard (USCG)
were not making a sufficient effort to coordinate incident reporting.
First, in this final rule we have scaled back most of the requirements
contained in the proposed rule that the commenters asserted were overly
burdensome. With regard to the second issue raised in these comments,
this final rule addresses only MMS' incident reporting requirements
regarding incidents that occur during OCS oil and gas operations.
However, MMS allows the operator to submit USCG forms where they
contain all the information required in these regulations. In addition,
we will continue to work with the USCG to coordinate our incident
reporting requirements.
In addition, the OOC commented that MMS does not say how the
information collected by this rule will be used. Among other uses, the
information required by the final rule will be used by MMS in:
? Considering regulatory changes,
? Determining research studies,
? Identifying unsafe procedures,
? Working with industry to develop standards,
? Compiling accident statistics and trend analyses,
? Deciding which incidents are serious enough to form an
accident investigation panel,
? Preparing operator performance statistics, and
? Evaluating Safety Award for Excellence (SAFE) candidates.
One commenter stated that the proposed regulations did not go far
enough in reporting information concerning occupational safety. This
commenter recommended that MMS require all employers to report
occupational injuries and illnesses in accordance with criteria
identical to those of the Occupational Safety and Health Administration
(OSHA). There are employers on the OCS other than lessees and
operators. This regulation, however, applies only to lessees and
operators on the OCS. The regulations require the lessees and operators
to report all pertinent incidents, regardless of whose employees were
involved. The OSHA reporting requirements contain information that MMS
does not need to perform its mission. We are requiring the reporting of
only the information we need to oversee the OCS program.
Several commenters, including the OOC, objected to the multiple
timeframes for verbal and written reporting of incidents as being too
complicated and burdensome. We agree with these comments, and have
revised the rule to require immediate reporting of certain incidents
via oral communication, with a written follow-up within 15 calendar
days. In addition, the rule requires written reporting of certain less
severe incidents within 15 calendar days. We have also eliminated the
reporting forms contained in the proposed rule. This final rule allows
the reporting company to use its own format for the written report, or
a form prepared for another agency, as long as the required information
is included.
The proposed rule required that written reports be submitted
electronically. We have dropped that requirement. The final rule does
not specify or mention any method. You may submit written reports in
whatever manner (mail, courier, personal delivery, fax, or e-mail) you
choose. MMS may consider electronic submittal of information in future
rulemaking.
Several commenters, including the OOC, stated that the personnel
injury categories in the proposed rule were not realistic for reporting
purposes, and that they were too subjective. We agree with these
comments, and have simplified the categories. This rule requires the
immediate reporting of all injuries that require the evacuation of the
injured person(s) from the facility to shore or to another offshore
facility. A written follow-up report within 15 calendar days is
required for any injury that results in days away from work, restricted
work, or job transfer.
In addition, the OOC and others expressed concern that the proposed
rule may conflict with the Health Insurance Portability and
Accountability Act of 1996 (HIPAA) in that it may require employee
health information to be disclosed. We agree with these concerns. This
rule does not require that any employee identification information be
reported to MMS. When a reportable injury occurs, this rule requires
that the operator/lessee report the following:
? Date and time of occurrence,
? Operator and operator's representative name and telephone number,
? Contractor and contractor's representative name and telephone number,
? Lease number, OCS area, and block,
? Platform/facility name and number,
? Type of incident or injury/fatality,

[[Page 19641]]

