and Performance Information

Fiscal Year 2013

BUDGET

JUSTIFICATIONS

The United States

Department of the Interior

NOTICE: These budget

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

the Office of Budget of the 

Department of the Interior.

BUREAU OF

SAFETY AND 

ENVIRONMENTAL

ENFORCEMENT
BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT

FY 2013 PERFORMANCE BUDGET

Table of Contents

Preface............................................................................................................................................ 1

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

BSEE Budget Request .................................................................................................................. 3

Performance Summary and Goal Performance....................................................................... 13

BSEE Budget Tables................................................................................................................... 19

Environmental Enforcement Activity.......................................................................................... 23

Summary and Justification of FY 2013 Program Changes .................................................... 23

Program Overview and Performance ....................................................................................... 24

Operations, Safety and Regulation Activity ................................................................................ 27

Summary and Justification of FY 2013 Program Changes .................................................... 27

Program Overview and Performance ....................................................................................... 32

Performance Overview Table .................................................................................................... 41

Administrative Operations Activity.............................................................................................. 43

Summary and Justification of FY 2013 Program Changes .................................................... 43

Program Overview...................................................................................................................... 44

General Support Services Activity ............................................................................................... 49

Program Overview...................................................................................................................... 49

Executive Direction Activity ........................................................................................................ 51

Program Overview...................................................................................................................... 51

Oil Spill Research Appropriation.............................................................................................. 55

Program Overview and Performance ....................................................................................... 55

Performance Overview Table .................................................................................................... 60

Table of Figures

Figure 1: BSEE Organizational Chart...................................................................................... 12

Figure 2: Ohmsett Facility ......................................................................................................... 58
List of Tables

Table 1: Summary of BSEE Budget Request............................................................................. 3

Table 2: FY 2013 Analysis of Budgetary Changes..................................................................... 7

Table 3: Goal Performance Table ............................................................................................. 15

Table 4: Accounts and Activity Detail Table............................................................................ 19

Table 5: Budget at a Glance Table ............................................................................................ 20

Table 6: Summary of Offsetting Collections............................................................................ 21

Table 7: Summary of Requirements......................................................................................... 22

Table 8: Environmental Enforcement Activity Budget Summary......................................... 23

Table 9: Operations, Safety and Regulation Activity Budget Summary............................... 27

Table 10: Performance Overview -- Operations, Safety and Regulation .............................. 41

Table 11: Administrative Operations Activity Budget Summary.......................................... 43

Table 12: General Support Services Activity Budget Summary............................................ 49

Table 13: Executive Direction Activity Budget Summary ...................................................... 51

Table 14: Oil Spill Research Appropriation Budget Request Table...................................... 55

Table 15: Oil Spill Research Performance Overview.............................................................. 60
Director’sPreface

Bureau of Safety and Environmental Enforcement 1

FY 2013 BSEE PERFORMANCE BUDGET JUSTIFICATIONS

Director’sPreface

“We have worked tirelessly to strengthen safety and oversight of offshore energy

development and to ensure that the lessons learned from the Deepwater Horizon

guide safe and responsible development...”

- Secretary of the Interior Ken Salazar

The newly created Bureau of Safety and Environmental Enforcement (BSEE) continues to

aggressively promote safety, protect the environment, and conserve resources offshore. The

budget request for fiscal year (FY) 2013 supports those efforts as we institutionalize the

comprehensive regulatory reforms implemented in the aftermath of the Deepwater Horizon

explosion and oil spill.

The FY 2011 Continuing Appropriations Act andthePresident’sFY2012requestset forth a

plan for the completion of the reorganization of the former Minerals Management Service

(MMS) culminating with the creation of BSEE and its sister agency, the Bureau of Ocean Energy

Management (BOEM). The FY 2013 request is a continuation of that plan to complete the buildout of this new organization and establish a base operating level consistent with the

recommendations from the National Commission on the Deepwater Horizon Oil Spill and

Offshore Drilling and those from theNationalAcademyofEngineering’sreviews of the tragedy.

The FY 2013 request supports environmental enforcement activities as well as offshore

operations, safety, regulation, and research and administrative support for those activities. These

critical functions were shown to be significantly under-resourced in the former MMS, and

inadequate for the effective oversight of offshore oil and gas exploration and development

activities. The FY 2012 request allowed BSEE to initiate important standards and compliance

and staffing activities. The FY 2013 request provides continued support for these activities with

important additions.

Without the development and implementation of environmental compliance, inspection,

enforcement, and monitoring programs, the Bureau cannot meet its obligations to the American

public for safety oversight and environmental protection. Industry must have clearly defined

regulations and efficient permitting to move forward with the responsible development of our

Nation’soffshore oil and gas resources. The FY 2013 request provides funding for the newly

created National Offshore Training and Learning Center, a key recommendation out of the

Deepwater Horizon reviews and investigations. The request also provides tools such as

technology for “e-Inspections,”whichwillenhancetheinspectionprocessandimprove

efficiency. Technology Assessment and Research is also supported by the FY 2013 request to

ensure BSEE’sindependenceandthatthe regulatory system can keep pace with the rapidly

advancing technologies employed by the oil and gas industry, especially as wells are being

drilled to record depths with extreme pressures not previously encountered.
Director’sPreface

2 Bureau of Safety and Environmental Management

BSEE will continue to advance oil spill response research in FY 2013 through the Oil Spill

Research account, funded by the Oil Spill Liability Trust Fund. The funding will be used to find

new and more efficient ways to respond to oil spills with the least impact to the environment and

human safety.

The FY 2013 request includes an estimated 63 additional personnel to ensure the continued

effective and efficient oversight of oil and gas exploration and development on the U.S. Outer

Continental Shelf.
General Statement

Bureau of Safety and Environmental Enforcement 3

FY 2013 PERFORMANCE BUDGET

Bureau of Safety and Environmental Enforcement

General Statement

Table 1 : Summary of BSEE Budget Request

2011

Actual *

2012

Enacted

2013

Request

2013

Change

from

2012

Total, Offshore Safety and Environmental Enforcement (OSEE) 133,512 182,456 207,280 24,824

Offsetting Collections

Rental Receipts -38,391 -52,587 -52,479 108

Cost Recovery Fees -8,713 -6,494 -8,402 -1,908

Inspection Fees -10,000 -62,000 -65,000 -3,000

Total, Offsetting Collections -57,104 -121,081 -125,881 -4,800

Rescission of Prior Balance -12,500

Net OSEE 63,908 61,375 81,399 +20,024

Oil Spill Research 11,744 14,899 14,899 0

Net Appropriations 75,652 76,274 96,298 +20,024

Full Time Equivalents (FTE) **

Total Direct FTE 619 512 575 63

Total Reimbursable FTE (Offsetting Collection and Reimbursable Agreements) 19 191 191 0

Total FTE 638 703 766 63

* The FY 2011 Column represents estimates based on the 2011 Operating Plan because the funding was combined with what is now BOEM funding

under the former BOEMRE.

** BSEE has changed the manner in which it is reporting FTE funded by offsetting collection to show them in the reimbursable

category as that is where the charges accrue in the financial systems.

The Outer Continental Shelf (OCS) is a major source of energy for the United States. In

calendar year 2010, OCS leases offshore California, Alaska, and in the Gulf of Mexico provided

about 589 million barrels of oil and 2,300 billion cubic feet of natural gas, accounting for almost

30 percentoftheNation’soilproductionandover 10 percent of domestic natural gas production.

The Bureau of Safety and Environmental Enforcement (BSEE) is responsible for managing

exploration, development, and production operations for oil and natural gas on the OCS.

BSEE’sregulation and oversight of Federal offshore resources is intended to ensure that the OCS

remains a solid contributor to the Nation’senergyneedsthrough facilitation of safe,

environmentally-responsible oil and gas development and the conservation of resources.

The functions of BSEE include oil and gas permitting, facility inspections, regulations and

standards development, safety research, field operations, environmental compliance and

enforcement, review of operator oil spill response plans, production and development,

conservation, and operation of a national training center for inspectors.
General Statement

4 Bureau of Safety and Environmental Enforcement

FY 2013 PERFORMANCE BUDGET REQUEST

On May 19, 2010, Secretary of the Interior Ken Salazar signed Secretarial Order 3329, dividing

the Minerals Management Service (MMS) into three independent entities to better carry out its

three core missions: ensuring the balanced and responsible development of energy resources on

the OCS; ensuring safe and environmentally responsible exploration and production and

enforcing applicable rules and regulations; and ensuring a fair return to the taxpayer from royalty

and revenue collection and disbursement activities.

In the place of the former MMS, three strong, independent agencies with clearly defined roles

and missions were created. The Office of Natural Resources Revenue began operations on

October 1, 2010, with the mission of collecting and disbursing revenues from domestic energy

production while ensuring a fair return to the taxpayer from that production. An interim agency,

the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), was

responsible for the remaining MMS functions during FY 2011. On October 1, 2011, BOEMRE

was split into two new organizations with distinct missions, and the Bureau of Safety and

Environmental Enforcement (BSEE) and Bureau of Ocean Energy Management (BOEM)

formally began independent operations.

Ongoing Change and Reforms

FY 2013 will represent the second year of operations for BSEE. This budget requests the funds

needed to complete the goals of the reorganization and sustain the important changes made in

FY 2011 and FY 2012, including essential reforms in the management and oversight of offshore

drilling. These include implementation of a new inspection strategy and new requirements

related to approval of drilling permits.

Compliance and Inspections

A key component of the reorganization and reform efforts begun in FY 2011 is the identification

of how BSEE can improve its regulatory, inspection, and compliance programs. Based on

recommendations from investigatory and oversight reports, internal and external review of

operations, and reorganization studies, BSEE has already implemented a number of

improvements to its inspection regime and will continually look for improvements to enhance its

programs. Some accomplishments to date include:

BSEE works to promote safety, protect the

environment, and conserve resources offshore through

vigorous regulatory oversight and enforcement.
General Statement

Bureau of Safety and Environmental Enforcement 5

 Implemented new safety regulations (October 2010) which require witnessing of initial

on-bottom tests and stump tests for subsea blowout preventer (BOP) stacks.

 Implemented review of wellbore designs and wellbore integrity to determine whether

appropriate containment equipment is accessible or whether additional containment

systems are required.

 Developed a Well Containment Screening Tool (WCST) to demonstrate if a well design

and equipment is adequate for well containment.

 Implemented review of BOP system schematic drawings to ensure compliance with

requirements of new interim safety regulations.

 Restructured District offices to create separate specialization in well operations (Drilling,

Workover, Completion, Abandonment) versus production operations (Surface Safety

System, Production Process Systems, Personnel Safety Equipment).

 Recruitment of additional inspection team members.

 Analyzed ways to perform inspection activities more efficiently by using current

technological tools, such as online review of reports and records, and by using mobile

technology in the field

BSEE will continue to explore new regulatory, inspection, monitoring and compliance strategies.

This includes:

Risk Based Inspections:

 BSEE is exploring the use of different methodologies in order to identify both high and

low risk facilities. The common approach is to identify those facilities and operators that

display the greatest potential of serious environmental safety consequences should an

event occur and to increase oversight of those facilities and operators. In addition, BSEE

began Safety and Environmental Management System (SEMS) audits and will expand

these compliance audits through regulations that are currently under development.

 In addition, BSEE has begun to undertake SEMS audits and will expand these

compliance audits as the SEMS II rule is finalized.

Additional Reporting of Compliance Data and/or Real-time Data –In FY 2012, BSEE will

be examining the opportunities to collect key compliance indicator data, equipment performance

data and/or to use real time operational data flows to complement our inspection programs,

enhance compliance, and address regulatory gaps. This work will include the reviews necessary

to determine the costs and benefits of obtaining electronic access to real-time data transmitted

fromoffshoreplatforms/drillingrigs,suchasoperators’surveillancecamerasandBOP

monitoring systems, and/or other automated control and monitoring systems to provide BSEE

with additional oversight tools that can assist the agency in the inspection and oversight process.

BSEE will also designate research funds to examine the availability and efficacy of analytic tools

that could be used to mine these data flows.
General Statement

6 Bureau of Safety and Environmental Enforcement

Improving the Efficiency of the Offshore Oil & Gas Permit Review Process - BSEE has and

will continue to permit oil and gas drilling activity that is essential to the national and regional

economiesandcentraltothecountry’senergypolicy.In addition, BSEE is working with

industry to ensureapplicationsarecompleteandfullyaddresstoday’sregulationsinorderto

reduce the time required for industry to develop and the Bureau to thoroughly review permit

applications. Key improvements that have been implemented and will continue to be refined

include an early review of permit applications for completeness to improve the efficiency of the

review process and reduce the number of permits returned to operators because of incomplete

information. BSEE will continue to look for opportunities to prioritize permits and streamline

reviews without compromising safety and environmental consideration, and enhance tools for

operators to track the progress of permit applications. BSEE will continue making necessary

improvements, including hiring and training additional permitting personnel, and providing

after-hours assistance for operator inquiries.

FY 2013 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 a

portion of OCS rental collections, cost recovery fees, and inspection fees. The OSR

appropriation is funded through the Oil Spill Liability Trust Fund.

In FY 2013, BSEE is requesting $207.3 million for the OSEE account to be offset by

$52.5 million from offsetting rental collections, $8.4 million from cost recovery fees, and

$65.0 million from inspection fees.

The budget for BSEE in the OSEE account funds the following activities:

 The Environmental Enforcement activity funds: environmental compliance activities

related to issuing permits associated with plans; inspections of environmental measures

and enforcement of incidences of noncompliance; and monitoring industry compliance

with mitigation and other environmental requirements through office and field

inspections.

 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; accident investigations; civil penalties and

operator disqualification; operator training and audit programs; annual operator

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

public receives a fair return; and the Technology Assessment and Research Program

(TA&R).

 The Administrative Operations activity funds: general administration and ethics; equal

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

procurement; and information management. BSEE provides administrative services,

such as human resources, procurement, and finance to BOEM and other entities within

the Department.
General Statement

Bureau of Safety and Environmental Enforcement 7

 The General Support Services activity funds: shared activities and related support

services for the Bureau. These include expenses such as: rental and security of office

space; workers’compensation and unemployment compensation; voice and data

communications; centrally provided services funded by the Department’s Working

Capital Fund; annual building maintenance contracts; mail services; and printing costs.

BSEE will continue to provide some of these services to BOEM through a reimbursable

service agreement.

 The Executive Direction activity funds: Bureau-wide leadership, direction, management,

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

budget; congressional and public affairs; and policy and analysis. The Office of the

Director is also funded within this activity.

The budget for BSEE also includes the Oil Spill Research account which supports oil spill

response research, the Ohmsett facility, oil spill response and planning, and oil spill financial

responsibility activities.

Table 2: FY 2013 Analysis of Budgetary Changes

Organization/Category Initiative ($000) FTE

76,274 703

Environmental Enforcement Critical Base Funding Needs for the Environmental

Enforcement Division +4,177 +14

Research and Development for Offshore Drilling Safety +2,000 0

Operational Safety +4,495 +29

National Offshore Training and Learning Center for

Inspection Program +3,685 +11

e-Inspections for the Enforcement Program +2,300 0

Wellbore Integrity +1,395 +9

Administrative Operations Sustain Administrative Operations +5,000 0

Fixed Costs +1,772 0

Less Offsetting Collection increases -4,800 -

FY 2013 Requested Increase +20,024 +63

BSEE FY 2013 PROPOSAL -- DIRECT APPROPRIATION 96,298 766

Operations, Safety, and Regulation

Bureau of Safety and Environmental Enforcement

FY 2013 Budget Initiatives

($000)

BSEE FY 2012 ENACTED -- DIRECT APPROPRIATION

The following budget changes are proposed in FY 2013:

Critical Funding Needs for the Environmental Enforcement Division (+$4,177,000;

+14 FTE):

With this funding support, BSEE will further develop and manage an expanded environmental

oversight role arising out of efforts to reform offshore operations and regulations as

recommended in the Deepwater Horizon Joint Investigation Team Report, Inspector General

Report“ANewHorizon”,andvariousothernationalinvestigativereportsthatencouraged

strengthened federal regulations following the Deepwater Horizon catastrophe.
General Statement

8 Bureau of Safety and Environmental Enforcement

Research and Development for Offshore Drilling Safety (+$2,000,000; 0 FTE): BSEE will

utilize this funding to perform additional, and more in-depth, research relating to safety systems

and operations. As the industry pushes into deeper water and is drilling more high-pressure/hightemperature wells, current safety practices and technologies require continuous improvement to

ensure the integrity of equipment and operations.

Operational Safety (+$4,495,000; +29 FTE): Funds will support ongoing reorganization

efforts identified as critical to the success of BSEE in strengthening post-Deepwater Horizon

regulatory and oversight capabilities. It represents a cross section of staffing for newly identified

efforts and increased activities such as development of regulations, safety management,

structural and technical support, and oil spill response.

National Offshore Training and Learning Center (+$3,685,000; +11 FTE): This will

provide base funding for the National Offshore Training and Learning Center (NOTLC). The

NOTLC supports the Bureau’sgoals by providing upfront and ongoing learning and

development opportunities to Bureau staff. The NOTLC will provide a wide variety of credible

and up-to-date training programs designed to enhance the abilities of BSEE staff and promote

strong leadership skills. Courses are selected and developed with a focus on BSEE’smission and

vision of advancing safety and environmental stewardship principles using the best science and

technology available to evaluate, protect, and preserve the human, marine, and coastal

environments.

e-Inspections for the Enforcement Program (+$2,300,000; 0 FTE): This multi-faceted

initiative would allow BSEE to replace the existing outdated paper-based process with a modern

electronic system for conducting the inspections mandated by the OCS Lands Act. With this

funding, BSEE would implement an e-Inspection system that would ensure more timely and

accurate collection of inspection data and reduce costs associated with handwriting on paper

forms and entering data manually into the BSEE database. The system will also allow inspectors

to access critical data including drilling permits while conducting inspections and will improve

the quality and efficiency of the overall program.

WellBore Integrity (+$1,395,000; +9 FTE): The requested funding will provide resources

needed for BSEE to meet current requirements to evaluate whether operators have submitted

adequate information demonstrating access and deployment capabilities for surface and subsea

containment.

