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BUDGET The UnitedStates

Department of the Interior

JUSTIFICATIONS

andPerformance Information

Fiscal Year 2018

BUREAU OF 

SAFETY AND

ENVIRONMENTAL

ENFORCEMENT

NOTICE:Thesebudget

justifications are prepared

for the Interior, Environment

and Related Agencies

Appropriations Subcommittees.

Approval for release of the

justifications prior to their

printing in the public record of

the Subcommittee hearings

may be obtained through

theOfficeofBudgetofthe

Department of the Interior.

i

BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT

FY 2018 Budget Justification

Table of Contents

Bureau/Office-Level Presentation

Director’s Preface ..................................................................................................................................... 1

General Statement..................................................................................................................................... 3

 Table: Summary of BSEE Budget Request .......................................................................................... 3

 Strategic Objective Performance Summary............................................................................................ 17

 Table: Goal Performance ................................................................................................................... 19

Table: Budget At A Glance.................................................................................................................... 21

Account-Level Presentation

Offshore Safety and Environmental Enforcement Appropriation

Table: Summary of Requirements ......................................................................................................... 23

Language Citations ................................................................................................................................. 25

 Appropriations Language ................................................................................................................... 25

Mandatory and Offsetting Collections Proposals ................................................................................... 29

 Table: Overall Rental Revenue Shortfalls .......................................................................................... 29

 Table: Fixed Costs and Internal Realignments...................................................................................... 31

Environmental Enforcement Activity-Level Presentation

Table: Activity Budget Summary ......................................................................................................... 33

Summary of 2018 Program Changes..................................................................................................... 33

Justification of 2018 Program Changes................................................................................................. 33

Program Overview................................................................................................................................. 34

Operations, Safety and Regulations Activity-Level Presentation

Table: Activity Budget Summary .......................................................................................................... 37

Summary of 2018 Program Changes..................................................................................................... 37

Justification of 2018 Program Changes................................................................................................. 37

Program Overview................................................................................................................................. 39

Performance Overview .......................................................................................................................... 39

 Table: Performance Overview ........................................................................................................... 46
ii

Administrative Operations Activity-Level Presentation

 Table: Activity Budget Summary ....................................................................................................... 47

 Justification of 2018 Program Changes............................................................................................... 47

 Program Overview............................................................................................................................... 48

Executive Direction Activity-Level Presentation

 Table: Activity Budget Summary ....................................................................................................... 53

 Justification of 2018 Program Changes............................................................................................... 53

 Program Overview............................................................................................................................... 53

Account-Level Presentation

Oil Spill Research Appropriation

 Table: Summary of Requirements...................................................................................................... 57

 Language Citations .............................................................................................................................. 59

 Appropriations Language ................................................................................................................ 59

 Table: Oil Spill Research Budget Summary ....................................................................................... 61

 Justification of 2018 Program Changes............................................................................................... 61

 Program Overview............................................................................................................................... 61

 Performance Overview ........................................................................................................................ 62

 Table: Performance Overview ............................................................................................................ 68

Appendices

 Section 403 Compliance ..................................................................................................................... 69

 Employee Count by Grade.................................................................................................................. 75

 MAX Tables & Budget Schedules...................................................................................................... 77

 Authorizing Statutes............................................................................................................................ 85

Table of Figures

Figure 1: Ohmsett Facility ..................................................................................................................... 67 
Director’s Preface

Bureau of Safety and Environmental Enforcement 1

FY 2018 BUDGET JUSTIFICATIONS

Bureau of Safety and Environmental Enforcement

Director’s Preface

As the Administration works to support and promote domestic energy production, the Bureau of Safety 

and Environmental Enforcement (BSEE) is taking the necessary steps to foster safe and responsible 

offshore oil and gas operations in order to secure reliable energy production for America’s future. 

Ensuring environmentally responsible energy exploration, development, and production are central to 

BSEE’s mission. The Bureau staff fulfills this mission through integrated preparedness, prevention, and 

compliance activities. BSEE actively works to promote the efficient and responsible production of 

America’s offshore energy resources. The Bureau’s diverse team includes highly skilled engineers, 

geoscientists, geologists, environmental specialists, inspectors, and preparedness analysts, all working to 

ensure safe and responsible offshore energy production.

The 2018 BSEE budget fully supports the President’s America First energy strategy by ensuring that 

development of the Nation’s vast offshore energy resources is conducted in a safe and environmentally 

responsible manner. Funds will be used to support and recruit expert engineers, geoscientists, inspectors 

and oil spill planning, prevention, and response specialists to support the development of strong scientific 

information and the timely and thorough review of permits. 

In 2018, BSEE will continue to fulfill its mission by supporting the safe and responsible exploration, 

development, and production of America’s offshore energy resources through a well-developed and 

measured application of its programs including efficient permitting, appropriate regulations, compliance 

monitoring and enforcement, technical assessments, inspections, and incident investigations, regulatory 

oversight, resource conservation, preparedness planning, and enforcement programs. Through these 

programs and others, the Bureau will continue to ensure that offshore development continues in a safe and 

environmentally responsible way.

BSEE’s efforts are supported by six strategic goals identified in the Bureau’s FY 2016 – FY 2019 

Strategic Plan: three operational excellence goals and three organizational excellence goals. These 

strategic goals guide BSEE’s decision-making and investment strategies.

BSEE’s FY 2018 budget will continue to focus on the Bureau’s commitment to a practical and efficient 

approach that fosters safe and dependable energy production.
Director’s Preface

2 Bureau of Safety and Environmental Enforcement

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General Statement

Bureau of Safety and Environmental Enforcement 3

FY 2018 PERFORMANCE BUDGET REQUEST

Bureau of Safety and Environmental Enforcement

General Statement

Table 1: Summary of BSEE Budget Request ($000)

The Bureau of Safety and Environmental Enforcement (BSEE) fulfills its mission by supporting the safe 

and responsible exploration, development, and production of America’s offshore energy resources 

through a well-developed and measured application of its programs, including efficient permitting, 

appropriate regulations, compliance monitoring and enforcement, technical assessments, inspections, and 

incident investigations. The Bureau’s jurisdiction and regulatory responsibilities are defined by the Outer 

Continental Shelf Lands Act (OCSLA), which outlines Federal responsibility over the submerged lands of 

the OCS. BSEE ensures compliance with provisions of other Federal laws, including the National 

Environmental Policy Act (NEPA), the Clean Air Act (CAA), the Clean Water Act (CWA), the Federal 

Oil and Gas Royalty Management Act, and the Oil Pollution Act of 1990.

FY 2016

Actual

FY 2017 

CR 

Baseline

FY 2018

Request

Change 

from 

FY 2017

Offshore Safety & Environmental Enforcement (OSEE)

Environmental Enforcement 8,314 7,953 4,453 -3,500

Operations, Safety and Regulation 144,954 144,954 151,061 +6,107

Administrative Operations 18,268 18,268 18,350 +82

Executive Direction 18,236 18,236 18,318 +82

Total, OSEE 189,772 189,411 192,182 +2,771

Offsetting Collections

Offsetting Rental Receipts -40,154 -37,849 -23,732 +14,117

Cost Recovery Fees -4,947 -5,598 -4,139 +1,459

Inspection Fees -50,121 -53,897 -65,000 -11,103

Total, Offsetting Collections -95,222 -97,344 -92,871 +4,473

Net, OSEE 94,550 92,067 99,311 +7,244

Oil Spill Research 14,899 14,871 12,700 -2,171

Current BSEE Funding 109,449 106,938 112,011 +5,073

Total BSEE Funding 204,671 204,282 204,882 +600

Full Time Equivalents (FTE)

Total Direct FTE 715 756 756 -

Total Reimbursable FTE (Reimbursable Agreements) 116 125 125 -

Total FTE 831 881 881 -

BSEE Summary

($000)

Account/Activity
General Statement

4 Bureau of Safety and Environmental Enforcement

BSEE is focused on fostering secure and reliable energy production for America’s future. The Bureau 

pursues this objective through a program of efficient permitting, appropriate regulations, compliance 

monitoring and enforcement, inspections, technical assessments, and incident investigations. BSEE also 

protects Federal royalty interests by ensuring that oil and gas production methods maximize recovery 

from underground reservoirs and that production volumes are accurately measured. While BSEE 

mitigates oil spill risks through a focused program on prevention, it equally emphasizes that the offshore 

community be prepared with the best plans, equipment, and training to respond to oil spills when they do 

occur. In addition, BSEE places great emphasis on enhancing and supporting a safety culture throughout 

industry, the cornerstone of this effort being the Safety and Environmental Management System (SEMS). 

Key functions include:

• An offshore regulatory program that identifies performance standards and emphasizes a culture of 

safety in all offshore activities; 

• A technical review process for planned operations and emerging technology that ensure that risks 

are properly identified and minimized;

• Oil spill preparedness through evaluation of industry oil spill response plans, inspection of 

response equipment, verification of operator and contractor competencies, completion of

government-initiated unannounced exercises to ensure compliance with regulatory requirements, 

and oil spill response research and development to develop and refine new and existing 

technologies; 

• Funding technical and scientific research to enhance the information and technology needed to 

build and sustain the organizational, technical, and intellectual capacity within and across BSEE’s 

key functions that can keep pace with industry’s technological improvements, encourage 

innovation in regulation and enforcement, and reduce risks through systematic assessment of 

incidents, inspection, and other performance data; 

• Permitting, inspections, compliance oversight, resource conservation, measurement verification 

and enforcement of applicable lease, permit, and regulatory safety and environmental 

requirements; and

• Investigation of incidents and allegations of unsafe conduct during offshore operations.

The energy resources and activities under BSEE’s jurisdiction are vast as the OCS is a major source of 

energy for the U.S. In FY 2016, OCS leases offshore Alaska, California, and in the Gulf of Mexico

(GOM) provided 553 million barrels of oil and 1.25 trillion cubic feet of natural gas, accounting for about 

16 percent of the Nation’s oil production and about 5 percent of domestic natural gas production1, 2. The 

Energy Information Administration projects offshore production will continue to grow through 2040, as 

the pace of development activity quickens and new large development projects, predominantly in the 

deepwater and ultra-deepwater areas of the GOM, are brought into production.

 1 For additional details regarding OCS oil and gas production see: 

https://www.data.bsee.gov/Main/Production.aspx

2 Data percentages were derived from total domestic oil and gas production numbers listed at http://www.eia.gov.
General Statement

Bureau of Safety and Environmental Enforcement 5

FY 2018 BUDGET REQUEST

BSEE was established on October 1, 2011, to protect life, property, and the environment by ensuring the 

safe and responsible exploration, development, and production of the Nation’s offshore energy resources. 

The Bureau has set organizational priorities based on focus areas outlined in the Bureau’s FY 2016 –

FY 2019 Strategic Plan. The Plan identifies six strategic goals: three operational excellence goals that 

encapsulate BSEE’s core functions, including inspections, permitting, investigations, enforcement and 

preparedness; and three organizational excellence goals focused on BSEE’s internal capacity to execute 

these functions. One of BSEE’s organizational excellence goals is to value, engage, and support its 

people so they can excel. Critical to accomplishing this goal is the Bureau’s ability to recruit, develop, 

and retain a diverse workforce that is efficient, effective, and accountable. BSEE is committed to 

maintaining a lean, highly performing workforce with appropriately rigorous performance expectations.

As a result of previous hiring efforts, BSEE now has the expertise and staffing levels to fully implement 

its mission. BSEE has strengthened its consistency, predictability, and accountability to the American 

public and the regulated community.

As offshore operations continue to expand and move into new environments that require new 

technologies, BSEE continues to adapt its oversight approach. Programs have been established that 

identify, evaluate, and promote emerging technologies that will decrease risks associated with offshore oil 

and gas development while increasing safety for offshore workers. BSEE undertakes technical 

assessments and research on new technologies, the results of which assist the Bureau in staying current 

with expanding operations and evaluating technological advances that allow for deeper drilling at higher 

temperatures and pressures. 

Additionally, BSEE is responsible for oversight of companies’ oil spill response plans including BSEE’s

government-initiated unannounced exercise program. Through these exercises, many of which involve 

actual deployment of response assets, BSEE assesses an operator’s ability to mount and sustain a spill 

response. These exercises also allow government entities with regulatory authorities for response to test 

actual response protocols and decision-making processes.

Fostering Safe and Responsible Energy Development

Risk management is an integral component of a safety culture. It is the lens through which BSEE views 

the interaction between technology, processes, and the human element. It provides the foundation for 

how BSEE regulates and enforces standards and, therefore, how BSEE ensures the safe and responsible 

development of oil and gas resources on the OCS. In FY 2018, BSEE will continue to work with industry 

BSEE recorded the highest ever oil 

production from the Gulf of Mexico 

Region by the end of 2016 at 

1.7 million barrels of oil per day.
General Statement

6 Bureau of Safety and Environmental Enforcement

and other stakeholders to promote safety initiatives that address the higher risk concerns. These 

initiatives are designed to proactively identify risk, prevent safety incidents from occurring, and promote 

compliance with recent safety protections. In FY 2018, BSEE will continue to assess its programs to 

eliminate burden or duplication through reforms that will not significantly impact the safety and 

environmental protections afforded by these programs.

Safety Managements Systems: The SEMS program is one of the major components of BSEE’s regulatory 

program. It contains performance-based objectives that give industry the flexibility to identify, manage, 

and improve safety performance related to human behavior, organizational structure, monitoring of 

critical equipment and processes, and the adoption of internal processes and procedures. BSEE works 

closely with industry to ensure that there is continuous improvement in the program, including the 

development protocols for third party audits of the SEMS program and the development of an effective 

accreditation program for auditors.

Best Practices and Performance Requirements: BSEE incorporates consensus best practices and 

performance requirements for activities on the OCS. A large percentage of these requirements are 

derived from industry standards and best practices which are a product of a standards developing 

organization through a comprehensive consensus process. Through this process, BSEE uses industry 

expertise and resources to improve safety on the OCS. BSEE’s subject matter experts are actively 

engaged in the industry standards development process to ensure that the appropriate documents can be 

adopted in a timely manner. 

Technical Assessments and Research: BSEE performs technical assessments and research projects for

both existing and ‘cutting edge’ technology to determine feasibility and to identify gaps in technology or 

industry standards. The goals of these activities are to identify and resolve potential safety issues before 

incidents occur and also ensure that emerging technologies can be reviewed and approved in a timely 

manner. For example, BSEE’s technical assessment of failures of subsea bolts and connectors has 

resulted in significant improvements in industry standards on the equipment and quality assurance 

practices. In addition, BSEE’s research and testing of high-temperature and high-pressure equipment has 

identified potential gaps in industry standards on this type of equipment and is resulting in design changes 

that improve safety. Finally, collaboration with the industry and the National Aeronautics and Space 

Administration (NASA) is resulting in the standard risk methodology for assessing new technology. This 

type of standard industry methodology for assessing technology has the potential for speeding up BSEE’s 

review process for these projects. 

In FY 2018, the Houston Center will continue to provide BSEE with a nationally-based engineering 

center of expertise to evaluate newly proposed technologies intended for use in extreme offshore 

environments. It will establish and manage flexible engineering contracts that provide BSEE up-to-date 

experts in offshore oil and gas technology, equipment development, failure analysis, and testing 

protocols.

Safety Analysis and Data Sharing: In May 2015, BSEE launched the SafeOCS program, an initiative 

aimed at collecting and analyzing near-miss and safety data. SafeOCS is a voluntary and completely 

confidential system in which the Bureau of Transportation Statistics (BTS) collects and analyzes nearmiss reports. This program resolves the commercial and legal issues that prevent industry from 
General Statement

Bureau of Safety and Environmental Enforcement 7

exchanging this type of data. The aggregated data is shared with the general public and industry to assist 

in the identification of safety trends and potential safety issues. BSEE worked closely with industry 

groups such as the International Association of Drilling Contractors (IADC) to identify the type of 

information that has the most value to the industry and then, in collaboration with the industry, developed 

a system for ensuring the data is analyzed by the subject matter experts. The release of this data in 

aggregated form helps the industry and BSEE to identify areas where improvements in operations, 

equipment design, or industry standards may be needed to improve safety.

Production Verification and Measurement: Oil production in the Gulf of Mexico has increased from 

1.1 million barrels per day (MMBopd) in June 2013 to 1.7 MMBopd in January 2017, despite decreasing 

oil prices from August 2014 through January 2017. This increase in oil production was accomplished by 

drilling and completion work from platform and floating drilling rigs in support of both new and existing 

production facilities for deepwater projects. In coordination with ONRR, BSEE’s specially trained 

measurement inspection team helps ensure that production volumes are accurately reported for the 

assessment of royalties returned to the American people.

Compliance, Inspections, and Enforcement

Efficient Permitting: BSEE performs in depth technical reviews of many permits, including, but not 

limited to, Applications for Permit to Drill (APD), Applications for Permit to Modify (APM), Structural 

Permits, and Pipeline Permits. These reviews include detailed analysis of key safety components,

including the blowout preventer, the well containment screening tool, containment demonstration, and 

fluid gradient calculations. The engineers also ensure that the requested operations are in compliance 

with regulations and guidelines, in addition to appropriate environmental mitigations. Once the permits 

are approved, BSEE’s engineers follow the operation until completion to ensure compliance is 

maintained.

Inspections: BSEE has a dedicated workforce of inspectors who conduct inspections of well operations 

and production operations using multi-person, multi-discipline inspection teams. BSEE inspectors 

perform inspections, such as production facilities, environmental, flaring, pipeline, drilling rigs, blowout 

preventer (BOP) test witnessing, coiled tubing, and snubbing unit inspections. BSEE is currently in the 

process of developing a new inspection strategy that will set forth strategies to most efficiently target 

inspections risk. 

The Bureau recently completed a third risk-based inspection pilot and is looking toward implementing a 

risk-based inspection methodology for use at various levels within the regulatory program. Through the 

identification and quantification of risk, such as through analyzing leading and lagging indicators, BSEE 

can better gauge operator performance and improve its analysis of the effectiveness of redundant physical 

controls (barrier analysis) on well operations. Beyond the OCS Lands Act mandated inspections, this will 

enable BSEE to effectively focus its attention in the areas or operations which pose the greatest risk to 

safe operations. 

Incident Investigations and Compliance: The purpose of these investigations is to determine the cause(s) 

of the incident in order to prevent the recurrence of the same type of incident in the future. By reviewing 

every incident that occurs offshore and by gathering consistent data about each incident, BSEE can 
General Statement

8 Bureau of Safety and Environmental Enforcement

analyze the data and identify trends, the results of which can then be used to inform the areas of highest 

risk. In addition, the implementation of a Bureau policy that requires the review of every reportable 

incident that occurs on the OCS gives BSEE the opportunity to gather and analyze data regarding these 

incidents. Analyzing this data to identify any trends allows BSEE to provide feedback to industry 

regarding incidents and associated risks with those incidents.

Decommissioning: BSEE is engaged in decommissioning wells and facilities that are no longer useful for 

operations. It is in the best interest of the taxpayer that those assets are removed in a timely manner to 

ensure the area is available to other users of the OCS. Inactive wells and platforms are susceptible to 

adverse effects of severe weather. Inactive platforms may topple during storms and cause significant 

environmental contamination (such as the release of hydrocarbons to the surrounding waters), damages to

operating infrastructure, and may create new navigation and safety hazards. This effort by industry with 

BSEE oversight has also significantly driven down the need for financial assurance on facilities and wells 

with no future utility. The “Idle Iron” policy has also had the impact of driving down risk to the 

American taxpayer by eliminating some uncovered liabilities.

Bankruptcies: Operator bankruptcies are a growing concern for both the Bureau and taxpayers. 

Maintenance of sufficient assets to cover the proper decommissioning of wells and facilities is essential. 

While BSEE and the Bureau of Ocean Energy Management (BOEM) track the financial health of OCS 

operators, lower oil prices have increased the frequency of operator bankruptcies. In these cases, district 

inspectors perform inspections of the operator’s assets to ensure that appropriate monitoring of safety 

equipment is maintained, while it works within the bankruptcy proceeding to secure the set aside of funds 

to fulfill the statutory duty to decommission facilities. BSEE’s goal is to avoid passing the burdensome 

cost of decommissioning on the taxpayers.

Ohmsett: Important oil spill response research is conducted at Ohmsett, the National Oil Spill Response 

Research and Renewable Energy Test Facility, which is managed by BSEE. Ohmsett is the largest

outdoor testing facility of its type in North America, comprised primarily of a 667 foot long saltwater 

tank. Located near Leonardo, New Jersey, Ohmsett provides the Bureau, as well as other facility users

from around the world, a unique oil spill response training and testing environment that simulates realworld conditions in a safe and controlled environment. With the ability to test with real crude oil, 

equipment manufacturers, scientists, regulators, and first responders can test and train on various response 

methods at a scale and with wave conditions that, to a great extent, mimics those encountered offshore. 

Additional information on the facility is located in the Oil Spill Preparedness and Research section of the 

General Statement.

International Collaboration: BSEE engages regularly with its international counterparts in order to 

promote the safe and environmentally responsible development of offshore energy resources globally. 