? Operation or activity at time of incident, and
? Description of the incident, damage, or injury/fatality.
None of these items requires employee health information to be
disclosed. MMS does not need any personal information, including the
identification of any injured personnel.
The OOC submitted comments concerning the definitions in the
proposed rule. The definitions in the proposed rule were part of the
reason for the complexity of that rule. By simplifying the rule, we
have eliminated most of those definitions. The definitions in this rule
are contained in the sections where the terms appear. We defined the
terms ``loss of well control'', ``structural damage'', ``collision'',
and ``property damage.'' The definition of ``loss of well control'' has
been modified from the proposed rule to clarify that all flows through
a diverter are to be reported. The definition of ``structural damage''
is new. The definition of ``collision'' was added so that only those
collisions occurring at a facility be reported. We simplified the
definition of ``property damage'' for those incidents requiring an
estimate of the damage amount.
The OOC suggested that the phrase ``issued by MMS'' be added after
the term ``permit'' in proposed Sec. 250.187(a)(1) (Sec. 250.187(b)
in the final rule) to clarify that the requirement applies only to
operations conducted under MMS permitted activities. We agree with this
suggestion and have inserted the phrase. In addition, the OOC suggested
that MMS accept USCG reports when duplicative reports are required. MMS
agrees that the operator may submit USCG forms to MMS if they contain
all of the information required in these regulations. We have changed
the rule accordingly.
The OOC commented on the definition of Loss of Well Control. OOC
indicated that planned well fluid flows through the diverter systems
are not unexpected or uncontrolled flows. OOC does not consider these
events to be a loss of well control and recommended that planned flows
through the diverter not be reported. Planned flows through the
diverter system are not authorized by Federal regulations. The use of
the diverter system is for responding to unexpected well conditions and
minimizing the risk of fires or wellbore cratering so that personnel
can evacuate safely. A well that is flowing to the atmosphere is not
``controlled.'' We have modified the definition to clarify that all
incidents involving flow through a diverter are to be reported.
The proposed rule maintained the current MMS requirement to report
H₂S releases that result in a 15-minute-time-weighted
average atmospheric concentration of H₂S of 20 parts per
million (ppm) or more. The OOC commented that ``While we recognize that
this is a current requirement in 30 CFR 250.490(l), it is unclear how
the operator determines that a 15-minute time-weighted average
atmospheric concentration of H₂S of 20 ppm or more occurs.''
We did not make any changes to the rule as a result of this comment.
Time weighted average is a recognized standard method for defining and
measuring permissible exposure limits to ensure the safety of
personnel. Because of the extreme toxicity of H₂S, detection
and monitoring equipment on a facility must be capable of alerting
personnel of sustained atmospheric concentrations of 20 ppm. Operators
who have further questions about determining H₂S
concentrations to meet this requirement may contact the appropriate
District office for guidance.
The requirement to report these H₂S releases applies
only to areas that have been classified ``H₂S present'' or
``H₂S unknown'' as defined by the approved area classification
required by Sec. 250.490(c). These areas are required to have H₂S
sensors for measuring atmospheric H₂S concentrations.
The proposed rule would have required the reporting of 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.
The OOC commented that it would not be clear how the operator is to
determine if an unintentional release could raise the concentration to
the lower explosive limit. They went on to say that the gas detectors
in certain areas of the platform would cause the system to shut-in if
the lower explosive limit concentration was reached in those areas.
They also said that those shut-in incidents could be reported to MMS,
but that would be burdensome on both industry and MMS, and serve no
purpose in improving safety on platforms. We have simplified the
regulation to require the reporting of those gas releases resulting in
equipment or process shut-in. We disagree that this information would
serve no purpose in improving safety on platforms. OCS platforms have
numerous sources of ignition, and there are many small fires reported
on these facilities. Small fires have the potential to become major
incidents that could cause serious injuries or deaths. By collecting
the information on gas releases that result in equipment or process
shut-in, we can track the trends, and possibly decrease the number of
gas releases.
The OOC commented on the proposed rule requirement to report
incidents that involved personnel mustering for evacuation for reasons
not related to weather. They indicated that in many cases, visitors or
non essential personnel are required to report to the muster station
whenever an alarm is sounded since they have no responsibilities in
responding to the alarm. They recommended that a written report should
only be required if personnel were actually evacuated. We agree that
incidents where only visitors to the facility muster for evacuation
should not be reported. We have reworded the requirement so that a
written report is required when ``operations'' personnel muster for
evacuation for reasons not related to weather and drills. This should
eliminate the need to report incidents where visitors to the facility
muster for evacuation or when personnel muster for non-emergency reasons.