Sustain Administrative Operations (+$5,000,000; 0 FTE): Funding is needed to sustain the

necessary level of support services for both BSEE and BOEM. The funding will be used to

provide the expertise and personnel that will serve both Bureaus as they recruit new inspectors,

engineers, scientists, and other disciplines needed to support the Bureaus’missions.

Fixed Cost and Related Changes (+$1,772,000; 0 FTE): This request fully funds increased

personnel-related costs and other fixed costs such as rent.

Inspection Fees (-$3,000,000; 0 FTE): This request offsets other programmatic funding

requests by increasing industry inspection fee revenue. The additional revenue will defray the

cost of inspection activities.
General Statement

Bureau of Safety and Environmental Enforcement 9

Offsetting Collections (-$1,800,000; 0 FTE): BSEE anticipates a net increase in offsetting

collections including rental receipts and cost recoveries. These collections reduce the need for

direct appropriations and offset the cost of other programmatic funding requests.

Campaign to Cut Waste. Over the last two years, the Administration has implemented a series

of management reforms to curb uncontrolled growth in contract spending, terminate poorly

performing information technology projects, deploy state-of-the-art fraud detection tools, focus

agency leaders on achieving ambitious improvements in high-priority areas, and open

government up to the public to increase accountability and accelerate innovation.

In November 2011, President Obama issued an Executive Order reinforcing these performance

and management reforms and the achievement of efficiencies and cost-cutting across the

government. ThisExecutiveOrderidentifiesspecificsavingsaspartoftheAdministration’s

Campaign to Cut Waste to achieve a 20 percent reduction in administrative spending from 2010

to 2013. Each agency is directed to establish a plan to reduce the combined costs associated with

travel, employee information technology devices, printing, executive fleet efficiencies, and

extraneous promotional items and other areas.

The DepartmentoftheInterior’sgoalistoreduceadministrativespendingby$207millionfrom

2010 levels by the end of 2013. To meet this goal, the Department is leading efforts to reduce

waste and create efficiencies by reviewing projected and actual administrative spending to

allocate efficiency targets for bureaus and Departmental offices to achieve the 20 percent target.

Additional details on the Campaign to Cut Waste can be found at

http://www.whitehouse.gov/the-press-office/2011/11/09/executive-order-promoting-efficientspending.

New Energy Frontier Initiative. The President’sBlueprint identifiestheNation’sprimary

energy challenge as the need to achieve a balance between conventional and renewable energy

sources. America’soilandnaturalgassuppliesarecriticalcomponentsoftheNation’senergy

portfolio. TheirdevelopmentenhancesenergysecurityandfuelstheNation’seconomy.

RecognizingthatAmerica’soilsuppliesarelimited,theNationmustdevelopdomesticresources

safely, responsibly, and efficiently, while taking stepsthatwillultimatelylessenAmerica’s

reliance on oil and move towards a clean energy economy.

TheSecretary’sNewEnergyFrontierinitiativeisadvancingthedevelopmentofcompliance,

inspection, enforcement and monitoring resources on the OCS. The programmatic increases

includedinBSEE’s2013budget supports this initiative.

 Offshore Drilling Safety –the increase of $2.0 million for BSEE to perform additional,

and more in-depth, research relating to safety systems and operations.

 National Offshore Training and Learning Center –the requested increase of $3.7

milliontosupportBSEE’smissionandvisionofadvancingsafetyandenvironmental

stewardship principles using the best science and technology available.
General Statement

10 Bureau of Safety and Environmental Enforcement

PERFORMANCE SUMMARY

BSEE aims to promote safety, protect the environment, and conserve resources offshore through

vigorous regulatory oversight and enforcement.

Performance Management

BSEE’smissiondirectlysupportstheDepartmentofthe Interior’sStrategicGoalandStrategyto

SecureAmerica’sEnergyResourceswhile ensuring environmental compliance and the safety of

energy development.

In FY 2012, BSEE commenced operations as a separate Bureau following the reorganization of

BOEMRE and undertook the following key strategies to strengthen regulatory oversight and

enforcement of offshore energy development activities:

 Continued to reform and implement an expanded inspection and operational oversight

regime, including the witnessing of certain high-risk drilling activities and tests;

 Established and implemented a new environmental enforcement program to ensure

compliance with relevant laws and minimize the risk of environmental accidents;

 Expanded capabilities and resources for reviewing and processing drilling, production,

and decommissioning permits;

 Conducted audits of the newly required SEMS regulation to ensure compliance and

increase offshore operational safety;

 Conducted targeted deepwater safety and containment research through the TA&R

Program and disseminated research results to inform rule writers, investigators, and plan

reviewers;

 Expanded oil spill research, risk analysis, and response planning capabilities;

 Utilized prescriptive safety and pollution-prevention standards to develop a new approach

to risk assessment and management;

 Continued the development and implementation of an offshore training center and

certification process for inspectors, engineers, and other compliance personnel; and

 Established the personnel necessary to develop, manage, and ensure that the NEPA

process requirements were met in each of the three OCS regions necessary to responsibly

issue permits to conduct various offshore activities.

Performance for Key Increases

BSEE’sFY2013proposal continues to advancetheSecretary’sobjectivesforstrengtheningour

energy security while ensuring operational safety and environmental compliance. The FY 2013

funding increases will be used to:

 Increase Federal oversight of environmental compliance by establishing and maintaining

BSEE’sfield environmental compliance, inspections, SEMS audits, investigations and

enforcement capabilities;
General Statement

Bureau of Safety and Environmental Enforcement 11

 Further strengthen regulatory oversight by hiring the personnel needed to maintain up-todate drilling-safety requirements that staycurrentwithindustry’srapidlyevolving

deepwater technology;

 Improve the Nation’spreparednesspostureforoffshoreoilspills by continuing to

implement an integrated oil spill program that encompasses all aspects of oil discharge

research and spill prevention, planning, and preparedness;

 Further expand the new training organization that is aimed at ensuring BSEE staff has the

knowledge and skills necessary to execute a more consistent and effective inspection and

compliance program;

 Ensure more timely and accurate collection of inspection data by replacing the outdated

paper-based inspection process with a modern electronic system, which will also give

inspectors immediate access to tools such as online policy manuals, Federal Regulations,

Notice to Lessees (NTLs), Safety Alerts, and approved permits; and

 Conduct additional wellbore integrity evaluations to determine if casing design is

sufficient to minimize the likelihood that hydrocarbons could be released to the sea floor

in the event of a blowout.

Related program performance metric information can be found within the Goal Performance

Table.
General Statement

12 Bureau of Safety and Environmental Enforcement

Figure 1: BSEE Organizational Chart

BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT (BSEE)
Goal Performance Table

Bureau of Safety and Environmental Enforcement 13

FY 2013 PERFORMANCE BUDGET

Bureau of Safety and Environmental Enforcement

Performance Summary and Goal Performance

The FY 2013 budget request provides the resources needed to carry out the core functions of the

Bureau of Safety and Environmental Enforcement, including offshore regulatory programs; oil

spill response planning; safety inspections, enforcement and investigations; environmental

enforcement and compliance; well and production permitting; and production and development.

PERFORMANCE MANAGEMENT

The FY 2011 - FY 2016 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 2011 - FY 2016 is the foundational structure for

the description of program performancemeasurementandplanningfortheFY2013President’s

Budget,furtherdetailsforachievingtheStrategicPlan’sgoalsarepresentedintheDOIAnnual

Performance Plan and Report (APP&R). Bureau and program specific plans for FY 2013 are

fully consistent with the goals, outcomes, and measures described in the FY 2011- FY 2016

version of the DOI Strategic Plan and related implementation information in the APP&R.

Within the DOI Strategic Plan for FY 2011 - FY 2016, BSEE is aligned under the second

mission area: Sustainably Manage Energy, Water, and Natural Resources. Specifically, its

functions are captured within Goal One: SecureAmerica’sEnergyResourcesand Strategy One:

Ensure environmental compliance and the safety of energy development. BSEE has two GPRA

measures that assess its support of this strategy:

 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 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 a safety incident rate of all recordable injuries (including fatalities) that are

associated with BSEE-regulated activities. Recordable injuries are injuries that require

medical treatment beyond first aid and fatalities, 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 worked for production, construction, and drilling
Goal Performance Table

14 Bureau of Safety and Environmental Enforcement

operations on the OCS (200,000 man hours equates to approximately 100 full time

workers).

BSEE’sGPRA measures, supporting Bureau measures, and their respective results are included

in the following Goal Performance table.
Goal Performance Table

Bureau of Safety and Environmental Enforcement 15

Target Codes:Type Codes:Supporting Performance Measures Type

2007

Actual

2008

Actual

2009

Actual

2010

Actual

2011

Plan

2011

Actual

2012

Plan

2013

President's

Budget

Change from

2012 to 2013

Plan

Long-term

Target

2016

A

mount (in barrels) of operational

offshore oil spilled per million barrelsproduced (excluding Hurricane-relatedspills) (SP)

C/F

2.7

(1,361/ 503.5

million )

0.52

(243.8/469.7

million)

3.9 (est.)

(2,066/537

million)

7,610 (est.)

(4,590,369/

603.2 million )

<4.5

0.42 (est.)

(243.45/ 581

million)

<4.5 <4.5 0 <4.5

Total amount (in barrels) of offshore oilspilled per million barrels produced(including Hurricane-related spills)(BUR)

C/F

2.7

(1,361/ 503.5

million )

12.8

(6007/ 469.7

million)

3.9 (est.)

(2,066/537

million)

7,610 (est.)

(4,590,369/

603.2 million )

--

0.42 (est.)

(243.45/ 581

million)

-- -- 0 --

Contributing ProgramsCom

ments

Goal 1: Secure A

merica's Energy Resources

Operations, Safety and RegulationIn FY 2011, 15 spill events occurred that were greater than 1 barrel resulting in approximately 243 barrels of oil being spilled and an estimated ratio of 0.42 barrels of oil spilled permillion barrels produced. The largest reported spill was 62 barrels. In FY 2010, government scientists estimate that 4.9 million barrels of oil were spilled on the OCS following theexplosion and sinking of the Deepwater Horizon drilling rig off the coast of Louisiana. The National Incident Command Report estimated that burning, skimming and direct recoveryfrom the wellhead removed one quarter (25%) of the oil released from the wellhead; one quarter (25%) of the total oil naturally evaporated or dissolved, and just less than one quarter(24%) was dispersed (either naturally or as a result of operations) as microscopic droplets into Gulf waters. Although FY 2010 results for the oil spill ratio greatly exceeded theplanned target; future targets will remain at the annual target of less than 4.5 barrels spilled per million barrels produced.C - Cumulative Measures A - Annual Measures F - Future Measures

Mission Area 2: Sustainably Manage Energy, Water, and Natural ResourcesGoal Performance TableNote: FY2012 will be a baseline year for performance costs due to the establishment of BSEE as a separate bureau and the major changes anticipated for program operations.n/a - Data not available

SP- Strategic Plan measuresHPG- High Performance GoalBUR - Bureau specific measureU

N

K- Prior year data unavailable

TBD- Targets have not yet been developedN

A- Long-term targets are inappropriate to determine at this time

NOTE: Oil spill data are constantly updated as additional information becomes available through the completion of investigations and/or recovery operations;occasionally, a spill may be deleted or added a year or more later and result in historical data revisions. A final spill volume for the Deepwater Horizon accident hasnot been determined. Therefore the numerator for the FY2010 Operational Oil Spill ratio and the rate itself are both estimates.

Strategy 1: Ensure environmental compliance and the safety of energy development

Table 3: Goal Performance Table
Goal Performance Table

16 Bureau of Safety and Environmental Enforcement

Supporting Performance Measures Type

2007

Actual

2008

Actual

2009

Actual

2010

Actual

2011

Plan

2011

Actual

2012

Plan

2013

President's

Budget

Change from

2012 to 2013

Plan

Long-term

Target

2016

Number of Recordable Injuries per200,000 Offshore Man Hours Worked(SP)

N/A

N/A

N/A

N/A Baseline Year

0.34 (est.)

(149/443)

0.625 0.60 -0.025 0.5

Contributing ProgramsCom

ments

Composite accident severity ratio (BU

R) C/F

0.050

(5,208/ 104,071)

(revd)

0.122

(12,440/

101,806)

(revd)

0.097

(9,532/

98,719) (revd)

0.184 (est.)

(17,872/

97,184)

<.093

0.085

(7,952/ 93,901)

<0.09 <0.09 0 Reduce

Contributing ProgramsMaintain an annual composite operatorperformance index of 0.2 or less (BU

R)

C/F 0.13 (revd) 0.19 (revd) 0.17 (revd) 0.24 <0.20 0.13 <0.20 <0.20 0 Reduce

Contributing ProgramsCom

ments

Goal Performance Table (continued)Com

ments

For the composite accident severity ratio, BSEE assigns a point value to each operator safety incident reported based on its severity, then divides total annual points by the number ofcomponents in service for all operators. This metric reflects both the number of incidents that occurred and their severity. In FY 2007, the point matrix used to assign accidentseverity values was updated to provide a better indication of the relative severity of the incidents (i.e., there is now a larger differential between the points assigned for major versusminor incidents). The FY 2011 ratio result of 0.85 is more in line with typical historical results versus FY 2010 that included the Deepwater Horizon event. The FY 2012 and FY 2013targets are based on improving over a 5-year rolling average, excluding the Deepwater Horizon event that would have skewed the goal higher.Due to the severity and magnitude of the Deepwater Horizon explosion, the ratio results for FY 2010 far exceeded the target. The FY 2012 and FY 2013 targets are based onimproving over a 5-year rolling average, excluding the Deepwater Horizon event that would have skewed the goal higher.This new 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 inthe fiscal year for every 200,000 man hours worked (which is the approximate equivalent of 100 full-time workers). Estimated FY 2011 results indicate that there wasapproximately 1 recordable injury for every 300 full-time offshore workers. Because safety levels are best evaluated as trends over multiple years, targets for FY 2012and beyond are based on analysis of historical recordable injury rates against an extraopolation of voluntary man hour reporting from operators in previous years. TheSafety and Environmental Management System (SEMS) regulation that went into effect in November 2010 requires all operators to report offshore man hours workedduring the calendar year. FY 2011 results will be finalized after BSEE receives calendar year 2011 reporting from operators in March 2012.Operations, Safety and RegulationThe Composite Operator Performance Index is a consolidated measure of overall operator safety that combines incident severity with operator compliance to existing regulations.The operator performance index sums two ratios that are normalized for OCS operator activity based on the number of components operated. The first ratio measures operatorcompliance using a weighted INC (incident of non-compliance) value. The second ratio measures operator safety by assigning values for accidents (i.e., the composite accidentseverity ratio discussed above). As with the composite accident severity ratio, FY 2011 results were much lower than FY 2010 when the Deepwater Horizon event occurred.Operations, Safety and RegulationOperations, Safety and Regulation
Goal Performance Table

Bureau of Safety and Environmental Enforcement 17

Supporting Performance Measures Type

2007

Actual

2008

Actual

2009

Actual

2010

Actual

2011

Plan

2011

Actual

2012

Plan

2013

President's

Budget

Change from

2012 to 2013

Plan

Long-term

Target

2016

Number of fatalities among workers inD

OI permitted activities (BUR)

C/F 3 2 2 11 4 2 4 4 0 Reduce

Number of serious injuries among workersin D

OI permitted activities (BUR)

C/F 32 31 25 75* (revd) 29 26 29 29 0 Reduce

Contributing ProgramCom

ments

Less than X

% of total gas produced is

approved to be flared offshore (BUR)(Calendar Yr)

A

0.30%

(8,492,684/

2,810,979,902

MCF)

0.51%

(11,998,145/

2,368,336,009

MCF)

0.28% (est.)

(5,771,545/

1,985,369,034

MCF)

0.58% (est.)

(9,940,316 /

1,726,885,112

MCF)

0.70%

0.57% (est.)

(7,360,225/

1,295,657,228

MCF)

0.70% 0.70% 0% TBD

Contributing ProgramCom

ments

Conduct Technology Assessment andResearch studies on X

% of high-priority

topics (BUR)

C/F

74%

(25/ 34)

93%

(14/15)

100%

(18/18)

89%

(16/18)

94%

94%

(15/16)

94% 94% 0% TBD

Contributing ProgramsCom

ments

In FY 2011, there were 2 fatalities and 26 serious injuries among offshore workers in DOI permitted activities. The FY 2010 explosion and sinking of the Deepwater Horizon drillingrig off the coast of Louisiana resulted in 11 deaths and 46 lost-time injuries of greater than 3 days of lost time, restricted work, or job transfer. Although the detailed informationnecessary to determine the exact nature of each one of the injuries was not available, BSEE has revised its FY 2010 count for serious injuries to include these injuries based on theseverity of the event.Future year targets for the fatalities and serious injury metrics are developed based on reducing a rolling 5-year average. Given the unprecedented magnitude of the DeepwaterHorizon incident, and the negative skewing impact that including FY 2010 results would have on the serious injury average, FY 2012 and FY 2013 targets for serious injuries wereestablished excluding the Deepwater Horizon event.* Revised to include 46 injuries from the Deepwater Horizon event that resulted in greater than 3 days of lost time, restricted work, or job transfer.Operations, Safety and RegulationOperations, Safety and RegulationOperations, Safety and RegulationThe Technology Assessment and Research (TA&R) Program is a research element encompassed within the BSEE Regulatory Program. The TA&R program addresses technologicalissues associated with energy and mineral operations, ranging from the drilling of oil and gas exploration wells in search of new reserves to the removal of platforms and relatedinfrastructure once production operations have ceased. This metric looks at the percent of TA&R studies conducted on high-priority topics. BSEE plans a major expansion of theTA&R program following the Deepwater Horizon event that will allow for targeted deepwater safety and containment research and the transfer research results to inform rule writers,investigators and plan reviewers. This additional information will be critical to ensuring the effectiveness of BSEE regulations, Notices to Lessees (NTLs), and industry standards.The Offshore program has by far one of the best records in the world when it comes to minimizing flaring and venting. Recent industry statistics show worldwide rates ranging from0.2% to 100%. In FY 2008, there was a slight increase due to pipeline repair activities that resulted from damage incurred during Hurricanes Gustav and Ike.Results in FY 2010 werehigher than normal due to recovery operations related to the Deepwater Horizon spill. When oil from the spill was siphoned up to tanker vessels, the natural gas that was producedwith it had to be flared because there was no means of transmission to shore (e.g., a pipeline). If the flaring/venting associated with that one lease were removed, the percent of gasflared would drop to 0.45%. Also in April 2010, BSEE published revised flaring and venting regulations. The new regulations require operators to install flare/vent meters on all OCSfacilities that process more than 2,000 bbl of oil per day. Previously operators were allowed to estimate these flare/vent volumes. These revised regulations will improve theaccuracy of flaring data but may increase reported volumes. Targets will remain at FY 2010 levels until enough data is collected under the new regulation to develop a new baseline level.
Goal Performance Table

18 Bureau of Safety and Environmental Enforcement

Supporting Performance Measures Type

2007

Actual

2008

Actual

2009

Actual

2010

Actual

2011

Plan

2011

Actual

2012

Plan

2013

President's

Budget

Change from

2012 to 2013

Plan

Long-term

Target

2016

Achieve a utilization rate of X

% at

Ohmsett, the national oil spill response testfacility (BU

R)

A

62%

(162/ 260)

90%

(217/240)

86.2%

(207/240)

91%

(218/240)

85.0%

85%

(204/240)

85.0% 85% 0% TBD

Contributing ProgramsCom

ments

Total Number of Compliance InspectionsCompleted (BU

R)

A 20,567 25,650 26,978 23,619 22,000 20,537 25,000 33,000 8,000 TBD

Contributing ProgramsConduct full Coast Guard inspections onX

% of manned offshore facilities annually

(BU

R)

A

20%

(224/ 1,121)

14.7%

(164/1112)

13.6%

(141/1035)

(revd)

16.5%

(169/1021)

10.0%

14.3% (est.)