BSEE has established itself as a leader in international cooperation, occupying leadership roles in 

multilateral fora such as the International Regulators Forum, the Arctic Offshore Regulators Forum, the 

Arctic Council bodies, such as the Emergency Prevention, Preparedness, and Response Working Group;

and the International Offshore Petroleum Environment Regulators group. Additionally, BSEE places a 

priority on maintaining strong bilateral relationships with a number of international partners such as 

Canada and Mexico. This is particularly true for neighboring regulators, with whom the exchange of 

information and best practices is essential in facilitating greater regulatory certainty and providing for 
General Statement

Bureau of Safety and Environmental Enforcement 9

cooperation on oil spill prevention and preparedness in adjoining maritime jurisdictions. BSEE also 

works regularly with the Department of State and DOI Office of International Affairs in providing 

technical assistance to select countries on the verge of becoming significant oil and gas producers. 

BSEE also participates in the Interagency Coordinating Committee on Oil Pollution Research (ICCOPR),

which provides a forum for research collaboration that looks at oil spill prevention, preparedness, and 

response. The ICCOPR, a Congressionally-mandated body comprised of staff from 15 Federal agencies, 

provides a venue for agencies to share their latest research, regulations, and policies; explore 

opportunities for collaboration on research; and identify emerging issues that need national attention. 

Collaboration on oil spill response research is not limited to the Federal Government, but also includes 

industry organizations, both domestically and internationally, such as the American Petroleum Institute

(API), and the International Oil and Gas Producers, respectively.

Federal Partnerships: The Bureau values its close cooperative relationships with Federal partners on the 

OCS, and is also working to strengthen resources through intra- and interagency cooperation. For 

example, the Bureau continues to improve upon its longstanding memorandum of understanding (MOU) 

and a series of subject matter specific memorandums of agreement (MOAs) with the U.S. Coast Guard 

(USCG) and is focusing on shared resources, cross-training, and cooperation in Federal enforcement 

efforts on the OCS. One of the more successful engagements is through the BSEE and USCG Response 

Work Group which looks at ways to better coordinate respective oil spill exercise and response equipment 

inspection programs, address lessons learned, get updates on field activities, and promote routine 

communication at all levels throughout both organizations. Also, BSEE has been involved in discussions 

on continuous safety improvement and safety culture policy with other Federal partners focused on High 

Reliability Organizations, such as the Department of Transportation (DOT), Pipeline and Hazardous 

Materials Safety Administration (PHMSA); and the Nuclear Regulatory Commission (NRC). BSEE 

continues to actively seek new opportunities to share information across U.S. government agencies and 

internationally.

Accountability and Internal Management

In FY 2018, BSEE will continue efforts to enhance internal management and accountability through 

strengthening internal controls and tracking and demonstrating results for mission-critical operations. 

These efforts will include building on the foundational policies and procedures established in FY 2016

and FY 2017 to better ensure consistency in program implementation across the Bureau. Key 

components will be providing clear guidance on policy and procedure development and review, as well as 

the use of internal control reviews to assess implementation. These internal control reviews evaluate both 

programs and policies, support identification of corrective actions that may pose risks to the Bureau, and 

can be integrated into other risk mitigation activities. 

Enterprise risk management is among the risk mitigation activities that the Bureau will continue in 

FY 2018. BSEE will build on the lessons learned following the completion of the Bureau’s first full 

enterprise risk management cycle in April 2017. Successful implementation of the new cycle in FY 2018 

will focus on further integrating enterprise risk management with broader Bureau decision making and 

strengthening communications on risk relationships among and within programs.
General Statement

10 Bureau of Safety and Environmental Enforcement

A key component of both risk and broader program management is the use of effective performance 

measures and strategic planning. In FY 2018, BSEE will strengthen the national program performance 

framework implemented in FY 2017 by expanding measures used and ensuring quarterly review of 

relevant measures to enhance program decision making. Additionally, in FY 2018, the Bureau will 

further strengthen its strategic planning approach by better prioritizing and sequencing multi-year priority 

activities aligned with broader strategic planning.

BSEE’s PRE-PRODUCTION INSPECTIONS ENSURE A FORWARD PATH FOR 

INCREASE OF SAFE PRODUCTION FOR AMERICA’s FUTURE

As the agency responsible for promoting and ensuring safe and responsible offshore oil and gas 

operations in Federal waters, BSEE works with operators from very early on in the process of 

bringing a new production platform online. From reviews of the deepwater operations plan and 

safety systems permit to commencement of production throughout all phases of offshore 

operations, BSEE works with operators to address safety issues in ways that prioritize worker 

safety while minimizing interruptions to the operators’ schedules

• During a pre-production inspection, BSEE’s 

engineers and inspectors verify that all 

safety equipment, design specifications, and 

submitted drawings comply with Federal 

regulations. The inspection team,

comprised of BSEE engineers and 

inspectors, looks for any potential issues 

that would compromise worker safety, 

ranging from simple missing warning labels 

to design flaws that could lead to blocked 

emergency egress routes.

• Operators need to correct identified items after the initial inspection, similar to any 

construction punch list, before they can begin production. Additional inspections occur 

once the topsides are attached to the production facility structure and the platform is on 

location in the Gulf of Mexico.

• A pre-production inspection was conducted in February 2017 for the new Stampede 

platform topsides. The topsides will be installed onto Hess Corporation’s tension leg 

platform in the Gulf of Mexico. It is currently under construction at a shipyard in 

Ingleside, Texas, but will eventually operate in 3,500 feet of water approximately 

115 miles south of Port Fourchon, Louisiana. It will support six subsea wells and have the 

capacity to process 80,000 barrels of oil and 80 million standard cubic feet of gas throughput per day. Hess expects to commence production in 2018.

 
General Statement

Bureau of Safety and Environmental Enforcement 11

Oil Spill Preparedness and Research

While BSEE mitigates oil spill risks through a focused program on prevention, it equally emphasizes that 

the offshore community be prepared with the best plans, equipment and training to respond to oil spills 

when they do occur. The cornerstones of this preparedness posture include the following: 

Oil Spill Response Plans: The Oil Spill Response Plan (OSRP) is an important aspect of responsible 

development of the OCS energy resources. An OSRP is required of each offshore facility and is approved

when the owner/operator of the facility has demonstrated the ability to respond to a worst-case discharge. 

BSEE further ensures the preparedness of the offshore community by assessing the quality and 

performance of response equipment listed in the plans such as skimmers, pumps, booms, storage devices, 

and integrated fast response vessels. During annual training and exercises, BSEE requires that plan 

holders hone and demonstrate their understanding and skills in managing all aspects of a response, 

including how to mobilize both equipment and people quickly and safely. 

Well Control: Deepwater operators must now have specialized equipment to help stop the flow of an 

uncontrolled well release and to capture oil being released from a subsea leak source. The equipment 

includes highly sophisticated capping stacks, cap and flow equipment, and pollution containment domes 

for deepwater wells. The training associated with the use of subsea containment and control equipment 

was codified through the BSEE initiative to develop a unique set of positions within the Incident 

Command System structure – positions that are now reflected in the USCG Incident Management 

Handbook. 

Research and Development: BSEE continues to implement a comprehensive, long-term research program 

dedicated to improving spill response options for oil spills in offshore environments, including the Arctic. 

The program is based upon a strategic plan that recognizes the evolving risks in offshore exploration and 

production and the constant mission of protecting the environment. BSEE is focused on improving the 

methods and technologies used for oil spill detection from aerial and subsea platforms and vehicles, smart 

technologies, surface slick and subsurface plume measurement, characterization, and quantification, 

surface and subsea containment, treatment with dispersants, recovery using mechanical devices, oil and 

water separation systems, and clean up using various technologies including in-situ burning of the oil. 

During FY 2018, BSEE intends to fund research on advancing new technology for in-situ burn efficiency, 

remote sensing tools for oil spill detection and thickness determination, integration of remote sensing data 

into command and control systems to support operational decision-making, and the development of 

“smart” skimming technologies to improve recovery rates. Additionally, BSEE will continue to support

research projects that will provide science to support the understanding and improvement of dispersant 

effectiveness in various operating environments. BSEE will also continue to work with Federal partners 

such as the USCG Research and Development Center and the National Oceanic and Atmospheric 

Administration (NOAA), and international organizations such as the Offshore Petroleum Environmental 

Regulators to engage in a continuous program of domestic and global information exchange to help 

facilitate forward movement on oil spill research and the identification of the best technologies available 

worldwide.
General Statement

12 Bureau of Safety and Environmental Enforcement

Oil Spill Research funding also provides for the operations and maintenance of Ohmsett, an integral part 

of offshore oil spill response preparedness for the Nation. The Ohmsett facility recently completed a 

scheduled five-year test tank renovation and the construction of a new warehouse to replace the one 

destroyed during Hurricane Sandy. Mitigation efforts to harden and protect Ohmsett assets from future

extreme weather events were completed concurrently. The Bureau intends to continue to expand 

Ohmsett’s capabilities to further facilitate advances in oil spill response and meet the venue-needs of the 

oil spill response community related to both response equipment research and testing, and hands-on first 

responder training. 

FY 2018 BUDGET HIGHLIGHTS 

BSEE receives funding through the Offshore Safety and Environmental Enforcement (OSEE) and Oil 

Spill Research (OSR) appropriations. The OSEE appropriation is partially offset by cost recovery fees, 

inspection fees, and a portion of OCS rental collections. The OSR appropriation is funded through the 

Oil Spill Liability Trust Fund. 

In FY 2018, BSEE estimates offsetting collections will be comprised of $23.7 million from rental 

collections, $4.1 million from cost recovery fees, and $65.0 million from inspection fees. 

The budget for the OSEE account funds the following activities:

• The Environmental Enforcement Activity funds: environmental compliance staff support permit 

writers in evaluating and identifying environmental mitigation provisions into permits; conduct 

specialized inspections of air, water, and mitigation measures; and provide subject matter 

expertise to safety inspectors to assist in identifying environmental violations. Additionally, this 

activity supports the Bureau’s internal compliance with NEPA, the Endangered Species Act 

(ESA), the Marine Mammal Protection Act (MMPA), the National Historic Preservation Act 

(NHPA), and associated tribal consultation requirements, CAA, CWA, and other environmental 

regulations;

• The Operations, Safety and Regulation Activity funds: OCS permit application reviews; 

inspections of OCS facilities, including critical high-risk activities; offshore operator oil spill 

planning and preparedness compliance; investigations; enforcement; audit programs; annual 

operator performance reviews; verification of oil and gas production levels to help ensure the 

public receives a fair return; and research supporting the analysis of emerging technologies, 

standards and regulatory review activities; and technical training. 

• The Administrative Operations Activity funds: general administration and ethics programs, equal 

employment opportunity services, emergency management; finance, human resources,

procurement, and information management. BSEE also provides administrative services, such as 

human resources, procurement, and finance to BOEM and other entities within the Department on 

a reimbursable basis.

• The Executive Direction Activity funds: Bureau-wide leadership, direction, management, 

coordination, communications strategies, and outreach. It includes functions such as budget, 
General Statement

Bureau of Safety and Environmental Enforcement 13

congressional and public affairs, and policy and analysis. The Office of the Director and key 

management positions in the Regional Director’s Offices are also funded within this activity.

The budget for the OSR account funds oil spill research, the Ohmsett facility, as well as oil spill response 

preparedness and planning activities.

In FY 2018, the following BSEE budget changes are proposed:

OSEE Appropriation:

General Reduction (-$82,000; -0 FTE): In order to support BSEE’s highest priority needs in FY 2018, 

the Bureau proposes a general reduction to its primary operating account that will be achieved through 

administrative savings efforts, such as reducing non-essential travel expenses. 

Technical Training (+$1,168,000; +0 FTE): Funding increase will support training and other efforts 

aimed at field personnel for BSEE’s inspectors and engineers to ensure that staff have the tools needed to 

streamline permitting, while at the same time promoting responsible energy development. These 

programs will provide the most up to date training available in order to address the technological 

advances to which the Bureau’s workforce is exposed, and utilize new and emerging tools available to 

them.

General Increase in Base Appropriated Funding to Offset Reduction in Offsetting Collections 

(+$4,473,000; +0 FTE): The proposed increase to appropriated funding offsets the estimated decrease in 

rental receipt and cost recovery revenue as discussed below. Although offsetting revenue is set to decline, 

program requirements will not, and it is critically important for the Bureau to maintain adequate base 

program capacity to achieve its mission, as industry continues to move drilling and production operations 

into deeper waters and more hostile operating environments.

General Reduction – Changes in Offsetting Collections (-$4,473,000; -0 FTE):

• Rental Receipts (-$14,118,000; -0 FTE): Rental receipts are the second largest of three different 

offsetting collections credited to the BSEE OSEE account to help defray the cost of operations. 

This decrease in rental receipts revenue is the result of two compounding factors. First, fewer 

leases are being sold as the OCS matures in terms of exploration prospects and world oil prices 

decline. Second, the decline in the number of leases subject to rentals is expected to accelerate 

because some of the active leases were issued with shorter primary terms than before and a large 

number of deepwater leases are expected to expire around FY 2017. 

• Cost Recovery Fees (-$1,458,000; -0 FTE): Cost recovery fees are the smallest of three 

different offsetting collections credited to the BSEE OSEE account to help defray the cost of 

operations. This decrease in revenue generated from cost recovery fees reflects the trend of 

actual collections. 

• Inspection Fees (+$11,103,000; +0 FTE): Inspection fees are the largest of three different 

offsetting collections credited to the BSEE OSEE account to help defray the cost of operations. 

The increase of $11,103,000 from the FY 2017 CR Baseline levels includes a proposed inspection 
General Statement

14 Bureau of Safety and Environmental Enforcement

fee structure that more accurately reflects offshore inspection activities and costs while ensuring 

that the fees are more equitable for operators. 

Fixed Costs (+$1,685,000; +0 FTE): Projected increases for fixed costs such as rent, salary increases, 

central billing, IT transformation for the Department’s Working Capital Fund, and other items are fully 

funded by this request.

OSR Appropriation:

Research Reduction (-$2,171,000; -0 FTE): BSEE has developed the capability to conduct research 

projects with the Oil Spill Preparedness Division (OSPD) engineering staff by leading much of the 

research on traditional, alternative, and emerging spill response technologies at the Ohmsett facility. 

Through enhancement and operationalization of response technologies, spill cleanups can be done more 

effectively and efficiently resulting in safer field oil recovery and treatment activities, with less impact to 

the environment, and a quicker return of platforms to production operations. The funding decrease will 

result in fewer research projects being initiated in FY 2018, but will continue to enable BSEE to fund 

some priority research activities that align with the goals and objectives of the Administration.

Performance

In FY 2018, BSEE will focus attention on priority areas that foster safe and environmentally responsible 

energy exploration, development, and production of offshore resources. A key component is the Bureau’s

performance management framework, which was implemented in FY 2017 and provides a suite of 

meaningful performance measures that managers can use to inform decision making and communicate the 

value of the mission to stakeholders. In FY 2018, BSEE will seek to expand from its outcome measures

to better demonstrate how the Bureau achieves results in implementing its mission. A continuing

emphasis on data will strengthen BSEE’s overall ability to examine and understand how it achieves 

results. 

Additional efforts underway will support BSEE’s abilities to measure performance, and to assess 

effectiveness and priorities. These efforts include implementation of an enterprise-wide risk-management 

system to help identify and prioritize areas of risk for the Bureau. In FY 2018, BSEE will continue a new 

enterprise risk-management cycle that builds on the lessons learned from the cycle completed in FY 2017. 

By assessing and comparing organizational risks, as well as strengths, weaknesses, and opportunities, the 

Bureau is able to consider any impacts that ongoing and future industry trends may have on BSEE’s role 

as a regulator. Program audits and reviews conducted by the Government Accountability Office (GAO), 

the Office of Inspector General, and external organizations also will continue to provide input to BSEE’s 

performance and evaluation processes. Results from the enterprise risk management system, audits and 

reviews, and other initiatives (e.g., real-time monitoring, near-miss reporting, enforcement reform, and 

human capital strategic planning) will further inform the Bureau’s efforts to continuously improve 

mission performance.
General Statement

Bureau of Safety and Environmental Enforcement 15

Performance Results - Evidence and Evaluation

In FY 2018, BSEE will continue to focus attention on priority areas and refine its outcome measures to 

assess results and to better position the Bureau to achieve its mission in four priority categories:

1) Incidents – including injuries, fatalities, fires, hazmat, and loss of well control.

2) Operations – including incidents of non-compliance (INCs) and violations.

3) Systems and subsystems – including environmental integrity, plans, and permits.

4) Safety culture – including SEMS maturity and corrective actions.

This enhanced suite of meaningful, outcome-based performance metrics is expected to be monitored 

through BSEE’s business intelligence tools to:

• Make informed management decisions for the Bureau, and; 

• Improve program implementation and motivate performance through increased quality of 

program outputs.
General Statement

16 Bureau of Safety and Environmental Enforcement

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Strategic Objective Performance Summary

Bureau of Safety and Environmental Enforcement 17

 

FY 2018 PERFORMANCE BUDGET

Strategic Objective Performance Summary

The FY 2018 budget request provides the resources needed to carry out the core functions of BSEE, 

which focus on fostering safe and environmentally responsible exploration, development, and production 

of offshore resources. 

STRATEGIC OBJECTIVE PERFORMANCE SUMMARY

The FY 2014 – FY 2018 DOI Strategic Plan, in compliance with the principles of the Government 

Performance and Results (GPRA) Modernization Act of 2010, provides a collection of mission 

objectives, goals, strategies, and corresponding metrics that together constitute an integrated and focused 

approach for tracking performance across the wide range of DOI programs. While the DOI Strategic Plan 

for FY 2014 - FY 2018 is the foundational structure for the description of program performance 

measurement and planning for the FY 2018 President’s Budget, further details for achieving the Strategic 

Plan’s goals are presented in the DOI Annual Performance Plan and Report (APP&R). Bureau and 

program specific plans for FY 2018 are fully consistent with the goals, outcomes, and measures described 

in the FY 2014 – FY 2018 version of the DOI Strategic Plan and related implementation information in 

the APP&R.

Bureau Contribution

Within the DOI Strategic Plan for FY 2014 – FY 2018, BSEE is aligned with the Department’s strategic 

priority of energy independence and security. BSEE has two GPRA measures that support this focus:

 The Amount (in barrels) of operational offshore oil spilled per million barrels produced 

(excluding Hurricane-related spills), is an annual environmental measure comparing the amount 

of oil spilled during operations to the amount of oil produced. This measure takes into account 

all crude oil, condensate, and other refined petroleum product spills of one barrel or greater that 

occur in Federal offshore waters as a result of mineral development, production, and 

transportation activities on the OCS. Oil spills which occur from acts of nature (e.g., hurricanes 

and earthquakes), acts of terrorism, or activities other than those involved in Federal OCS oil 

and gas production and transportation are excluded from the measure (e.g. non-Federal OCS 

petroleum spills from marine transportation, fishing, recreational, and other activities which 

occurred on the Federal OCS).

 The Number of recordable injuries per 200,000 offshore man hours worked (100 man years) is 

an annual safety incident rate of all recordable injuries (including fatalities) that are associated 

with BSEE-regulated activities. Beyond fatalities, recordable injuries are those injuries that 

require medical treatment beyond first aid, excluding those that are due to natural causes, illness, 

or that are self-inflicted. The man hours worked count covers all operator and contractor hours 
Strategic Objective Performance Summary

18 Bureau of Safety and Environmental Enforcement

worked for production, construction, and drilling operations on the OCS (200,000 man hours 

equates to approximately 100 full time workers). 