Comparison of this Final Rule to the Current Regulation

The current regulation on accident reporting, Sec. 250.191,
requires operators, lessees, easement holders, pipeline right-of-way
holders, and other permit holders to report all serious accidents, any
death or serious injury, and all fires, explosions, and blowouts. This
final rule broadens the scope of serious accidents and serious injuries
to include those incidents that had the potential to be serious. MMS is
requiring reporting down to this level to learn more about the causes
of all incidents. MMS considers these less serious incidents to be the
``near misses'' that could have resulted in more serious consequences.
This final rule still requires the reporting of all deaths, fires,
explosions, and blowouts. MMS considers the following incidents to be
serious accidents or accidents that had the potential to be serious:
? Injuries that require the evacuation of the injured
person(s) from the facility to shore or to another offshore facility
(oral notification),
? Injuries that resulted in days away from work, restricted
work, or job transfer (written report),
? Reportable releases of hydrogen sulfide (H₂S)
gas, as defined in Sec. 250.490(l),
? Incidents in which a vessel or helicopter collides with an
OCS facility or another vessel at an OCS facility that

[[Page 19642]]

result in property or equipment damage greater than $25,000,
? Incidents involving structural damage to an OCS facility,
? Incidents involving cranes, personnel handling, or
materials handling equipment,
? Incidents that damage or disable safety systems or safety equipment,
? Incidents that require operational personnel to muster for
evacuation for reasons not related to weather or drills,
? Gas releases that initiate equipment or process shutdown,
and
? Other incidents resulting in property or equipment damage
greater than $25,000.
Some of the incidents described above are already reported by the
industry. These incidents usually occur with other reportable incidents
such as fatalities, injuries, fires, explosions, or blowouts. Our
intent in requiring the reporting of all of these incidents is to catch
the ``near misses'' that do not result in fatalities, injuries, fires,
explosions, or blowouts, but that could have resulted in serious
outcomes. We estimate that there could be an increase of up to 351
reports per year due to the new requirement to report the incidents
listed above. This is based on the results of the Safety and
Environmental Management Program (SEMP) voluntary performance measures
reporting during the years 1996 through 2003 for injuries, and internal
estimates for the other incidents listed above. During that period, the
industry reported an average of 337 lost workday injury incidents per
year. Therefore, we estimate that the first two items listed above
(injuries that required evacuation from the facility, and injuries that
resulted in days away from work, restricted work, or job transfer)
could require up to 291 additional injury reports. We estimate that the
other eight items listed above could require an additional 60 incident
reports, bringing the total increase to 351 reports per year.
This final rule requires that injuries that resulted in days away
from work, restricted work, or job transfer be reported to MMS. The
current rule requires that only serious injuries be reported. This
accounts for most of the increase in reportable incidents. Under the
current regulation, industry has reported an average of 56 injuries per
year over the past nine years. In many of the reported injuries there
was insufficient information to assess the seriousness of the injury.
This final rule requires a description of the injury so that MMS can
assess the seriousness. In addition to the ten items listed above, this
rule requires a written report of all injuries that resulted in time
away from work, restricted work, or job transfer.
We estimate that there will be a very minor increase in the number
of loss of well control incidents (blowouts) reported due to this rule.
The term had never been defined in the regulations before. There are
very few of these incidents each year.

Procedural Matters

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 under Executive Order 12866.
a. 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
will require additional reporting of incidents by operators and
pipeline right-of-way holders, but the financial effect will be well
under the threshold listed above. In the proposed rule, we estimated
that start up costs for electronic reporting of incidents would be
approximately $491,000. We dropped that proposed provision, so that
estimated cost no longer applies. See the analysis below under
Regulatory Flexibility Act for specific information on estimated costs
of compliance.
b. This rule will not create a serious inconsistency or otherwise
interfere with an action taken or planned by another agency. This rule
addresses MMS' incident reporting requirements only. It will have no
effect on any other agency. The MMS and the USCG attempted to
coordinate overlapping incident reporting requirements, but were
unsuccessful. We will continue efforts to coordinate with the USCG, and
if successful, will propose new requirements at that time.
c. This rule does not alter the budgetary effects or entitlements,
grants, user fees, or loan programs or the rights or obligations of
their recipients. The rule only addresses incident reporting for oil
and gas and sulphur operations on the OCS.
d. This rule does not raise novel legal or policy issues. Current
regulations require the reporting of accidents that occur during oil
and gas and sulphur operations on the OCS. This rule provides
definition to and clarifies the current requirements. The current
requirements overlap somewhat with USCG requirements for incident
reporting. This rule will continue that overlap. The MMS will continue
to work with the USCG to eliminate the duplicative reporting. This rule
may be revised if the two agencies agree on a joint rulemaking to
eliminate the overlap.