(141/985)

10.0% 10.0% 0% TBD

Contributing ProgramsCom

ments

Goal Performance Table (continued)

Operations, Safety and RegulationInspection of U.S. Coast Guard regulated items is a function that was provided for by regulation but one for which BSEE is not reimbursed. Assumption of limited responsibilitiesby BSEE was pursued following a report by the Inspector General that the U.S. Coast Guard was not conducting inspections of safety items on fixed facilities, as required by law.At this time, BSEE inspectors conduct a limited FPSIP (fixed platform self inspection program) inspection on every platform that they visit and have an annual target of conductingfull FPSIP inspections on 10 percent of manned facilities. Although more is done when the resources are available, the targeted percentage of full FPSIP inspections performed byBSEE inspectors has not increased because it would detract from performing inspections of equipment and operations under BSEE jurisdiction.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 inthe 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 asdispersant training and renewable energy wave tests, have sustained overall utilization rates at around 85%.Operations, Safety and RegulationOne of the key recom

mendations included in multiple reports following the Deepwateer Horizon event was that the BSEE needed to evaluate and revise the manner in which it

conducts its drilling and compliance inspections. Over the next few years the offshore inspection program and workforce will change dramatically. The workforce will substantiallyincrease in size and the new inspection strategy will involve more structured training for inspectors, on-site witnessing of high risk activities (e.g., BOP testing and cement/casingactivities), and the deployment of multi-disciplinary inspection teams instead of individual inspectors. While the number of inspections will increase gradually over time as thesechanges are implemented, increases cannot fully be realized until additional hiring is completed and the inspectors are adequately trained. Additionally, some plannedimprovements will expand the time it takes to conduct an inspection and thus would not increase the number of inspections completed.

Com

ments

Oil Spill Research Appropriation
Bureau Level Budget Tables

Bureau of Safety and Environmental Enforcement 19

Bureau of Safety and Environmental Enforcement

Bureau Budget Tables

(Dollars in Thousands)

Tables provided here display 2011 dollar amounts that reflect estimates for the OSEE account

and Oil Spill Appropriation under BOEMRE in the 2011 Operating Plan (before BOEM and

BSEE were separated). Tables also present FTE levels from the Financial Business Management

System (FBMS) that reflect actual paid hours for BSEE employees accrued during FY 2011, and

FTE estimates for 2012 and 2013 build upon this information.

Table 4 : Account and Activity Detail

Account/Activity

FY 2011

Actual1

FY 2012

Enacted2

FY 2013

Request3

Offshore Safety and Environmental Enforcement (OSEE)

Environmental Enforcement 1,034 4,108 8,303

Program Increase [+4,195]

Operations, Safety and Regulation 82,523 132,079 146,740

Program Increase [+14,661]

Administrative Operations 18,264 15,545 20,975

Program Increase [+5,430]

General Support Services 19,457 12,607 13,037

Executive Direction 12,234 18,117 18,225

Total, OSEE 133,512 182,456 207,280

Offsetting Rental Receipts -38,391 -52,587 -52,479

Cost Recovery -8,713 -6,494 -8,402

Inspection Fees -10,000 -62,000 -65,000

Total, Offsetting Collections -57,104 -121,081 -125,881

Rescission of Prior Balance4

-12,500

Net OSEE 63,908 61,375 81,399

Oil Spill Research 11,744 14,899 14,899

Net BSEE 75,652 76,274 96,298

Total BSEE Funding 145,256 197,355 222,179

Full Time Equivalents (FTE)5

Total Direct FTE 619 512 575

Total Reimbursable FTE (Offsetting Collection and Reimbursable Agreements) 19 191 191

Total FTE 638 703 766

5/BSEE has changed the manner in which it is reporting FTE funded by offsetting collections to show them in the

reimbursable category as that is where the charges accrue in the financial systems.

4/ The rescission amount shown here reflects the BSEE portion of the $25.0 million rescission of prior-year balances

included in the first FY 2011 Continuing Resolution (P.L. 11-242, Sec. 128).

2/ The 2012 Omnibus, P.L. 112-74 included an across-the-board reduction of 0.16 percent, which is reflected in the activity

amounts in the table.

1/ The FY 2011 Column represents estimates based on the 2011 Operating Plan because the funding was combined with

what is now BOEM funding under the former BOEMRE.

3/Changes in FY 2013 include +$1.77 million in fixed costs and an additional $4.8 million in offsetting collections.
Bureau Level Budget Tables

20 Bureau of Safety and Environmental Enforcement

Table 5 : Budget at a Glance

2011

Actual*

2012

Enacted

Fixed Costs / ITTransformation

Research and

Development

for Offshore

Drilling Safety

Operational

Safety

Critical Funding

Needs for Office

of

Environmental

Enforcement

National

Offshore

Training and

Learning

Center for

Inspection

Program

eInspections

for the

Enforcement

Program

Sustain

Administrative

Operations

Wellbore

Integrity

FY 2013

Proposal

Offshore Safety & Environmental Enforcement

Environmental Enforcement 1,034 4,108 +18 +4,177 8,303Operations Safety and Regulation 82,523 132,079 +786 +2,000 +4,495 +3,685 +2,300 +1,395 146,740Administrative Operations 18,264 15,545 +430 +5,000 20,975General Support Services 19,457 12,607 +430 13,037Executive Direction 12,234 18,117 +108 18,225

Total, OSEE 133,512 182,456 +1,772 +2,000 +4,495 +4,177 +3,685 +2,300 +5,000 +1,395 207,280Offsetting Collections

Rental Receipts -38,391 -52,587 -52,479Cost Recovery Fees -8,713 -6,494 -8,402Inspection Fee -10,000 -62,000 -65,000

Total, Offsetting Collections -57,104 -121,081 0 0 0 0 0 0 0 0 -125,881OSEE Subtotal 76,408Rescission of Prior Balances -12,500Net, OSEE 63,908 61,375 +1,772 +2,000 +4,495 +4,177 +3,685 +2,300 +5,000 +1,395 81,399Oil Spill Research 11,744 14,899 14,899Net Appropriations 75,652 76,274 +1,772 +2,000 +4,495 +4,177 +3,685 +2,300 +5,000 +1,395 96,298

145,256 197,355 222,179

BSEE Budget-at-a-Glance

($000)

* The FY 2011 Column represents estimates based on the 2011 Operating Plan because the funding was combined with what is now BOEM funding under the former BOEMRE.Total BSEE Funding
Bureau Level Budget Tables

Bureau of Safety and Environmental Enforcement 21

Table 6 : Summary of Offsetting Collections
Bureau Level Budget Tables

22 Bureau of Safety and Environmental Enforcement

Table 7 : Summary of Requirements

FTE ($000) FTE ($000) FTE ($000) FTE ($000)

Environmental Enforcement

Direct Appropriation 9 1,498 0 +18 +14 +4,177 23 5,693

Offsetting Collections 2,610 0 0 0 0 0 2,610

Subtotal 9 4,108 0 +18 +14 +4,177 23 8,303

Operations, Safety and Regulation

Direct Appropriation 394 36,913 0 +786 +49 +9,075 443 46,774

Offsetting Collections 6 95,166 0 0 0 4,800 6 99,966

Subtotal 400 132,079 0 +786 +49 +13,875 449 146,740

Administrative Operations

Direct Appropriation 164 4,992 0 +430 0 +5,000 164 10,422

Offsetting Collections 55 10,553 0 0 0 0 55 10,553

Subtotal 219 15,545 0 +430 0 +5,000 219 20,975

General Support Services

Direct Appropriation 0 3,994 0 +430 0 0 0 4,424

Offsetting Collections 0 8,613 0 0 0 0 0 8,613

Subtotal 0 12,607 0 +430 0 0 0 13,037

Executive Direction

Direct Appropriation 50 13,978 0 +108 0 0 50 14,086

Offsetting Collections 5 4,139 0 0 0 0 5 4,139

Subtotal 55 18,117 0 +108 0 0 55 18,225

Total

Direct Appropriation 617 61,375 0 +1,772 +63 +18,252 680 81,399

Offsetting Collections 66 121,081 0 0 0 +4,800 66 125,881

Total OSEE 683 182,456 0 +1,772 +63 +23,052 746 207,280

Oil Spill Research Appropriation

Direct Appropriation 20 14,899 0 0 0 0 20 14,899

Total for OSEE and Oil Spill Research 703 197,355 0 +1,772 +63 +23,052 766 222,179

2012 Fixed Costs &

Budget Request

Program 2013

Enacted Related Changes Changes
Environmental Enforcement

Bureau of Safety and Environmental Enforcement 23

BSEE FY 2013 PERFORMANCE BUDGET REQUEST

Environmental Enforcement Activity

Table 8: Environmental Enforcement Activity Budget Summary

Fixed Costs / Change

IT Program 2013 from

2011 2012 Transformation Changes Budget 2012

Actual* Enacted (+/-) (+/-) Request (+/-)

($000) 1,034 4,108 +18 +4,177 8,303 +4,195

FTE 0 9 0 +14 23 +14 Environmental Enforcement

* The FY 2011 Column represents estimates based on the 2011 Operating Plan because the funding was combined with what is

now BOEM funding under the former BOEMRE.

SUMMARY OF FY 2013 PROGRAM CHANGES

Request Component Amount

($000) FTE

Critical Funding Needs for the Division of Environmental

Enforcement +4,177 +14

Fixed Costs +18 0

Total: 4,195 +14

JUSTIFICATION OF FY 2013 PROGRAM CHANGES

The FY 2013 budget request for the Environmental Enforcement Activity is $8.3 million and

23 FTE, an increase of $4.2 million and 14 FTE over the FY 2012 Enacted.

Critical Funding Needs for the Environmental Enforcement Division (+$4,177,000; +14 FTE)

The Environmental Enforcement Division (EED) was established in FY 2012 to foster

environmental compliance, inspection, investigation and enforcement programs that will assure

the highest level of environmental standards for all offshore energy activities.

Funding provided in FY 2012 enabled the hiring of initial personnel necessary to develop and

manage the EED program, and ensure that the National Environmental Policy Act (NEPA)

process requirements necessary to responsibly issue permits to conduct various offshore

activities were met in each of the OCS regions. Personnel added in FY 2012 included the EED

Chief at Headquarters, three Regional Environmental Officers, and Environmental Review Unit

personnel in the Gulf of Mexico. In the Gulf of Mexico alone, an average of 1,250 NEPA tasks

must be conducted each year.

As it enters its second year, EED is requesting additional base funding needed to continue

implementation of the program, including ongoing efforts to hire additional personnel.

Resources will be used to:
Environmental Enforcement

Bureau of Safety and Environmental Enforcement 24

 Hire, train, equip, and support field personnel to conduct environmental field inspections;

oversee Safety and Environmental Management System (SEMS) audits, investigations

and enforcement actions; and evaluate the effectiveness of environmental mitigation; and

 Acquire enhanced data and technology for tracking, verifying and enforcing

environmental compliance.

Impacts of Not Funding: This increase will allow BSEE to provide an appropriate level of

Federal oversight of environmental compliance by owners and operators necessary to minimize

the environmental impact of offshore oil and gas development and production operations.

PROGRAM OVERVIEW

The EED isresponsibleforboththeBureau’sowncompliancewithrequirementsandthe

oversight and enforcement of activities by operators on the OCS. These activities include:

 Ensuring BSEE compliance with NEPA compliance and environmental requirements under

other statutes and regulations;

 Conducting field inspections (including SEMS audits) to monitor industry compliance with

mitigations and other environmental requirements; evaluate various environmental

mitigation measures to determine their adequacy and appropriately distribute findings; and

evaluate, prioritize, and investigate reports of potential non-compliance or apparent

violations related to environmental requirements;

 Coordinating with the BOEM and other Federal, State and local agencies in matters

involving environmental compliance and enforcement; and

 Conducting investigations related to environmental incidents.

PROGRAM PERFORMANCE

Resources provided by the FY 2012 appropriation allow for the timely completion of NEPA

review necessary to issue BSEE permits. Based on 2011 data, there are approximately 1,270

NEPA actions, including determinations of NEPA adequacy (DNAs), categorical exclusion

reviews (CERs), findings of no significant impact (FONSIs), and environmental assessments

(EAs), that the EED is responsible for conducting annually in order to process all of the various

BSEE-issued permits without delay. As of December 19, 2011, the EED has processed almost

100 separate NEPA activities in support of BSEE permits.

Though the funding and FTEs so far have been largely dedicated to ensuring the timely

processing of BSEE permits, the EED is also establishing procedures and pursuing a small

number of environmental violation cases detected since October 1, 2011.

Beginning in FY 2012 and continuing into FY 2013, the EED will begin targeting and inspecting

operators for statutory and regulatory compliance, as well as compliance with environmental

requirements associated with leases, plans, and permits. These include but are not limited to

NEPA, Outer Continental Shelf Lands Act, Clean Air Act, Clean Water Act, Endangered Species
Environmental Enforcement

Bureau of Safety and Environmental Enforcement 25

Act, Marine Mammal Protection Act, Magnuson-Stevens Fishery Conservation and Management

Act, and the National Historic Preservation Act.

As stated in the previous section, the environmental enforcement program was created on

October 1, 2011, and there is no baseline performance data from which to draw. Performance

measures will be developed for the environmental enforcement program oncetheprogram’s

activities, processes, and outcomes are more precisely defined.
Environmental Enforcement

Bureau of Safety and Environmental Enforcement 26

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Operations, Safety and Regulation

Bureau of Safety and Environmental Enforcement 27

BSEE FY 2013 PERFORMANCE BUDGET REQUEST

Operations, Safety and Regulation Activity

Table 9: Operations, Safety and Regulation Activity Budget Summary

Fixed Costs / Change

IT Program 2013 from

2011 2012 Transformation Changes Budget 2012

Actual* Enacted (+/-) (+/-) Request (+/-)

($000) 82,523 132,079 +786 +13,875 146,740 +14,661

FTE 379 400 0 +49 449 +49

Operations, Safety and

Regulation

* The FY 2011 Column represents estimates based on the 2011 Operating Plan because the funding was combined with what is

now BOEM funding under the former BOEMRE.

SUMMARY OF FY 2013 PROGRAM CHANGES

Research and Development for Offshore Drilling Safety +2,000 0

Operational Safety +4,495 +29

National Offshore Training and Learning Center +3,685 11

eInspections for the Enforcement Program +2,300 0

Wellbore Integrity +1,395 +9

Fixed Costs +786 0

Total: +14,661 +49

JUSTIFICATION OF FY 2013 PROGRAM CHANGES

The FY 2013 budget request for the Operations, Safety and Regulation Activity is $146.7 million

and 449 FTE, an increase of $14.7 million and 49 FTE over the FY 2012 Enacted.

Research and Development for Offshore Drilling Safety (+2,000,000; 0 FTE)

BSEE would use the requested funds for research into important issues such as well cementing,

blowout preventer (BOP) research, methods of shallow gas containment, and well control

methods. The November 16, 2010, National Academy of Engineering report to

Secretary Salazar as well as other reports of findings on the fate of the Deepwater Horizon have

identified a number of procedural and equipment failures that are believed to have contributed to

thetragicApril20thevent.Theseincludetheleaseoperator’suseofquestionablecementing

materials and procedures, flawed drilling and abandonment practices including questionable

well-bore/cement integrity testing, lack of effective decision making despite indications of wellcontrol hazards, the adequacy of operating knowledge on the part of operator/contractor

personnel, the use (or lack of use) of emergency diverter systems and alarms and the adequacy

and operability of the BOP system itself, the last line of defense against an uncontrolled blowout.

Due to the immediate impacts and continued ripple effect in the aftermath of the Macondo well

blowout, there is increased need to develop, identify, or assess operational procedures,

technologies, methodologies, and materials used for deepwater well abandonment procedures,
Operations, Safety and Regulations

28 Bureau of Safety and Environmental Enforcement

the use of deepwater safety equipment (i.e., BOP, topside diverters, systems alarms), and the

type, size, and capability of oil spill response and containment systems available for use during

spills. Understanding and developing systems to safeguard human life and the environment are

necessary for BSEE to promote the responsible development of resources on the OCS. Data and

findings derived from BSEE funded research studies are needed now so that pertinent guidance

can be immediately integrated into offshore operations as well as our regulatory decisions for

permitting and plan approval, safety and pollution inspections, enforcement actions, and training

requirements. These studies will also provide independent verification of spill control

capabilities and reduce BSEE’srelianceondatasuppliedbyindustry.