BSEE also reports on the total number of compliance inspections completed and the utilization rate 

achieved at the Ohmsett National Oil Spill Response Research test facility each fiscal year. BSEE’s 

current GPRA measures, supporting measures, and their respective results are included in the following 

Goal Performance table. In FY 2018, BSEE will build on progress made in implementing a Bureau 

performance framework. This progress includes developing and implementing national program 

performance measures for Bureau-level tracking and will support increased development of program level 

measures.
Strategic Objective Performance Summary

Bureau of Safety and Environmental Enforcement 19

 

Table 2: Goal Performance Tables Strategic O bjective Metrics Strategic Plan Measure / Efficiency or other Bureau- Specific Measure 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 CR Baseline 2018 Pres. Budget Request 2.494 (est.) 0.581 (est.) 3.416 (est.) 3.659 (est.) 2.500 2.500 (1217/488

million)

(303/521

million)

(1895/555

million)

(2141/585

million)

0.379 0.342 0.385 0.214 (est) 0.400 0.400

(228/601) (205/599) (158/410) (117/546) Number of Recordable Injuries per 200,000 Offshore Man Hours Worked (DOI-Regulated Activities ONLY) (SP)

Comments: This strategic plan measure is an incident rate of all Recordable Injuries (i.e., injuries that require medical treatment beyond first aid and fatalities) that occur during DOI-regulated activities in the fiscal year for every 200,000 offshore man hours worked (which is the approximate equivalent of 100 full-time workers). The value for FY 16 is an estimate as final data are not yet available. Contributing Programs: Operations, Safety and RegulationMission Area 2, Goal 1: Secure America's Energy ResourcesStrategic Plan MeasuresAmount (in barrels) of operational offshore oil spilled per million barrels produced (excluding Hurricane-related spills) (SP)Comments: BSEE's estimated FY 2016 actual exceeded the target of less than 2.50 barrels spilled per million barrels produced. An oil release from Shell Offshore Inc.'s Glider Field accounts for 2,100 of out of the 2,141 barrels that spilled during FY 2016. Upon notification of the incident, the facility was shut-in and BSEE investigators were brought on-site. BSEE also established an Investigative Panel that will conduct a thorough investigation of the incident in order to identify the causes and any contributing issues that led to the release. The panel will make recommendations in its final report on how to strengthen existing safety and environmental management systems, and identify any reforms to existing regulations that may be needed. BSEE's annual oil spill reporting does not include reports from the Taylor Energy/Mississippi Canyon 20 Oil Discharge. BSEE is working to revise its FY 2015, FY 2014, and FY 2013 actuals based on the results of a newly completed and published BSEE report "2016 update of Occurrence Rates for Offshore Oil Spills." Current numbers provided are estimates pending final analysis.Contributing Programs: O perations, Safety and Regulation
Strategic Objective Performance Summary

20 Bureau of Safety and Environmental Enforcement

Table 2: Goal Performance Tables (Continued) Strategic O bjective Metrics Strategic Plan Measure / Efficiency or other Bureau- Specific Measure 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 CR Baseline 2018 Pres. Budget Request 24,195 21,033 20,468 19,704 (est.) 18,500 19,000

93% 87% 96% 95% 85% 85%

(206/222) (201/231) (228/237) (219/231) Achieve a utilization rate of X% at Ohmsett, the national oil spill response test facility (BUR)

Comments: Ohmsett is the National Oil Spill Response Test Facility located in New Jersey. At Ohmsett, clients can test oil spill response equipment in realistic conditions and have training in the use of the equipment. This measure evaluates the utilization level of the facility. The increased focus on oil spill response, as well as expanded uses for the facility such as dispersant training and renewable energy wave tests, have sustained overall utilization rates at around 85 percent. In FY 2016 actual, available days were reduced from 240 to 231 because the tank was frozen for nine days.Contributing Programs: Oil Spill ResearchTotal Number of Compliance Inspections Completed (BUR)Comments: This measure counts all primary and secondary inspections, including the following: production, drilling, well decommissioning, well completion, environmental and EPA, flaring operations, hydrogen sulfide protection, meters, pipelines, US Coast Guard (complete and partial), and other miscellaneous offshore inspections. as recorded in the bureau's database.Contributing Programs: Operations, Safety and RegulationMission Area 2, Goal 1: Secure America's Energy ResourcesEfficiency or other Bureau-Specific Measures
Budget Table

Bureau of Safety and Environmental Enforcement 21

Bureau of Safety and Environmental Enforcement

Budget At A Glance Table

2016

Actual

2017 CR 

Baseline

Fixed 

Costs 

(+/-)

Internal 

Transfers 

(+/-)

Program 

Changes 

(+/-)

2018

Request

Appropriation: Operations, Safety, and Environmental Enforcement

Environmental Enforcement Activity 8,314 7,953 +82 -3,500 -82 4,453

General Reduction [-82]

Decommissioning Activities [-3,500]

Activity Total, Environmental Enforcement 8,314 7,953 +82 -3,500 -82 4,453

Operations, Safety and Regulation Activity 144,954 144,954 +1,439 +3,500 +1,168 151,061

Technical Training [+1,168]

Decommissioning Activities [+3,500] 

Activity Total, Operations, Safety and Regulation 144,954 144,954 +1,439 +3,500 +1,168 151,061

Administrative Operations Activity 18,268 18,268 +82 - - 18,350

Activity Total, Administrative Operations 18,268 18,268 +82 - - 18,350

Executive Direction Activity 18,236 18,236 +82 - - 18,318

Activity Total, Executive Direction 18,236 18,236 +82 - - 18,318

TOTAL, Operations, Safety, and Environmental Enforcement 189,772 189,411 +1,685 - +1,086 192,182

Appropriation: Oil Spill Research

Oil Spill Research 14,899 14,871 - - -2,171 12,700

General Reduction [-2,171]

Activity Total, Oil Spill Research 14,899 14,871 - - -2,171 12,700

TOTAL, Oil Spill Research 14,899 14,871 - - -2,171 12,700

Research Reduction [-2,171]

TOTAL, Bureau of Safety and Environmental Enforcement 204,671 204,282 +1,685 - -1,085 204,882

Dollars in Thousands ($000)
Budget Table

22 Bureau of Safety and Environmental Enforcement

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Summary of Requirements Table

Bureau of Safety and Environmental Enforcement 23

Bureau of Safety and Environmental Enforcement

Summary of Requirements Table

2016 Actual

FTE Amount FTE Amount

Offshore Safety & Environmental Enforcement

 Environmental Enforcement

Direct Appropriation 3,027 30 2,676 +82 -3,000 - +1,810 30 1,568 - -1,108 

Offsetting Collections 5,287 - 5,277 - -500 - -1,892 - 2,885 - -2,392 

Subtotal, Environmental Enforcement 8,314 30 7,953 +82 -3,500 - -82 30 4,453 - -3,500 

 Operations, Safety and Regulation

Direct Appropriation 72,913 476 70,747 +1,439 +3,000 - -2,654 476 72,532 - +1,785 

Offsetting Collections 72,041 - 74,207 - +500 - +3,822 - 78,529 - +4,322 

Subtotal, Operations, Safety and Regulation 144,954 476 144,954 +1,439 +3,500 - +1,168 476 151,061 - +6,107 

 Administrative Operations

Direct Appropriation 6,016 247 6,039 +82 - - +4,384 247 10,505 - +4,466 

Offsetting Collections 12,252 - 12,229 - - - -4,384 - 7,845 - -4,384 

Subtotal, Administrative Operations 18,268 247 18,268 +82 - - - 247 18,350 - +82 

 Executive Direction

Direct Appropriation 12,594 106 12,605 +82 - - +2,019 106 14,706 - +2,101 

Offsetting Collections 5,642 - 5,631 - - - -2,019 - 3,612 - -2,019 

Subtotal, Executive Direction 18,236 106 18,236 +82 - - - 106 18,318 - +82 

Total 189,772 859 189,411 +1,685 - - +1,086 859 192,182 - +2,771 

Total Direct Appropriation 94,550 859 92,067 +1,685 - - +5,559 859 99,311 - +7,244 Total Offsetting Collections 95,222 - 97,344 - - - -4,473 - 92,871 - -4,473 

Total, OSEE 189,772 859 189,411 +1,685 - - +1,086 859 192,182 - +2,771 

Internal 

Transfers 

(+/-)

Program Changes

(+/-)

FTE Amount

Change from CY

(+/-)

(Dollars in Thousands)

2017 CR Baseline 2018 Request

Amount FTE Amount

Fixed Costs 

& Related 

(+/-)
Summary of Requirements Table

24 Bureau of Safety and Environmental Enforcement

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Language Citations

Bureau of Safety and Environmental Enforcement 25

Bureau of Safety and Environmental Enforcement

Language Citations

Appropriations Language

Offshore Safety and Environmental Enforcement Appropriation Account

For expenses necessary for the regulation of operations related to leases, easements, rights-of-way 

and agreements for use for oil and gas, other minerals, energy, and marine-related purposes on the Outer 

Continental Shelf, as authorized by law; for enforcing and implementing laws and regulations as 

authorized by law and to the extent provided by Presidential or Secretarial delegation; and for matching 

grants or cooperative agreements, $127,182,000, of which $99,311,000 is to remain available until 

September 30, 2019, and of which $27,871,000 is to remain available until expended: Provided, That this 

total appropriation shall be reduced by amounts collected by the Secretary and credited to this 

appropriation from additions to receipts resulting from increases to lease rental rates in effect on August 

5, 1993, and from cost recovery fees from activities conducted by the Bureau of Safety and Environmental 

Enforcement pursuant to the Outer Continental Shelf Lands Act, including studies, assessments, analysis, 

and miscellaneous administrative activities: Provided further, That the sum herein appropriated shall be 

reduced as such collections are received during the fiscal year, so as to result in a final fiscal year 2018

appropriation estimated at not more than $99,311,000.

For an additional amount, $65,000,000, to remain available until expended, to be reduced by 

amounts collected by the Secretary and credited to this appropriation, which shall be derived from nonrefundable inspection fees collected in fiscal year 2018, as provided in this Act: Provided, That to the 

extent that amounts realized from such inspection fees exceed $65,000,000, the amounts realized in 

excess of $65,000,000 shall be credited to this appropriation and remain available until expended: 

Provided further, That for fiscal year 2018, not less than 50 percent of the inspection fees expended by 

the Bureau of Safety and Environmental Enforcement will be used to fund personnel and mission-related 

costs to expand capacity and expedite the orderly development, subject to environmental safeguards, of 

the Outer Continental Shelf pursuant to the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), 

including the review of applications for permits to drill. 

(Note. A full-year 2017 appropriation for this account was not enacted at the time the budget was 

prepared; therefore, the budget assumes this account is operating under the Further Continuing 

Appropriations Act, 2017 (P.L. 114-254). The amounts included for 2017 reflect the annualized level 

provided by the continuing resolution.)
Language Citations

26 Bureau of Safety and Environmental Enforcement

General Provisions

(See General Provisions chapter of the Office of the Secretary 2018 budget justification.)

OUTER CONTINENTAL SHELF INSPECTION FEES

SEC. 107. (a) In fiscal year 2018, the Secretary shall assess nonrefundable inspection fees,

which shall be deposited in the "Offshore Safety and Environmental Enforcement" account, against the 

designated operator for facilities subject to inspection under 43 U.S.C. 1348(c).

(b) Annual fees shall be collected for facilities that are above the waterline, excluding drilling rigs, and 

are in place at the start of the fiscal year. 

(1) Fees for fiscal year 2018 for facilities without processing equipment or gathering lines shall be:

(A) $2,500 for facilities with 1 to 3 wells; and

(B) $5,000 for facilities with more than 3 wells.

(2) Fees for fiscal year 2018 for facilities with processing equipment or gathering lines shall be:

(A) $25,000 for facilities operating in water depths of less than 500 feet;

(B) $75,000 for facilities operating in water depths greater than or equal to

500 feet and less than 2,500 feet; and

(C) $100,000 for facilities operating in water depths of 2,500 feet or more.

(c) Fees related to the inspection of well operations (drilling, well completion, well workover, and well 

decommissioning operations, as outlined in title 30 CFR 250 subparts D, E, F, and Q) shall be assessed 

for each such inspection completed in fiscal year 2018.

(1) Fees for fiscal year 2018 for inspections of well operations conducted via rigs shall be:

(A) $15,000 per inspection for rigs operating in water depths of 500 feet or less;

(B) $22,500 per inspection for rigs operating in water depths greater than or equal to 500 feet 

and less than 2,500 feet; and

(C) $30,000 per inspection for rigs operating in water depths of 2,500 feet or more.

(2) Fees for fiscal year 2018 for inspection of well operations conducted via non-rig units (snubbing, 

coil tubing, and wireline units) shall be:

(A) $7,500 per inspection for units operating in water depths of 500 feet or less; and

(B) $15,000 per inspection for units operating in water depths of 500 feet or more.

(d) The Secretary shall bill designated operators under subsection (b) within 60 days, with payment 

required within 30 days of billing. The Secretary shall bill designated operators under subsection (c) 

within 30 days of the end of the month in which the inspection occurred, with payment required within 30 

days of billing.

Justification of Proposed Language Changes

Purpose: Sec. 107. The provision provides the authority to charge Outer Continental Shelf oil and gas 

operators a fee for the OCS facilities that the Bureau of Safety and Environmental Enforcement inspects.
Language Citations

Bureau of Safety and Environmental Enforcement 27

BUREAU OF OCEAN ENERGY MANAGEMENT, REGULATION AND ENFORCEMENT 

REORGANIZATION

SEC. 108. The Secretary of the Interior, in order to implement a reorganization of the Bureau of Ocean 

Energy Management, Regulation and Enforcement, may transfer funds among and between the successor 

offices and bureaus affected by the reorganization only in conformance with the reprogramming 

guidelines described in the report accompanying this Act.

Purpose: Sec. 108. The provision authorizes the Secretary to transfer funds among and between the 

successor offices and bureaus affected by the reorganization of the Bureau of Ocean Energy Management, 

Regulation and Enforcement. 
Language Citations

28 Bureau of Safety and Environmental Enforcement

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Mandatory Budget and Offsetting Collection Proposals 

Bureau of Safety and Environmental Enforcement 29

Bureau of Safety and Environmental Enforcement

Mandatory Budget and Offsetting Collections Proposals

This chapter describes legislative proposals included in the budget submission that would impact receipts 

and mandatory spending levels. For a complete, detailed discussion of the Department’s proposals, 

please refer to the General Provision section of the Office of the Secretary FY 2018 Budget Justification. 

Discussed below are trends in offsetting collections, including the projected future decline in offsetting 

rentals receipts, which if realized, has the potential to significantly impact future budgets for both BOEM 

and BSEE.

DECLINES IN OFFSETTING RENTAL RECEIPTS

Offsetting collections (including rental receipts, cost recoveries, and, for BSEE, inspection fees) from 

offshore oil and gas operations currently make up 57 percent of both BOEM’s and BSEE’s total budget 

authority. Due in part to actual and projected declines in the price of oil and gas and the associated 

effects on both the acquisition of new leases and the pace of relinquishing existing leases, offsetting rental 

receipts have been and are estimated to continue to decline and create budgetary shortfalls. As the table 

below indicates, total offsetting rental receipts in FY 2018 are anticipated to be $47.3 million below the 

estimated FY 2017 (baseline) level, and that funding gap is projected to increase over the coming years.

Table 3: Overall Revenue Shortfalls

FACTORS CONTRIBUTING TO THE DECLINE

In FY 2016, the Budget assumed higher oil and gas prices than occurred in actuality, and as a result, 

revenue was significantly below what had been projected. Specifically, the rental receipt total for both 

BOEM and BSEE was estimated to be $142.36 million (assuming oil prices of $78.69/bbl), but only 

$108.52 million was collected, resulting in a shortfall of $33.84 million. In FY 2017, actual collections 

are also expected to fall short of the amounts estimated in the President’s Request. The FY 2017 Request 

assumed oil prices of $49.08/bbl and estimated total rental receipts of $126.41 million, but estimates used 

to prepare the FY 2018 Budget suggest FY 2017 actuals of $87.45 million, a shortfall of $38.96 million. 

Although quickly-outdated price assumptions are partially at fault for the discrepancies between estimates 

and actuals, there are other factors at play. 

Overall Rental Revenue Shortfalls

Fiscal Year 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Baseline/FY17 Budget ($49.08/bbl in FY16) 126.41 126.41 126.41 126.41 126.41 126.41 126.41 126.41 126.41 126.41

FY18 Request ($50.48/bbl) 79.11 68.15 63.53 66.35 65.50 66.38 68.86 70.20 72.82 75.01

Total Shortfall vs. Baseline -47.30 -58.26 -62.87 -60.05 -60.91 -60.03 -57.55 -56.20 -53.59 -51.40

BOEM/BSEE Split of Offsetting Rentals 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

BOEM 55.374 47.706 44.473 46.448 45.847 46.465 48.200 49.143 50.972 52.508

BSEE 23.732 20.445 19.060 19.906 19.649 19.914 20.657 21.061 21.845 22.504
Mandatory Budget and Offsetting Collection Proposals

30 Bureau of Safety and Environmental Enforcement

For instance, in FY 2016, nearly 800 leases were relinquished ahead of their lease expiration, resulting in 

millions of foregone offsetting revenues. Unanticipated relinquishments, fewer rent-generating leases, 

and the natural expiration of a number of leases contributed significantly to the FY 2016 shortfall.

Fewer leases are being sold in the Gulf of Mexico as the area matures and world oil prices decline. As an 

oil and gas resource basin, the Gulf of Mexico has been heavily leased and developed for over 50 years. 

While there are still abundant estimated undiscovered oil and gas resources, finding and developing them 

is becoming technologically and economically more challenging. For this reason, fewer tracts are 

expected to be leased. Second, a decline in the number of leases subject to rentals is expected to 

accelerate because, beginning in 2010, primary terms for leases in 800-1600 meters were shortened from 

ten years to a “7+3” year approach, wherein a lessee receives an extended initial period (an additional 

three years) if a well is drilled within the first seven years. BOEM anticipates approximately 90 percent 

of these leases to be returned after the primary seven-year term, resulting in fewer deepwater rentgenerating leases around FY 2017. Although many of those areas are likely to be re-leased, their reacquisition may not keep pace with relinquishment. Third, the downturn is, in some respects, a result of 

the success of BOEM’s leasing strategy. BOEM has modified its fiscal policies in the Gulf of Mexico 

five times since 2007 to encourage industry to lease and hold fewer non-producing leases, consistent with 

a policy to encourage diligent development of leases.

MEASURES TO ADDRESS THE DECLINE IN OFFSETTING RENTAL RECEIPTS

As noted above, in FY 2018, offsetting rental revenue for BOEM and BSEE is projected to be 

$47.3 million below FY 2017 levels. The FY 2018 President’s Budget proposes to make up for the 

shortfall in offsetting rentals with an increase in appropriated funds. 

For BSEE, the FY 2018 offsetting collections shortfall of $14.1 million for rental receipts and 

$1.5 million for cost recovery fees is offset by an increase of $7.2 million in appropriations. BSEE’s 

request also returns the inspection fee offset to $65 million (an increase of $11.1 million from the 

FY 2017 CR Baseline level) by proposing new inspection fee language that more accurately reflects 

offshore inspection activity while ensuring that the fees are more equitable for operators.

IN THE OUTYEARS

It is important to note that while rent-producing leases are declining, overall OCS activity does not 

necessarily follow the same trend. The Gulf of Mexico OCS, as a geologic province, is quite mature in 

terms of exploration prospects. While activity in shallow water has decreased in recent years, deepwater 

activity has remained robust, and – according to the U.S. Energy Information Administration – deepwater 

oil and natural gas production will continue to increase over the rest of this decade. BOEM anticipates 

that, with this increase in deepwater production, there will also be a corresponding increase in associated 

plan reviews and environmental work. While the 2018 Request proposes a solution to address the 

projected 2018 shortfall for BOEM and BSEE, further changes will be necessary in 2019 and beyond if 

the projected rental receipt trend continues. BOEM and BSEE will continue to work with the Department 

and OMB to assess future revenue trends and funding options.
Fixed Costs and Internal Realignments

Bureau of Safety and Environmental Enforcement 31

Bureau of Safety and Environmental Enforcement

Fixed Costs and Internal Realignment

Fixed Cost Changes and Projections 2017 

Total

2018 

Change

Change in Number of Paid Days -729 0

Pay Raise 1,852 +1,854

Departmental Working Capital Fund 4,271 -14

Worker's Compensation Payments 173 +11

Unemployment Compensation Payments 9 0

Rental Payments 9,378 -166

Baseline Adjustments for O&M Increases 0 0

The amounts reflect changes in the costs payable to the General Services Administration (GSA) and others for office and nonoffice space as estimated by GSA, as well as the rental costs of other currently occupied space. These costs include building 

security; in the case of GSA space, these are paid to the Department of Homeland Security (DHS). Costs of mandatory office 

relocations, i.e. relocations in cases where due to external events there is no alternative but to vacate the currently occupied 

space, are also included.

The change reflects the salary impact of the 2.1% pay raise for 2017 as signed by the President in December 2016, and the 

estimated 1.9% pay raise for 2018.

The change reflects expected changes in the charges for centrally billed Department services and other services through the 

Working Capital Fund. These charges are detailed in the Budget Justification for Departmental Management.

In accordance with space maximization efforts across the Federal Government, this adjustment captures the associated increase 

to baseline operations and maintenance (O&M) requirements resulting from movement out of GSA or direct-leased 

(commercial) space and into Bureau-owned space. While the GSA portion of fixed costs will go down as a result of these 

moves, Bureaus often encounter an increase to baseline O&M costs not otherwise captured in fixed costs. This category of 

funding properly adjusts the baseline fixed cost amount to maintain steady-state funding for these requirements.

The amounts reflect projected changes in the costs of compensating injured employees and dependents of employees who 

suffer accidental deaths while on duty. Costs will reimburse the Department of Labor, Federal Employees Compensation 

Fund, pursuant to 5 U.S.C. 8147(b) as amended by Public Law 94-273.

The amounts reflect projected changes in the costs of unemployment compensation claims to be paid to the Department of 

Labor, Federal Employees Compensation Account, in the Unemployment Trust Fund, pursuant to Public Law 96-499.