Regulatory Flexibility Act (RFA)

The Department of the Interior certifies that this rule will not
have a significant economic effect on a substantial number of small
entities as defined under the RFA (5 U.S.C. 601 et seq.). A regulatory
flexibility 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

[[Page 19643]]

by this final rule, of which 109 would be considered small businesses.
This final rule does not include any recordkeeping requirements.
Under current incident reporting rules, the industry reported 411
incidents during the two-year period 2003 through 2004. That works out
to fewer than 18 incidents reported each month by the entire industry.
During that two-year period, the highest number of incidents reported
by one company was 47, or approximately 2 per month. That company is a
major oil and gas producer, not a small business.
As a result of requiring the reporting of less serious incidents in
this final rule we estimate that an additional 351 incidents could be
reported each year. This would result in an additional 30 incidents
reported each month by the entire industry. Spread over the entire
industry, the increase is not significant. Based on these numbers,
incident reporting requirements do not impose much of a burden on the
industry. Therefore, this rule will not have a significant economic impact.
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
business about Federal agency enforcement actions. The Ombudsman will
annually evaluate the enforcement activities and rate each agency's
responsiveness to small business. If you wish to comment on the actions
of MMS, call 1-888-REG-FAIR (1-888-734-3247). You may comment to the
Small Business Administration 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)) the SBREFA.
This rule:
a. Does not have an annual effect on the economy of $100 million or
more. Costs to comply with this rule involve oral notifications of
incidents with follow-up written reports. These costs are minor in
comparison with the costs to conduct operations on the OCS. This rule
will result in an increase in the number of notifications and reports.
See the discussions above under ``Regulatory Planning and Review'' and
``Regulatory Flexibility Act.''
b. Will not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions. The minor costs involved in complying
with these revised reporting requirements will not change the way the
oil and gas industry conducts business, nor will it affect regional oil
and gas prices.
c. Does not have significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
U.S.-based enterprises to compete with foreign-based enterprises. All
lessees, operators, and pipeline right-of-way holders, regardless of
nationality, will have to comply with the reporting requirements of
this rule.

Unfunded Mandates Reform Act (UMRA) of 1995

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. This rule revises
incident reporting regulations for oil and gas and sulphur operations
on the OCS. A statement containing the information required by the UMRA
(2 U.S.C. 1531 et seq.) is not required.

Takings Implications Assessment (Executive Order 12630)

According to Executive Order 12630, the 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.

Federalism (Executive Order 13132)

According to Executive Order 13132, this rule does not have
Federalism implications. This rule does not substantially and directly
affect the relationship between the Federal and state governments. It
applies to lessees, operators, and pipeline right-of-way holders on the
OCS. This rule does not impose costs on states or localities. Any costs
will be the responsibility of the lessees, operators, or pipeline
right-of-way holders.

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.