Impact of Not Funding: Without this funding, BSEE will experience delays in identifying,

assessing, developing, and incorporating new drilling technologies and safety enhancements into

agency regulations and operations oversight. Such delays in turn could delay the development of

key technological solutions to safely find and develop oil and gas resources under more

challenging conditions.

Operational Safety (+4,495,000; +29 FTE)

In the aftermath of the Macondo well explosion, a multitude of investigations were initiated and

their findings discussed in several important reports, most of which came to the same

conclusions: that there was an immediate need to improve the safety of offshore operations and

to strengthen oil spill response and planning capacity. The Federalregulatoryagency’srulesand

regulations have not been able to keep up with the industry’sexpansionintodeepwaterdrilling—

with its larger and more demanding technology, greater pressures and increasing distance from

shore-based infrastructure and environmental and safety resources—theagency’sabilityto

develop and maintain up-to-date technical drilling-safetyrequirementstokeepupwithindustry’s

rapidly evolving deepwater technology requires staffing increases in key operational areas.

Concurrent with the post-Macondo investigations, the former BOEMRE,BSEE’spredecessor

Bureau, began in 2010 a three-year plan to identify the resources needed to support the

reorganization of the former MMS into three separate agencies, and to implement reforms and

increased capacity. The FTEs requested here are consistent with that plan and take into account

subsequent recommendations based as presented in the investigatory reports and reorganization

study. The requested resources will allow BSEE to:

 develop and implement new performance-based risk assessment and management

regulatory programs;

 supplement risk-management programs with rigorous prescriptive safety and

pollution-prevention regulations and standards;

 lead the development and adoption of international standards and best practices

involving drilling and production;

 provide adequate funding to support safety and environmental oversight, inspection,

and enforcement activities; and,

 provide a much better trained response community equipped with better response

tools.
Operations, Safety and Regulation

Bureau of Safety and Environmental Enforcement 29

This expanded capacity is fundamental to the ability of the Federal government to implement a

modern operational safety regime.

Impacts of Not Funding: Without these additionalresources,theagency’sabilitytodevelop

and incorporate new technical requirements, industry standards, and research findings into the

regulatory program will be significantly impacted. Furthermore, the ability to ensure that permit

applications are thoroughly and judiciously processed, inspections are conducted, incidents are

thoroughly investigated, and enforcement actions are quickly assessed will be compromised.

The implementation and enforcement of recently instituted safety initiatives such as the Safety

and Environmental Management System (SEMS) regulation also will be inhibited. Lack of

funding and personnel will also significantly impede needed progress on the oil spill program,

limiting the Bureau’scapacity to review and approve oil spill response plans thoroughly and in a

timelymannerandhinderingtheagency’sabilitytoproactivelysupportactivitiesoftheNational

Response System in this post Deepwater Horizon era in which BSEE must take a leadership role

in offshore spill planning and preparedness.

National Offshore Training and Learning Center (NOTLC) (+3,685,000; +11 FTE)

In FY 2013, BSEE is requesting base funding to support and staff a National Offshore Training

and Learning Center (NOLTC) to serve as the focal point for continuous learning and training of

theBureau’sSafety Inspectors, Environmental Enforcement Officers, and Engineers.

The NOTLC supports the Bureau’sgoalsbyprovidingupfrontandongoingcontemporary

learning and development opportunities to Bureau staff. The NOTLC provides a wide variety of

recognized and up-to-date training programs. The training will be selected and developed with a

focus on the BSEE mission and vision of advancing safety and environmental stewardship

principles using the best contemporary science and technology to evaluate, protect, and preserve

the human, marine, and coastal environments.

The major goals of the NOTLC are as follows:

 To design and deliver programs to recognize and encourage the continued development

of Safety Inspectors, Environmental Enforcement Officers, and Engineers;

 To develop a structured competency-based technical and professional development

curricula to meet the needs of a diverse audience with an emphasis on BSEE’smission

and a focus on safety; and,

 To build relationships with internal and external stakeholders to ensure the training and

educational programs are viewed as a model of efficiency and effectiveness.

In FY 2013, BSEE will continue its efforts to support the expanded oversight role brought about

through the reorganization and post-Deepwater Horizon reform measures. This expanded

oversight role includes the addition of a new training organization aimed at creating consistency

and ensuring compliance.

The benefits of a NOTLC are significant. It will allow the agency to develop a more measurable

and consistent inspections and compliance program across the organization by increasing
Operations, Safety and Regulations

30 Bureau of Safety and Environmental Enforcement

employee skills and productivity; reducing attrition through improved job satisfaction; and

aiding in the recruiting process. Faced with serious staffing challenges, the NOTLC serves as a

recruiting tool for future employees looking to be developed and provided with career guidance

and mapping.

Impacts of Not Funding: This request establishes initial base funding for the NOTLC.

Without this funding, BSEE will not be able to enhance its training policy and 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 our continued commitment to ensuring safety, environmental protection, and

offshore resource conservation through vigorous regulatory oversight and enforcement.

e-Inspections for the Enforcement Program (+2,300,000; 0 FTE)

This request will enable BSEE to address the implementation of recommendations from the

Outer Continental Shelf Safety Oversight Board Report dated September 1, 2010. Specifically, it

will:

 Ensure that inspectors have appropriate technology, resources and support to conduct

inspections and identify areas of non-compliance with safety, operational and

environmental requirements;

 Meet business requirements and address user performance concerns by leveraging more

current, web-based, user-friendly technologies together with existing tools already within

the Department;

 Replace the out-dated paper-based inspection process with a modern electronic system

for conducting the inspections mandated by the Outer Continental Shelf (OCS) Lands

Act;

 Ensure more timely and accurate collection of inspection data and reduce costs associated

with hand-writing on paper forms and entering data into the corporate database;

 Provide electronic inspection forms and data to the inspectors on ruggedized tablet PCs

and allow electronic capture of inspection results quickly and accurately into a database;

 Provide immediate access to tools such as on-line policy manuals, Federal Regulations,

NTLs, Safety Alerts, approved permits from the BSEE engineers, and more, thereby

making the inspector more informed; and,

 Eliminate duplication of effort by eliminating the office data entry of the paper inspection

form and subsequently reduce data input error.

This initiative will be developed using the existing Technical Information Management System

(TIMS) data model on the foundational architecture, and the TIMS portal for the web-based front

end. This project was begun with a six-month Proof of Concept (POC) in Fiscal Year 2011 that

uses MS Access to test the concepts for the use of ruggedized tablet PCs for conducting rig

inspections; downloading permit data, and uploading rig inspection data. Statistics about the

success of the use of the tablets will be used to determine the design details and specific

hardware for the full proposed e-Inspection project .
Operations, Safety and Regulation

Bureau of Safety and Environmental Enforcement 31

No new positions are requested for this activity. In fact, when fully implemented, this initiative

could provide a potential cost avoidance of $1.5 million per year. Currently the agency uses five

data entry technicians for about 60 inspectors. Based on the Bureau’splans to triple the number

of inspectors in the GOM, this would require hiring five to 10 additional technicians to record

the additional inspection data in TIMS if BSEE cannot provide another way to input the data.

Impacts of Not Funding: Without this funding, BSEE will be challenged in upgrading its

electronic systems and moving toward a comprehensive, cost-saving paperless inspection

system. The current out-dated paper inspection system does not ensure the timely and accurate

collection of inspection data. The Bureau would otherwise also need to hire additional data entry

technicians to record inspection data. Also, the proposed e-Inspection application will help to

ensure that inspectors use the same common application, process, procedures, and business rules

for conducting inspections and capturing data. This will help to reduce inconsistent gathering

and application of data, which will in turn reduce uncertainty within industry regarding

enforcement of policies. Failure to implement an e-Inspection system will constrain our growing

inspection workforce and require continued use of outdated, inefficient and error-prone work

processes.

Wellbore Integrity (+1,395,000; +9 FTE)

Increased safety regulations implemented in November 2010 give BSEE the responsibility to

determine whether operators have submitted adequate information demonstrating access and

deployment capabilities for surface and subsea containment. Staffing is needed to ensure that

BSEE can meet this responsibility, which includes the ability to conduct two new types of

evaluations related to wellbore integrity:

1. Determining reservoir fluid gradients - This is a review of all of the sands (gas/oil/water) in a

given borehole interval to model the static reservoir fluid gradient for a single sand or a

combination of sands. The fluid gradient is then used to determine if the well casing design

is adequate or whether the casing will fail causing fluids to breach the borehole and enter the

surrounding strata.

2. Determining the consequence of a collapse or burst of the well casing at multiple depths in

the well. This second review will indicate the likelihood for the reservoir fluid to be released

and reach the sea floor.

These two additional analyses are performed on all Applications for Permit to Drill (APDs) in

the GOM that require well containment under the Oil Spill Response regulations. The resulting

data will inform continuing regulatory reforms and preserve the Bureau’sindependence.

Impact of Not Funding: This is a new activity. If resources are not sufficient, we cannot

ensure that these evaluations will receive an adequate level of review and it will diminish the

ability of the existing staff that must absorb this activity to focus on reserves inventory activities

and other permitting. BSEE will not be able to independently establish well structure

requirements and will have to continue to rely on industry assurances in the absence of adequate

funding.
Operations, Safety and Regulations

32 Bureau of Safety and Environmental Enforcement

PROGRAM OVERVIEW

BSEE works to assure that energy and mineral development activities are conducted in a safe

and environmentally sound manner, with safety being a prerequisite of all activity on the OCS.

BSEE continually seeks operational improvements that will reduce the risks to offshore

personnel and to the environment, and continually evaluates procedures and regulations to stay

abreast of technological advances that will ensure safe and clean operations and conserve the

Nation’snatural resources. Functions include:

 Oversight of Offshore Activities

 Review of OCS Permits

 Inspections and Investigations

 Oil Spill Response

 Safety and Environmental Management

 Operator Performance Reviews

 Civil and Criminal Penalties & Operator Disqualifications

 Conservation Management

 Regulatory Development

 Technology Assessment and Research

PERFORMANCE OVERVIEW

Offshore Activities

The goal of BSEE’scomprehensivemanagementprogramof energy and mineral operations on

the OCS is to ensure that these operations are conducted in a safe and environmentally sound

manner. The foundation of this program is a set of regulations that govern all aspects of offshore

energy and mineral activities, from engineering specifications for offshore facilities to training

requirements for OCS workers. BSEE will continually review these regulations to update and

revise them as necessary so that they include the most effective requirements for safety and

environmental protection on the OCS. BSEE is presently reviewing comments received on the

interim final drilling safety rule that was put in place following the Deepwater Horizon disaster

and preparing the final rule for publication in the Federal Register.

Review of OCS Permits: Reviews of permits help to ensure that all OCS operators comply with

regulatory standards and specific lease stipulations. BSEE performs detailed technical and

environmental reviews of plans and permits for exploration, development, and production on

OCS lands, as well as permits for other activities such as the installation of pipelines. The

ongoing effort by BSEE to develop performance-based operating regulations is expected to

generate an increasing number of operator requests for approval of alternative compliance

programs. Prior to making approval decisions on alternative compliance, BSEE must assess the

alternatives to ensure they provide equal or greater protection than the regulatory requirements

they would replace.
Operations, Safety and Regulation

Bureau of Safety and Environmental Enforcement 33

Inspections and Investigations: The Outer Continental Shelf Lands Act (OCSLA) amendments

mandate that annual inspections be performed on each permanent structure and drilling rig that

conducts drilling, completion, or workover operations. Safety is a priority for both BSEE staff

and for the operations that occur under BSEE’sjurisdiction, and onsite facility inspections and

enforcement actions are important components of BSEE’ssafetyprogram.TheBureau has

established ambitious performance targets for the conduct of thousands of inspections of OCS

facilities and operations, including coverage of tens of thousands of safety and pollution

prevention components each year to prevent offshore accidents and spills, and to ensure a safe

working environment. The Bureau’sgoal is to conduct annual inspections of all oil and gas

operations on the OCS to examine safety equipment designed to prevent blowouts, fires, spills,

and other major accidents.

Although BOEMRE was fully engaged in the response to the Deepwater Horizon event for much

of 2010, we still managed to conduct over 23,000 compliance inspections throughout the year.

Additionally, BSEE plans to conduct more onsite witnessing of critical device testing, such as

BOP tests. The proposed increase in the inspection/oversight workforce will allow BSEE to

focus more resources on higher risk activities, increase the rigor of inspections, and expand

oversight of the entire industry to ensure safe and environmentally responsible operations.

BSEE inspects drilling and production facilities on the OCS using both scheduled and

unannounced inspections. More frequent inspections may be conducted to focus on operators

with a poor performance record, follow up on previous inspection findings, in environmentally

sensitive areas, and to foster a climate of safe and pollution free operations.

In compliance with BSEE incident reporting requirements, operators must report the occurrence

of major and minor incidents. BSEE conducts investigations and analyzes incident-related data

to understand the causes of incidents. BSEE coordinates investigations as appropriate with other

agencies such as the United States Coast Guard (USCG). A BSEE - USCG interagency

Memorandum of Agreement (MOA) for incident investigation was signed March 27, 2009. This

MOA provides for the effective use and coordination of our respective investigative resources.

During FY 2011, BSEE dedicated significant resources to investigate the causes of the

Deepwater Horizon explosion, loss of life, and resulting oil spill, and to make recommendations

for safe operations of future oil and gas activities on the OCS. The investigation was conducted

over a period of 17 months by a Joint Investigation Team (JIT) formed on April 27, 2010, by a

convening order of the Departments of the Interior and Homeland Security.

The JIT held seven sessions of public hearings, received testimony from more than 80 witnesses

and experts, and reviewed a large number of documents and exhibits pertaining to all aspects of

the investigation. In addition to the public hearings, BSEE investigators conducted interviews of

more than 25 individuals throughout the investigation. The JIT collected and reviewed large

volumes of electronic and written material, including data, emails and other records related to

equipment, management systems, supervision of employees and contractors, communications,

performance and training of personnel, relevant company policies and practices, and work

environment. The JIT issued more than 90 subpoenas for documents and other information and

collected over 400,000 pages of evidence. During the course of the investigation, the JIT
Operations, Safety and Regulations

34 Bureau of Safety and Environmental Enforcement

commissioned several entities and qualified individuals to conduct expert analyses of evidence.

The JIT investigation report was published in two volumes. Volume I addresses the areas of

USCG responsibility. Volume II addresses the areas of BSEE responsibility and was published

on September 14, 2011. Volume II includes findings on the causes, both direct and contributing,

of the Macondo blowout and the resulting explosion and fire aboard the Deepwater Horizon.

Volume II also includes recommendations for the continued improvement of the safety of

offshore operations. A Safety Alert summarizing the investigative findings was issued shortly

after Volume II was published.

Volume II recommendations include possible regulatory changes, technical research topics, and

other activities related to regulatory oversight. Some regulatory changes have already been

incorporated into BSEE regulations through the Interim Final Rule on Increased Safety Measures

for Energy Development on the Outer Continental Shelf, published on October 14, 2010. A

comprehensive plan to address all recommendations is underway.

However, based on recommendations from investigatory and oversight reports, internal and

external review of operations, and reorganization studies, BSEE has already implemented a

number of improvements to its inspection regime and will continually look for improvements to

enhance its programs. Some accomplishments to date include:

 Implemented new safety regulations (October 2010) which require witnessing of initial

on-bottom tests and stump tests for subsea blowout preventer (BOP) stacks.

 Implemented review of wellbore designs and wellbore integrity to determine whether

appropriate containment equipment is accessible or whether additional containment

systems are required.

 Developed a Well Containment Screening Tool (WCST) to demonstrate if a well design

and equipment is adequate for well containment.

 Implemented review of BOP system schematic drawings to ensure compliance with

requirements of new interim safety regulations.

 Restructured District offices to create separate specialization in well operations (Drilling,

Workover, Completion, Abandonment) versus production operations (Surface Safety

System, Production Process Systems, Personnel Safety Equipment).

 Recruitment of additional inspection team members.

 Analyzed ways to perform inspection activities more efficiently by using current

technological tools, such as online review of reports and records, and by using mobile

technology in the field.

Additionally, BSEE is exploring the use of different methodologies in order to identify both high

and low risk facilities. The common approach is to identify those facilities and operators that

display the greatest potential of serious environmental safety consequences should an event

occur and to increase oversight of those facilities and operators.

In addition to the Deepwater Horizon investigation, BSEE investigated 34 incidents in FY 2011

to determine causes and analyze regulatory performance. The Investigation and Review Unit,

established shortly after the Deepwater Horizon event, participated in one of these investigations
Operations, Safety and Regulation

Bureau of Safety and Environmental Enforcement 35

as well as providing a substantial role in the drafting of the Deepwater Horizon investigation

report. Incident investigation reports are published on the BSEE website. As a result of incident

investigations and other inspection and enforcement activities, BSEE also publishes Safety

Alerts to inform the offshore oil and gas industry of the circumstances surrounding an accident

or a near miss and to provide recommendations that should help prevent the recurrence of such

an incident on the OCS.

Incident data are also an important part of evaluating the performance of individual companies

and the industry as a whole and contribute to the development of new regulatory requirements.

Where appropriate, Federal agencies including BSEE, pursue civil and criminal penalty actions

against those in violation of Federal regulations, especially when such violations result in or have

the potential to result in injuries, loss of life, or damage to environmental resources.

Additional Reporting of Compliance Data and/or Real-time Data –In FY 2012, BSEE will

be examining the opportunities to collect key compliance indicator data, equipment performance

data and/or to use real time operational data flows to complement our inspection programs,

enhance compliance, and address regulatory gaps. This work will include the reviews necessary

to determine the costs and benefits of obtaining electronic access to real-time data transmitted

fromoffshoreplatforms/drillingrigs,suchasoperators’surveillancecamerasandBOP

monitoring systems, and/or other automated control and monitoring systems to provide BSEE

with additional oversight tools that can assist the agency in the inspection and oversight process.