This column reflects changes in pay associated with the change in the number of paid days between the CY and BY. 
Fixed Costs and Internal Realignments

32 Bureau of Safety and Environmental Enforcement

Internal Realignments and Non-Policy/Program Changes (Net-Zero) BY (+/-)

Realignment of Environmental Enforcement (to Operations, Safety, and Regulation) -3,500

Realignment of Operations, Safety, and Regulation (from Environmental Enforcement) +3,500

Total, Fixed Costs and Related Changes in 2018 +1,685

This internal transfer supports the increased role of BSEE’s inspectors verifying environmental compliance activities in the 

field as well as the work performed by engineers in assessing the proper structure removals and well abandonments as part of 

the decommissioning process. The inspector’s initial work is an essential first step - the completion of which allows the 

environmental compliance staff to then proceed with a compliance evaluation with mitigation measures are part of the lease and 

permit process.

This internal transfer supports the increased role of BSEE’s inspectors verifying environmental compliance activities in the 

field as well as the work performed by engineers in assessing the proper structure removals and well abandonments as part of 

the decommissioning process. The inspector’s initial work is an essential first step - the completion of which allows the 

environmental compliance staff to then proceed with a compliance evaluation with mitigation measures are part of the lease and 

permit process.
Environmental Enforcement 

Bureau of Safety and Environmental Enforcement 33

FY 2018 PERFORMANCE BUDGET REQUEST

Environmental Enforcement Activity

Table 4: Environmental Enforcement Activity Budget Summary

SUMMARY OF 2018 PROGRAM CHANGES 

JUSTIFICATION OF 2018 PROGRAM CHANGES 

The 2018 budget request for the Environmental Enforcement Activity is $4,453,000 and 30 FTE; a net 

decrease of -$3,500,000 from the FY 2017 CR Baseline level.

General Reduction (-$82,000; -0 FTE): In order to support BSEE’s highest priority needs in FY 2018, the 

Bureau proposes a general reduction in funding for Environmental Enforcement activities to be realized 

through the implementation of the national program management model for environmental stewardship.

General Increase in Base Appropriated Funding to Offset Reduction in Offsetting Collections 

(+$1,892,000; +0 FTE): The proposed increase to appropriated funding offsets the estimated decrease in 

rental receipt and cost recovery revenue as discussed below. Although offsetting revenue is set to decline, 

program requirements will not, and it is critically important for the Bureau to maintain adequate base 

program capacity to achieve its mission, as industry continues to move drilling and production operations 

into deeper waters and more hostile operating environments.

General Reduction – Changes in Offsetting Collections (-$1,892,000; -0 FTE):

• Rental Receipts (-$1,714,000; -0 FTE): Rental receipts are the second largest of three different 

offsetting collections credited to the BSEE OSEE account to help defray the cost of operations. 

This decrease in rental receipts revenue is the result of two compounding factors. First, fewer 

leases are being sold as the OCS matures in terms of exploration prospects and world oil prices 

decline. Second, the decline in the number of leases subject to rentals is expected to accelerate 

2016 

Actual

2017 

CR Baseline

Fixed Costs 

and Related 

Changes 

(+/-)

Internal 

Transfers

(+/-)

Program 

Changes 

(+/-)

2018

Request

Changes 

from 2017 

(+/-)

($000) 8,314 7,953 +82 -3,500 -82 4,453 -3,500

FTE 21 30 - - - 30 - Environmental Enforcement 

Request Component Amount

($000) FTE

General Reduction -82 -

Total Program Changes: -82 -
Environmental Enforcement 

34 Bureau of Safety and Environmental Enforcement

because some of the active leases were issued with shorter primary terms than before and a large 

number of deepwater leases are expected to expire around FY 2017. 

• Cost Recovery Fees (-$178,000; -0 FTE): Cost recovery fees are the smallest of three different 

offsetting collections credited to the BSEE OSEE account to help defray the cost of operations. 

This decrease in revenue generated from cost recovery fees reflects the trend of actual collections. 

INTERNAL TRANSFERS

Internal Transfer (-$3,500,000; -0 FTE): This transfer supports the increased role of BSEE’s inspectors 

verifying environmental compliance activities in the field as well as the work performed by engineers in 

assessing the proper structure removals and well abandonments as part of the decommissioning process. 

The inspector’s initial work is an essential first step - the completion of which allows the environmental 

compliance staff to then proceed with a compliance evaluation with mitigation measures as part of the 

lease and permit process.

PROGRAM OVERVIEW 

In FY 2016, BSEE implemented a national program management model - a realignment that converted 

the Environmental Enforcement Division (EED) to the Environmental Compliance Division (ECD) and 

changed the reporting relationship for regional environmental compliance functions. Of the 30 FTE 

previously assigned to the EED, 5 FTE reside in the ECD, and 25 FTE report directly to the regional 

directors. Under the national program management model, the ECD leads a collaborative effort with the 

regions to develop policies, procedures, and business rules to implement data-driven oversight of BSEE’s 

Environmental Compliance Program (ECP). While ECD establishes these environmental policies at 

BSEE headquarters, the Bureau’s compliance and enforcement activities are conducted by personnel 

located in BSEE’s regional offices. The ECD focuses on increasing the accuracy, effectiveness and 

consistency of BSEE’s environmental compliance operations in the regions. 

Consistent with other BSEE programs, such as the Office of Offshore Regulatory Programs, the ECD 

focuses on the offshore operations that pose the greatest safety and environmental risk. The ECD is 

coordinating with the BSEE SEMS Program to identify best practices for enhanced environmental 

compliance efforts. The ECD is responsible for:

• Ensuring Bureau compliance with the NEPA, Endangered Species Act (ESA), Marine Mammal 

Protection Act (MMPA), National Historic Preservation Act (NHPA), and associated tribal 

consultation requirements, the CAA, the CWA, and other environmental regulations;

• Coordinating with BOEM and other Federal, State, and local agencies in matters involving 

environmental compliance and enforcement on the OCS;

• Monitoring industry compliance with mitigation and other environmental requirements to ensure 

operators adhere to the stipulations of their approved leases, plans, and permits;
Environmental Enforcement 

Bureau of Safety and Environmental Enforcement 35

• Evaluating environmental mitigation measures to determine their adequacy and appropriately 

distributing findings to industry; and

• Establishing and communicating clear objectives and performance measures for BSEE’s 

environmental stewardship initiative, including national standard operating procedures and a 

common communication strategy.

Since its formation, the ECD has focused on supporting the FY 2016 – FY 2019 BSEE Strategic Plan for 

operational and organizational excellence. An environmental risk assessment has been conducted to 

identify offshore operations with the highest potential risk to the environment in order to improve BSEE’s 

permitting process. The Bureau has also completed a programmatic environmental assessment for well 

stimulation treatments and initiated a NEPA analysis for BSEE’s permitted activities in the Pacific OCS 

Region. BSEE has published the Environmental Stewardship Collaboration Group Core Report1

proposing ten recommendations to promote environmental stewardship through BSEE’s broad suite of 

integrated safety and environmental compliance, enforcement, preparedness, prevention, and response 

research activities. The Bureau has also remained committed to partnerships on environmental 

compliance-focused Departmental and interagency working groups. 

Funding in FY 2018 will be used to coordinate and ensure safety and environmental compliance to 

address the greatest areas of risk, and to acquire data and technology for tracking, verifying, and 

enforcing compliance in a fair and transparent process. The Bureau will continue to foster environmental 

stewardship awareness throughout the Bureau by implementing more of the Environmental Stewardship 

Collaboration Group Core Report recommendations. Funding will also be used to complete a national 

handbook of Standard Operating Procedures for the ECP and develop associated training for BSEE safety 

inspectors to increase the Bureau’s efficiency and effectiveness. Finally, to contribute to BSEE’s goal of 

protecting United States taxpayers from having to pay decommissioning costs for bankrupt oil and gas 

operators, the Bureau will be prioritizing NEPA analysis for decommissioning activities in the Pacific and 

Gulf of Mexico Regions in FY 2018.

 1 https://www.bsee.gov/bsee-environmental-stewardship-core-group-final-report
Environmental Enforcement 

36 Bureau of Safety and Environmental Enforcement

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Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 37

FY 2018 PERFORMANCE BUDGET REQUEST

Operations, Safety and Regulation Activity

Table 5: Operations, Safety and Regulation Activity Budget Summary 

SUMMARY OF 2018 PROGRAM CHANGES 

JUSTIFICATION OF 2018 PROGRAM CHANGES 

The 2018 budget request for the Operations, Safety and Regulation Activity is $151,061,000 and 476 FTE; a 

net increase of +$6,107,000 and 0 FTE over the FY 2017 CR Baseline level.

Technical Training (+$1,168,000; +0 FTE): In FY 2018, BSEE is requesting funding to support 

training and other efforts aimed at field personnel for BSEE’s inspectors and engineers to ensure that staff 

have the tools needed to streamline permitting, while at the same time promoting responsible energy 

development. These programs will provide the most up to date training available in order to address the 

technological advances to which the Bureau’s workforce is exposed, and utilize new and emerging tools 

available to them. 

The Bureau’s National Offshore Training Program (NOTP) provides comprehensive, multi-tiered, 

professional development opportunities for BSEE inspectors, engineers, and scientists to assist in 

providing safe and environmentally sound offshore oil and gas operations. The NOTP supports the 

Bureau’s goals by identifying and providing up-to-date training and development opportunities to staff 

involved in inspecting or approving the use of new technologies for offshore oil and gas operations. The 

technical training is practical and focuses on the latest technology for areas such as deepwater drilling and 

2016 

Actual

2017 

CR Baseline

Fixed Costs 

and Related 

Changes 

(+/-)

Internal 

Transfers

(+/-)

Program 

Changes 

(+/-)

2018

Request

Changes 

from 2017 

(+/-)

($000) 144,954 144,954 +1,439 +3,500 1,168 151,061 +6,107 

FTE 443 476 - - - 476 - 

Major Program IT Investments

($000) [13,859] [21,956] [20,000] -

FTE - - - - - -

Operations, Safety and Regulation

Technical Information Management System 

(TIMS) 1/

1/ TIMS is a BSEE owned system, which it shares with BOEM. The amounts shown are the BSEE only portion.

Request Component Amount

($000) FTE

Technical Training +1,168 -

Total Program Changes: +1,168 -
Operations, Safety and Regulation

38 Bureau of Safety and Environmental Enforcement

subsea operations. The classes are taught by renowned subject matter experts to ensure continued 

education and development that enhances professional competence and personal satisfaction. 

Impacts of Not Funding: Without this funding, BSEE will not be able to enhance its training policy and 

training programs to maintain and improve the technical and professional capabilities of those employees 

responsible for ensuring operational safety on offshore facilities. Funding is fundamental to the success 

of the Bureau and the continued commitment to ensuring safety, environmental protection, and offshore 

resource conservation.

General Decrease in Base Appropriated Funding to Offset Increase in Offsetting Collections 

(-$3,822,000; -0 FTE): The proposed decrease to appropriated funding offsets the estimated decrease in 

rental receipt and cost recovery revenue and the increase in inspection fee collections as discussed below. 

Although offsetting revenue is set to decline, program requirements will not, and it is critically important 

for the Bureau to maintain adequate base program capacity to achieve its mission, as industry continues to 

move drilling and production operations into deeper waters and more hostile operating environments.

General Increase – Changes in Offsetting Collections (+$3,822,000; +0 FTE):

• Rental Receipts (-$6,600,000; -0 FTE): Rental receipts are the second largest of three 

different offsetting collections credited to the BSEE OSEE account to help defray the cost of 

operations. This decrease in rental receipts revenue is the result of two compounding factors. 

First, fewer leases are being sold as the OCS matures in terms of exploration prospects and 

world oil prices decline. Second, the decline in the number of leases subject to rentals is 

expected to accelerate because some of the active leases were issued with shorter primary terms 

than before and a large number of deepwater leases are expected to expire around FY 2017. 

• Cost Recovery Fees (-$681,000; -0 FTE): Cost recovery fees are the smallest of three 

different offsetting collections credited to the BSEE OSEE account to help defray the cost of 

operations. This decrease in revenue generated from cost recovery fees reflects the trend of 

actual collections. 

• Inspection Fees (+$11,103,000; +0 FTE): Inspection fees are the largest of three different 

offsetting collections credited to the BSEE OSEE account to help defray the cost of operations. 

The increase of $11,103,000 from the FY 2017 CR Baseline levels includes a proposed 

inspection fee structure that more accurately reflects offshore inspection activities and costs

while ensuring that the fees are more equitable for operators. 

INTERNAL TRANSFERS

Internal Transfer (+$3,500,000; +0 FTE): This transfer more accurately aligns the environmental 

compliance and enforcement goals of this activity by supporting the increased role of BSEE’s inspectors 

verifying environmental compliance activities in the field as well as the work performed by engineers in 

assessing the proper structure removals and well abandonments as part of the decommissioning process. 

The inspector’s initial work is an essential first step - the completion of which allows the environmental 
Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 39

compliance staff to then proceed with a compliance evaluation with mitigation measures as part of the 

lease and permit process.

PROGRAM OVERVIEW 

The Bureau of Safety and Environmental Enforcement fulfills its mission by supporting the safe and 

responsible exploration, development, and production of America’s offshore energy resources through a 

well-developed and measured application of its programs including permitting, inspections, regulatory 

oversight, resource conservation and enforcement programs. The Bureau continually seeks operational 

improvements which streamline the efficiency of critical processes that support drilling and production 

operations such as permitting while reducing the risks to offshore personnel and the environment. 

Additionally, BSEE continues to evaluate procedures and regulations to stay abreast of industries’ 

technological advances to promote safe and clean operations and conserve the Nation’s offshore energy 

resources. 

During FY 2016, BSEE expanded its efforts to strengthen internal controls and to better track and 

demonstrate results for these mission-critical operations. BSEE identified national program managers 

with direct lines of responsibility for managing major functional areas. Still ongoing, the goals of these

efforts are to promote transparency, consistency, predictability, and accountability for national programs.

These goals are being achieved by consistently developing program policies, procedures, and 

accountability and performance measures for major programs and functional areas. 

PERFORMANCE OVERVIEW 

Best Practices, Performance Requirements, and Regulation Development: The foundation of the BSEE

oversight program is a set of best practices that govern numerous aspects of offshore oil and gas 

operations, from engineering specifications and operating standards to encouraging and supporting the 

development of a strong safety culture on the OCS. BSEE will continually review these requirements and 

expectations, and update and revise them as necessary, to ensure they include the most effective practices 

for safety and environmental protection on the OCS. The Bureau will also continue its efforts to improve 

its regulatory efficiency. These efforts will focus on the review and evaluation of regulatory needs; 

streamlining the regulatory process to ensure burdensome requirements that do not improve safety are 

identified and eliminated, if possible. BSEE will also focus on streamlining the incorporation of new and 

updated industry standards into regulations. BSEE will continue to coordinate its regulatory efforts with 

USCG and other agencies to avoid unnecessary duplication and to maximize consistent and efficient 

regulation of OCS activities. 

In FY 2018, BSEE will continue to actively participate with external Standards Development 

Organizations (SDOs) to develop new or revised standards for safety and environmental protection on the 

OCS consistent with the National Technology Transfer and Advancement Act of 1995. The objective of 

this activity is to optimize the use of national and international standards in regulations for safe and 

environmentally sound development of OCS resources; collaborate with SDOs to expedite the 

development of industry best practices; increase BSEE’s knowledge and awareness of standards related to 
Operations, Safety and Regulation

40 Bureau of Safety and Environmental Enforcement

oil and natural gas development on the OCS and their applicability to the regulatory regime; and facilitate 

BSEE’s ability to provide input on the standards. BSEE will also continue to take a leadership role in 

establishing more effective communication links between international standards organizations and other 

international regulators to ensure industry best practices continue to improve.

The BSEE Houston office location ensures that BSEE staff is located near the center of standards 

developing activity and able to become actively engaged in the proceedings on a regular basis. In 

addition, a directory of subject matter experts has been compiled from all of BSEE’s regional and district 

offices to assist in Standards Development. 

BSEE, NASA, and industry continue the development of standard methodology for assessing the 

feasibility of the new technology that will be needed to develop deepwater resources. The use of these 

tools will allow BSEE and the industry to better define and interpret the risks associated with the various 

projects and ensure that any issues are identified and addressed in a timely manner early in the review 

process.

Permitting: The foundation of safe operations on the OCS begins with leading edge prevention through 

risk identification, assessment, mitigation, management, and oversight during the permit review 

process. Based upon the risks identified and associated with operators' permit submissions, BSEE will be 

able to focus permit review efforts in FY 2018 on streamlining the review process and ensuring that the 

review process is focused on those areas of highest risk.

Inspections, Investigations, and Risk Management: In FY 2017, BSEE began work on an updated 

inspection strategy. This team effort, which includes representatives from the Regions as well as 

Headquarters, will identify and evaluate various approaches for inspecting a facility for safety and 

regulatory compliance as well as for assessing the effectiveness of the operators’ internal procedures and 

management policies at maintaining a safe work environment. It is likely the updated inspection strategy 

will reflect a hybrid of inspection techniques, risk assessment tools and Safety and Environmental 

Management System (SEMS) or performance-based assessments.

SEMS is a performance-based program, which along with the Annual Inspection Program, are the 

cornerstones in BSEE’s move toward a hybrid regulatory approach. SEMS is designed to help drive the 

safety and environmental performance of OCS oil and gas operators and contractors by focusing on 

assessing the effectiveness of the operators’ internal safety and environmental policies, programs, 

procedures and behaviors. Using the SEMS tools, BSEE is looking beyond measuring full compliance to 

checking how well the expectations and intent behind BSEE’s regulations have been incorporated into the 

workplace on the OCS. BSEE’s SEMS program, which is modeled after international programs for 

quality, safety, and environmental management systems, incorporates the elements of American 

Petroleum Institute’s (API) Recommended Practice 75. Therefore, operators can now design their safety 

and environmental management system to align with their business model and company culture to more 

effectively utilize their resources, and design their safety initiatives in ways that ensure effective 

implementation and promotes continuous improvement in safety and environmental performance.
Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 41

Implementing an inspection methodology that allows the Agency to direct resources at the riskiest 

facilities and safety components represents an ultimate goal for BSEE. Planning the inspections, both 

what facility to visit as well as what to inspect, verify, and validate, is essential to a successful program. 

Inspection planning utilizes information obtained from third party SEMS audits and the annual 

compliance inspections, as well as the lessons learned from BSEE or industry-led incident investigations

to identify safety trends and concerns. These risk-based inspections go beyond the typical compliance 

review and focus on the performance of comprehensive safety audits with multi-discipline teams 

consisting of engineers and inspectors. These audits evaluate and measure, with a focus on the operation 

and maintenance of safety critical equipment, issues such as the successful implementation and ultimately 

the effectiveness of safety management systems, proper contractor oversight, and adequate training and 

safety awareness i.e., safety culture of personnel.

The identification and collection of key safety data is critical in the identification of safety trends and the 

successful mitigation of risks. BSEE continues to work with industry to develop voluntary programs that 

collect, analyze, and disseminate this information. For example, BSEE has launched the SafeOCS 

program, which is a voluntary and completely confidential system in which the Bureau of Transportation 

Statistics (BTS) collects and analyzes near-miss reports. The data provided through this program 

summarizes oil and gas activities from the past year, compares data to previous years, and analyzes 

trends. BSEE worked closely with the International Association of Drilling Contractors and the Center 

for Offshore Safety to develop a framework for a single comprehensive international database that would 

collect all safety and reliability data. Analysis of this information helps to identify trends and sharing of 

the lessons learned allows the industry to take proactive steps to address safety issues. 

The BSEE office in Houston plays a key role in providing support to the regions on issues involving 

complex technology. The Engineering Center provides the agency with top-level Federal engineering 

talent and the ability to utilize third-party expertise located in Houston to address the complex issues 

arising out of new oil and gas developments. The Houston presence gives BSEE a ready means for 

collaborating with the equipment manufacturers, design and research organizations, and standards 

organizations that are involved in the development of this technology. The office also ensures that BSEE 

staff is also available to participate in industry standards activities and to assist in the inspection of 

offshore facilities via visits to operator's real time monitoring facilities that are located in Houston.

Under the OCSLA, BSEE is required to conduct investigations and prepare an investigation report for 

each major incident associated with activities on the OCS. Every incident that occurs on the OCS 

receives some level of review and an appropriate level of investigation, when warranted. The purpose of 

an investigation is to identify the cause(s) of an incident and to make recommendations to prevent its 

recurrence and the occurrence of similar incidents. Incidents that meet the requirements of 

30 CFR 250.188 are required to be reported to BSEE, which reviews each incident. Based on a tiered 

approach, BSEE will determine what type and amount of investigative resources will be devoted to an 

incident depending on the severity and complexity of the event.

As a result of incident investigation report recommendations and other inspections and enforcement 

activities, BSEE publishes Safety Alerts and Safety Bulletins to inform the offshore oil and gas industry 

of the circumstances surrounding an incident or near miss and to provide recommendations that will help 
Operations, Safety and Regulation

42 Bureau of Safety and Environmental Enforcement

prevent the recurrence of a similar incident on the OCS. Incident investigation reports may also 

recommend that the Bureau consider new or revised regulatory or inspection actions or other 

initiatives. Through active coordination amongst various government agencies such as the USCG, BSEE 

promotes effective utilization and coordination of respective investigative resources.

