and Performance Information

Fiscal Year 2017

BUDGET

JUSTIFICATIONS

The United States

Department of the Interior

Printed on

8

Recycled Paper

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 2017 Greenbook
 

Table of Contents 

Bureau/Office-Level Presentation
 

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

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

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

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives................. 17
 

Strategic Objective Performance Summary............................................................................................ 29
 

Table: Goal Performance ................................................................................................................... 31
 

Table: Budget At A Glance.................................................................................................................... 33
 

Account-Level Presentation 

Offshore Safety and Environmental Enforcement Appropriation 

Table: Summary of Requirements ......................................................................................................... 35
 

Table: Fixed Costs and Internal Realignments ...................................................................................... 37
 

Language Citations ................................................................................................................................. 39
 

Appropriations Language ................................................................................................................... 39
 

Mandatory and Offsetting Collections Proposals ................................................................................... 43
 

Table: Comparison of Offsetting Rental Receipt Projections............................................................ 44
 

Table: Allocation of Offsetting Rentals to BOEM and BSEE........................................................... 45
 

Environmental Enforcement Activity-Level Presentation
 

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

Summary of 2017 Program Changes ..................................................................................................... 47
 

Justification of 2017 Program Changes ................................................................................................. 47
 

Program Overview................................................................................................................................. 47
 

Operations, Safety and Regulations Activity-Level Presentation
 

Table: Activity Budget Summary .......................................................................................................... 51
 

Summary of 2017 Program Changes ..................................................................................................... 51
 

Justification of 2017 Program Changes ................................................................................................. 51
 

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

i 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Overview ........................................................................................................................ 53
 

Table: Performance Overview ............................................................................................................ 64
 

Administrative Operations Activity-Level Presentation
 

Table: Activity Budget Summary ....................................................................................................... 65
 

Summary of 2017 Program Changes ................................................................................................... 65
 

Justification of 2017 Program Changes ............................................................................................... 65
 

Program Overview ............................................................................................................................... 65
 

General Support Service Activity-Level Presentation
 

Table: Activity Budget Summary ....................................................................................................... 71
 

Internal Transfers................................................................................................................................. 71
 

Executive Direction Activity-Level Presentation
 

Table: Activity Budget Summary ....................................................................................................... 73
 

Summary of 2017 Program Changes ................................................................................................... 73
 

Justification of 2017 Program Changes ............................................................................................... 73
 

Program Overview ............................................................................................................................... 73
 

Account-Level Presentation 

Oil Spill Research Appropriation 

Table: Summary of Requirements ...................................................................................................... 77
 

Language Citations .............................................................................................................................. 79
 

Appropriations Language ................................................................................................................ 79
 

Table: Oil Spill Research Budget Summary ....................................................................................... 81
 

Justification of 2017 Program Changes ............................................................................................... 81
 

Program Overview ............................................................................................................................... 81
 

Performance Overview ........................................................................................................................ 82
 

Table: Performance Overview ............................................................................................................ 86
 

Appendices 

Section 403 Compliance ..................................................................................................................... 87
 

Employee Count by Grade.................................................................................................................. 93
 

MAX Tables........................................................................................................................................ 95
 

Authorizing Statutes.......................................................................................................................... 101
 

ii 
 

 

Table of Figures
 

Figure 1: Projected Decline in Offsetting Rentals ............................................................................... 44
 

Figure 2: Ohmsett Facility ..................................................................................................................... 85
 

iii 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Director’s Preface 

FY 2017 BUDGET JUSTIFICATIONS
 

Bureau of Safety and Environmental Enforcement
 

Director’s Preface 

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

Environmental (BSEE) is taking the necessary steps to provide effective oversight of oil and gas 

development on the U.S. Outer Continental Shelf (OCS), promoting a culture of safety and environmental 

protection and ensuring compliance with Federal regulations within the offshore oil and gas industry. 

The 2017 BSEE budget fully supports the President’s strategy by ensuring that development of the 

Nation’s vast offshore energy resources is conducted in a safe and environmentally responsible manner. 

Funds will be used to support and recruit expert engineers, scientists, and oil spill planning, prevention, 

and response specialists to support the development of strong scientific information and the timely and 

thorough review of permits. 

In 2017, BSEE will continue to build a robust culture of safety, with a strong focus on risk reduction. 