BSEE will also designate research funds to examine the availability and efficacy of analytic tools

that could be used to mine these data flows.

Oil Spill Response Division: The Oil Spill Response Division (OSRD) has the responsibility of

ensuring that the offshore operators and response community have the necessary equipment,

resources, trained personnel, and established plans to carry out an effective, efficient response to

a worst case discharge from an offshore source. Division staff will fully integrate activities of

the National Response System through appointment to positions on the National Response Team

Preparedness Subcommittee, and Scientific and Technical Committee, Regional Response

Teams affecting policy for the Gulf of Mexico, Pacific, and Alaska Regions, and applicable Area

Committees. Work will continue on revision of oil spill plan regulations following the

completion of joint BSEE and USCG projects to develop new national response planning

standards that will influence regulations of both agencies. Coordination with the USCG will

continue through the Response Workgroup on projects involving the response resource

inventory, the National Preparedness for Response and Exercise Program (NPREP), revision of

Area Contingency Plans through chairing the offshore Worst Case Discharge (WCD) sub teams

of each Area Committee, drill coordination, and other activities to enhance spill preparedness.

Efforts will also continue to respond to recommendations from the Incident Specific

Preparedness Review and similar response-focused reports to ensure that lessons learned are

captured and actions are taken to fully implement those recommendations that will improve

overall operations. Support of the Federal On-Scene Coordinator (FOSC) will also be a focus

area by the OSRD through the addition of a source control subject matter expert to the Incident

Command System structure. Activities during the Macondo well blowout revealed the critical

skill sets that BSEE staff possess in well completion and design and their value in well

containment and relief well operations. Should a significant well control event occur in the
Operations, Safety and Regulations

36 Bureau of Safety and Environmental Enforcement

future, OSRD staff will be part of mini-strike teams that will deploy to incident command posts

to provide expert assistance to the FOSC on offshore operations and to coordinate the use of

BSEE engineering, technical, and/or scientific staff to support spill abate and response activities

for spills originating from facilities under the jurisdiction of BSEE.

Safety and Environmental Management: Most offshore oil and gas incidents can be traced to

human error or poorly organized operations. BSEE now requires OCS operators to use a

companywide SEMS to organize their activities to minimize risks to workers and the

environment.

The SEMS is a performance-oriented approach for integrating and managing OCS operations to

effectively address such important safety factors as:

 conducting safety and environmental reviews;

 assuring the quality and integrity of critical equipment;

 establishing safe work practices;

 training workers; and

 responding to emergencies.

On September 14, 2011, the former BOEMRE published a Notice of Proposed Rule in the

Federal Register - Revisions to 30 CFR Part 250 Subpart S - Safety and Environmental

Management System. The Proposed SEMS Rule II addresses safety concerns that were not

covered in the SEMS I Rule issued last fall. It applies to all OCS oil and gas and sulphur

operations and facilities under BSEE jurisdiction including drilling, production, construction,

well workover, well completion, well servicing, lifting activities and the pipeline activities.

BSEE proposes to expand, revise and add several new requirements necessary for a more

thorough SEMS program and to facilitate BSEE oversight. In addition to the current regulatory

requirements, operators would be required to include the following in their SEMS program:

(1) Additional requirements for conducting a Job Safety Analysis;

(2) Procedures to authorize any and all employees on the facility to implement a Stop

Work Authority when witnessing an activity that creates a threat of danger to an

individual, property and/or the environment;

(3) Clearly defined requirements establishing who has the ultimate work authority on the

facility for operational safety and decision making at any given time;

(4) An employee participation program that shows how operator employees are involved

intheimplementationoftheAmericanPetroleumInstitute’sRecommendedPractice

for Development of a SEMS Program for Offshore Operations and Facilities;

(5) Guidelines for reporting unsafe work conditions that provide all employees the right

to report a possible safety or environmental violation(s) and to request a BSEE

investigation of the facility if they believe there is a serious threat of danger or their

employer is not following BSEE regulations; and

(6) Revisions requiring that only independent third party auditors conduct all audits of

operators’SEMSprogramsandthattheindependentthirdpartyauditorsmustmeet

the specified criteria listed in this proposed rule.
Operations, Safety and Regulation

Bureau of Safety and Environmental Enforcement 37

The importance of this proposed rule is highlighted by the Deepwater Horizon event on April 20,

2010. The blowout of the Macondo well, and the resulting explosion on the Deepwater Horizon

drilling rig, resulted in the deaths of 11 workers, the loss of the Deepwater Horizon and an oil

spill of national significance.

BSEE is requiring a SEMS program to reduce the likelihood of accidents and incidents and raise

the safety awareness of all personnel in requiring a comprehensive SEMS program. The changes

proposed in the rule would affect lessees and operators of leases and pipeline right-of-way

holders in the OCS. This group could include about 130 active Federal oil and gas lessees. An

estimated 65 percent of these lessees are considered small operators.

Operator Performance Reviews: BSEE conducts Annual Performance Reviews (APR) of each

operator. The APR process captures compliance and accident information gathered through the

OCS Inspection Program and weighs that information to arrive at a final Operator Performance

Index, as well as composite indices that are used as performance indicators for the OCS

Regulatory and Compliance program. The Bureau meets with those operators performing at the

highestlevelstosolicitideasforbestoperatingpractices.Withtheoperator’sconcurrence,

BSEE shares these success stories with others through workshops, conferences, and other safetyrelated meetings. Additionally, BSEE focuses compliance efforts on those operators whose

performance does not meet certain targets.

Civil and Criminal Penalties and Operator Disqualification: BSEE, where appropriate, will

pursue civil and criminal penalty actions against those in violation of Federal regulations,

especially when such violations result in, or have the potential to result in, injuries, loss of life, or

damage to environmental resources. If an operator exhibits excessively poor, dangerous, or

threatening performance, BSEE can assess a civil penalty. BSEE can also issue civil penalties to

operators who fail to correct items identified by field inspectors. In FY 2011, 26 civil penalty

assessments were paid for a total of $1.9 million. BSEE OCS Civil Penalties Program

encourages compliance with OCS statutes and regulations through the pursuit, assessment, and

collection of civil penalties (and referrals for the consideration of criminal penalties where

warranted). BSEE is committed to strengthening its enforcement programs; this may mean

higher civil penalty assessments for poor operators in the future.

The cost of administering the Civil Penalties Program is monitored in the Bureau’sactivitybased costing (ABC) system. Though less than one percent of Regulatory spending, the Civil

Penalties Program is an important tool for enforcing compliance on the OCS. However, should

the operator continue to perform poorly, BSEE may place an operator on probation or disqualify

a company from operating a specific facility, or all facilities, on the OCS. The disqualification

process provides a structured means to remove operators that pose a threat to the safety of life

and the OCS environment.
Operations, Safety and Regulations

38 Bureau of Safety and Environmental Enforcement

Conservation Management: As a steward of the Nation’sOCSmineralresources,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’senergypolicyanda

primary objective for the BSEE 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.

Regulatory Development: BSEE will continue to develop new regulations to ensure safety and

environmental protection associated with offshore oil and gas operations. BSEE will focus on

regulations related to drilling and production operations and the decommissioning of offshore

facilities. These regulations will be based on priorities established from a comprehensive review

of the existing oil and gas regulations. In addition, BSEE will continue to work with industry

groups on standard development and assess those standards for possible incorporation into

BSEE’sregulations.

Technology Assessment and Research: The Technology and Assessment Research (TA&R)

program addresses technological issues associated with energy and mineral operations, ranging

from the drilling of oil and gas exploration wells in search of new reserves to the removal of

platforms and related infrastructure once production operations have ceased. Although BSEE

research efforts may involve any aspect of energy and mineral operations, particular attention is

given to oil and gas drilling, workover, production, completions, structures, pipelines,

decommissioning, human factors/risk assessment, and measurement operations. Under the

TA&R and Oil Spill Response Programs, BSEE performs applied research in regulatory

technologies to promote safe, pollution-free operations and conducts applied research in the

prevention of oil pollution and the improvement of oil spill response and clean-up (see Oil Spill

Research budget). Examples of how TA&R studies impact our regulatory program include:

In early 2010, during the investigation of a leaking well, it became apparent the existing

regulation 30 CFR 250.1715(b) required re-evaluation to better serve our mission. This

regulation allows operators the option to either pressure test or weight test cement plugs in

permanently or temporarily abandoned wells. The question became which option is better, or

whether BSEE should require both to be performed. To conduct this evaluation, a TA&R study

titled“CementPlugTesting:Weightvs.PressuretoAssesstheViabilityofaWellbore Seal

BetweenZones”wasinitiated.DuringtheBP/DeepwaterHorizoninvestigation,theminimum

requirements of the procedures described in 30 CFR 250.1715(b) were again questioned and the

TA&R study was expanded slightly to not only compare the options, but examine the procedures

to identify possible shortcomings and possibly develop new procedures. This TA&R study will

include field data collection during abandonment operations on the OCS which will be compared

with results found during laboratory tests.

Also prior to the Deepwater Horizon event in 2010, TA&R identified a need to improve our

understanding and oversight of the types of deepwater drilling rig BOPs operating in the GOM.

BSEE funded a study titled “DeepwaterBlowoutPreventer(BOP)Reliability&WellKicks”to

assess the performance of deepwater BOPs in use between 2006 and 2010 in order to determine
Operations, Safety and Regulation

Bureau of Safety and Environmental Enforcement 39

their reliability during testing and actual well kicks. The study is expected to provide BSEE with

information to aid our current and future inspection workforce and regional engineers with the

tools to improve the way we assess and approve the use of BOPs; devices considered to be the

last operational line of defense for well containment.

We expect the aforementioned studies, and other 2012 and 2013 studies, to provide lasting

impacts on BSEE regulations, Notices to Lessees (NTLs), and industry standards.

Revisions to BSEE Regulations and Industry Standards: The results of TA&R studies have

also contributed to the development of a number of BSEE regulations, BSEE NTLs, Industry

Standards (American Petroleum Institute (API), American Society for Testing and Materials

(ASTM), and International Standards. The below offers one example of each:

 BSEE Regulations: Results from an initial shear ram capability study/information led to

the requirement for shear ram capabilities found in 30 CFR 250.416(e);

 BSEE issued NTL No. 2009-G03: Synthetic Mooring System Materials for Floating

Facilities intended to demonstrate that synthetic moorings meet or exceed the safety level

necessary for chain/wire-rope mooring systems;

 Industry Standards:

o API - Development of the draft API RP 2RD, Dynamic Risers for Floating

Production Installations. Inadditiontoprovidingthestudy’sworktotheAPI,

these same results have been presented to the International Organizations for

Standardizations (ISO) for possible incorporation in the equivalent international

standard, ISO 13628-12; and,

o ASTM Standards in Association with BSEE Ohmsett Test Facility: F1607-95

(2008) Standard for Oil Spill Response Pumps; and,

 International Standards: A TA&R study laid the groundwork for reviewing the

International Electrotechnical Commission Standards for Offshore Wind Farms design

standards for applicability on the U.S. OCS. Since then, an American Wind Energy

Association(AWEA)efforthasbeenestablishedto‘roadmap’theuseofthis

international standard by supplementing it with the appropriate U.S. standards where

there is a variance, and identifying gaps that could potentially be augmented with other

standards, and/or gaps that require that additional standards be drafted. Two subsequent

TA&R studies will be valuable contributions to this effort.

Participation in joint projects is one of the most effective and efficient means to leverage

available funds and disseminate research findings. Therefore, participation in jointly funded

projects with industry, other Federal and state agencies, academia, and international regulatory

organizations has become an important mechanism for TA&R. In 2011, the TA&R program cofunded six projects with other organizations. In 2012, the TA&R program expects to co-fund

five projects with other organizations. Due to the many benefits that BSEE has experienced

through co-funded research, the TA&R program will continue to seek opportunities to leverage

research dollars through joint projects for new engineering studies and conservation research.

The expansion of industry operations into the deepwater areas of the Gulf of Mexico presents

significant technological challenges to industry and BSEE. Industry is focused upon the
Operations, Safety and Regulations

40 Bureau of Safety and Environmental Enforcement

development of new concepts, operational procedures, production facilities, and transportation

facilities to meet the physical and economic challenges created by the operating environments of

water depths between 3,000 to more than 10,000 feet. In many cases, custom designs are being

developed that employ new materials and unique operating characteristics, all of which need to

be independently verified by BSEE to ensure safety of operations and protection of the

environment. The first commercial development of oil discoveries on the Federal portions of the

Beaufort Sea offshore Alaska also presents special challenges to the TA&R program –

particularly the forces that sea ice applies to surface structures (i.e., drilling or production

facilities) and pipelines.

Meanwhile, existing platforms and pipelines continue to age, and BSEE is increasingly

concerned with ensuring the integrity of these older facilities. If not properly maintained,

offshore facilities and components will age at an accelerated rate both externally, due to the

corrosive salt-water environment, and internally, due to the acidic/caustic nature of some

produced well fluids. In order to manage offshore infrastructure in a safe and fully functional

condition, it is important to properly protect and maintain wells, platforms, and pipelines through

sound engineering standards and rigorous inspection. BSEE sponsors research to identify and

correct specific problems associated with aging infrastructure and is working closely with

industry to ensure the continued safety of OCS facilities, workers, and the environment.

As platforms and associated production facilities reach the end of their useful lives –as is

currently happening in the Gulf of Mexico and offshore Southern California –decommissioning

and removal are required. BSEE is planning to fund a project to ensure that decommissioned

wells will not leak production fluids.
Operations, Safety and Regulation

Bureau of Safety and Environmental Enforcement 41

Supporting Performance Measures

2007

Actual

2008

Actual

2009

Actual

2010

Actual

2011

Plan

2011

Actual

2012

Plan

2013

President's

Budget

Change from

2012 to 2013

Plan

Long-term

Target

2016

Number of Recordable Injuries per200,000 Offshore Man Hours Worked(SP)

N/A

N/A

N/A

N/A Baseline Year

0.34 (est.)

(149/443)

0.625 0.60 -0.025 0.5

Com

ments

Composite accident severity ratio (BUR)

0.050

(5,208/

104,071)

(revd)

0.122

(12,440/

101,806)

(revd)

0.097

(9,532/

98,719) (revd)

0.184 (est.)

(17,872/

97,184)

<.093

0.085

(7,952/

93,901)

<0.09 <0.09 0 Reduce

Maintain an annual composite operatorperformance index of 0.2 or less (BUR)

0.13 (revd) 0.19 (revd) 0.17 (revd) 0.24 <0.20 0.13 <0.20 <0.20 0 Reduce

Com

ments

The Composite Operator Performance Index is a consolidated measure of overall operator safety that combines incident severity with operatorcompliance to existing regulations. The operator performance index sums two ratios that are normalized for OCS operator activity based on the numberof components operated. The first ratio measures operator compliance using a weighted INC (incident of non-compliance) value. The second ratiomeasures operator safety by assigning values for accidents (i.e., the composite accident severity ratio discussed above). As with the composite accidentseverity ratio, FY 2011 results were much lower than FY 2010 when the Deepwater Horizon event occurred.This new 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 in the fiscal year for every 200,000 man hours worked (which is the approximate equivalent of 100 full-time workers). Estimated FY 2011results indicate that there was approximately 1 recordable injury for every 300 full-time offshore workers. Because safety levels are best evaluated astrends over mulitple year, targets for FY 2012 and beyond are based on analysis of historical recordable injury rates against an extraopolation ofvoluntary man hour reporting from operators in previous years. The Safety and Environmental Management System (SEMS) regulation that went intoeffect in November 2010 requires all operators to report offshore man hours worked during the calendar year. FY 2011 results will be finalized afterBSEE receives calendar year 2011 reporting from operators in March 2012.

Note: Performance and Cost data may be attributable to multiple activities and subactivities. Therefore, measure costs may not equal totals shown in subactivity tables.Com

ments

Due to the severity and magnitude of the Deepwater Horizon explosion, the ratio results for FY 2010 far exceeded the target. The FY 2012 and FY 2013targets are based on improving over a 5-year rolling average, excluding the Deepwater Horizon event that would have skewed the goal higher.For the composite accident severity ratio, BSEE assigns a point value to each operator safety incident reported based on its severity, then divides totalannual points by the number of components in service for all operators. This metric reflects both the number of incidents that occurred and theirseverity. In FY 2007, the point matrix used to assign accident severity values was updated to provide a better indication of the relative severity of theincidents (i.e., there is now a larger differential between the points assigned for major versus minor incidents). The FY 2011 ratio result of 0.85 is morein line with typical historical results versus FY 2010 that included the Deepwater Horizon event. The FY 2012 and FY 2013 targets are based onimproving over a 5-year rolling average, excluding the Deepwater Horizon event that would have skewed the goal higher.

Performance Overview - Operations, Safety and RegulationGoal 1: Secure A

merica's Energy Resources

Strategy 1: Ensure environmental compliance and the safety of energy developmentMission Area 2: Sustainably Manage Energy, Water, and Natural Resources

Table 10 : Performance Overview Table- Operations, Safety and Regulation
Operations, Safety and Regulations

42 Bureau of Safety and Environmental Enforcement

Supporting Performance Measures

2007

Actual

2008

Actual

2009

Actual

2010

Actual

2011

Plan

2011

Actual

2012

Plan

2013

President's

Budget

Change from

2012 to 2013

Plan

Long-term

Target

2016

Number of fatalities among workers inD

OI permitted activities (BUR)

3 2 2 11 4 2 4 4 0 Reduce

Number of serious injuries among workersin D

OI permitted activities (BUR)

32 31 25 75* (revd) 29 26 29 29 0 Reduce

Com

ments

Total Number of Compliance InspectionsCompleted (BUR)

20,567 25,650 26,978 23,619 22,000 20,537 25,000 33,000 8,000 TBD

Conduct full Coast Guard inspections onX

% of manned offshore facilities annually

(BUR)

20%

(224/ 1,121)

14.7%

(164/1112)

13.6%

(141/1035)

(revd)

16.5%

(169/1021)

10%

14.3% (est.)