Compliance: An essential part of any regulatory program is the provision of compliance assistance and 

enforcement in cases where there is a failure to comply with safety and environmental regulations. BSEE 

employs a number of tools, including issuance of Incidents of Non Compliance (INC), penalties and 

orders to underscore the importance of safe operations and environmental stewardship to create a level 

playing field for all operators. BSEE also conducts annual performance reviews of each operator as a 

way to address recurring safety and environmental concerns. 

Through the identification and quantification of risk, BSEE can identify key leading and lagging

indicators, and better gauge operator effectiveness in employing redundant physical controls (barrier 

analysis). In FY 2017, BSEE completed a pilot-tested risk-analysis methodology for production facilities. 

Preliminary data analyses indicates that the 410 highest-risk platforms in the Gulf of Mexico OCS Region 

(GOMR), which represents about 20 percent of GOMR platforms, accounted for 80 percent of all 

accident or pollution events that were reported to BSEE during FY 2014. These platforms also accounted 

for 84 percent of all major incidents such as fires, explosions, spills, fatalities, and blowouts. The Bureau 

is actively deploying this risk-based methodology which, when combined with findings from our annual 

inspection program and trends identified in the third party SEMS audits and the SafeOCS program, will 

enable BSEE to effectively focus its attention in the areas or operations and safety barriers which pose the 

greatest risk to safe operations. 

In implementing the compliance and enforcement program, BSEE will be guided by safety and 

environmental protection performance goals and adhere to clear, systemic and fair processes. The 

program will also promote a culture of professionalism throughout the workforce and establish consistent, 

transparent, and clear processes that will guide program implementation.

Conservation Management: As a steward of the Nation’s OCS oil, gas, and mineral resources, BSEE 

must provide for conservation of natural resources by preventing waste and ensuring ultimate recovery of 

the resources, as well as protecting the correlative rights of OCS lessees and the

government. Conservation of oil and gas resources is an integral part of the Nation’s energy policy and a 

primary objective for BSEE’s regulatory program. To promote conservation, BSEE monitors 

development and production activities on the OCS and enforces regulations that require operators to avoid 

waste and maximize the ultimate recovery of OCS minerals once access has been granted. 

Production Measurement and Verification: Oil production in the Gulf of Mexico has increased from 

1.1 million barrels per day (MMBopd) in June 2013 to 1.7 MMBopd in January 2017, despite decreasing 

oil prices from August 2014 through January 2017. This increase in oil production was accomplished by 

drilling and completion work from platform and floating drilling rigs in support of both new and existing 

production facilities for deepwater projects. In coordination with ONRR, BSEE’s specially trained 

measurement inspection team helps ensure that production volumes are accurately reported for the 

assessment of royalties returned to the American people.
Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 43

Emerging Technologies and Research: BSEE performs technical assessments and research on both 

existing and "cutting edge” technology to determine the feasibility of the technology and to identify gaps 

in technology or industry standards. The goals of these activities is to identify and resolve potential safety 

issues before incidents occur and also to ensure that emerging technologies can be reviewed and approved 

in a timely manner by regional staff. For example, BSEE's technical assessment of failures of subsea 

bolts and connectors has resulted in significant improvements in industry standards and manufacturing 

practices. In addition, BSEEs testing and research of high-temperature and high-pressure equipment has 

resulted is revisions and improvements in the design criteria that are used for the projects that have been 

submitted to BSEE for approval. Finally, collaboration with the industry and NASA has resulted in the 

development of standard risk methodology for assessing new technology. This standardized process will 

assist in speeding up the review process for these types of projects.

Renewable Energy Inspection Program: BSEE and BOEM continue to work cooperatively to develop 

and refine the OCS renewable energy permitting and inspection program. Working cooperatively, and 

building on the experiences to date, the Bureaus will develop a comprehensive approval and oversight 

program tailored to the unique siting, design, and compliance oversight aspects of this segment of the 

offshore energy program. 

Information Technology (IT) and Data Stewardship: BSEE has been working to develop and maintain 

its IT investments by enhancing the Bureau’s capability to collect and manage data. Through enhanced 

data use, BSEE will be able to make better decisions, as well as make data available to the public in an 

accessible way while protecting privacy, proprietary information, and business confidential information. 

To enhance the Bureau’s capabilities, BSEE has deployed eWell to all Regions, expanded eInspections 

functionality to include both platforms and rigs, and phase 1 is halfway through development of the 

ePlans and ePermits systems used for the submission and review of BOEM and BSEE plans and permits 

by industry and government users.

BSEE has incorporated the implementation of the Business Intelligence (BI) Tool as an IT and data 

stewardship goal. This would include the construction of an integrated Business Intelligence 

environment, including software and hardware components that consolidate data from a broad spectrum 

of data repositories. The first phase of BI has been implemented into the production environment, which 

includes the data queries associated with the BSEE Annual Report. The next phase will include the 

queries necessary to track the BSEE Performance Metrics. BSEE data will be presented through a logical 

data model that reflects business processes using a metadata-driven approach. This will allow the 

transition from a canned or custom report-driven approach to data analysis and discovery to give users the 

power to independently obtain the information. The metadata layer will allow for the development of a 

web-enabled, role-based dashboard built on Oracle’s Business Intelligence Foundation Suite and the 

mapping of current users to the newly developed security model.

BSEE is transitioning to a data stewardship framework within the Bureau to facilitate the development 

and implementation of standards, policies and procedures, and improve the quality and accessibility of 

data for analytical purposes. The Bureau works to protect proprietary and personally identifiable 

information (PII) through existing policies and procedures, and updates these to maintain compliance and 
Operations, Safety and Regulation

44 Bureau of Safety and Environmental Enforcement

provide individuals and organizations the necessary assurances regarding the integrity of critical 

information assets. Furthermore, BSEE is working in concert with the Department to make progress 

towards a comprehensive inventory of data assets as instructed by the Office of Management and Budget 

(OMB) in OMB M-13-13, Open Data Policy – Managing Information as an Asset. 

Human Capital Management: Critical to meeting BSEE’s mission goals is the ability to recruit, develop, 

and retain a diverse workforce that is efficient, effective, and accountable. BSEE competes directly with 

industry, which can offer a higher salary structure, when recruiting for mission critical engineering and 

inspector positions. To be more competitive BSEE has taken several steps over the past several years to 

include obtaining special pay authorization for mission critical occupations, expanding the use of 

recruitment incentives, and executing a concerted hiring initiative focused on filling key vacancies. As a 

result of these efforts, BSEE now has the expertise and staffing levels to fully implement its mission. 

However, the Bureau expects that as competition within industry increases, it will again become difficult 

to recruit and retain highly qualified staff. To mitigate the risk of key staff losses, BSEE will continue to 

utilize all hiring and compensation flexibilities including recruitment/rentention bonuses and student loan 

repayments. BSEE also plans to dedicate significant training resources to expand the skills of its

workforce.

In response to the Bureau’s growing need for inspector and engineering training to ensure that staff stays 

current with new technology and inspection techniques, the NOTP continues to evolve to ensure 

continuous improvement. Areas of focus in FY 2018 will be on competency assessment and more 

specifically, how to measure and develop competency amongst the workforce. The program will begin 

instituting comprehensive cross-training on topics such as the assessment of safety management systems, 

risk analysis, and use of real-time data during inspections.

In addition, training and mentoring opportunities for strengthening BSEE’s competencies for performing 

performance based audits and inspections are being planned. These programs will involve not only 

classroom training, but will incorporate training techniques needed to help develop the skills necessary to 

look beyond regulatory compliance to being able to assess how well an operator is following their own 

programs and procedures.

Oil Spill Preparedness Verification: BSEE maintains its commitment to environmental stewardship and 

the responsible use and protection of the natural environment through conservation, enforcement, and 

sustainable practices. By ensuring offshore facility owners/operators meet the oil spill response 

preparedness standards set forth by the Clean Water Act, Oil Pollution Act of 1990, and 30 CFR §254, 

BSEE plays a key role in supporting the Nation’s response posture for oil spills that can impact public 

health and the environment. The Oil Spill Response Plan (OSRP) is one method of ensuring the 

American public that offshore energy exploration and production is an activity that fosters environmental 

stewardship. OSRPs are approved when an offshore facility has demonstrated the ability to respond to a 

worst-case discharge to the maximum extent practicable. 

In FY 2016, the Bureau conducted 335 plan review activities to ensure that 128 approved OSRPs remain 

updated and in compliance with regulations. As such, BSEE ensures that the strategies and resources 

listed in OSRPs are regularly exercised. Exercises allow personnel from facility operators, spill response 
Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 45

contractors, and regulatory officials to validate the efficacy of an OSRP. These exercises provide training 

and practice of strategic and tactical preparedness, protection, response, and recovery capabilities in a 

risk-reduced environment. In FY 2016, BSEE conducted 24 government-initiated unannounced exercises 

and audited 99 industry-led training and exercise activities. Additionally, BSEE manages the compliance 

process for monitoring the preparedness and readiness levels of oil spill response equipment owned or 

contracted by offshore facilities owners/operators. Therefore, BSEE personnel periodically verifies and 

ensures that equipment listed within the OSRP is properly maintained, ready to be operated, and performs 

as specified by the manufacturer. In FY 2016, the Bureau conducted 84 separate site visits to verify the 

location and condition of thousands of pieces of oil spill response equipment. 
Operations, Safety and Regulation

46 Bureau of Safety and Environmental Enforcement

Table 6: Performance Overview Table - Operations, Safety and Regulation Strategic O bjective Metrics Strategic Plan Measure / Efficiency or other Bureau- Specific Measure 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 CR Baseline 2018 Pres. Budget Request 2.494 (est.) 0.581 (est.) 3.416 (est.) 3.659 (est.) 2.500 2.500 (1217/488 million) (303/521 million) (1895/555 million) (2141/585 million) 0.379 0.342 0.385 0.214 (est) 0.400 0.400 (228/601) (205/599) (158/410) (117/546) 24,195 21,033 20,468 19,704 (est.) 18,500 19,000 Total Number of Compliance Inspections Completed (BUR) Comments: This measure counts all primary and secondary inspections, including the following: production, drilling, well decommissioning, well completion, environmental 

and EPA, flaring operations, hydrogen sulfide protection, meters, pipelines, US Coast Guard (complete and partial), and other miscellaneous offshore inspections. as recorded in the bureau's database.Contributing Programs: Operations, Safety and RegulationNumber of Recordable Injuries per 200,000 Offshore Man Hours Worked (DOI-Regulated Activities ONLY) (SP)Comments: Efficiency or other Bureau-Specific Measures

This strategic plan measure is an incident rate of all Recordable Injuries (i.e., injuries that require medical treatment beyond first aid and fatalities) that occur 

during DOI-regulated activities in the fiscal year for every 200,000 offshore man hours worked (which is the approximate equivalent of 100 full-time workers). The value for FY 16 is an estimate as final data are not yet available. Contributing Programs: Operations, Safety and RegulationMission Area 2, Goal 1: Secure America's Energy ResourcesStrategic Plan MeasuresAmount (in barrels) of operational offshore oil spilled per million barrels produced (excluding Hurricane-related spills) (SP)Comments: BSEE's estimated FY 2016 actual exceeded the target of less than 2.50 barrels spilled per million barrels produced. An oil release from Shell Offshore Inc.'s Glider Field accounts for 2,100 of out of the 2,141 barrels that spilled during FY 2016. Upon notification of the incident, the facility was shut-in and BSEE investigators were brought on-site. BSEE also established an Investigative Panel that will conduct a thorough investigation of the incident in order to identify the causes and any contributing issues that led to the release. The panel will make recommendations in its final report on how to strengthen existing safety and environmental management systems, and identify any reforms to existing regulations that may be needed. BSEE's annual oil spill reporting does not include reports from the Taylor Energy/Mississippi Canyon 20 Oil Discharge. BSEE is working to revise its FY 2015, FY 2014, and FY 2013 actuals based on the results of a newly completed and published BSEE report "2016 update of Occurrence Rates for Offshore Oil Spills." Current numbers provided are estimates pending final analysis.Contributing Programs: O perations, Safety and Regulation
Administrative Operations 

Bureau of Safety and Environmental Enforcement 47

FY 2018 PERFORMANCE BUDGET REQUEST

Administrative Operations Activity

Table 7: Administrative Operations Activity Budget Summary 

JUSTIFICATION OF 2018 PROGRAM CHANGES 

The 2018 budget request for the Administrative Operations Activity is $18,350,000 and 247 FTE; a net 

increase of $82,000 from the FY 2017 CR Baseline level.

General Increase in Base Appropriated Funding to Offset Reduction in Offsetting Collections 

(+$4,384,000; +0 FTE): The proposed increase to appropriated funding offsets the estimated decrease in 

rental receipt and cost recovery revenue as discussed below. Although offsetting revenue is set to decline, 

program requirements will not, and it is critically important for the Bureau to maintain adequate base 

program capacity to achieve its mission, as industry continues to move drilling and production operations 

into deeper waters and more hostile operating environments.

General Reduction – Changes in Offsetting Collections (-$4,384,000; -0 FTE): 

• Rental Receipts (-$3,973,000; -0 FTE): Rental receipts are the second largest of three 

different offsetting collections credited to the BSEE OSEE account to help defray the cost of 

operations. This decrease in rental receipts revenue is the result of two compounding factors. 

First, fewer leases are being sold as the OCS matures in terms of exploration prospects and 

world oil prices decline. Second, the decline in the number of leases subject to rentals is 

expected to accelerate because some of the active leases were issued with shorter primary terms 

than before and a large number of deepwater leases are expected to expire around FY 2017. 

• Cost Recovery Fees (-$411,000; -0 FTE): Cost recovery fees are the smallest of three 

different offsetting collections credited to the BSEE OSEE account to help defray the cost of 

operations. This decrease in revenue generated from cost recovery fees reflects the trend of 

actual collections. 

2016 

Actual

2017 

CR Baseline

Fixed Costs 

and Related 

Changes 

(+/-)

Internal 

Transfers

(+/-)

Program 

Changes 

(+/-)

2018

Request

Changes 

from 2017 

(+/-)

($000) 18,268 18,268 +82 - - 18,350 +82 

FTE 207 247 - - - 247 - Administrative Operations
Administrative Operations

48 Bureau of Safety and Environmental Enforcement

PROGRAM OVERVIEW 

The Administrative Operations Activity consists of the following Divisions and support teams: 

Acquisition Management Division, Equal Employment Opportunity Division, Finance Division, Human 

Resources Division, Management Support Division, Technology Services Division, Data Stewardship 

Team and Records, and Delegations and Directives Team. BSEE provides the full suite of administrative 

services to BOEM through a reimbursable service agreement. The Bureau also provides a partial set of 

shared services to the Office of the Secretary under tailored shared services agreements. BSEE is 

continually working to advance its administrative support posture in order to improve services and 

provide the Bureaus’ programs with the tools needed to meet mission requirements effectively. Through 

the use of program funding provided to meet targeted administrative initiatives to include human capital, 

data stewardship, and records management, and the utilization of shared service partnerships with BOEM,

and other parts of the Department, the Office of Administration can continue to establish best practices 

and enhance efficiencies. 

Acquisition Management Division (AMD): The AMD is responsible for the execution and 

administration of BSEE and BOEM contracts and financial assistance agreements. By collaborating with 

its customer organizations, this Division can create quality business solutions that help to accomplish the 

mission goals of the Bureaus. The Division provides acquisition and financial assistance policy guidance, 

cost and price analysis, and advice to procurement and program personnel. AMD conducts acquisition 

management and other internal control reviews of procurement activities throughout the year. AMD 

administers the purchase line of the BSEE and BOEM charge card programs, as well as the competitive 

sourcing programs. In addition, the Business and Economic Development Program maximizes

opportunities for small, disadvantaged, and women-owned businesses, as well as historically black 

colleges and universities as both prime contractors and subcontractors. Work includes overseeing and 

managing all career management programs for acquisition purposes.

Equal Employment Opportunity Division (EEOD): The EEOD develops, monitors, and operates the 

Equal Employment Opportunity (EEO) program for BSEE and BOEM in compliance with Title VII of 

the Civil Rights Act of 1964, as amended; the Equal Pay Act of 1963; the Age Discrimination in 

Employment Act of 1967, as amended; Section 501 and 505 of the Rehabilitation Act of 1973, as 

amended; Title II of the Genetic Information Nondiscrimination Act of 2008; Departmental directives;

and other related statutes and orders. Its goal is to ensure that workforce activities are inclusive, and that 

they promote the full utilization and exchange of skills and talents.

The Division provides advice and guidance to managers, supervisors, employees, and applicants for 

employment regarding EEO policies and procedures. EEOD provides technical advice and consultation 

to managers on recruitment strategies for affirmative employment designed to improve low participation 

rates of various groups in BSEE and BOEM. EEOD provides oversight of special initiative programs 

designed to involve more women, minorities, and people with disabilities throughout all levels of the 

Bureaus. Additionally, the Division also provides EEO counseling and mediation services, as well as 

formal EEO complaint processing.
Administrative Operations 

Bureau of Safety and Environmental Enforcement 49

Finance Division: The Finance Division provides a full range of accounting and financial management 

services to BSEE and BOEM. The Division manages and oversees the Chief Financial Officer audit as 

conducted by an independent audit firm with oversight from the Department’s Office of Inspector General 

(OIG). The Finance Division develops Bureau financial policies, procedures, and guidelines. The 

Division liaises with Departmental policy offices, including the Office of Financial Management and the 

Office of Acquisition and Property Management, and other Federal agencies. It also coordinates with the 

Bureau’s Office of Budget and with the Department’s Office of Budget. Staff members may also 

represent the Bureau on a variety of Departmental and government-wide teams dealing with financial 

issues.

This Division is responsible for the administrative accounting operations of both BSEE and BOEM. The 

Finance Division manages the administrative accounting system; audits and schedules bills for payments; 

collects debts; develops financial data; prepares financial reports; provides advice and guidance on 

financial matters. 

Human Resources (HR) Division: The HR Division develops and implements policies, procedures, 

guidelines, and standards relating to general personnel management, recruitment and employment, 

position management and classification, and employee development. Work includes performing all 

operational personnel services for BSEE, BOEM, and other client organizations including the Department 

of the Interior’s Office of the Secretary, and providing assistance and guidance related to personnel 

matters for all regional and field installations. 

HR also leads all BSEE workforce-analytics initiatives in support of larger workforce planning efforts, 

which include analyzing the current workforce, identifying future workforce needs, and preparing plans 

for building the workforce needed in the future. The Division also provides analytical support to BOEM, 

and tailors these services to meet the specific needs of its diverse customers. The long-term benefits of 

workforce-planning initiatives include the ability of BSEE to meet its mission and performance goals. As 

regulators, BSEE must be able to keep pace with the latest technological advances. In support of these 

efforts, the Division works with its customers to adopt a comprehensive recruitment and training system 

in order to attract the best talent to the public service, while continuing to provide the training and 

education necessary to keep its workforce at the leading edge of industry innovation. In addition, the 

Division is responsible for the oversight of a Bureau-wide Learning Management System that serves as a 

valuable workforce development tool. HR also coordinates all Department-mandated employee 

development initiatives for implementation in BSEE and BOEM. HR has developed and oversees the 

ongoing implementation of a leadership develop program which focuses on training, mentoring, and 

shadowing (rotational assignment) opportunities for employees across varying levels, across three tracks.

The Division focuses on employee relations and services, including personnel program evaluation, 

labor/management relations, advising employees about conflict of financial interest and standards of 

conduct, and administering incentive awards programs, family friendly programs, the Federal Equal 

Opportunity Recruitment Program, and Senior Executive Service program. 
Administrative Operations

50 Bureau of Safety and Environmental Enforcement

Management Support Division: The Management Support Division provides direct assistance to 

BSEE’s Associate Director for Administration, as well as to BSEE and BOEM personnel. The Division’s 

responsibilities include:

• Emergency management, physical security, personnel security; 

• Evaluations and studies; 

• Delegation of authority, directives management, program management, providing high-level 

administrative support; and management and organization analysis activities; 

• Occupational safety and health; 

• Support services, including facilities management, property management, space management, 

printing and publications activity, and general office services; 

• Continuity of operations program; plans, implements, and directs the physical and personnel 

security programs, including development and implementation of policy, procedures, methods, 

and techniques for protection of proprietary and national security information; 

• Budget planning, execution, and formulation for the administrative operations budget; and

• Maintains accountability records of all system-controlled property in the possession and control 

of custodial property officers and contractors; and manages the vehicle fleet and museum 

property, including the Arts and Artifacts program. 

Technology Services Division (TSD): The TSD ensures the efficient and effective planning, 

management and acquisition of information technology (IT) and information resources within BSEE, 

BOEM, and ONRR. The Division ensures compliance with all Federal Information Technology 

Acquisition Reform Act (FITARA) requirements, as well as other government-wide and Departmental 

priorities. TSD clearly defines the information technology needs of the Bureaus’ mission and enterprise 

functions, and fulfills those needs as appropriate.