Every decision and every action will be taken with the workers and the environment in mind. Risks to 

both will be appropriately balanced and mitigated. The Bureau will bolster its capacity for analyzing data 

gained through incident reporting requirements, near-miss reporting, and real-time monitoring. The 

Bureau will also continue to work with industry to better understand their safety processes, so that BSEE 

can mitigate and reduce risk. Through these initiatives and others, the Bureau will continue to ensure that 

offshore development occurs in a safe and environmentally responsible way. 

BSEE’s efforts are supported by six strategic goals identified in the Bureau’s FY 2016-19 Strategic Plan: 

three operational excellence goals and three organizational excellence goals. These strategic goals guide 

BSEE’s decision-making and investment strategies. 

Operational Excellence Goals: The foundation of BSEE’s work includes permitting, inspections, 

investigations, enforcement, and preparedness – all of which support safety and environmental protection. 

•	 Promote Safety: BSEE reduces risk to those working offshore by advancing a culture of safety 

that encourages industry to go beyond baseline regulatory compliance. 

•	 Protect the Environment: BSEE promotes environmental stewardship through integrated 

prevention, compliance, and preparedness activities. 

•	 Conservation: BSEE actively identifies and pursues opportunities to improve oil and gas
 

recovery and to ensure accurate production measurement.
 

Bureau of Safety and Environmental Enforcement 1 
 

 

 

 

 

 

Director’s Preface 

Organizational Excellence Goals: BSEE’s organizational excellence goals support the Bureau’s ability 

to execute its operational goals. 

•	 People: BSEE is an employer of choice: BSEE values, engages, and supports its people so they 

can excel. 

•	 Information: BSEE consistently collects, analyzes, and uses quality information to drive 

decision making. 

•	 Transparency: BSEE promotes transparency through processes that ensure consistency, 

efficiency, accountability, and collaboration. 

BSEE’s FY 2017 budget will continue to focus on supporting risk-based oversight, promoting research 

and development of new technologies, scientific investments, and monitoring techniques to best manage 

the country’s natural resources, and ensuring safe and environmentally responsible development of the 

Nation’s offshore energy resources. 

2 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

General Statement 

FY 2017 PERFORMANCE BUDGET REQUEST 

Bureau of Safety and Environmental Enforcement 

General Statement 

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

BSEE Summary 

($000) 

Account/Activity FY 2015 

Actual 

FY 2016 

Enacted 

FY 2017 

Request 

Change 

from 

FY 2016 

Offshore Safety & Environmental Enforcement (OSEE) 

Environmental Enforcement 

Operations, Safety and Regulation 

Administrative Operations 

General Support Services 

Executive Direction 

8,314 

133,597 

15,676 

13,912 

18,227 

8,314 

144,954 

18,268 

-

18,236 

8,314 

145,150 

18,268 

-

18,236 

-

196 

-

-

-

Total, OSEE 189,726 189,772 189,968 +196 

Offsetting Collections 

Offsetting Rental Receipts 

Cost Recovery Fees 

Inspection Fees 

-50,412 

-5,510 

-55,460 

-49,399 

-7,808 

-59,000 

-37,922 

-5,608 

-65,000 

+11,477 

+2,200 

-6,000 

Total, Offsetting Collections -111,382 -116,207 -108,530 +7,677 

Net, OSEE 78,344 73,565 81,438 +7,873 

Oil Spill Research 14,899 14,899 14,899 -

Current BSEE Funding 93,243 88,464 96,337 +7,873 

Total BSEE Funding 204,625 204,671 204,867 +196 

Full Time Equivalents (FTE) 

Total Direct FTE 

Total Reimbursable FTE (Reimbursable Agreements) 

674 

111 

756 

125 

756 

125 

-

-

Total FTE 785 881 881 -

As the United States’ regulator of offshore energy exploration, production, and development, the Bureau 

of Safety and Environmental Enforcement (BSEE) promotes safety, protects the environment, and 

conserves energy resources offshore through vigorous regulatory oversight and enforcement. The 

Bureau’s jurisdiction and regulatory responsibilities are defined by the Outer Continental Shelf Lands Act 

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

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

Environmental Policy Act (NEPA), the Clean Air Act, the Clean Water Act, the Federal Oil and Gas 

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

Bureau of Safety and Environmental Enforcement 3 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Statement 

BSEE uses the full range of authorities, policies, and tools to ensure safety, oil spill response 

preparedness, environmental stewardship, and appropriate development of offshore oil, natural gas, and 

renewable energy resources. Key functions include: 

•	 An offshore regulatory program that establishes critical standards and regulations and 

emphasizes a culture of safety in all offshore activities;
 

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

are properly identified and minimized; 

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

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

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

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

technologies; 

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

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

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

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

regulatory enforcement actions; 

•	 Investigation of incidents and allegations of unsafe and/or illegal conduct during offshore
 

operations; and 

•	 Enforcement of all applicable environmental and operational regulations, as well as ensuring that 

operators adhere to the stipulations of their approved leases, plans, and permits. 