(141/985)

10% 10% 0% TBD

Com

ments

Conduct Technology Assessment andResearch studies on X

% of high-priority

topics (BUR)

74%

(25/ 34)

93%

(14/15)

100%

(18/18)

89%

(16/18)

94%

94%

(15/16)

94% 94% 0% TBD

Com

ments

Com

ments

One of the key recom

mendations included in multiple reports following the Deepwateer Horizon event is that the BSEE needed to evaluate and revise the

manner in which it conducts its drilling and compliance inspections. Over the next few years, the inspection program and workforce will changedramatically. The workforce will substantially increase in size and the new inspection strategy will involve more structured training for inspectors, onsite witnessing of high risk activities (e.g., BOP testing and cement/casing activities), and the deployment of multi-disciplinary inspection teams instead ofindividual inspectors. While the number of inspections will increase gradually over time as these changes are implemente, increases cannot be fullyrealized until additional hiring is completed and the inspectors are adequately trained. Additionally, some planned improvements will expand the time ittakes to conduct an inspection and thus would not increase the number of inspections completed.The Technology Assessment and Research (TA&R) Program is a research element encompassed within the BSEE Regulatory Program. The TA&Rprogram addresses technological issues associated with energy and mineral operations, ranging from the drilling of oil and gas exploration wells insearch of new reserves to the removal of platforms and related infrastructure once production operations have ceased. This metric looks at the percentof TA&R studies conducted on high-priority topics. BSEE plans a major expansion of the TA&R program following the Deepwater Horizon event thatwill allow for targeted deepwater safety and containment research and the transfer research results to inform rule writers, investigators and planreviewers. This additional information will be critical to ensuring the effectiveness of BSEE regulations, Notices to Lessees (NTLs), and industrystandards.

Performance Overview - Operations, Safety and Regulation (continued)

Inspection of U.S. Coast Guard regulated items is a function that was provided for by regulation but one for which BSEE is not reimbursed. Assumptionof limited responsibilities by BSEE was pursued following a report by the Inspector General that the U.S. Coast Guard was not conducting inspections ofsafety items on fixed facilities, as required by law. At this time, BSEE inspectors conduct a limited FPSIP (fixed platform self inspection program)inspection on every platform that they visit and have an annual target of conducting full FPSIP inspections on 10 percent of manned facilities. Althoughmore is done when the resources are available, the targeted percentage of full FPSIP inspections performed by BSEE inspectors has not increasedbecause it would detract from performing inspections of equipment and operations under BSEE jurisdiction.In FY 2011, there were 2 fatalities and 26 serious injuries among offshore workers in DOI permitted activities. The FY 2010 explosion and sinking of theDeepwater Horizon drilling rig off the coast of Louisiana resulted in 11 deaths and 46 lost-time injuries of greater than 3 days of lost time, restrictedwork, or job transfer. Although the detailed information necessary to determine the exact nature of each one of the injuries was not available, BSEE hasrevised its FY 2010 count for serious injuries to include these injuries based on the severity of the event.Future year targets for the fatalities and serious injury metrics are developed based on reducing a rolling 5-year average. Given the unprecedentedmagnitude of the Deepwater Horizon incident, and the negative skewing impact that including FY 2010 results would have on the serious injury average,FY 2012 and FY 2013 targets for serious injuries were established excluding the Deepwater Horizon event.* Revised to include 46 injuries from the Deepwater Horizon event that resulted in greater than 3 days of lost time, restricted work, or job transfer.
Administrative Operations

Bureau of Safety and Environmental Enforcement 43

BSEE FY 2013 PERFORMANCE BUDGET REQUEST

Administrative Operations Activity

Table 11: Administrative Operations Activity Budget Summary

Fixed Costs / Change

IT Program 2013 from

2011 2012 Transformation Changes Budget 2012

Actual* Enacted (+/-) (+/-) Request (+/-)

($000) 18,264 15,545 +430 +5,000 20,975 +5,430

FTE 188 219 0 - 219 -

Administrative Operations

* The FY 2011 Column represents estimates based on the 2011 Operating Plan because the funding was combined with what is

now BOEM funding under the former BOEMRE.

SUMMARY OF FY 2013 PROGRAM CHANGES

Request Component Amount

($000) FTE

Sustain Administrative Operations +5,000 0

Fixed Costs +430 0

Total: +5,430 0

JUSTIFICATION OF FY 2013 PROGRAM CHANGES

The FY 2013 budget request for the Administrative Operations Activity is $20.9 million and

219 FTE, a net increase of $5.4 million and 0 FTE compared with the FY 2012 Enacted.

Sustain Administrative Operations (+$5,000,000; 0 FTE)

Prior to the reorganization of the former MMS, funding provided through the Administrative

Operations activity supported more than 1,700 FTEs in three major program areas –Minerals

Revenue Management, Offshore Energy Minerals Management, and General Administration.

This funding provided the ability to provide a full suite of services, including general

administration, ethics, equal employment opportunity, emergency management, finance, human

resources, procurement, and information management.

The reorganization and reform efforts begun in FY 2011, and continuing into FY 2012 and

FY 2013, have successfully changed the organizational structure, its processes, and supporting

financial practices. It has also required new budget structures with new appropriations and

activities, and the need to develop new accounting nomenclatures. Although more than

600 positions were transferred, along with administrative support funding to ONNR, the

projected FTEs for BOEM and BSEE FTEs are expected to increase to more than 1,300.

BSEE is requesting $5.0 million to sustain the necessary level of support services for these

organizations. This is a request to adjust the base to provide sufficient administrative services to
Administrative Operations

44 Bureau of Safety and Environmental Enforcement

effectively support the BSEE and BOEM workforce. Before making this request we have

looked for opportunities to be more efficient and to minimize costs. However, BSEE needs these

additional funds to address the demands of servicing two organizations that are projected to

grow.

The funding will be used to retain the expertise and personnel that will serve BOEM and BSEE

as the Bureaus recruit new inspectors, engineers, and scientists and conduct additional

environmentalandtechnologicalstudies.ItwillsupportBSEE’sabilitytoadvertisecritical

vacancies for inspectors, engineers, and other professionals in a timely manner. Many of these

actions are time-consuming and involve multiple grade levels, and numerous personnel actions

are needed when advertising both within and outside the Federal government. Similarly, in the

acquisition services area, funding support will enable BSEE to continue the procurement of

mission-critical environmental and engineering studies in a timely manner.

Impacts of Not Funding: Without a funding adjustment, both Bureaus are likely to encounter

delays in filling critical vacancies and in supporting our program personnel appropriately. This

often results in the best candidates finding other employment during the prolonged recruitment

process. Procurement lead-time required for complex contracts could increase by 35 percent

delayingtheBureaus’abilitytoperformmissioncriticalwork,whilethelead-time for smaller

procurement actions could increase by 50 –100 percent.

Financial services could be compromised as well, increasing the processing time for financial

transactions, including the processing of vouchers and invoices that will delay the completion of

environmental and engineering studies, the performance of offshore facility inspections, and

other mission critical functions. The requested funding for these administrative activities is

imperative to support the mission of these new organizations.

PROGRAM OVERVIEW

The Administrative Operations Activity consists of the following functions: Administrative

Direction and Coordination, Finance, Equal Employment Opportunity, Human Resources,

Acquisition Management, and Information Management.

Acquisition Management Division: The Acquisition Management Division is responsible for the

execution and administration of BSEE and BOEM contracts and financial assistance agreements.

The Division provides acquisition and financial assistance policy guidance, cost and price

analysis, and advice to procurement and program personnel. They conduct acquisition

management and other internal control reviews of procurement activities. They also administer

the purchase line of the BSEE and BOEM charge card programs as well as their competitive

sourcing programs. In addition, they manage the Business and Economic Development Program

to maximize opportunities for small, disadvantaged, and women-owned businesses, as well as

historically black colleges and universities as both prime contractors and subcontractors. They

also oversee all acquisition career management programs.

Equal Employment Opportunity Division (EEOD): The EEOD develops, monitors, and
Administrative Operations

Bureau of Safety and Environmental Enforcement 45

operates the Equal Employment Opportunity (EEO) program for BSEE and BOEM in

compliance with the Civil Rights Act of 1964, the Equal Employment Opportunity Act of 1972,

Executive Order 11478, departmental directives, and other related statutes and orders. Its goal is

to ensure that work force activities are inclusive and that they promote the full utilization and

exchange of skills and talents.

In support of the EEO program, the Division provides: advice and guidance to managers,

supervisors and employees regarding EEO policies and procedures; 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; and provides oversight

of special initiative programs designed to involve more women, minorities, and people with

disabilities throughout all levels of management. The division also provides an alternative

dispute resolution program, counseling and mediation services, as well as formal EEO complaint

processing.

Finance Division: The Finance Division (FD) provides a full range of accounting and financial

management services to BSEE and BOEM. The FD manages and oversees the Bureau-level

CFO related audit as conducted by an independent audit firm with oversight from the

Department’sOffice of Inspector General (OIG). The FD develops Bureau financial policies,

procedures, and guidelines. The Division maintains liaison with departmental policy offices,

including the Office of Financial Management and the office of Acquisition and Property

Management. It also coordinates with the Bureau Budget Division 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. FD 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; and maintains liaison with departmental offices and other federal

agencies.

Human Resources Division: The Human Resources (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 preparing appropriate reports, performing all operational personnel

services for BSEE and client organizations, and providing assistance and guidance related to

personnel matters for all regional and field installations. 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. In addition, the

Division is responsible for the development of training policy and oversight of a Bureau-wide

Learning Management System that will serve as a valuable workforce planning and management

tool. The HR Division also coordinates all departmental mandated employee development

initiatives for implementation in BSEE and BOEM.
Administrative Operations

46 Bureau of Safety and Environmental Enforcement

The Human Resources Division also leads all BSEE and BOEM workforce-planning initiatives,

which include analyzing the current workforce, identifying future workforce needs, and

preparing plans for building the workforce needed in the future. The long-term benefits of

workforce-planning initiatives include the ability of BSEE and BOEM to meet their mission and

performance goals.

Information Management Division: The Information Management Division (IMD) ensures the

efficient and effective planning, management and acquisition of information technology and

information resources within BSEE, BOEM, and ONRR and ensuring compliance with all DOI

and federal information resources management policies and guidelines.

The IMD is engaged in an ongoing effort to establish, maintain, and support an IT investment

analysis and decision-making environment to ensure that all Bureau IT investments are well

planned, implemented, cost effective, and aligned with the BSEE, BOEM, ONRR, and DOI

enterprise architecture. This includes managing the capital asset planning program by

performing IT investment portfolio analysis; managing the review and submission to OMB of

BSEE’sBusiness Cases (Exhibit 300s); developing the Exhibit 53 (IT portfolio); and

maintaining liaisons with the DOI regarding BSEE and BOEM information technology

investments.

TheIMDalsoimplementsandsupportstheBureau’sITsecurityprogram.The IT Security

ManagerworkscollaborativelywiththeBSEEandBOEMofficesaswellaswiththeDOI’s

Office of the CIO to review and improve security plans, policies, procedures, and standards to

reflect technological changes. The IT security efforts also include participating in risk

assessments and management reviews of systems and networks, identifying security issues, and

recommending mitigation.

Information Technology Division (ITD): The ITD provides a central foundation to manage the

large volume of information and data used in the scientific, engineering, and management

activities of the BSEE and BOEM programs. The Division has a sophisticated and valuable

Information Technology (IT) infrastructure that supports data management and internal and

external communications. At the core of the IT capabilities is the Technical Information

Management System (TIMS). 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 reduce the costs of

establishing and maintaining duplicate databases and information storage and retrieval systems;

to enforce data integrity through relational database technology; and to release accurate,

consistent information to the public sector. To satisfy the requirements of both internal and

external stakeholders ITD has undertaken the TIMS Web Portal project. TIMS Web Portal will

leverage the existing TIMS database and integrate state-of-the-art technologies to enhance

current capabilities and provide business functionality to meet business needs.

The ITD 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-
Administrative Operations

Bureau of Safety and Environmental Enforcement 47

dimensions (3-D), fully integrating geophysical and geological data analysis, and reducing risks

and uncertainty in decision-making processes. In addition, ITD has developed an extensive

Geographic Information System (GIS) capability for nearly all BSEE and BOEM offshore maps

and leasing processes, providing us the means to define, describe, analyze, and account for every

acre of Federal offshore-submerged lands. In order to effectively perform the missions of

BOEM and BSEE, ITD must provide solutions to automate information exchange while reducing

errors and maintaining data quality.

Management Support Division: Management Support Division: The Management Support

Division (MSD) provides direct assistance to the Associate Director for Administration. In

support of the BSEE and BOEM, MSD is responsible for delegations of authority, directive

management, providing high-level administrative support, and management and organization

analysis activities. It also is responsible for providing emergency management services and

preparing continuity of operations plans for the BSEE and BOEM and has a process in place for

reporting critical emergency incidents to the appropriate officials in a timely manner. MSD also

plans, implements, and directs the physical and personnel security programs as well as the

occupational safety and health program for the Bureaus.

The MSD also provides a full range of Support Services for all BSEE and BOEM locations

throughout the country including services such as facilities management, space management,

mail and courier activities, voice and data communications, printing and publications activity and

program management. By utilizing a centralized space management approach, we are able to

standardize space allocations and make better use of available space. The property management

program 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 the

museum property, including an Arts and Artifacts program.
Administrative Operations

48 Bureau of Safety and Environmental Enforcement

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General Support Services

Bureau of Safety and Environmental Enforcement 49

FY 2013 BSEE PERFORMANCE BUDGET REQUEST

General Support Services Activity

Table 12: General Support Services Budget Summary

Fixed Costs / Change

IT Program 2013 from

2011 2012 Transformation Changes Budget 2012

Actual* Enacted (+/-) (+/-) Request (+/-)

($000) 19,457 12,607 +430 - 13,037 +430

FTE 0 0 0 - 0 -

* The FY 2011 Column represents estimates based on the 2011 Operating Plan because the funding was combined with what is

now BOEM funding under the former BOEMRE.

General Support Services

SUMMARY OF FY 2013 PROGRAM CHANGES

Request Component Amount

($000) FTE

Fixed Costs +430 0

Total: +430 0

The General Support Services function provides Bureau-wide infrastructure support to both the

Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy

Management (BOEM). Infrastructure support includes programs such as office space, security,

utilities, and voice/data communications that the entire organization needs to carry out its core

mission responsibilities.

FY 2013 BUDGET REQUEST

The FY 2013 budget request for the General Support Services Activity is $13.0 million and

0 FTE, an increase of $0.4 million compared with the FY 2012 Enacted in order to fully fund

fixed costs.

PROGRAM OVERVIEW

The General Support Services Activity includes funding for shared activities and related support

services for both BSEE and BOEM. These include expenses such as:

 Rental and security of office space

 Workers’compensationandunemployment compensation

 Voice and Data Communications

 TheDepartment’sWorkingCapitalFund(WCF)

 Annual building maintenance contracts

 Mail services

 Printing costs

The two major program objectives are to provide safe and secure facilities that will contribute to
General Support Services

50 Bureau of Safety and Environmental Enforcement

the productivity and efficiency of the employees in achieving goals and objectives, and to

provide appropriate services in support of the BSEE and BOEM operating programs.
Executive Direction

Bureau of Safety and Environmental Enforcement 51

FY 2013 BSEE PERFORMANCE BUDGET REQUEST

Executive Direction Activity

Table 13: Executive Direction Budget Summary

Fixed Costs / Change

IT Program 2013 from

2011 2012 Transformation Changes Budget 2012

Actual* Enacted (+/-) (+/-) Request (+/-)

($000) 12,234 18,117 +108 - 18,225 +108

FTE 56 55 0 - 55 -

* The FY 2011 Column represents estimates based on the 2011 Operating Plan because the funding was combined with what is

now BOEM funding under the former BOEMRE.

Executive Direction

SUMMARY OF FY 2013 PROGRAM CHANGES

Request Component Amount

($000) FTE

Fixed Costs +108 0

Total: +108 0

The Executive Direction function provides Bureau-wide leadership, direction, management,

coordination, communications strategies, and outreach that the entire organization needs to carry

out its core mission responsibilities.

FY 2013 BUDGET REQUEST

The FY 2013 budget request for the Executive Direction Activity is $18.2 million and

55 FTE, an increase of $0.1 million and 0 FTE compared with the FY 2012 Enacted in order to

fully fund fixed costs.

PROGRAM OVERVIEW

The Executive Direction Activity comprises the Office of the Director, the Office of Budget, the

Office of Public Affairs, the Office of Policy and Analysis, and the Office of Congressional

Affairs.

Office of the Director

The Office of the Director includes the Director, the Deputy Directors, 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.

Office of Budget
Executive Direction

Bureau of Safety and Environmental Enforcement 52

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’sbudgetrequeststotheDepartment

with submission of the Budget Proposal, to the Office of Management and Budget with

submission of the Budget Estimates and to the Congress with submission of the Budget

Justifications. During the Congressional phase, the Office of Budget prepares capability and

effect statements, provides answers to House and Senate questions and drafts testimony and oral

statements for Congressional hearings. 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 OBPC works closely with the

Office of Policy Analysis and program level performance staff to integrate performance data and

information into all aspects of budget formulation and execution.

Office of Public Affairs (OPA)

TheOPAisresponsibleforBSEE’scommunicationstrategiesandoutreach.The goal of OPA is

to inform the public, ensure coordinated communication, consistent messages, and the effective

exchange of information with all customers and stakeholders. The 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, Indian tribes, energy consumer groups and the public.

Office of Policy and Analysis

The Office of Policy and Analysis serves as the principle 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, assuring a consistent,

BSEE-wide implementation that directly supports Congressional, Presidential and departmental

directives, laws, mandates and guidance.

The Office of Policy and AnalysisfulfillstheDirector’sresponsibilitiesinseveralcriticalareas

including strategic and performance planning, policy and program evaluation 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 Administration policy frameworks. In addition, the office administers and

coordinates internal reviews, and oversees and assures implementation of recommendations

made by oversight groups such as the Government Accountability Office and the Office of

Inspector General (OIG).