Paperwork Reduction Act (PRA) of 1995

This rulemaking contains information collection (IC) requirements
that were submitted to OMB during the proposed rulemaking according to
section 3507(d) of the PRA. OMB did not assign a control number to the
requirements at that time. The final regulations do contain minor
changes in the collection of information from what was proposed. The
proposed rulemaking had two (2) new forms associated with it. Due to
comments received, which strongly opposed these two forms and their
complicated requirements, this final rule completely restructures the
requirements that were proposed and eliminates the forms. We now ask
that respondents submit oral or written reports, depending on the
requirement. The rule allows respondents to choose the format for
transmission of the information. We also discussed in the notice of
proposed rulemaking one-time costs to modify respondents' incident
reporting systems to incorporate the new requirements. Since those
requirements have been dropped, the non-hour cost burdens no longer
apply. We received no comments on the burden hours. Therefore, we
resubmitted the information collection to OMB and received approval
under OMB Control Number 1010-0165, expiration March 31, 2009.
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 and recordkeeping burden. You may submit
your comments on the information collection aspects of this rule
directly to the Rules Processing Team (RPT), Attn: Comments; 381 Elden
Street, MS-4024; Herndon, Virginia 20170-4817. Please reference
``Incident Reporting Requirements--AC57'' in your comments. You may
obtain a copy of the supporting statement for the new collection of
information by contacting the Bureau's Information Collection Clearance
Officer at (202) 208-7744.
The PRA (44 U.S.C. 3501, et seq.) provides that an agency may not
conduct or sponsor, and a person is not required to respond to, a
collection of information unless it displays a currently valid OMB
control number.
The title of the collection of information for this final rule is
``30 CFR part 250, Oil and Gas and Sulphur Operations in the Outer
Continental Shelf--Incident Reporting Requirements.'' Respondents
include approximately 218 Federal OCS oil and gas or sulphur lessees
and pipeline rights-of-way holders. The frequency of response depends
upon the requirement. The information collection (IC) does not include
questions of a sensitive nature. Responses to this

[[Page 19644]]

collection of information are mandatory. MMS will protect proprietary
information according to the Freedom of Information Act (5 U.S.C. 552)
and requirements under 30 CFR 250.196, ``Data and information to be
made available to the public.''
The final regulations convert into plain language and restructure
the requirements for Incident Reporting in the OCS. The approved
information collection for this final rule will incorporate two new
information collection burdens pertaining to notification requirements
into the primary collection of 30 part CFR part 250 subpart A (OMB
Control Number 1010-0114), and one new information collection burden
pertaining to H₂S release that will be merged into the
primary collection for 30 CFR part 250 subpart D (OMB Control Number
1010-0141), when the final regulations take effect. MMS will collect
the information to obtain knowledge of equipment, procedures, and
circumstances involved in OCS incidents. MMS will use the information
to identify OCS incident causes and trends in order to improve safety
on the OCS through regulation, performance standards, research, and
cooperative initiatives with industry.
We estimate the total annual paperwork ``hour'' burden for the
final rule to be 2,443 hours. Following is a breakdown of the hour
burden estimate.

----------------------------------------------------------------------------------------------------------------
Average number of Annual burden
Citation 30 CFR part 250 Reporting requirement Hour burden annual responses hours
----------------------------------------------------------------------------------------------------------------
Subpart A
250.187.................... Report all spills of Burden covered under 1010-0091. 0 \
oil or other liquid
pollutants.
187; 188(a); 189; 190(c)... Report to the District Oral 0.2......... 491.............. 99 (rounded)
Manager immediately Written 4........ 491.............. 1,964
via oral
communication and
written follow-up
within 15 calendar
days, incidents
pertaining to:
fatalities; injuries;
loss of well control;
fires; explosions;
all collisions
resulting in property
or equipment damage
>$25K; structural
damage to an OCS
facility; cranes;
incidents that damage
or disable safety
systems or equipment
(including
firefighting systems).
250.188(a)(5).............. Report to District Oral burden covered under 1010-0141. 0
Manager hydrogen
sulfide (H2S) gas
releases immediately
by oral communication.
188(b); 190(a), (b);....... Provide written report 4................ 35............... 140
to the District
Manager within 15
calendar days after
incidents relating
to: injuries that
result in 1 or more
days away from work,
on restricted work,
or job transfer; gas
releases that
initiate equipment or
process shutdown;
property or equipment
damage >$25K;
operations personnel
to muster for
evacuation not
related to weather or
drills; any
additional
information required.
Subpart D
250.490(l)................. Report to the District Oral burden covered under 1010-0141. 0
Manager hydrogen
sulfide (H2S) gas
releases immediately
by oral communication
and follow-up within
15 days with a
written report.
...................... Written 4........ 60............... 240
----------------------------------------------------------------------------------------------------------------
Total Reporting........ ...................... ................. 1,077............ 2,443
----------------------------------------------------------------------------------------------------------------

National Environmental Policy Act (NEPA) of 1969

MMS analyzed this rule using the criteria of the NEPA and 516
Department Manual, Chapter 2, and concluded that the preparation of an
environmental analysis which would result in the issuance of a Finding
of No Significant Impact or the preparation of an environmental impact
statement is not required.