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

energy for the U.S. In fiscal year 2015, OCS leases offshore Alaska, California, and in the Gulf of 

Mexico (GOM) provided 553 million barrels of oil and 1.3 trillion cubic feet of natural gas, accounting 

for about 16 percent of the Nation’s oil production and about 5 percent of domestic natural gas 

production1, 2

. The Energy Information Administration projects offshore production will continue to 

grow through 2040, as the pace of development activity quickens and new large development projects, 

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

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

http://www.data.bsee.gov/homepg/data_center/production/ocsprod.asp

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

4 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

General Statement 

FY 2017 BUDGET REQUEST
 

BSEE works to promote safety, protect the 

environment, and conserve resources 

offshore through vigorous regulatory 

oversight and enforcement. 

BSEE was established on October 1, 2011, to ensure the safe and responsible development of our 

Nation’s offshore energy resources. As the Administration works to support domestic energy production, 

BSEE is taking the necessary steps to provide effective oversight of oil, natural gas, and renewable energy 

development on the OCS, promoting a culture of safety and environmental protection and ensuring 

compliance with Federal regulations within the offshore oil and gas industry. The Bureau has set 

organizational priorities based on focus areas outlined in the Bureau’s FY 2016-19 Strategic Plan. The 

Plan identifies six strategic goals: three operational excellence goals that encapsulate BSEE’s core 

functions including inspections, permitting, investigations, enforcement and preparedness; and three 

organizational excellence goals focused on BSEE’s internal capacity to execute these functions. One of 

BSEE’s organizational excellence goals is to value, engage and support its people so they can excel. 

Critical to accomplishing this goal is the Bureau’s ability to recruit, develop, and retain a diverse 

workforce. To meet growing manpower demands, BSEE continues to engage in an aggressive hiring 

effort to ensure that it has the expertise and staffing levels to implement a more comprehensive inspection 

and risk mitigation program. These focus areas strategically prioritize the Bureau’s actions, and are 

strengthened by BSEE’s guiding principles of clarity, consistency, predictability, and accountability to the 

American public and the regulated community. 

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

technologies, BSEE continues to adapt its oversight and regulatory approach. Programs have been 

established that identify, evaluate, and promote emerging technologies that will decrease risks associated 

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

research on new technologies, the results of which assist the Bureau in staying current with expanding 

operations, as well as future activities on the OCS, such as inspecting proposed renewable energy projects 

and evaluating technological advances that allow for deeper drilling at higher temperatures and pressures. 

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

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

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

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

actual response protocols and decision-making processes. 

Bureau of Safety and Environmental Enforcement 5 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Statement 

Assessing and Managing Risk 

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

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

how BSEE regulates and enforces standards and, therefore, how BSEE approaches safety and 

environmental stewardship on the OCS. To better assess and manage risk, the Bureau has strengthened 

both its regulations and programs in the following areas: 

Safety on Production Facilities: A proposed production safety systems rule that will provide the first 

updates to regulations for production safety systems since the late 1980’s is in the final process stage and 

should be finalized in FY 2016. This rule incorporates best practices for equipment and systems that 

protect 2500 facilities that are currently producing oil and gas on the OCS. 

Well Control during Drilling Operations: BSEE has put new rules in place that strengthen requirements 

for blowout preventer (BOP) maintenance and testing. Additionally, BSEE published a comprehensive 

proposed rule that will address a myriad of systems and processes, including BOPs involved in well 

control operations. This proposed rule is intended to account for all aspects of well control operations in 

order to reduce risks that could lead to technical and operational failures such as those that resulted in the 

loss of well control and explosion aboard the Deepwater Horizon. The Bureau is in the process of 

developing a final rule after careful review of comments received and anticipates publishing a final rule in 

mid FY 2016. 