Office of Congressional Affairs (OCA)

The OCA serves as the primary point of contact with Congress, and is responsible for the

coordination of all communication and outreach with Congressional offices, as well as ensuring a

consistent message and the effective exchange of information. The OCA serves as the liaison for
Executive Direction

Bureau of Safety and Environmental Enforcement 53

Congressional and legislative matters that affect BSEE and the Department.

Investigations and Review Unit (IRU)

The IRU serves as a team of professionals with law enforcement backgrounds or technical

expertise whose mission is to: promptly and credibly respond to allegations or evidence of

misconduct and unethical behavior by Bureau employees; pursue allegations of misconduct by

oil and gas companies involved in offshore energy projects; and assure the Bureau's ability to

respond swiftly to emerging issues and crises, including significant incidents such as spills and

accidents. The IRU will evaluate all information submitted and will, where appropriate, conduct

further investigation. The IRU will be sharing allegations of misconduct with the DOI’sOffice

of the Inspector General, and they will jointly determine which office conducts any investigation

of those allegations.

During the reorganization, the BOEMRE created the IRU, to promptly respond to allegations or

evidence of misconduct and unethical behavior by bureau employees or by oil and gas

companies involved in offshore energy projects. The IRU is currently operating under BSEE and

will work to identify specific roles for BOEM and BSEE and will ultimately assign staff to

Bureau-specific units.

Office of International Programs

The Office of International Programs serves as the primary point of contact between BSEE and

the U.S. Department of State (DOS) and its embassies and the international programs within the

Department and other Federal agencies such as the Department of Energy, Department of

Commerce, Department of Treasury, etc. The Office becomes involved in international

initiatives, trends, and developments which promote best practices and better integration of

safety, environmental protection, and resource management in offshore energy activities. The

Office facilitates technical and information exchanges with key national offshore safety

authorities across the world and coordinates technical advice to developing countries at the

request of DOS. Responsibilities also include reporting all BSEE international engagements;

advising BSEE and international travelers on matters of security, protocol, and travel

requirements; structuring international Memoranda of Understanding and other international

cooperation agreements; and coordinating BSEE programs for visiting international delegations.

The office maintains an open line of communication regarding BSEE programs and policies to

DOS and all relevant U.S. agencies and maintains closeliaisonwiththeDepartment’sOfficeof

International Affairs. The Office also provides these services to the BOEM.
Executive Direction

Bureau of Safety and Environmental Enforcement 54

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Oil Spill Research Appropriation

Bureau of Safety and Environmental Enforcement 55

BSEE FY 2013 PERFORMANCE BUDGET REQUEST

Oil Spill Research Appropriation

Table 14: Oil Spill Research Budget Summary

Change

Fixed Program 2013 from

2011 2012 Costs Changes Budget 2012

Actual* Enacted (+/-) (+/-) Request (+/-)

($000) 11,744 14,899 - - 14,899 -

FTE 15 20 0 - 20 -

Oil Spill Research

* The FY 2011 Column represents estimates based on the 2011 Operating Plan because the funding was combined with what is

now BOEM funding under the former BOEMRE.

PROGRAM OVERVIEW

The Oil Spill Research (OSR) appropriation funds oil spill response research, Ohmsett –the

National Oil Spill Response & Renewable Energy Test Facility, and oil spill prevention,

planning, preparedness, and response functions for all facilities seaward of the coastline of the

United States that handle, store, or transport oil. These activities support the DOI strategic

mission of protection of environmental resources and economic interests of the Nation.

Funding for OSR activities is appropriated from the Oil Spill Liability Trust Fund (OSLTF).

As intended by the Oil Pollution Act of 1990, the companies that produce and transport oil are

supporting research to improve oil spill response capabilities.

PERFORMANCE OVERVIEW

In May 2010, President Obama created the National Commission on the BP Deepwater Horizon

Oil Spill and Offshore Drilling. One of thegoalsoftheCommissionwasto“...improvethe

country’sabilitytorespondtospills...”Thereportstates that prior to Deepwater Horizon

“Investmentsinsafety,containment,andresponseequipmentandpracticesfailedtokeeppace

withtherapidmoveintodeepwater.”TheCommissionwentfurtherarguingthat“Twentyyears

after the Exxon Valdez spill in Alaska, the same blunt response technologies –booms,

dispersants, and skimmers –wereused,tolimitedeffect.”

The OSR funding will be used to improve response to offshore oil discharges and to addressing

the many lessons learned from the Deepwater Horizon response. Weaknesses and gaps in

mechanical and alternative response technologies are noted in the Incident Specific Preparedness

Review, the BP Deepwater Horizon Federal On-Scene Coordinator report, and a report by the

National Incident Commander during the spill of national significance. Research will be focused

on improving those response tactics such as offshore in situ burn and subsea dispersant use that

were found to be viable options. Funding will also be dedicated to finding new and more

efficientwaystoremoveoilfromthewater’ssurfacewiththeleastimpacttotheenvironment,

human safety, and economic resources of the U.S. property.
Oil Spill Research Appropriation

56 Bureau of Safety and Environmental Enforcement

In addition to the oil spill research described below, BSEE’ssafety and engineering research in

the Technology Assessment and Research (TA&R) program includes technical studies to

understand a variety of safety considerations from the effectiveness of blowout preventer designs

to the effects of hurricane events on the integrity of offshore facilities. This information can be

used to identify what can be done to improve the integrity of these facilities and facility

operations to avoid oil spills. TA&R focused research includes safety and technical analysis of

drilling operations, well control equipment, structures, human factors, and other specialized

research to improve safety and environmental safeguards.

Oil Spill Response Research (OSRR): The BSEE is the principal Federal agency funding

offshore oil spill response research. For more than 25 years, the former MMS maintained a

comprehensive, long-term research program to improve oil spill response technologies, and this

role will continue through BSEE. The OSRR program provides research leadership to improve

the knowledge and capability for the detection, containment, and cleanup of oil spills that may

occur on the OCS. The program also seeks to develop technologies such as the use of satellite

imagery, side looking infrared radar, and other remote sensing tools to improve response tactical

decisions and thus improve response and safety of offshore workers. The OSRR program also

works with the TA&R program to address spill prevention issues associated with offshore

drilling.

BSEE funding is also being used to fund research in Arctic environments. The receipt of oil

drilling and prevention contingency plans and applications for permit to drill in the Beaufort and

Chukchi seas emphasizes the need to continue to support all research that will facilitate effective

response in cold water environments. Where possible, research will be coordinated with nations

participating in the Arctic Council.

The OSRR program is responsive to the information and technological needs of the Bureau’s

regional and district offices and to specific requirements and limitations in the BSEE authority.

InformationderivedfromtheOSRRprogramisdirectlyintegratedintoBSEE’soperationsandis

used in making regulatory decisions pertaining to permit and 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 that need this information to

ensure safe operations and will assist BSEE in its efforts to independently keep pace with

industry’stechnologicaladvancements.ResponsetechnologiesidentifiedbytheOSRRprogram

focus on preventing offshore operational spills from reaching sensitive environments and

habitats.

The OSRR program is cooperative in nature, bringing together funding and expertise from

research partners in government agencies, the oil industry, and the international community

through cooperative research arrangements and participation in concurrent research and

development projects. Many OSRR projects are Joint Industry Projects, where BSEE partners

with other stakeholders to maximize research dollars. OSRD staff also serves on the OPAmandated Interagency Coordinating Committee on Oil Pollution Research. Federal partners

share information on research, develop National research priorities, prepare reports to Congress

on funded research, and work to leverage federal funds to maximize research results.
Oil Spill Research Appropriation

Bureau of Safety and Environmental Enforcement 57

BSEE disseminates the results of research and development projects as widely as possible in

publications through appropriate scientific and technical journals, technical reports, public

information documents, and publication on the BSEE website. The intent is to make this

information widely available to oil spill response personnel and organizations world wide. Since

its inception, this program has expanded capabilities to respond to an oil spill in the marine

environment.

The current OSRR projects cover a wide spectrum of oil spill response issues and include

laboratory, meso-scale and full-scale field experiments. Recent examples of oil spill response

research include an assessment of the physical and chemical properties of various biofuels

(biodiesels and gasoline/ethanol blends) to determine their suitability for testing at Ohmsett; an

evaluation of the traditional oil spill response technologies for the removal of spilled dielectric

fluids in the marine environment introduced by potential offshore wind farms; examination of

the feasibility of a cold water and Arctic marine oil spill countermeasure strategy based on the

stimulation of oil-mineral-aggregate formation in the presence of a chemical dispersant; and

validation of models that were developed to predict the window of opportunity for successful

chemical dispersant use in the GOM ;andimprovingdispersant’seffect on oil-in-water

emulsions. Initial research has been initiated on methods to determine the effectiveness of

dispersants when applied via subsea injection methods.

In FY 2013, BSEE will continue research to develop, test, and evaluate aerial systems to detect

and map the thickness of oil on the water and to significantly expand the practical operating

window for oil detection on and under sea ice. Further research is needed in the Deepwater

Horizon-introduced spill response option of subsurface dispersant injection as a response option

for deepwater blowout oil spills. The Deepwater Horizon response also clearly defined the need

to further evaluate options to gather floating oil to enable skimming and in situ burning as an

open water oil spill response countermeasure.

Ohmsett - Ohmsett (Oil and Hazardous Materials Simulated Environmental Test Tank) is one of

theworld’slargesttow/wavetanks, designed to test and evaluate full scale equipment for the

detection, containment, and cleanup of oil spills. Ohmsett also has the capability to test scaled

renewable energy systems such as wave generating systems. No other agency operates a facility

like Ohmsett; in fact, major Federal clients such as the USCG and the U.S. Navy rely on Ohmsett

for their training needs. The diverse private client base of Ohmsett varies from major oil

industry firms such as Exxon Corporation and Marine Spill Response Corporation to academic

research institutions like the University of New Hampshire, University of Rhode Island, and the

University of Miami.

Ohmsett is the only facility where oil spill response testing, training, and research can be

conducted with a variety of crude oils and refined products in varying wave conditions.

Ohmsett is located at Naval Weapons Station Earle in Leonardo, New Jersey, about one hour

drive south of New York City. 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 with 2.6 million gallons of

crystal clear saltwater. Ohmsett plays an important role in developing the most effective

response technologies, as well as preparing responders with the most realistic training available
Oil Spill Research Appropriation

58 Bureau of Safety and Environmental Enforcement

in a completely controlled environment. The facility provides testing and research capabilities to

help the government fulfill its regulatory requirements and meet its goal of clean and safe

operations.

Manyoftoday’scommercially available oil spill cleanup products have been tested at Ohmsett

and a considerable body of performance data and information on mechanical response equipment

has been obtained there. This information can be used by response planners in reviewing and

approving facility response and contingency plans. Ohmsett is also the premier training site for

oil spill response personnel. Government agencies including the USCG and the Navy as well as

private industry and oil spill response organizations train their emergency response personnel

with real oil and their own full-scale equipment. Some of the testing activities for 2012 included

remote sensing tests, wave energy conversion device tests, skimmer and boom tests, dispersant

tests, alternative fuel recovery tests, and industry oil spill response training classes.

While the current capabilities of Ohmsett are crucial for researching response options, they

require constant maintenance, and periodic upgrades. In FY 2013, feasibility studies will be

conducted to determine the necessary upgrades to add the capability for conducting research

associated with subsea dispersant injection, and containment of the particulate matter generated

by burning oils. As usual, there will be several alternative energy system tests, oil dispersant

tests, mechanical oil-removal device tests, remote sensing tests and several USCG and industry

oil spill response training classes. Information on Ohmsett can be found at www.ohmsett.com.

Figure 2: Ohmsett Facility in New Jersey

Oil Spill Response and Planning: The BSEE is responsible for planning, preparedness, and

response-related activities related to oil and gas exploration, development, and production

seaward of the coastline. Oil spill preparedness and response activities include unannounced

drills, equipment inspections, review of Oil Spill Response Plans, participation in tabletop

exercises, and providing support to the Federal On-Scene Coordinator during spill events.
Oil Spill Research Appropriation

Bureau of Safety and Environmental Enforcement 59

The Bureau has established requirements for the preparation of Oil Spill Response Plans that

provide information on how an operator would respond to an oil spill. The BSEE often

collaborates with state response agencies to review and approve Oil Spill Response Plans for oil

and gas facilities in state offshore waters. For BSEE, a major focus of activity is implementation

of the DOI Emergency Preparedness & Response Strategy –Oil Discharges & Hazardous

Substance Releases.

Oil Spill Financial Responsibility: The BSEE is responsible for implementing the financial

responsibility provisions of Outer Continental Shelf Lands Act and the Oil Pollution Act, which

require companies responsible for certain offshore oil and gas facilities, in both Federal and state

waters, to demonstrate their ability to pay the costs of facility oil spill discharge removal and

damages. Several methods may be used to demonstrate oil spill financial responsibility (OSFR),

including insurance, bonds, self-insurance, and guarantee. The amount of OSFR needed is based

on facility location and the volume of the worst-case oil spill discharge that could occur.

Extensive coordination and exchange of lease data takes place with affected states to ensure that

the public is insulated from fiscal risk by ensuring that each offshore operator maintains the

ability to pay for damages resulting from worst-case oil spill scenarios.
Oil Spill Research Appropriation

60 Bureau of Safety and Environmental Enforcement

Supporting Performance Measures

2007

Actual

2008

Actual

2009

Actual

2010

Actual

2011

Plan

2011

Actual

2012

Plan

2013

President's

Budget

Change from

2012 to 2013

Plan

Long-term

Target

2016

Achieve a utilization rate of X

% at

Ohmsett, the national oil spill response testfacility (BU

R)

62%

(162/ 260)

90%

(217/240)

86.2%

(207/240)

91%

(218/240)

85%

85%

(204/240)

85% 85% 0% TBD

Com

ments

Note: Performance and Cost data may be attributable to multiple activities and subactivities. Therefore, measure costs may not equal totals shown in subactivity tables.Performance Overview - Oil Spill Research AppropriationGoal 1: Secure A

merica's Energy Resources

Strategy 1: Ensure environmental compliance and the safety of energy developmentMission Area 2: Sustainably Manage Energy, Water, and Natural Resources

Ohmsett is the National Oil Spill Response Test Facility located in New Jersey. At Ohmsett, clients can test oil spill response equipment in realisticconditions and have training in the use of the equipment. This measure evaluates the utilization level of the facility. The increased focus on oil spillresponse, as well as expanded uses for the facility such as dispersant training and renewable energy wave tests, have sustained overall utilization rates ataround 85%.

Table 15: Performance Overview Table- Oil Spill Research Appropriation
Appendix A

Bureau of Safety and Environmental Enforcement 61

Pay Raise and Pay-Related Changes 2011*

2012

Change

2013

Change

Calendar Year 2010 Quarter 4 N/A

Calendar Year 2011 Quarters 1-3 N/A

Calendar Year 2011 Quarter 4 -

Calendar Year 2012 Quarters 1-3 -

Calendar Year 2012 Quarter 4 -

Calendar Year 2013 Quarters 1-3 +268

Non-Foreign Area COLA Adjustment to Locality Pay N/A -

Change in Number of Paid Days +300

Employer Share of Federal Health Benefit Plans N/A - +379

+947

Other Fixed Cost Changes and Projections

Worker's Compensation Payments N/A - -65

Unemployment Compensation Payments N/A - -1

GSA Rental Payments N/A - +315

Departmental Working Capital Fund N/A - +576

+825

Total, Fixed Costs and Related Changes in 2013 +1,772

* Amounts have not been provided because 2011 levels reflected BOEMRE fixed cost levels and not BSEE.

Subtotal, Other Fixed Cost Changes

Subtotal, Pay Raises and Pay-Related Changes

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

services through the Working Capital Fund without including IT Transformation investments. These

charges are displayed in the Budget Justification for Departmental Management.

Bureau of Safety and Environmental Enforcement

Justification of Fixed Costs

(Dollars in Thousands)

The adjustment is for changes in the costs of compensating injured employees and dependents of employees

who suffer accidental deaths while on duty. Costs for the BY 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 adjustment is for 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.

The adjustment is for changes in the costs payable to General Services Administration (GSA) and others

resulting from changes in rates for office and non-office 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 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.
Appendix A

62 Bureau of Safety and Environmental Enforcement

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Appendix B

Bureau of Safety and Environmental Enforcement 63

FY 2013 Appropriations Language

BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT

Note: Brackets indicate the language will be deleted; italics represent new 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, [$61,473,000] $81,399,000, to remain available until

September 30, [2013] 2014; and an amount not to exceed [$59,081,000] $60,881,000

to be credited to this appropriation and to remain available until expended, from

additions to receipts resulting from increases to rates in effect on August 5, 1993, that

are collected and disbursed by the Secretary, 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, That notwithstanding 31 U.S.C.

3302, in fiscal year [2012] 2013, such amounts as are assessed under 31 U.S.C. 9701

shall be collected and credited to this account and shall be available until expended

for necessary expenses: Provided further, That to the extent [$59,081,000]

$60,881,000 in addition to receipts are not realized from the sources of receipts stated

above, the amount needed to reach [$59,081,000] $60,881,000 shall be credited to

this appropriation from receipts resulting from rental rates for Outer Continental

Shelf leases in effect before August 5, 1993 [: Provided further, That for fiscal year

2012 and each fiscalyearthereafter,theterm “qualified Outer Continental Shelf

revenues”, as defined in section 102(9)(A) of the Gulf of Mexico Energy Security

Act, division C of Public Law 109–432, shall include only the portion of rental

revenues that would have been collected by the Secretary at the rental rates in effect

before August 5, 1993].