The TSD provides a central foundation to manage the large volume of information and data used in the 

scientific, engineering, and management activities of BSEE’s and BOEM’s programs. The Technical 

Information Management System (TIMS) is the Bureau’s core mission application, and provides the tools 

needed to manage the wide array of data and information needed to accomplish the Bureaus day-to-day 

mission requirements effectively. TIMS automates the business and regulatory functions of BSEE and 

BOEM and brings diverse information into a central database. This enables BSEE and BOEM Regions 

and Headquarters to share and combine data; to standardize processes, forms, reports, and maps; to 

promote the electronic submission of data; to enforce data integrity through relational database 

technology; and to release accurate, consistent information to the public sector. 

In support of the strategic goals of each Bureau, TSD through a collaborative effort with its customer base 

will redesign its information and knowledge management tools, and enhance the collection, 

standardization, accuracy, completeness, consistency, and storage of data. These efforts will increase the 

Bureau’s ability to collaborate across current divisions of process and software. Improved data 

management and analysis will allow the Bureau to better identify trends and statistics critical to assessing 
Administrative Operations 

Bureau of Safety and Environmental Enforcement 51

broader indicators of risk. A more collaborative and streamlined knowledge management system will 

also better enable Bureau-wide innovation and adaptation in all aspects of offshore safety, response 

preparedness, and environmental protection.

The TSD also manages and maintains the Geological Interpretive Tools (GIT) system, which represents 

the basis of essentially all BOEM determinations requiring geoscience analysis. GIT allows BOEM to 

improve productivity by quantifying analyses, analyzing digital data in three-dimensions, fully integrating 

geophysical and geological data analysis, and reducing risks and uncertainty in decision-making 

processes. In addition, TSD has developed an extensive Geographic Information System (GIS) capability 

for nearly all BSEE and BOEM offshore maps and leasing processes, providing the means to define, 

describe, analyze, and account for every acre of Federal offshore-submerged lands. 

The Division provides direction and coordination for Bureau-wide IT activities such as the IT 

Capital/Strategic Planning, with an emphasis on IT investment planning and monitoring through a 

rigorous governance process. They also provide support for the overall infrastructure, including the 

shared services budget, enterprise help desk, network management, and other essential infrastructure for 

office automation. The TSD implements and supports the Bureau’s IT security program by working 

collaboratively with BSEE and BOEM offices as well as with the DOI’s Office of the CIO to review and 

improve security plans, policies, procedures, and standards to reflect technological changes. The IT 

security efforts include participating in risk assessments and management reviews of systems and 

networks, identifying security issues, recommending mitigation, and promoting compliance with 

FITARA.

Data Stewardship Team: The Data Stewardship Team organizes and facilitates data sharing with 

program offices, Bureaus, and public stakeholders, as well as coordinates data stewardship activities with 

DOI data teams. In addition, the team works with the Programs and Divisions to develop and maintain 

overall data architecture, data resource model, data strategies, and manages the data as a corporate 

resource.

Records, Delegations, and Directives Team: The Records, Delegations, and Directives Team oversees 

the BSEE and BOEM records management programs under 36 CFR 1220.10(b), to provide effective 

management of the creation, maintenance, use, preservation, and disposition of BSEE and BOEM 

records. The team serves as the official liaison with the Department of Interior for the eERDMS (eMail 

Enterprise Records and Document Management System) overseeing the development and maintenance of 

BOEM and BSEE email records classification as well as the Enterprise Content Management system for 

long-term compliant electronic records archival storage activities. The Team manages the Bureau’s 

delegations of authority and directives programs, supporting the processing, dissemination, and filing of 

agency delegations and directives. The Team also manages the internal forms library and is the official 

liaison for BOEM and BSEE with the DOI Enterprise Forms System (EFS), to include processing EFS 

help tickets through the DOI software system, planning and processing newly automated forms.
Administrative Operations

52 Bureau of Safety and Environmental Enforcement

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Executive Direction 

Bureau of Safety and Environmental Enforcement 53

FY 2018 PERFORMANCE BUDGET REQUEST

Executive Direction Activity

Table 8: Executive Direction Budget Summary

JUSTIFICATION OF 2018 PROGRAM CHANGES 

The 2018 budget request for the Executive Direction Activity is $18,318,000 and 106 FTE; a net increase of 

$82,000 from the FY 2017 CR Baseline level.

General Increase in Base Appropriated Funding to Offset Reduction in Offsetting Collections 

(+$2,019,000; +0 FTE): The proposed increase to appropriated funding offsets the estimated decrease in 

rental receipt and cost recovery revenue as discussed below. Although offsetting revenue is set to decline, 

program requirements will not, and it is critically important for the Bureau to maintain adequate base 

program capacity to achieve its mission, as industry continues to move drilling and production operations 

into deeper waters and more hostile operating environments.

General Reduction – Changes in Offsetting Collections (-$2,019,000; -0 FTE):

• Rental Receipts (-$1,830,000; -0 FTE): Rental receipts are the second largest of three different 

offsetting collections credited to the BSEE OSEE account to help defray the cost of operations. 

This decrease in rental receipts revenue is the result of two compounding factors. First, fewer 

leases are being sold as the OCS matures in terms of exploration prospects and world oil prices 

decline. Second, the decline in the number of leases subject to rentals is expected to accelerate 

because some of the active leases were issued with shorter primary terms than before and a large 

number of deepwater leases are expected to expire around FY 2017. 

• Cost Recovery Fees (-$189,000; -0 FTE): Cost recovery fees are the smallest of three different 

offsetting collections credited to the BSEE OSEE account to help defray the cost of operations. 

This decrease in revenue generated from cost recovery fees reflects the trend of actual collections. 

PROGRAM OVERVIEW 

The Executive Direction Activity provides Bureau-wide leadership, direction, management, coordination, 

communications strategies, and outreach for the entire organization to carry out its primary mission. In 

FY 2018, the Executive Direction Activity will fund the Office of the Director, the Integrity and 

2016 

Actual

2017 

CR Baseline

Fixed Costs 

and Related 

Changes 

(+/-)

Internal 

Transfers

(+/-)

Program 

Changes 

(+/-)

2018

Request

Changes 

from 2017 

(+/-)

($000) 18,236 18,236 +82 - - 18,318 +82 

FTE 97 106 - - - 106 - Executive Direction
Executive Direction

54 Bureau of Safety and Environmental Enforcement

Professional Responsibility Advisor Unit, the Office of Budget, the Office of Policy and Analysis, the 

Office of Public Affairs, and the Office of Congressional and International Affairs.

Office of the Director

The Office of the Director includes the Director, the Deputy Director, and their immediate staff. This 

office is responsible for providing general policy guidance and overall leadership within the BSEE 

organization, as well as managing all of the official documents of the Office of the Director.

Integrity and Professional Responsibility Advisor (IPRA) Unit

The IPRA is responsible for promptly and credibly responding to allegations or evidence of misconduct, 

unethical behavior, and unlawful activities by BSEE and BOEM employees. Investigations into the 

activities of private entities that BSEE regulates will be performed by the Safety and Incident 

Investigations Division. The IPRA shares allegations of internal misconduct with the DOI's Office of the

Inspector General, determining jointly which office conducts an investigation of those allegations. The 

IPRA manages the process by which allegations of misconduct are reported and investigated. Working 

with the responsible manager, the IPRA provides the results of any investigation to the manager for 

determination of appropriate disciplinary action, if any.

Office of Budget 

The Office of Budget provides budget analysis and guidance for the formulation, congressional and 

execution phases of the budget cycle. During the budget formulation cycle, the office develops and 

maintains all budgetary data to support BSEE’s budget requests to the Department, the Office of 

Management and Budget (OMB), and Congress. During the congressional phase, the Office of Budget 

tracks the appropriations process, coordinates the preparation of capability and effect statements, and 

provides answers to House and Senate questions. Throughout the execution phase, the Budget Division 

tracks spending against line item budgets, analyzes budgetary and expense data, and provides regular 

updates to BSEE executives on the status of funds. The Office of Budget works closely with the Office of 

Policy and Analysis and program level performance staff to integrate performance data and information 

into all aspects of budget formulation and execution.

Office of Policy and Analysis

The Office of Policy and Analysis serves as the principal office to provide the Director with independent 

review and analysis of programmatic and management issues. Additionally, the office leads, coordinates, 

and monitors many cross-program initiatives, ensuring a consistent BSEE-wide implementation that 

directly supports congressional, presidential and Departmental directives, laws, mandates and guidance. 

The Office of Policy and Analysis fulfills the Director’s responsibilities in several critical areas, including 

strategic and performance planning, policy and program evaluation, enterprise risk management, and 

internal controls. It is also responsible for ensuring that programmatic plans and policies are consistent 

with and integrated into the overall Bureau mission and responsibilities, as well as with Department and 
Executive Direction 

Bureau of Safety and Environmental Enforcement 55

Administration policy frameworks. In addition, the office administers and coordinates internal reviews as 

well as oversees and ensures the implementation of recommendations made by oversight groups such as 

the Government Accountability Office and the Office of the Inspector General. 

Associate Director of Strategic Engagement

This position serves as a senior advisor to the Director on key mission-critical issues, initiatives, and 

Bureau functions. The Office of Public Affairs, along with the Office of Congressional and International

Affairs, reports to this position.

Office of Public Affairs (OPA)

OPA is responsible for BSEE’s communication strategies and outreach. The goal of OPA is to inform the 

public, and ensure coordinated communication, consistent messages, and the effective exchange of 

information with all customers and stakeholders. OPA coordinates the implementation of an effective 

and inclusive outreach program to numerous target audiences, including state and local governments, the 

energy industry, related trade associations, the environmental community, Tribal Nations, other Federal 

agencies, energy consumer groups, and the general public.

Office of Congressional and International Affairs (OCIA)

OCIA serves as BSEE’s primary point of contact for the U.S. Congress and BSEE’s international 

counterparts. The OCIA is responsible for the coordination of all communication and engagements as 

well as ensuring consistent messaging and effective exchanges of information in these areas.

OCIA manages and analyzes all congressional and legislative matters that pertain to the Bureau. The 

responsibilities that facilitate these engagements include the analysis of proposed, pending, and enacted 

legislation for impacts on BSEE’s mission, priorities, and goals; preparation of Bureau statements and 

witnesses before Congress; actively informing Congress of Bureau issues and activities; and providing 

timely responses to questions from the House, Senate, Congressional Budget Office, and Congressional 

Research Service. OCIA maintains an open line of communication regarding BSEE’s programs and 

policies with BSEE’s authorizing committees, as well as other relevant committees’ members and support 

offices. The OCIA serves as the Bureau’s liaison with Congress, the Department, and other Federal 

executive agencies.

OCIA manages and analyzes the Bureau’s international programs and policies to ensure initiatives are 

consistent with BSEE’s mission, priorities, and goals. The responsibilities that facilitate these 

engagements include structuring international cooperation agreements; organization of technical 

exchanges; advising BSEE’s international travelers on matters of security, protocol, and travel 

requirements; and, support of BSEE’s engagement in international regulatory fora. OCIA maintains an 

open line of communication regarding BSEE’s programs and policies with the Department’s Office of 

International Affairs, the Department of State, and the international programs within all relevant U.S. 

agencies, such as the Department of Energy, the Department of Commerce, and the Department of the 

Treasury.
Executive Direction

56 Bureau of Safety and Environmental Enforcement

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Summary of Requirements Table

Bureau of Safety and Environmental Enforcement 57

Bureau of Safety and Environmental Enforcement

Summary of Requirements Table 2016 Actual Account FTE Amount FTE Amount Oil Spill Research 14,899 22 14,871 - - - -2,171 22 12,700 - -2,171 TOTAL FUNDING, Oil Spill Research 14,899 22 14,871 - - - -2,171 22 12,700 - -2,171 Fixed Costs & Related (+/-) Internal Transfers (+/-) Program Changes (+/-) FTE Amount Change from CY (+/-) (Dollars in Thousands) 2017 CR Baseline 2018 Request Amount Total FTE Amount
Summary of Requirements Table

58 Bureau of Safety and Environmental Enforcement

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Language Citations

Bureau of Safety and Environmental Enforcement 59

Bureau of Safety and Environmental Enforcement

Language Citations

Appropriations Language

Oil Spill Research Appropriation Account

For necessary expenses to carry out title I, section 1016, title IV, sections 4202 and 4303, title VII, and 

title VIII, section 8201 of the Oil Pollution Act of 1990, $12,700,000, which shall be derived from the Oil

Spill Liability Trust Fund, to remain available until expended.

(Note. A full-year 2017 appropriation for this account was not enacted at the time the budget was 

prepared; therefore, the budget assumes this account is operating under the Further Continuing 

Appropriations Act, 2017 (P.L. 114-254). The amounts included for 2017 reflect the annualized level 

provided by the continuing resolution.)
Language Citations

60 Bureau of Safety and Environmental Enforcement

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Oil Spill Research Appropriation 

Bureau of Safety and Environmental Enforcement 61

FY 2018 PERFORMANCE BUDGET REQUEST

Oil Spill Research Appropriation

Table 9: Oil Spill Research Budget Summary 

SUMMRY OF 2018 PROGRAM CHANGES

JUSTIFICATION OF 2018 PROGRAM CHANGES 

The FY 2018 budget request for the Oil Spill Research Appropriation is $12,700,000 and 22 FTE; a net 

decrease of -$2,171,000 from the FY 2017 CR Baseline level.

Research Reduction (-$2,171,000/0 FTE): BSEE has developed the capability to conduct research projects 

with the Oil Spill Preparedness Division (OSPD) engineering staff by leading much of the research on 

traditional, alternative, and emerging spill response technologies at the Ohmsett facility. Through 

enhancement and operationalization of response technologies, spill cleanups can be done more effectively and 

efficiently resulting in safer field oil recovery and treatment activities, with less impact to the environment, 

and a quicker return of platforms to production operations. The funding decrease will result in fewer research 

projects being initiated in FY 2018, but will continue to enable BSEE to fund some priority research activities 

that align with the goals and objectives of the Administration.

PROGRAM OVERVIEW 

The Bureau derives funding from the Oil Spill Liability Trust Fund (OSLTF) to execute BSEE’s 

delegated responsibilities in support of title I, section 1016; title IV, sections 4202 and 4303; title VII; and 

title VIII, section 8201 of the Oil Pollution Act of 1990. BSEE carries out these responsibilities through 

its Oil Spill Preparedness (OSP) Program which is administered by the OSPD. The OSP Program ensures 

that the Nation’s offshore oil and gas exploration, development, and production activities in both State 

and Federal waters can succeed in a safe and environmentally responsible manner. This program supports 

the President’s Executive Order policy of promoting “clean and safe development of our Nation’s vast 

energy resources.” The OSP Program funds support two primary focus areas: (1) oil spill preparedness 

2016 

Actual

2017 

CR Baseline

Fixed Costs 

and Related 

Changes 

(+/-)

Internal 

Transfers

(+/-)

Program 

Changes 

(+/-)

2018

Request

Changes 

from 2017 

(+/-)

($000) 14,899 14,871 - - -2,171 12,700 -2,171

FTE 17 22 - - - 22 - Oil Spill Research

Request Component Amount

($000) FTE

Research Reduction -2,171 -

Total Program Changes: -2,171 -
Oil Spill Research Appropriation

62 Bureau of Safety and Environmental Enforcement

verification activities focused on U.S. offshore facility owners and operators that handle, store, or 

transport oil; and (2) oil spill response research that includes management of Ohmsett (the National Oil

Spill Response Research and Renewable Energy Test) Facility. 

PERFORMANCE OVERVIEW

The OSPD integrates all aspects of oil spill preparedness, response, and research activities in order to 

emphasize the Bureau’s mission of ensuring that industry is prepared to respond to an offshore oil spill as 

quickly and effectively as possible, and thus reduce impacts to offshore oil and gas production operations 

environmental and economic resources of the U.S.

Oil Spill Preparedness Verification: By ensuring offshore facility owners/operators meet the oil spill 

response preparedness standards set forth by the Clean Water Act, Oil Pollution Act of 1990, and 

30 CFR §254, BSEE plays a key role in supporting the Nation’s response posture for oil spills that can 

impact public health, the environment, and energy production. The Oil Spill Response Plan (OSRP) is an

important aspect of responsible development of the OCS energy resources. When BSEE approves an 

OSRP, they are telling the American public that the Government believes the owner/operator of an 

offshore facility has demonstrated the ability to respond to a worst case discharge to the maximum extent 

practicable. The Bureau must review numerous details within each section and appendices of the OSRPs 

to verify that the information is in compliance with the requirements of 30 CFR 254, and that the OSRP 

taken as a whole adequately demonstrates that an owner/operator is prepared to contain and recover an 

offshore facility’s worst-case discharge to the maximum extent practicable. 

In order to consistently make correct judgments on the validity of an OSRP, BSEE must stay abreast of 

the latest advances in oil spill response technologies, policies and procedures. This ongoing education is 

reinforced with regular field visits to plan-holders in order to carry out other regulatory responsibilities 

mandated by 30 CFR 254, such as materiel inspections of response equipment, observations of response 

exercises, and evaluations of the competencies of response personnel. Thus, BSEE personnel continually 

maintain a balance of time and resources between managing the Nation’s OSRP library and operationally 

verifying the effectiveness of the OSRPs. In FY 2016, BSEE conducted 335 plan review activities to 

ensure that 128 approved OSRPs remain updated and in compliance with regulations. 

The Bureau recently launched a major information technology initiative to enhance the efficiency and 

timeliness of OSRP submission and review. The ePermits new software design and implementation will 

allow plan holders to electronically submit their OSRPs to BSEE. The system will reduce the burden on 

operators by providing a more efficient method of submitting not only new updates to OSRPs, but 

notifications as well. 

Through routine exercises, BSEE ensures that the strategies and resources listed in the OSRPs are 

achievable. Exercises allow personnel from facility operators, spill response contractors, and regulatory 

officials to validate the efficacy of the OSRP. Additionally, exercises allow for training and practice of 

strategic and tactical preparedness, protection, response, and recovery capabilities in a risk-reduced 

environment. Exercises are the primary tool for assessing preparedness and identifying areas for 

improvement, while demonstrating the regulated communities’ resolve to prepare for worst case 
Oil Spill Research Appropriation 

Bureau of Safety and Environmental Enforcement 63

discharge incidents. Further, both industry-initiated and/or government-initiated unannounced exercises 

aim to help regulated offshore facilities gain objective assessments of their own capabilities so that gaps, 

deficiencies, and vulnerabilities are addressed prior to any real oil spill or discharge incident. In FY 2016, 

the Bureau conducted 24 government-initiated unannounced exercises and audited 99 training and 

industry exercise activities. 

While BSEE manages its regulatory requirements exercise under 30 CFR §254, it works closely with its 

counterparts in USCG, Environmental Protection Agency (EPA), and the Pipeline and Hazardous 

Materials Safety Administration (PHMSA) to execute and improve the National Preparedness for 

Response Exercise Program (NPREP). NPREP was developed to establish a workable exercise program 

that meets the intent of section 4202(a) of the Oil Pollution Act of 1990. The program provides a 

mechanism for compliance with the exercise requirements, while being economically feasible for the 

government and the oil industry to adopt and sustain. The Bureau serves on the NPREP Coordination, 

Consistency, and Compliance Committee to assist in development of national triennial exercise 

schedules; review and modify guidelines, as necessary; and participate in periodic public meetings on the 

NPREP. 

BSEE manages the compliance process for monitoring the preparedness and readiness levels of oil spill 

response equipment owned or contracted by offshore facilities owners/operators. The ability to respond 

effectively to an offshore worst-case discharge oil spill to the maximum extent practicable is directly 

related to the preparedness status of the equipment listed within each facility’s OSRP. Therefore, 

equipment listed within the plan is verified on a periodic basis by BSEE personnel to ensure that it is 

properly maintained, ready to be operated, and performs as specified by the manufacturer. OSPD staff 

regularly travel across the Gulf of Mexico, California, and Alaska to visit storage depots to review 

inventory lists and visually inspect response equipment assigned to the 128 OSRPs. In FY 2016, OSPD 

conducted 84 separate site visits to verify the location and evaluate the condition of thousands of pieces of 

oil spill response equipment. 

Preparedness coordination is an essential aspect to ensuring the success of a consistent national oil spill 

response preparedness program. Consequently, BSEE’s oil spill preparedness program is a keystone 

component of the National Response System (NRS) as promulgated by the National Oil and Hazardous 

Substances Pollution Contingency Plan (NCP). The implementation of the NRS through the NCP 

provides a framework for coordination among Federal, State, and local responders and responsible parties 

to respond effectively to discharges of oil and hazardous materials. The framework includes four levels 

of contingency planning (Federal, regional, area, and local and site-specific industry) that guide response 

efforts. In the post-Deepwater Horizon regulatory environment, the importance of consistent planning 

and preparedness coordination cannot be understated. In addition, the Bureau regularly attends meetings 

and support activities of the NRS Regional Response Teams (RRT) and Area Committees (AC). RRTs 

support Federal On Scene Coordinators and are a focal point for regional interagency contingency 

planning guidance. Similarly, ACs are a focal point of contingency planning at local levels and are 

comprised of members selected from qualified personnel of Federal, State, and local agencies with 

responsibilities that include preparing an area contingency plan for an area designated by the President. 