Safety Culture: The Safety and Environmental Management System (SEMS) program is one of the major 

components of BSEE’s hybrid regulatory approach which combines prescriptive and performance-based 

rules. The goal is to encourage the offshore oil and gas industry to adopt an approach to safety that looks 

beyond baseline compliance with regulations toward a safety culture that promotes improved awareness 

and continuous improvement in operational safety and environmental performance. The SEMS program 

is meant to be a tool through which companies actively identify, manage, and improve safety performance 

related to human behavior, organizational structure, leadership, monitoring of critical equipment and 

processes, and adoption of standards, processes, and procedures – not simply become a compilation of 

required documentation. BSEE continues to incorporate the principles of SEMS as part of its inspection 

program, which has traditionally focused on compliance issues. 

Arctic Exploration: As part of the Administration’s commitment to developing America’s domestic 

energy resources safely, the Department of the Interior (DOI) issued proposed draft regulations in 2015 to 

help ensure that any future exploration in the Arctic is done responsibly and subject to the highest safety 

standards. The draft regulations support the Administration’s coordinated and deliberative approach to 

the Arctic by requiring specialized practices for conducting exploratory drilling operations in this unique 

and challenging environment as well as the use of performance-based standards to ensure that operators 

have taken the necessary steps for proper internal controls and planning for oil spill prevention, 

containment, and response. Recognizing the complexities of an Arctic response, BSEE is also working 

with Federal partners in the creation of a government-wide plan that would support the government 

presence in Alaska during a major spill. Efforts also continue with Arctic Nations to plan and execute 

circumpolar spill response exercises, develop databases of Arctic-specific response equipment, address 

questions on movement of equipment and people across borders during emergencies, and assessing the 

6 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Statement 

risks of oil spills as the Arctic waters become more accessible to shipping and hydrocarbon exploration 

and production. 

Research and Collaboration: Important research and assessment involving emerging technology, critical 

safety equipment, and risk assessment is performed by BSEE. These programs are focused on providing 

useful analysis and regulatory tools that can address specific safety concerns arising out of the use of new 

and emerging technology or to assist in the analysis of incidents. BSEE’s programs include extensive 

collaborations with other Federal entities such as Department of Energy’s (DOE) National Labs and the 

National Aeronautics and Space Administration (NASA). BSEE is also actively engaged in joint research 

programs with industry to verify the performance of equipment being used to develop high-temperature 

and high-pressure reservoirs. BSEE’s Best Available and Safest Technology (BAST) program, which 

assesses the performance of current equipment, helps to ensure that operators have installed the best 

available technology for critical operations. Coordination of this activity is helped by the Offshore 

Energy Safety Institute (OESI) which provides an independent forum for dialogue, shared learning, and 

cooperative research among academia, government, industry, and other stakeholders. The OESI is a 

neutral ground for the exploration of issues of offshore risk that are of common concern to industry and 

regulators. 

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

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

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

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

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

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

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

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

Executive Summary. 

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

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

preparedness, and response. The ICCOPR, a congressionally-mandated body comprised of staff from 

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

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

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

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

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

Technology Assessment: The Engineering Technology Assessment Center (ETAC) in Houston, Texas, is 

strengthening BSEE’s ability to assess novel and emerging technologies by keeping pace with an 

increasingly complex industry. Through ETAC, the Bureau works more closely with Original Equipment 

Manufacturers and participates more fully with standards-setting bodies such as the API, the American 

Society of Mechanical Engineers (ASME), and the National Association of Corrosion Engineers (NACE). 

The Center serves as the primary liaison between BSEE and OESI. The Federal staff engineers will work 

with OESI on joint industry projects. The ETAC is intended to supplement activities that are already 

Bureau of Safety and Environmental Enforcement 7 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Statement 

occurring at the regional level by providing additional technical expertise with BSEE staff and contract 

support. 

Data Collection and Sharing: In May 2015, BSEE launched the SafeOCS program, an initiative aimed at 

collecting and analyzing near-miss data. SafeOCS is a voluntary and completely confidential system in 

which the Bureau of Transportation Statistics (BTS) will collect and analyze near-miss reports. The 

aggregated data will be shared with the general public and industry to assist in the identification of safety 

trends and potential safety issues. BSEE’s new regulatory initiatives also mandate the sharing of key data 

within industry to ensure that equipment reliability issues can be quickly identified and addressed before 

an incident occurs. 