List of Subjects in 30 CFR Part 250

Continental shelf; Environmental impact statements; Government
contracts; Investigations; Oil and gas exploration; Penalties;
Pipelines; Public lands--mineral resources; Public lands--rights-of-
way; Reporting and recordkeeping requirements; Sulphur.

Dated: October 28, 2005.
Chad Calvert,
Acting Assistant Secretary--Land and Minerals Management.

? For the reasons stated in the preamble, the Minerals Management Service
(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.; 31 U.S.C. 9701.

Sec. 250.190 [Redesignated]

? 2. Section 250.190 is redesignated as Sec. 250.186.
? 3. New Sec. Sec. 250.187 through 250.190 are added to read as set
forth below:

Sec. 250.187 What are MMS' incident reporting requirements?

(a) You must report all incidents listed in Sec. 250.188(a) and
(b) to the District Manager. The specific reporting requirements for
these incidents are contained in Sec. Sec. 250.189 and 250.190.
(b) These reporting requirements apply to incidents that occur on
the area covered by your lease, right-of-use and easement, pipeline
right-of-way, or other permit issued by MMS, and that are related to
operations resulting from the exercise of your rights under your lease,
right-of-use and easement, pipeline right-of-way, or permit.
(c) Nothing in this subpart relieves you from making notifications
and reports of incidents that may be required by other regulatory agencies.
(d) You must report all spills of oil or other liquid pollutants in
accordance with 30 CFR 254.46.

[[Page 19645]]

Sec. 250.188 What incidents must I report to MMS and when must I
report them?

(a) You must report the following incidents to the District Manager
immediately via oral communication, and provide a written follow-up
report (hard copy or electronically transmitted) within 15 calendar
days after the incident:
(1) All fatalities.
(2) All injuries that require the evacuation of the injured
person(s) from the facility to shore or to another offshore facility.
(3) All losses of well control. ``Loss of well control'' means:
(i) Uncontrolled flow of formation or other fluids. The flow may be
to an exposed formation (an underground blowout) or at the surface (a
surface blowout):
(ii) Flow through a diverter; or
(iii) Uncontrolled flow resulting from a failure of surface
equipment or procedures.
(4) All fires and explosions.
(5) All reportable releases of hydrogen sulfide (H₂S)
gas, as defined in Sec. 250.490(l).
(6) All collisions that result in property or equipment damage
greater than $25,000. ``Collision'' means the act of a moving vessel
(including an aircraft) striking another vessel, or striking a
stationary vessel or object (e.g., a boat striking a drilling rig or
platform). ``Property or equipment damage'' means the cost of labor and
material to restore all affected items to their condition before the
damage, including, but not limited to, the OCS facility, a vessel,
helicopter, or equipment. It does not include the cost of salvage,
cleaning, gas-freeing, dry docking, or demurrage.
(7) All incidents involving structural damage to an OCS facility.
``Structural damage'' means damage severe enough so that operations on
the facility cannot continue until repairs are made.
(8) All incidents involving crane or personnel/material handling
operations.
(9) All incidents that damage or disable safety systems or
equipment (including firefighting systems).
(b) You must provide a written report of the following incidents to
the District Manager within 15 calendar days after the incident:
(1) Any injuries that result in one or more days away from work or
one or more days on restricted work or job transfer. One or more days
means the injured person was not able to return to work or to all of
their normal duties the day after the injury occurred;
(2) All gas releases that initiate equipment or process shutdown;
(3) All incidents that require operations personnel on the facility
to muster for evacuation for reasons not related to weather or drills;
(4) All other incidents, not listed in paragraph (a) of this
section, resulting in property or equipment damage greater than $25,000.