Both the RRTs and ACs produce key contingency planning documents that are closely linked to the 

OSRPs managed under BSEE. In FY 2016, BSEE personnel attended 9 RRT meetings and 27 AC
Oil Spill Research Appropriation

64 Bureau of Safety and Environmental Enforcement

meetings where information was shared regarding specific OSRP issues, joint industry exercise planning, 

and geographic-specific response subjects. In addition, BSEE formally engaged the USCG on a quarterly 

basis at both the regional and headquarters level in support of BSEE’s important relationship established 

through the Memorandum of Agreement entitled ‘Oil Discharge Planning, Preparedness and Response’.

Oil Spill Response Research (OSRR): BSEE is the principal Federal agency funding OSRR and 

maintains a comprehensive, long-term research program to improve oil spill response technologies and 

procedures. The OSRR program provides scientific support for BSEE’s safety and environmental 

protection decision making, research leadership, and funding opportunities to improve the technologies

and procedures for the detection, containment, treatment, and cleanup of oil spills that may occur in U.S. 

offshore waters. BSEE supports the foundational work to advance research and development projects 

into innovative new methods to respond to an oil spill and identify the best available technologies. 

Specific research efforts focused on geographic challenges include Arctic environments, high pressure 

wells, and the ever-challenging deep water areas of the Gulf of Mexico. Research conducted with 

appropriated funds is either: (1) awarded through a competitive process to academia, regulators, and 

qualified companies which possess scientific and engineering expertise necessary to meet the research 

goals of BSEE; or (2) conducted by BSEE staff utilizing the Ohmsett facility, with the ultimate goal of 

improving all phases of offshore oil spill preparedness and response.

Information derived from the OSRR program is directly integrated into BSEE’s operations and is used in 

making regulatory decisions pertaining to plan approvals, safety and pollution prevention inspections, 

enforcement actions, and training requirements. Research results are also transferred to rule writers, 

investigators, plan reviewers, and others who need this information to ensure safe operations and assist 

BSEE in its efforts to independently keep pace with industry’s fast paced technological advancements. 

Response technologies identified by the OSRR program focus on preventing offshore operational spills 

from reaching sensitive environments and habitats, or populated areas where health and the economy 

could be adversely affected.

In the pursuit of its research objectives, BSEE has engaged with Federal research institutions such as the 

USCG Research and Development Center; the Department of Energy’s (DOE) National Energy 

Technology Laboratory; the National Oceanic and Atmospheric Administration (NOAA); the EPA; the 

U.S. Navy; and the U.S. Army to leverage the subject matter expertise of these agencies. These 

interagency efforts help develop core understanding about offshore spill response, and enhance the skills 

that each agency can bring to an offshore spill response. BSEE is also working with Federal partners, 

researchers, manufacturers, and the larger oil spill response community to define the Technology 

Readiness Levels (TRL) for oil spill response equipment. This new metric will define expectations as 

new technology is developed, and serve as a screening tool for allowing new technology to participate in 

an actual oil spill response. Through application of TRLs to research, BSEE will be able to help move 

technology forward in a measureable, logical way while providing a visible means for the response 

community to monitor new technologies that may be ready for commercialization.

BSEE’s oil spill response research mission involves coordination with other Federal partners in both adhoc and formal settings. Formal engagements are achieved through representation in groups such as the 

Congressionally-mandated Interagency Coordinating Committee on Oil Pollution Research (ICCOPR), 
Oil Spill Research Appropriation 

Bureau of Safety and Environmental Enforcement 65

which identifies national priorities for oil spill response research, provides a forum for Federal entities to 

engage in information transfer of the latest science and engineering related to oil spill prevention, 

preparedness, and response, and works with other research organizations such as the National Academy 

of Sciences’ Gulf Research Program and the Gulf of Mexico Research Initiative. BSEE plays a crucial 

role in ICCOPR by serving as a committee Co-chair on a rotating basis, and routinely providing updates 

on research of importance to ICCOPR members, thereby facilitating awareness of new tools and 

strategies that can and should be used in offshore spill responses. The ICCOPR Oil Pollution Research 

and Technology Plan identifies priority research needs in 25 Standing Research Areas. Research 

continues on improving mechanical recovery and response tactics such as offshore in situ burn and subsea 

dispersant use. Funding will be dedicated to efficient ways to locate, recover, or treat spilled oil, and 

communicate a common operating spill response to both the responders and the public. Responding to an 

oil spill in the Arctic environment presents many unique challenges to understand and advance response 

technologies and procedures to ensure the least impact to the environment and to human safety.

In FY 2016, BSEE completed the first phase of a project to assess the science supporting the contention 

that in the case of a loss-of-control incident on an Arctic gravel island, intentionally igniting the discharge 

flow would be an appropriate temporary response strategy. This first phase constituted working with the 

Naval Research Laboratory’s (NRL) combustion experts to review relevant scientific literature. It was 

determined that significant knowledge gaps must be addressed to enable accurate predictions of the 

efficiency of this proposed strategy. In FY 2017 and FY 2018 BSEE and NRL will conduct small and 

intermediate scale research to support the development of a predictive model that will support BSEE’s 

decision making in evaluating industry’s Oil Spill Response Plans containing this proposed response 

strategy.

In FY 2018, BSEE will continue research to:

• Develop experimentally-validated models to inform regulatory decision makers about the 

feasibility of combustion-techniques as spill response measures for the Arctic;

• Test the potential for crude oils from reservoirs off the coast of California to ignite and sustain 

combustion to inform regulatory decision makers;

• Develop, test, and evaluate enhanced mechanical recovery technologies;

• Locate, track, and remove oil during low light conditions;

• Optimize the temporary storage and disposal of recovered fluid in remote or harsh environments;

• Integrate and institutionalize the recently defined oil spill response TRLs to the technology 

development process for projects conducted under the OSRR program;

• Refine capabilities to detect and recover oil in and under ice, including technological advances in 

remotely controlled operations to reduce risk to personnel and increase the operational window;

• Investigate options to advance/develop (near) real-time data transfer tools for prompt spill 

response;
Oil Spill Research Appropriation

66 Bureau of Safety and Environmental Enforcement

• Develop tools or methods to determine the efficiency of surface dispersant delivery 

techniques/systems as a function of spill characteristics;

• Better understand the potential effectiveness of chemical dispersants and herders in various 

operational environments;

• Develop technology or techniques for optimum application of herders;

• Develop tools or methods to improve on in situ burning, by optimizing the burn efficiency, 

reducing soot and harmful emissions, and developing innovative and robust ignition systems 

capable of withstanding extreme weather and harsh environments to expand the window of 

opportunity in which in situ burning can be employed;

• Develop tools or methods to quantify the amount of oil remediated by offshore in situ burning;

• Continue research on alternative methods to combust weathered, emulsified, and viscous oils;

• Develop tools or methods to determine oil slick thickness;

• Investigate options to advance/develop (near) real-time data transfer tools for prompt spill 

response; and

• Develop realistic oil simulants that will replicate the behavior of oil droplets in the subsea 

environment, in conjunction with BSEE’s Federal partners.

BSEE disseminates the results of research and development projects as widely as possible in publications 

through appropriate scientific and technical journals, conferences, technical reports, public information 

documents, and publication on BSEE’s website. The intent is to make this information widely available 

to oil spill response personnel and organizations worldwide. 

Ohmsett - The National Oil Spill Response Research and Renewable Energy Test Facility: Ohmsett is 

one of the world’s largest tow/wave tanks designed to test and evaluate full scale equipment for the

detection and response to spilled oil. Ohmsett is one of the only facilities where oil spill response testing, 

training, and research can be conducted with a variety of crude and refined oil products in varying wave 

conditions. The heart of Ohmsett is a large, outdoor, above-ground concrete test tank that is 667 feet 

long, 65 feet wide, 11 feet deep and filled to a depth of 8 feet with 2.6 million gallons of crystal clear 

saltwater. Ohmsett also has the capability to test scaled renewable energy systems such as current and 

wave energy converters. 

Ohmsett plays an important role in protecting clean water by developing the most effective response 

technologies as well as preparing responders by using the most realistic training available. The facility 

provides testing and research capabilities to help the government fulfill its regulatory requirements and 

meet its goal of clean and safe operations. Many of today’s commercially available oil spill cleanup 

equipment and products have been tested at Ohmsett and a considerable body of performance data and 

information on mechanical response equipment has been obtained there. Response planners use this 

information in reviewing and approving facility response and contingency plans. Ohmsett is also the 

premier training site for government agency and private industry oil spill response personnel to test their 
Oil Spill Research Appropriation 

Bureau of Safety and Environmental Enforcement 67

own full-scale equipment. Through both classroom exercises and hands-on use of response equipment 

deployed in and near the test tank, students are able to learn and perform best practices in spill response.

Recent tests conducted at the facility evaluated shale oil in two key metrics. The Environmental 

Protection Agency utilized the facility to evaluate the fate and behavior of Bakken crude oil as it pertains 

to responder safety. The USCG evaluated the effectiveness of traditional oil recovery techniques and 

technologies, and how the effectiveness changes as the oil is weathered over time. Other recent testing 

activities included oil spill response equipment testing in a simulated Arctic environment, an assessment 

of remote sensing technologies’ capability to accurately characterize spilled oil, wave energy conversion 

device tests, skimmer and boom tests, and dispersant tests, including the impact of oil and dispersant upon 

whale baleen.

Additional information on Ohmsett can be found at www.ohmsett.com. 

Figure 1: Ohmsett Facility in New Jersey
Oil Spill Research Appropriation

68 Bureau of Safety and Environmental Enforcement

Table 10: Performance Overview Table - Oil Spill Research Appropriation Strategic O bjective Metrics Strategic Plan Measure / Efficiency or other Bureau- Specific Measure 2013 Actual 2014 Actual 2015 Actual 2016 Actual 2017 CR Baseline 2018 Pres. Budget Request 93% 87% 96% 95% 85% 85% (206/222) (201/231) (228/237) (219/231) Achieve a utilization rate of X% at Ohmsett, the national oil spill response test facility (BUR) Comments: Ohmsett is the National Oil Spill Response Test Facility located in New Jersey. At Ohmsett, clients can test oil spill response equipment in realistic conditions and have training in the use of the equipment. This measure evaluates the utilization level of the facility. The increased focus on oil spill response, as well as expanded uses for the facility such as dispersant training and renewable energy wave tests, have sustained overall utilization rates at around 85 percent. In FY 2016 actual, available days were reduced from 240 to 231 because the tank was frozen for nine days. Contributing Programs: Oil Spill Research Mission Area 2, Goal 1: Secure America's Energy Resources Efficiency or other Bureau-Specific Measures
Section 403 Compliance

Bureau of Safety and Environmental Enforcement 69

Bureau of Safety and Environmental Enforcement

Appendix A - Section 403 Compliance 

Section 403 of Public Law 114-113, the Consolidated Appropriations Act, 2016, states:

DISCLOSURE OF ADMINISTRATIVE EXPENSES

SEC. 403. The amount and basis of estimated overhead charges, deductions, reserves or 

holdbacks, including working capital fund and cost pool charges, from programs, 

projects, activities and subactivities to support government-wide, departmental, agency, 

or bureau administrative functions or headquarters, regional, or central operations shall 

be presented in annual budget justifications and subject to approval by the Committees 

on Appropriations of the House of Representatives and the Senate. Changes to such 

estimates shall be presented to the Committees on Appropriations for approval.

To improve efficiency across the Department, BSEE offers a full array of administrative functions to 

Bureaus and Department offices to help meet their administrative needs. BSEE implements this shared 

services approach through reimbursable services agreements with each agency. Under these agreements, 

BSEE provides specific services to meet the agency’s needs including acquisition management, equal 

employment opportunity, finance, human resources, information technology management, management 

support, personnel security, and facilities support services. Maintaining these critical administrative 

functions within the Department provides the following benefits:

• Minimizing duplication of administrative entities across multiple organizations while optimizing 

efficiency.

• Providing a centralized administrative function that can, over time, allow the Department to 

pursue additional efficiencies.

The Department has strongly supported the expansion of business cross-servicing for more than 30 years. 

These efforts have the added benefit of implementing standardized practices that will further increase the 

productivity for highly skilled resources, improve best practices and maximize the use of administrative 

funds in the future.

BSEE regularly evaluates these support arrangements jointly with each customer agency. BSEE’s costs 

to provide these services are also carefully managed and jointly approved by the respective agencies. 

Changes between cost allocations to BSEE and the customer agency may change to reflect actual 

agreements signed annually, and these changes would not be presented as a reprogramming. The Internal 

Bureau Assessment reported for 2018 reflects the alignment of the Bureau’s administrative support 

requirements based on estimated FTE allocations between BSEE and its customers. Customer payments 

are recorded as reimbursable funding to BSEE. 
Section 403 Compliance

70 Bureau of Safety and Environmental Enforcement

BY 2018

Dollars in Thousands 

($000)

External Administrative Costs

Various Activities

 Working Capital Fund Centralized Billing 4,257

 Working Capital Fund Direct Billing 1,947

 Subtotal 6,204

Internal Bureau Assessments

Operations, Safety and Regulation 9,415

Administrative Operations 2,345

Executive Direction 2,152

 Subtotal 13,912

Total Assessments of Bureau Programs 20,116

The following tables provide the actual WCF billings to BSEE for 2016 and 2017 and estimates for 2018.
Section 403 Compliance

Bureau of Safety and Environmental Enforcement 71

Bureau of Safety and Environmental Enforcement

Working Capital Fund Centralized Bill

(Dollars in thousands)

Account

2016 

Actual

2017 CR 

Baseline

2018

Request

FBMS Infrastructure Hosting & Support 267.1 270.8 296.7

Aviation Management 1,144.6 1,300.4 1,474.2

Mail and Messenger Services 50.5 50.0 36.6

Safety, Environmental, and Health Services 26.8 26.5 19.4

Shipping/Receiving & Moving Services 16.7 16.5 12.1

Vehicle Fleet 2.6 2.6 2.6

Personal Property Accountability Services 20.7 20.4 14.9

Interior Complex Management & Services 18.9 18.7 13.7

Departmental Library 8.9 1.6 14.3

Mail Policy 3.2 3.3 3.3

Conference & Special Events Services 38.4 38.0 27.8

Space Management Services 12.0 11.8 8.7

Alaska Affairs Office 6.5 4.4 4.4

Alaska Resources Library and Information Services 43.2 43.2 46.2

Departmental Museum 14.0 14.2 14.7

FOIA Tracking & Reporting System 50.7 50.6 69.2

Departmental News and Information 14.7 15.0 15.5

FedCenter 1.9 1.9 1.9

Compliance Support ESF-11/ESF-11 Web site 2.3 2.3 2.3

Invasive Species Council 18.0 18.0 18.0

Invasive Species Coordinator 3.3 3.3 3.3

Passport and Visa Services 1.9 6.9 6.9

CPIC 2.6 2.4 2.7

Financial Statement, Internal Controls & Perform. Report 8.0 8.1 8.4

Travel Management Center 1.5 2.5 2.3

e-Travel 15.8 13.3 12.0

Partnerships 3.6 3.7 3.8

Interior Collections Management System 2.1 0.0 0.0

Space Management Initiative 4.3 4.4 5.2

Renewable Energy Certificates 0.0 0.0 4.8

Interior Asset Disposal System O&M 2.5 2.5 2.5

Planning and Performance Management 14.3 14.6 15.0

Department-wide Worker’s Compensation Program 2.1 2.1 2.1

OPM Federal Employment Services 4.5 4.6 4.7

Accessibility & Special Hiring Programs 7.4 7.5 7.7

Human Resources Accountability Team 7.9 8.1 8.3

Employee and Labor Relations Tracking System 0.4 0.4 0.4

Consolidated Employee Assistance Program (EAP) 8.8 8.9 9.2

EEO Complaints Tracking System 0.4 0.6 0.6

Special Emphasis Program 0.5 0.5 0.5
Section 403 Compliance

72 Bureau of Safety and Environmental Enforcement

Bureau of Safety and Environmental Enforcement

Working Capital Fund Centralized Bill

(Dollars in thousands)

Account

2016 

Actual

2017 CR 

Baseline

2018

Request

Occupational Safety and Health 18.3 18.7 19.1

Safety Management Information System 14.7 14.9 15.3

Leadership Development Programs 11.4 11.6 12.0

Department-Wide Train Programs (excl. Online Learning) 8.8 11.2 10.6

Learning and Performance Center Management 10.1 14.6 22.6

DOIU Management 7.9 8.1 8.3

Online Learning (DOI) Learn

Security (Classified Information Facility)

15.3

6.2

13.4

6.4

17.6

6.5

Law Enforcement Coordination 8.4 8.5 11.3

Security (MIB/SIB Complex) 205.4 203.1 151.3

Victim Witness Coordinator 2.3 2.3 2.4

OLES Detailees – Training and Compliance

Interior Operations Center

0.0

26.5

8.4

27.1

0.0

27.6

Emergency Preparedness (COOP) 11.3 11.5 11.8

Emergency Response 14.4 17.0 17.4

MIB Emergency Health and Safety 4.8 4.8 3.6

Federal Executive Board 3.3 3.4 3.5

Send Word Now Emergency Notification System

Alternative Dispute Resolution (ADR) Training

0.0

0.6

0.0

0.6

0.1

0.6

CFO Financial Statement Audit 242.4 129.3 129.3

Ethics 6.3 6.4 7.6

FOIA Appeals 22.1 7.5 20.8

IT Transformation Planning (ITT) 168.0 221.5 0.0

Enterprise Directory Services 124.9 76.0 77.6

IT Desktop Software Administration 10.4 12.7 13.5

IOS Collaboration 12.6 11.6 13.6

Unified Messaging 13.4 18.6 15.9

Privacy and Civil Liberties 13.0 24.4 31.1

Identity Credential Access Management (ICAM) 13.3 10.6 12.6

Threat Management 94.2 126.1 102.0

Information Systems Security Operations (ISSO) 5.0 8.9 1.8

Office of Information Assurance (OIA) Operations 15.6 35.0 44.7

Assessment & Authorization Services 5.8 8.1 8.7

IT Security 4.1 28.1 29.6

Enterprise Continuous Diagnostics and Monitoring 11.4 10.7 12.6

Enterprise Security Info & Event Mgmt Solution (SIEM) 24.8 22.9 26.8

Hosting Services 19.9 12.7 13.4

Electronic Records Management 56.0 91.3 70.5

Solutions, Design & Innovation (SDI) 13.4 13.2 13.7
Section 403 Compliance

Bureau of Safety and Environmental Enforcement 73

Bureau of Safety and Environmental Enforcement

Working Capital Fund Centralized Bill

(Dollars in thousands)

Account

2016 

Actual

2017 CR 

Baseline

2018

Request

Geospatial Services 2.9 3.0 3.1

E-Forms 0.0 23.0 23.6

Enterprise Services Network 114.3 71.1 56.8

Federal Relay Service 3.0 3.0 3.2

MIB Data Networking 16.3 16.3 12.5

Telecommunication Services 41.6 41.8 31.9

Integrated Digital Voice Communications System 34.6 34.2 26.3

Enterprise Services Network – Central Bill Pass Through 222.4 301.3 241.6

Enterprise Service Desk 10.0 0.0 0.0

Architecture & IT Portfolio Performance Management 97.6 114.4 130.1

Compliance and Audit Management 33.8 55.4 58.4

IT Budget Formulation & Portfolio Development 60.6 92.2 99.8

Sustain Data Center Consolidation & Cloud Hosting 0.0 0.0 79.8

Gateway/Bandwidth Expansion 0.0 0.0 36.7

e-Government Initiatives 26.3 26.6 0.0

e-Gov Program Manager 0.0 0.0 1.0

e-Gov e-rulemaking 0.0 0.0 12.5

E-Gov – GovBenefits – Disaster Assistance Imprvmt Plan 0.0 0.0 0.8

E-Gov – Integrated Acquisitions Env (IAE) Loans 0.0 0.0 4.7

E-Gov – Human Resources Line of Business OPM 0.0 0.0 1.7

E-Gov – Financial Management Line of Business 0.0 0.0 1.6

E-Gov – GovBenefits.Gov Labor 0.0 0.0 1.3

E-Gov – Performance Management Line of Business 0.0 0.0 0.7

E-Gov – - Budget Formulation and Execution 0.0 0.0 1.4

Federal Personnel and Payroll System (FPPS) 176.1 140.3 144.8

OPM Employee Express 5.8 8.0 8.2

HR Systems Integration Framework (HRSIF) 8.0 6.2 6.2

HRLOB – HRSIF 0.0 2.4 2.5

HRLOB – FPPS 0.0 34.8 37.1

Transportation Services (Household Goods) 1.7 1.7 1.6

Boise Acquisition Office 26.5 29.1 39.9

TOTAL 3,981.4 4,270.6 4,257.1
Section 403 Compliance

74 Bureau of Safety and Environmental Enforcement

Bureau of Safety and Environmental Enforcement

Working Capital Fund Direct Bill

(Dollars in thousands)