For an additional amount, [$62,000,000] $65,000,000, to remain available until

expended, which shall be derived from non-refundable inspection fees collected in

fiscal year [2012] 2013, as provided in this Act: Provided, That to the extent that such

amounts are not realized from such fees, the amount needed to reach [$62,000,000]

$65,000,000 shall be credited to this appropriation from receipts resulting from rental

rates for Outer Continental Shelf leases in effect before August 5, 1993: Provided

further, That to the extent that amounts realized from such fees exceed [$62,000,000]

$65,000,000, the amounts realized in excess of [$62,000,000] $65,000,000 shall be

credited to this appropriation and remain available until expended: Provided further,

That for fiscal year [2012] 2013, not less than 50 percent of the inspection fees

[collected] 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.
Appendix B

Bureau of Safety and Environmental Enforcement 64

OCS Inspection Fee Language

(Proposed as a General Provision –Amends Section 109 of the 2012 Interior and Related

Agencies Appropriations Act)

OUTER CONTINENTAL SHELF INSPECTION FEES

SEC. [109]108.

(a) In fiscal year [2012] 2013, the Secretary shall collect a nonrefundable

inspection fee, which shall be deposited in the ["Ocean Energy Management'']

"Offshore Safety and Environmental Enforcement" account, from 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. Fees for

fiscal year [2012] 2013 shall be:

(1) $10,500 for facilities with no wells, but with processing equipment or

gathering lines;

(2) $17,000 for facilities with 1 to 10 wells, with any combination of active or

inactive wells; and

(3) $31,500 for facilities with more than 10 wells, with any combination of active

or inactive wells.

(c) Fees for drilling rigs shall be assessed for all inspections completed in fiscal

year [2012] 2013. Fees for fiscal year [2012] 2013 shall be:

(1) $30,500 per inspection for rigs operating in water depths of 500 feet or more;

and

(2) $16,700 per inspection for rigs operating in water depths of less than 500 feet.

(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.

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, [$14,923,000]

$14,899,000, which shall be derived from the Oil Spill Liability Trust Fund, to remain

available until expended.
Appendix C

Bureau of Safety and Environmental Enforcement 65

Appendix C: BSEE 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.

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.

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.
Appendix C

66 Bureau of Safety and Environmental Enforcement

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. The MMS provides

information and comments regarding the mineral resource

potential in areas being considered for designation as

marine sanctuaries.

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 the services or thing
Appendix C

Bureau of Safety and Environmental Enforcement 67

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
Appendix C

68 Bureau of Safety and Environmental Enforcement

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

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 Established 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

9505 of the Internal Revenue Code of 1986, 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
Appendix C

Bureau of Safety and Environmental Enforcement 69

technologies (BAST) and assurance that the use of up-todate 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).
Appendix C

70 Bureau of Safety and Environmental Enforcement

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Appendix D

Bureau of Safety and Environmental Enforcement 71

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 FY 2011* FY 2012 FY 2013

Obligations by program activity -Direct program

0001 Bureau of Safety and Environmental Enforcement 61 81

0192 Total direct program 61 81

Obligations by program activity -Reimbursable program

0801 Offsetting collections & Reimbursable Receipts 151 156

0899 Total reimbursable program 151 156

0900 Total new obligations (direct & reimbursable) 212 237

Budgetary resources

1000 Unobligated balance brought forward 40

1011 BOEMRE Unobligated balance transferred from

BOEM**

39 0

1021 Resources available from recoveries 1 0

1050 Unobligated balance 40 40

1160 Appropriation, discretionary 61 81

1700 Spending authority from offsetting collections 59 61

1700 Spending authority from offsetting collections

(Inspection Fees)

62 65

1700 Spending authority from offsetting collections

(Reimbursable Service Agreements)

30 30

1750 Total spending authority from offsetting

collections

151 156

1900 Budget authority 212 237

1050 Unobligated balance 40 40

1930 Total budgetary resources 252 277

0900 Obligations incurred, unexpired accounts -212 -237

1941 Unobligated balance carried forward, end of year 40 40

Net budget authority and outlays

4180 Budget authority, net 61 81

4190 Outlays, net 30 74

* In FY 2011, funding existed within the Bureau of Ocean Energy Management, Regulation and

Enforcement and therefore is not shown in this account.

** Unobligated Balance of $39M was brought forward from BOEMRE and transferred from

BOEM to BSEE. FY 2012 is the first year of BSEE.
Appendix D

72 Bureau of Safety and Environmental Enforcement

Object Classification

(dollars in millions)

Treasury Account ID: 14-1700 FY 2011 FY 2012 FY 2013

OSEE (Direct obligations)

11 Personnel Compensation: Full-time permanent 41 46

12 Civilian personnel benefits 13 15

21 Travel and transportation of persons 1 3

25 Other services 6 17

99.0 Direct obligations 61 81

OSEE (Reimbursable obligations)

11 Personnel Compensation: Full-time permanent 16 16

12 Civilian personnel benefits 5 5

21 Travel and transportation of persons 4 4

23 Rental payments to GSA 8 8

25 Other services 104 109

26 Supplies and materials 4 4

31 Equipment 10 10

99.0 Reimbursable obligations 151 156

99.0 Total OSEE 212 237

Account Object Class Information

(dollars in millions)

Treasury Account ID: 14-1700

FY 2012

Enacted

Fixed Costs

Changes

Program &

Reorganization

Changes FY 2013

Object Class FTE AMT FTE AMT FTE AMT FTE AMT

Total Appropriation

And Offsetting Collections

683 212 --- --- 63 25 746 237

Total personnel

compensation and personnel

benefits

--- 75 --- --- --- 7 --- 82

Travel and transportation of

persons

--- 5 --- --- --- 2 --- 7

Rents, communications

utilities, and misc. charges

8 --- --- --- --- 8

Other services --- 110 --- --- --- 16 --- 126

Supplies and materials --- 4 --- --- --- --- --- 4

Equipment --- 10 --- --- --- --- --- 10
Appendix D

Bureau of Safety and Environmental Enforcement 73

Bureau of Safety and Environmental Enforcement

Oil Spill Research (OSR)

Program and Financing

(dollars in millions)

Treasury Account ID: 14-8370 FY 2011 FY 2012 FY 2013

Obligations by program activity -Direct program

0001 Direct program activity 10 15 15

0900 Total new obligations 10 15 15

Budgetary resources

1000 Unobligated balance brought forward 4 4

1101 Appropriation (special or trust fund) 12 15 15

1700 Spending authority from offsetting collections 2

1930 Total budgetary resources 14 19 19

Net budget authority and outlays

4180 Budget authority, net 12 15 15

4190 Outlays, net 5 13 14
Appendix D

74 Bureau of Safety and Environmental Enforcement

Object Classification

(dollars in millions)

Treasury Account ID: 14-8370 FY 2011 FY 2012 FY 2013

OSR (Direct obligations)

11 Personnel Compensation: Full-time permanent 2 2 2

25 Other services 6 12 13

94 Financial Transfers* 1

99.0 Direct obligations 8 15 15

OSR (Reimbursable obligations)

25 Other services 2

99.0 Reimbursable obligations 2

99.0 Total OSR 10 15 15

*Transfer of $1M to BOEM.

Account Object Class Information

(dollars in millions)

Treasury Account ID: 14-8370

FY 2012

Enacted

Fixed Costs

Changes

Program &

Reorganization

Changes FY 2013

Object Class FTE AMT FTE AMT FTE AMT FTE AMT

Total Appropriation

And Offsetting Collections

20 15 --- --- --- --- 20 15

Total personnel

compensation and personnel

benefits

--- 2 --- --- --- --- --- 2

Other services --- 12 --- --- --- --- --- 13

Financial Transfers --- 1 --- --- --- --- --- ---
Appendix E

Bureau of Safety and Environmental Enforcement 75

2011 Actuals 2012 Estimates 2013 Estimates

ExecutiveService...............................................................6........................6 ..... 6

GS/GM-15......................................................................40........... 41 41

GS/GM-14......................................................................97........... 103 103

GS/GM-13......................................................................175........... 166 166

GS-12............................................................................86..... 125 151

GS-11............................................................................70..... 120 137

GS-10...............................................................................5 .. 4 4

GS-9............................................................................42..... 53 53

GS-8............................................................................22..... 21 21

GS-7............................................................................43..... 40 40

GS-6............................................................................16..... 16 16

GS-5............................................................................20..... 17 17

GS-4...............................................................................9.. 10 10

GS-3...............................................................................2.. 1 1

GS-2...............................................................................0.. 0 0

GS-1...............................................................................0.. 0 0

Subtotal..........................................................633.....................723.. 766

OtherPayScheduleSystems....................................................0.....................0 ........ 0

Totalemployment(actuals&estimates)...............................633 .....................723 .....................766........

The FY 2011 Actuals column is an estimate for BSEE.

Bureau of Safety and Environmental Enforcement

Employee Count by Grade

(Total Employment)

Notes on this table:

 All grades presented in this table include career, career-conditional, temporary, and political

employees.

 Executive Service includes Senior Executive Service (SES) and Executive Level employees.

 GS refers to employees covered by the General Schedule classification and pay system

established under the Classification Act of 1949, as amended. (5 U.S.C. chapter 53, subchapter

III, and 5 CFR part 531)

 GM refers to employees covered by the General Schedule classification and pay system who are

covered by the Performance Management and Recognition System (PMRS) termination

provisions of Public Law 103-89 (former PMRS employees).
Appendix E

76 Bureau of Safety and Environmental Enforcement

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Appendix F

Bureau of Safety and Environmental Enforcement 77

Appendix F

Bureau of Safety and Environmental Enforcement

FY 2013 Mandatory Accounts and Offsetting Collections

Appropriation Proposals

Account: Offshore Safety and Environmental

Enforcement/Operations, Safety and

Regulation

Proposed Change: For an additional amount, [$62,000,000]

$65,000,000, to remain available until

expended, which shall be derived from nonrefundable inspection fees collected in fiscal

year [2012] 2013, as provided in this Act.

Cost/Revenue Estimate: +$3,000,000

Description of Proposed Change: Increased inspection fee revenue.

Justification: Will be used to offset cost of safety

inspections.
78 Bureau of Safety and Environmental Enforcement

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Appendix G

Bureau of Safety and Environmental Enforcement 79

Bureau of Safety and Environmental Enforcement

Working Capital Fund Centralized Bill

(Dollars in thousands)

Account

2011

Actual

2012

Pres

Budget

2012

Estimate

2013

Estimate

Document Management Unit 2.1 42.5

FOIA Tracking & Reporting System 14.9 16.1

Alaska Affairs Office 7.4 7.5

Alaska Resources Library and Information Services 43.2 41.0

Departmental News and Information 8.4 9.0

Departmental Museum 12.7 15.2

FedCenter 2.2 2.1

Compliance Support ESF-11/ESF-11 Website 2.3

Invasive Species Council 17.9 17.2

Invasive Species Coordinator 3.2 3.2

CPIC 1.7 2.2

Financial Management & Internal Controls 10.5 9.6

Travel Management Center 0.8 0.9

e-Travel (Formerly: e-Gov Travel) 3.5 14.8

FBMS Master Data Management 0.5 14.2

Interior Collections Management System 2.2 2.1

Space Management Initiative 3.3 3.6

Planning and Performance Management 11.3 13.6

Department-wide OWCP Coordination 3.0 2.9

OPM Federal Employment Services 4.2 4.2

Accessible Technology Center 3.3 3.5

Accountability Team 4.9 6.9

Employee and Labor Relations Tracking System 0.3 0.3

EEO Complaints Tracking System 0.6 0.6

Special Emphasis Program 0.5 0.5

Occupational Health and Safety 16.8 19.0

Safety and Health Training Initiatives 0.0 0.0

Safety Management Information System 13.3 14.6

DOI Learn 15.3 0.0

DOI Executive Forums (Leadership Development) 1.3 8.7

Financial Management Training 0.0 0.0

SESCDP & Other Leadership Programs 1.8 0.0

Online Learning (Technology Solutions Division) 5.0 24.8

Learning and Performance Center Management 4.1 0.0

Albuquerque Learning & Performance Center 2.8 2.7

Anchorage Learning & Performance Center 5.1 0.0

Washington Learning & Performance Center 12.1 11.9

DOIU Management 5.8 8.2

Security (Classified Information Facility) 5.5 5.5

Law Enforcement Coordination and Training 10.6 10.0

Security (MIB/SIB Complex) 144.7 144.7

Victim Witness 2.0 2.1

Interior Operations Center 30.3 24.6
Appendix G

80 Bureau of Safety and Environmental Enforcement

Bureau of Safety and Environmental Enforcement

Working Capital Fund Centralized Bill

(Dollars in thousands)

Account

2011

Actual

2012

Pres

Budget

2012

Estimate

2013

Estimate

Emergency Preparedness 9.8 9.3

Emergency Response 13.6 12.9

MIB Health and Safety 2.4 2.9

Electronic Records Management 8.2 12.7

Enterprise Services Network 186.1 174.8

Web & Internal/External Comm 5.5 0.0

Enterprise Architecture 37.1 31.6

IT Security-IVV 24.2 17.7

Capital Planning 17.9 28.3

Privacy (Information Management Support) 7.2 5.2

IT Security –Information Assurance Division 50.9 10.5

Active Directory 33.5 34.0

Enterprise Resource management 4.7 11.1

DOI Access 12.8 11.5

Data at Rest 0.6 0.0

IT Asset Management 3.4 8.6

OCIO Project Management Office 8.2 0.0

Threat Management 9.0 25.1

IOS Collaboration 9.3 8.4

Unified Messaging 19.4 17.4

Federal Relay Service 0.4 0.3

Alternative Dispute Resolution Training 0.6 0.6

Conservation and Education Partnerships 3.2 2.9

Mail and Messenger Services 32.0

Passport and Visa Services 8.6

Health Unit 6.2

Federal Executive Board 3.4

Special Event Services 1.0

Safety and Environmental Services 10.2

Shipping and Receiving 7.1

Moving Services 5.1

Vehicle Fleet 1.9

Property Accountability Services 13.5

Family Support Room 0.6

Interior Complex Management & Svcs 18.8

Departmental Library 28.8

Mail Policy 4.2

Space Management Services 6.8

Aviation Management 456.0

Contingency Reserve 1.9 1.8

Cooperative Ecosystem Study Units 10.0 10.0

CFO Financial Statement Audit 538.6 542.2

e-Government Initiatives (WCF Contributions Only) 34.2 48.8

Ethics 7.4 6.6
Appendix G

Bureau of Safety and Environmental Enforcement 81

Bureau of Safety and Environmental Enforcement

Working Capital Fund Centralized Bill

(Dollars in thousands)

Account

2011

Actual

2012

Pres

Budget

2012

Estimate

2013

Estimate

FOIA Appeals 11.6 10.4

NBC IT Security Improvement Plan 7.5 7.5

MIB Data Networking 9.9 9.8

Information Mgmt - FOIA and Records

Management 6.2 6.2

Telecommunication Services 37.2 41.6

Integrated Digital Voice Communications System 18.6 17.3

Desktop Services 4.6 3.4

Audio Visual Services 7.1 7.1

Interior Complex Cabling O&M 1.3 0.0

FPPS/Employee Express - O&M 139.9 159.0

Departmental Library 29.3 0.0

Interior Complex Management & Services 18.3 0.0

Family Support Room 0.7 0.0

Property Accountability Services 13.7 0.0

Vehicle Fleet 2.0 0.0

Moving Services 5.2 0.0

Shipping and Receiving 7.2 0.0

Safety and Environmental Services 10.3 0.0

Space Management 6.9 0.0

Federal Executive Board 3.4 0.0

Health Unit 6.3 0.0

Passport & Visa Services 8.7 0.0

Mail & Messenger Services 28.2 0.0

Mail Policy 4.3 0.0

Special Events Services 1.1 0.0

Transportation Services (Household Goods) 1.6 1.7

IDEAS 8.4 7.0

FBMS Master Data Management 0.4 0.4

NBC FBMS Conversion 3.4 0.0

Consolidated Financial Statement System 8.4 8.4

FBMS Hosting / Applications Management 184.5 65.1

FBMS Redirect - IDEAS 27.6 29.1

FBMS Help Desk –NBC Customer Support Center 120.2

Aviation Management 431.9 0.0

Aviation Management System - O&M 23.2 0.0

TOTAL 2,577.5 2,646.6
Appendix G

82 Bureau of Safety and Environmental Enforcement

Bureau of Safety and Environmental Enforcement

Working Capital Fund Direct Bill

(Dollars in thousands)

Account

2011

Actual

2012

Pres

Budget

2012

Estimate

2013

Estimate

Federal Assistance Award Data System 0.5

e-OPF 41.6

EAP Consolidation 15.5

EEO Training 12.3 12.3

Albuquerque Learning & Performance Center 2.2 2.4

Anchorage Learning & Performance Center 0.2

Online Learning 6.0 6.0

Washington Leadership & Performance Center 6.3 6.3

Oracle Licenses and Support 66.0 127.0

Microsoft Enterprise Licenses 244.6 244.6

Anti-Virus Software Licenses 26.8 22.3

Enterprise Services Network 131.7 126.2

DOI Access 32.6 44.8

Data at Rest Initiative 2.4 2.5

Unified Messaging 156.0 156.0

Creative Communications 5.7

Reimbursable Mail Services 0.8

e-Mail Archiving (Cobell Litigation) 178.5 183.9

Federal FSA Program 30.4 31.4

FBMS Change Orders 11.5 10.2

ESRI Enterprise Licenses 117.2 47.6

Customer Support Services Division 2.0 1.1

Client Liaison and Product Development Division 1.3

Personnel & Payroll Systems Division 0.5

HR Management Systems Division 71.8

Quicktime Services 35.1 0.0

Payroll & HR Systems 117.5

Facilities Reimbursable Services 7.1

Creative Communications 8.7

Reimbursable Mail Services 0.8

TOTAL 1152.2 1205.0
Appendix H

Bureau of Safety and Environmental Enforcement 83

Bureau of Safety and Environmental Enforcement

Section 405 Compliance

Deductions, Reserves, or Holdbacks

FY 2013

($ Millions)

General Support Services

Working Capital Fund Centralized Billing 2.6

Working Capital Fund Direct Billing 1.2

Total Assessments of Bureau Programs: $3.8M

Working Capital Fund - The estimated cost of the Department in providing BSEE with

centralized business and administrative services. These charges are paid from the General

Support Services activity for the entire bureau.

BSEE direct bills its activities for support costs and is reimbursed by BOEM for providing

administrative services.
Appendix H

84 Bureau of Safety and Environmental Enforcement

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