Sec. 250.189 Reporting requirements for incidents requiring immediate
notification.

For an incident requiring immediate notification under Sec.
250.188(a), you must notify the District Manager via oral communication
immediately after aiding the injured and stabilizing the situation.
Your oral communication must provide the following information:
(a) Date and time of occurrence;
(b) Operator, and operator representative's, name and telephone number;
(c) Contractor, and contractor representative's name and telephone
number (if a contractor is involved in the incident or injury/fatality);
(d) Lease number, OCS area, and block;
(e) Platform/facility name and number, or pipeline segment number;
(f) Type of incident or injury/fatality;
(g) Operation or activity at time of incident (i.e., drilling,
production, workover, completion, pipeline, crane, etc.); and
(h) Description of the incident, damage, or injury/fatality.

Sec. 250.190 Reporting requirements for incidents requiring written
notification.

(a) For any incident covered under Sec. 250.188, you must submit a
written report within 15 calendar days after the incident to the
District Manager. The report must contain the following information:
(1) Date and time of occurrence;
(2) Operator, and operator representative's name and telephone number;
(3) Contractor, and contractor representative's name and telephone
number (if a contractor is involved in the incident or injury);
(4) Lease number, OCS area, and block;
(5) Platform/facility name and number, or pipeline segment number;
(6) Type of incident or injury;
(7) Operation or activity at time of incident (i.e., drilling,
production, workover, completion, pipeline, crane etc.);
(8) Description of incident, damage, or injury (including days away
from work, restricted work or job transfer), and any corrective action
taken; and
(9) Property or equipment damage estimate (in U.S. dollars).
(b) You may submit a report or form prepared for another agency in
lieu of the written report required by paragraph (a) of this section,
provided the report or form contains all required information.
(c) The District Manager may require you to submit additional
information about an incident on a case-by-case basis.

? 4. Section 250.191 is revised 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
apply to any panel meetings involving persons giving testimony:
(a) A person giving testimony may have legal or other
representative(s) present to provide advice or counsel while the person
is giving testimony. The chairperson may require a verbatim transcript
to be made of all oral testimony. The chairperson also may accept a
sworn written statement in lieu of oral testimony.
(b) Only panel members, and any experts the panel deems necessary,
may address questions to any person giving testimony.
(c) The chairperson may issue subpoenas to persons to appear and
provide testimony or documents at a panel meeting. A subpoena may not
require a person to attend a panel meeting held at a location more than
100 miles from where a subpoena is served.
(d) Any person giving testimony may request compensation for
mileage, and fees for services, within 90 days after the panel meeting.
The compensated expenses must be similar to mileage and fees the U.S.
District Courts allow.

? 5. Section 250.490(l) is revised to read as set forth below.

Sec. 250.490 Hydrogen Sulfide

* * * * *
(l) Do I need to notify MMS in the event of an H2S release? You
must notify MMS without delay in the event of a gas release which
results in a 15-minute time-weighted average atmospheric concentration
of H₂S of 20 ppm or more anywhere on the OCS facility. You
must report these gas releases to the District Manager immediately by
oral communication, with a written follow-up report within

[[Page 19646]]

15 days, pursuant to Sec. Sec. 250.188 through 250.190.
* * * * *

Sec. 250.513 [Amended]

? 6. In Sec. 250.513(d) remove the reference to ``Sec. 250.190'' and
add in its place ``Sec. 250.186.''

Sec. 250.1102 [Amended]

? 7. In Sec. 250.1102(a)(9), (b)(8), and (b)(9), remove the reference to
"Sec. 250.190" each time it appears and add in its place "Sec. 250.186."

Sec. 250.1617 [Amended]

? 8. In Sec. 250.1617(d) remove the reference to ``Sec. 250.190'' and
add in its place ``Sec. 250.186.''

[FR Doc. 06-3611 Filed 4-14-06; 8:45 am]
BILLING CODE 4310-MR-P

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