Account

2016

Actual

2017 CR 

Baseline

2018

Request

Reimbursable Mail Services 0.9 1.0 1.0

Creative Communications 1.6 1.6 1.6

Ocean Coastal Great Lakes Activities 20.0 20.0 20.2

e-OPF 49.7 42.3 42.3

Equal Employment Opportunity (EEO) Investigations 1.7 1.7 1.7

Equal Employment Opportunity (EEO) Training 1.0 1.0 1.0

Online Learning 5.6 2.6 2.6

Consolidated Direct Billed Leadership & Perf Centers 8.7 8.8 8.8

Senior Exec Service Candidates Development Program 9.1 5.1 5.1

OLES BSEE Detailee 236.9 236.9 240.0

Federal Flexible Savings Account (FSA) Program 2.2 2.8 2.8

Unified Messaging 246.2 230.2 238.8

Identity, Credential Access Management (ICAM) 103.6 103.6 106.7

Data at Rest Initiative 6.7 6.9 6.9

End Point Manager Licenses 0.0 148.3 170.4

CDM Licenses 0.0 0.0 27.5

Data Center & Cloud Planning, Analysis & Integration 16.9 0.0 0.0

ESRI Enterprise Licenses 110.7 113.8 113.8

Electronic Records Management 117.6 198.2 196.4

Information Systems Security Line of Business 0.0 9.4 9.4

Information Systems Security Operations (ISSO) 0.0 86.5 86.5

Enterprise Services Network 608.8 503.5 503.5

ISSO Telecommunications 4.9 1.3 1.3

Payroll & HR Systems 43.5 44.6 46.1

Payroll & HR Systems (Pass through) 228.1 104.6 107.0

HRLOB – Direct Bill 5.5 5.8 6.0

TOTAL 1,829.9 1,880.3 1,947.4
Employee Count By Grade

Bureau of Safety and Environmental Enforcement 75

Bureau of Safety and Environmental Enforcement

Appendix B – Employee Count by Grade

FY 2016 

Actual

FY 2017 

CR Baseline

FY 2018 

Request

 Executive Level V ................................................ 1 1 1

 SES ................................................................ 5 6 6

Subtotal .............................................. 6 7 7

SL - 00 ............................................................. 0 0 0

ST - 00 ............................................................. 0 0 0

Subtotal .............................................. 0 0 0

 GS/GM -15 ....................................................... 57 57 57

 GS/GM -14 ....................................................... 162 163 163

 GS/GM -13 ....................................................... 242 244 244

 GS -12 ............................................................. 127 129 129

 GS -11 ............................................................. 115 119 119

 GS -10 ............................................................. 5 5 5

 GS - 9 ............................................................. 53 54 54

 GS - 8 ............................................................. 14 14 14

 GS - 7 ............................................................. 47 49 49

 GS - 6 ............................................................. 13 13 13

 GS - 5 ............................................................. 19 20 20

 GS - 4 ............................................................. 9 7 7

 GS - 3 ............................................................. 1 0 0

 GS - 2 ............................................................. 0 0 0

 GS - 1 ............................................................. 0 0 0

Subtotal .............................................. 864 874 874

 Other Pay Schedule Systems .................................. 0 0 0

 Total employment (actuals & estimates) ............... 870 881 881

Employee Count by Grade

(Total Employment)
Employee County By Grade

76 Bureau of Safety and Environmental Enforcement

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MAX Tables and Budget Schedules

Bureau of Safety and Environmental Enforcement 77

Bureau of Safety and Environmental Enforcement

Offshore Safety and Environmental Enforcement (OSEE)

MAX Tables and Budget Schedules

Program and Financing

(dollars in millions)

Treasury Account ID: 14-1700

2016

Actual

2017

CR 

Baseline

2018

Request

Obligations by program activity 

0001 Environmental Enforcement 5 10 10

0002 Operations, Safety and Regulation 136 184 159

0003 Administrative Operations 18 20 19

0004 Executive Direction 20 19 19

005 General Support Services 2 0 0

0192 Total direct program 181 233 207

0799 Total direct obligations 181 233 207

0802 Reimbursable Service Agreements 44 37 37

0900 Total new obligations, unexpired accounts 225 270 244

Budgetary resources: Unobligated balance:

1000 Unobligated balance brought forward, Oct 1 66 80 37

1021 Recoveries of prior year unpaid obligations 5 0 0

1050 Unobligated balance (total) 71 80 37

Budget authority: Appropriations, discretionary:

1100 Appropriation 95 92 99

1160 Appropriation, discretionary (total) 95 92 99

Spending authority from offsetting collections, discretionary

1700 Offsetting Collections (Cost Recovery) 5 6 4

1700 Offsetting Collections (Rental Receipts) 40 38 24

1700 Collected (Inspection Fee) 50 54 54

1700 Reimbursable Service Agreements 41 37 37

1700 Collected (Increase in Inspection Fee) 0 0 11

1701 Change in uncollected payments, Federal sources 3 0 0

1750 Spending authority from offsetting collections, 

discretionary (total)

139 135 130

1900 Budget authority (total) 234 227 229

1930 Total budgetary resources available 305 307 266

Memorandum (non-add) entries:

1941 Unexpired unobligated balance, end of year 80 37 22
MAX Tables and Budget Schedules

78 Bureau of Safety and Environmental Enforcement 

Bureau of Safety and Environmental Enforcement

Offshore Safety and Environmental Enforcement (OSEE)

Program and Financing (continued)

(dollars in millions)

Treasury Account ID: 14-1700

2016

Actual

2017

CR 

Baseline

2018

Request

Change in obligated balance: Unpaid obligations:

3000 Unpaid obligations, brought forward, Oct 1 167 151 175

3010 New obligations, unexpired accounts 225 270 244

3020 Outlays (gross) -236 -246 -239

3040 Recoveries of prior year unpaid obligations, 

unexpired

-5 0 0

3041 Recoveries of prior year unpaid obligations, expired 0 0 0

3050 Unpaid obligations, end of year 151 175 180

Uncollected payments:

3060 Uncollected payments, Federal sources, brought 

forward, Oct 1

-35 -38 -38

3070 Change in uncollected payments, Federal sources, 

unexpired

-3 0 0

3090 Uncollected payments, Federal sources, end of 

year

-38 -38 -38

Memorandum (non-add) entries:

3100 Obligated balance, start of year 132 113 137

3200 Obligated balance, end of year 113 137 142

Budget authority and outlays, net: Discretionary:

4000 Budget authority, gross 234 227 229

Outlays, gross:

4010 Outlays from new discretionary authority 127 159 161

4011 Outlays from discretionary balances 109 87 78

4020 Outlays, gross (total) 236 246 239

Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:

4030 Federal sources -41 -37 -37

4033 Non-Federal sources -95 -98 -93

4040 Offsets against gross budget authority and outlays 

(total)

-136 -135 -130

Additional offsets against gross budget authority only:

4050 Change in uncollected payments, Federal sources, 

unexpired

-3 0 0

4070 Budget authority, net (discretionary) 95 92 99

4080 Outlays, net (discretionary) 100 111 109

4180 Budget authority, net (total) 95 92 99

4190 Outlays, net (total) 100 111 109
MAX Tables and Budget Schedules

Bureau of Safety and Environmental Enforcement 79

Bureau of Safety and Environmental Enforcement

Offshore Safety and Environmental Enforcement (OSEE)

Program and Financing (continued)

(dollars in millions)

Treasury Account ID: 14-1700

2016

Actual

2017

CR 

Baseline

2018

Request

Memorandum (non-add) entries

5090 Unexpired unavailable balance, SOY: Offsetting 

collections

6 6 6

5092 Unexpired Unavailable balance, EOY: Offsetting 

collections

6 6 6
MAX Tables and Budget Schedules

80 Bureau of Safety and Environmental Enforcement 

Bureau of Safety and Environmental Enforcement

Offshore Safety and Environmental Enforcement (OSEE)

Object Classification

(dollars in millions)

Treasury Account ID: 14-1700

2016

Actual

2017

CR 

Baseline

2018

Request

OSEE (Direct Obligations)

Personnel compensation:

1111 Full-time permanent 69 73 76

1121 Civilian personnel benefits 22 24 25

1210 Travel and transportation of persons 2 3 3

1231 Rental payments to GSA 8 9 9

1251 Advisory and assistance services 18 5 3

1252 Other services from non-Federal sources 12 71 53

1253 Other goods and services from Federal sources 23 16 15

1254 Operation and maintenance of facilities 2 0 0

1255 Research and development contracts 11 17 7

1257 Operation and maintenance of equipment 7 10 10

1258 Subsistence and support of persons 0 0 0

1260 Supplies and materials 1 1 1

1310 Equipment 4 4 5

1410 Grants, subsidies, and contributions 2 0 0

1990 Subtotal, obligations, Direct Obligations 181 233 207

OSEE (Reimbursable Obligations)

Personnel compensation:

2111 Full-time permanent 12 11 11

2121 Civilian personnel benefits 4 3 3

2231 Rental payments to GSA 6 6 6

2251 Advisory and assistance services 8 3 3

2252 Other services from non-Federal sources 2 2 2

2253 Other goods and services from Federal sources 2 2 2

2255 Research and development contracts 1 0 0

2257 Operation and maintenance of equipment 8 8 8

2310 Equipment 1 1 1

2990 Subtotal, obligations, Reimbursable obligations 44 37 37

9999 Total new obligations, unexpired accounts 225 270 244
MAX Tables and Budget Schedules

Bureau of Safety and Environmental Enforcement 81

Bureau of Safety and Environmental Enforcement

Oil Spill Research (OSR)

Program and Financing

(dollars in millions)

Treasury Account ID: 14-8370

2016

Actual

2017

CR 

Baseline

2018 

Request

Obligations by program activity 

0001 Oil Spill Research (Direct) 13 19 13

0900 Total new obligations, unexpired accounts 13 19 13

Budgetary Resources : Unobligated balance:

1000 Unobligated balance brought forward, Oct 1 2 4 0

1021 Recoveries of prior year unpaid obligations 0 0 0

1050 Unobligated balance (total) 2 4 0

Budget Authority: Appropriations, discretionary

1101 Appropriation (special or trust fund) 15 15 13

1160 Appropriation, discretionary (total) 15 15 13

1930 Total budgetary resources available 17 19 13

Memorandum (non-add) entries:

1941 Unexpired unobligated balance, end of year 4 0 0

Change in obligated balance: Unpaid obligations:

3000 Unpaid obligations, brought forward, Oct 1 22 17 17

3010 New obligations, unexpired accounts 13 19 13

3020 Outlays (gross) -18 -19 -18

3050 Unpaid obligations, end of year 17 17 12

Memorandum (non-add) entries:

3100 Obligated balance, start of year 22 17 17

3200 Obligated balance, end of year 17 17 12

Budget authority and outlays, net: Discretionary:

4000 Budget authority, gross 15 15 13

Outlays, gross:

4010 Outlays from new discretionary authority 4 8 6

4011 Outlays from discretionary balances 14 11 12

4020 Outlays, gross (total) 18 19 18
MAX Tables and Budget Schedules

82 Bureau of Safety and Environmental Enforcement 

Bureau of Safety and Environmental Enforcement

Oil Spill Research (OSR)

Program and Financing (continued)

(dollars in millions)

Treasury Account ID: 14-8370

2016

Actual

2017

CR 

Baseline

2018 

Request

Budget authority and outlays, net: Discretionary

4070 Budget authority, net (discretionary) 15 15 13

4080 Outlays, net (discretionary) 18 19 18

4180 Budget authority, net (total) 15 15 13

4190 Outlays, net (total) 18 19 18

Object Classification

(dollars in millions)

Treasury Account ID: 14-8370

2016

Actual

2017

CR 

Baseline

2018 

Request

OSR (Direct Obligations)

Personnel compensation:

1111 Full-time permanent 2 2 2

1121 Civilian Personnel Benefits 1 1 1

1252 Other services from non-Federal sources 3 3 3

1255 Research and development contracts 7 13 7

9999 Total new obligations, unexpired accounts 13 19 13
MAX Tables and Budget Schedules

Bureau of Safety and Environmental Enforcement 83

Bureau of Safety and Environmental Enforcement

Oil Spill Research (OSR)

Hurricane Sandy Disaster Relief Supplemental

Appropriations Act of 2013

Program and Financing

(dollars in millions)

Treasury Account ID: 14-1920

2016

Actual

2017

CR 

Baseline

2018

Request

Budgetary resources: Budget authority: Appropriations, discretionary:

1160 Appropriations, discretionary (total) 0 0 0

Change in obligated balance: Unpaid obligations:

3000 Unpaid obligations, brought forward, Oct 1 1 0 0

3020 Outlays (gross -1 0 0

3050 Unpaid obligations, end of year 0 0 0

Memorandum (non-add) entries:

3100 Obligated balance, start of year 1 0 0

3200 Obligated balance, end of year 0 0 0

Budget authority and outlays, net: Discretionary:

4011 Outlays from discretionary balances 1 0 0

4080 Outlays, net (discretionary) 1 0 0

4180 Budget authority, net (total) 0 0 0

4190 Outlays, net (total) 1 0 0
MAX Tables and Budget Schedules

84 Bureau of Safety and Environmental Enforcement 

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Authorizing Statutes

Bureau of Safety and Environmental Enforcement 85

Bureau of Safety and Environmental Enforcement

Authorizing Statutes 

Outer Continental Shelf (OCS) Lands Program

43 U.S.C. 1331, et seq. The Outer Continental Shelf (OCS) Lands Act of 1953, as 

amended, extended the jurisdiction of the United States to the 

OCS and provided for granting of leases to develop offshore 

energy and minerals. 

 

P.L. 109-432 The Gulf of Mexico Energy Security Act of 2006 required 

leasing certain areas in the Central and Eastern Gulf of Mexico 

Planning Areas within one year of enactment (December 20, 

2006); and established a moratoria on leasing in remaining areas 

in the eastern planning area and a portion of the central planning 

area until 2022. 

P.L. 109-58 The Energy Policy Act of 2005 amended the OCS Lands Act to 

give authority to the Department of the Interior to coordinate the 

development of an alternative energy program on the OCS and 

also to coordinate the energy and non-energy related uses in 

areas of the OCS where traditional oil and natural gas 

development already occur.

P.L. 113-067 The Bipartisan Budget Act of 2013 contained provisions which 

approved the Agreement between the U.S. and the United

Mexico States concerning Transboundary Hydrocarbon 

Reservoirs in the Gulf of Mexico, and amended the OCS Lands 

Acts to authorize the Secretary of the Interior to implement the 

U.S.-Mexico Agreement and any future transboundary 

hydrocarbon reservoir agreements entered into by the President 

and approved by Congress.

43 U.S.C. 4321, 4331-4335, The National Environmental Policy Act of 1969 required 

4341-4347 that federal agencies consider in their decisions the 

environmental effects of proposed activities and that Agencies 

prepare environmental impact statements for Federal actions 

having a significant effect on the environment. 

16 U.S.C. 1451, et seq. The Coastal Zone Management Act of 1972, as amended, 

established goals for ensuring that Federal and industry activity 

in the coastal zone be consistent with coastal zone plans set by 

the States.

16 U.S.C. 1531-1543 The Endangered Species Act of 1973 established procedures to 

ensure interagency cooperation and consultations to protect 

endangered and threatened species.
Authorizing Statutes

86 Bureau of Safety and Environmental Enforcement 

42 U.S.C. 7401, et seq. The Clean Air Act, as amended, was applied to all areas of the 

OCS except the central and western Gulf of Mexico. OCS 

activities in those non-excepted areas will require pollutant 

emission permits administered by the EPA or the States. 

P. L. 112-42, Section 432 Consolidated Appropriations Act of 2012, amended the Clean 

Air Act by transferring air quality jurisdiction from the EPA to 

DOl for OCS activities in the Beaufort Sea and Chukchi Sea 

OCS Planning Areas of the Arctic OCS.

16 U.S.C. 470-470W6 The National Historic Preservation Act established procedures to 

ensure protection of significant archaeological resources. 

30 U.S.C. 21(a) The Mining and Minerals Policy Act of 1970 set forth the 

continuing policy of the Federal Government to foster and 

encourage private enterprise in the orderly and economic 

development of domestic mineral resources and reserves.

30 U.S.C. 1601 The Policy, Research and Development Act of 1970 set forth the 

continuing policy et seq. of the Federal Government to foster and 

encourage private enterprise in the orderly and economic 

development of domestic mineral resources and reserves.

33 U.S.C. 2701, et seq. The Oil Pollution Act of 1990 established a fund for 

compensation of damages resulting from oil pollution and 

provided for interagency coordination and for the performance of 

oil spill prevention and response research. It also expanded 

coverage of Federal requirements for oil spill response planning 

to include State waters and the transportation of oil. The Act 

also addressed other related regulatory issues. 

43 U.S.C. 1301 The Marine Protection, Research, and Sanctuaries Act of 1972

provided that the Secretary of Commerce must consult with the 

Secretary of the Interior prior to designating marine sanctuaries. 

BSEE provides oversight and enforcement for potential impacts 

from all OCS activities that may be located in or in proximity to 

marine sanctuaries and protected areas. 

16 U.S.C. 1361-1362, The Marine Mammal Protection Act of 1972 provides for

1371-1384, 1401-1407 the protection and welfare of marine mammals.

 

P.L. 104-58 The Deepwater Royalty Relief Act provides royalty rate relief 

for offshore drilling in deepwater of the Gulf of Mexico (GOM). 

31 U.S.C. 9701 Fees and Charges for Government Services and Things of 

Value. It establishes authority for Federal agencies to collect 

fees for services provided by the Government. Those fees must 

be fair and based on the costs to the Government; the value of 
Authorizing Statutes

Bureau of Safety and Environmental Enforcement 87

the services or thing to the recipient; public policy or interest 

served; and other relevant facts.

General Administration

31 U.S.C. 65 Budget and Accounting Procedures Act of 1950

31 U.S.C. 3901-3906 Prompt Payment Act of 1982

31 U.S.C. 3512 Federal Managers Financial Integrity Act of 1982

5 U.S.C. 552 Freedom of Information Act of 1966, as amended

31 U.S.C. 7501-7507 Single Audit Act of 1984

41 U.S.C. 35045 Walsh Healy Public Contracts Act of 1936

41 U.S.C. 351-357 Service Contract Act of 1965 

41 U.S.C. 601-613 Contract Disputes Act of 1978

44 U.S.C. 35 Paperwork Reduction Act of 1980

44 U.S.C. 2101 Federal Records Act 1950

40 U.S.C. 4868 Federal Acquisition Regulation of 1984

31 U.S.C. 3501 Privacy Act of 1974

31 U.S.C. 3501 Accounting and Collection

31 U.S.C. 3711, 3716-19 Claims

31 U.S.C. 1501-1557 Appropriation Accounting

5 U.S.C. 1104 et seq. Delegation of Personnel Management Authority

31 U.S.C. 665-665(a) Anti-Deficiency Act of 1905, as amended

41 U.S.C. 252 Competition in Contracting Act of 1984

18 U.S.C. 1001 False Claims Act of 1982

18 U.S.C. 287 False Statements Act of 1962

41 U.S.C. 501-509 Federal Grant and Cooperative Agreement Act of 1977

41 U.S.C. 253 Federal Property and Administrative Services Act of 1949

41 U.S.C. 401 Office of Federal Procurement Policy Act of 1974, as 

amended
Authorizing Statutes

88 Bureau of Safety and Environmental Enforcement 

15 U.S.C. 631 Small Business Act of 1953, as amended

15 U.S.C. 637 Small Business Act Amendments of 1978

10 U.S.C. 137 Small Business and Federal Competition Enhancement Act of 

1984

15 U.S.C. 638 Small Business Innovation Research Program of 1983

10 U.S.C. 2306(f) Truth in Negotiations Act of 1962 Authorization

Secretarial Order No. 3299 Directed the creation of the Bureau of Ocean Energy 

Management, the Bureau of Safety and Environmental 

Enforcement, and the Office of Natural Resources Revenue in 

May 2010, under the authority provided by Section 2 of 

Reorganization Plan No. 3 of 1950 (64 Stat. 1262).

Secretarial Order No. 3302 Changed the Name of the Minerals Management Service to the 

Bureau of Ocean Energy Management, Regulation and 

Enforcement in June 2010, under the authority provided by 

Section 2 of Reorganization Plan No. 3 of 1950 (64 Stat. 1262).

Oil Spill Research

33 U.S.C. 2701, et seq. Title VII of the Oil Pollution Act of 1990 authorizes the use of 

the Oil Spill Liability Trust Fund, established by Section 9509 of 

the Internal Revenue Code of 1986 (26 U.S.C. 9509), for oil spill 

research. 

33 U.S.C. 2701, et seq. Title I, Section 1016, of the Oil Pollution Act of 1990 requires a 

certification process which ensures that each responsible 

company, with respect to an offshore facility, has established, 

and maintains, evidence of financial responsibility in the amount 

of at least $150,000,000 to meet potential pollution liability.

43 U.S.C. 1331, et seq. Section 21(b) of the Outer Continental Shelf Lands Act, as 

amended, requires the use of the best available and safety 

technologies (BAST) and assurance that the use of up-to-date 

technology is incorporated into the regulatory process. 

Executive Order 12777 Signed October 18, 1991, assigned the responsibility to ensure 

oil spill financial responsibility for OCS facilities to the 

Secretary of the Interior (Bureau of Safety and Environmental 

Enforcement).