These achievements represent important steps to promote offshore safety as well as protect life, property, 

and the environment. As planned, BSEE continues to define and implement reforms and to hire the 

personnel needed to ensure the safe and responsible development of America’s offshore energy resources. 

International Collaboration 

BSEE engages regularly with its international counterparts in order to promote the safe and 

environmentally responsible development of offshore energy resources globally. BSEE has established 

itself as a leader in international cooperation, occupying leadership roles in multilateral fora such as the 

International Regulators Forum, the Arctic Offshore Regulators Forum, the Arctic Council bodies, such 

as the Emergency Prevention, Preparedness, and Response Working Group, and the International 

Offshore Petroleum Environment Regulators group. Additionally, BSEE places a priority on maintaining 

strong bilateral relationships with a number of international partners such as Canada and Mexico. This is 

particularly true for neighboring regulators, with whom the exchange of information and best practices is 

essential in facilitating greater regulatory certainty and providing for cooperation on oil spill prevention 

and preparedness in adjoining maritime jurisdictions. BSEE also works regularly with the Department of 

State and DOI Office of International Affairs in providing technical assistance to select countries on the 

verge of becoming significant oil and gas producers. 

Strategic Planning 

In FY 2017, BSEE will continue implementation of its 2016 - 2019 Strategic Plan. Three key initiatives 

will inform the plan’s implementation: (1) refinement of a comprehensive set of output and outcomebased performance measures; (2) implementation of an enterprise risk-management framework to 

facilitate information sharing and identify the risk relationships among and within programs; and 

(3) implementation of its national program manager model to ensure consistency across regions. These 

initiatives support both effective decision making and assessment of the Bureau’s progress in meeting its 

priorities. 

Additionally, focus areas highlighted in the 2016 - 2019 Strategic Plan include: 

• Ensure a consistent, national approach to detection of noncompliance and incident investigation. 

• Examine the full life cycle of offshore operations and adapt to changing conditions. 

8 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

General Statement 

•	 Further incorporate risk-based decision making into core safety functions. 

•	 Rigorously enforce all environmental protection and oil spill preparedness requirements. 

•	 Collaboratively generate nationwide policies, procedures, Notice to Lessees (NTLs), and
 

regulations among headquarters and the regions.
 

•	 Improve engagement with employees to foster a culture of collaboration within BSEE. 

•	 Develop and sustain a well-trained, high-performing and diverse workforce. 

•	 Maintain productive relationships with Congress, the Department, key departmental Bureaus and 

offices, other government agencies, international partners, tribes, and non-governmental 

stakeholders. 

•	 Enhance BSEE’s decision making through the collection, management, and analysis of high 

quality information. 

•	 Deliver high-quality administrative services and products to internal and external customers. 

•	 Drive the continued modernization of Information Technology (IT) and information management 

processes and infrastructure to effectively support our mission and decision making processes. 

Clear and Consistent Policies and Implementation 

During FY 2016, BSEE began an effort to strengthen internal controls and to better track and demonstrate 

results for mission-critical operations. BSEE identified national program managers with direct lines of 

responsibility for managing major program functional areas. The designated national program leads will 

coordinate policy development, in collaboration with the Regions, which establish the programmatic 

framework in support of the Bureau's mission. The Regional Directors will apply resources to execute 

these policies at the field level. This governance model provides collaborative decision-making structures 

necessary for policy development and consistent enactment that directly advance the Bureau's goals of 

safety, environmental stewardship, and responsible energy development on the OCS. Principal functions 

include: (1) setting overall strategy for the programs, including performance measures; (2) establishing 

priorities for resource allocation; and, (3) monitoring program performance. 

Bureau of Safety and Environmental Enforcement 9 
 

 

 

 

 

 

 

 

 

 

General Statement 

PROPOSED ARCTIC RULE 

February 2015 – BSEE and BOEM released proposed regulations that seek to ensure that future 

exploratory drilling operations on the U.S. Arctic Outer Continental Shelf are conducted in a 

safe and environmentally responsible manner. Using a combination of performance-based and 

prescriptive standards, the proposed regulations codify and further develop current Arcticspecific operational standards that seek to ensure that operators take the necessary steps to plan 

through all phases of offshore exploration in the Arctic. 

PROPOSED WELL CONTROL RULE 

April 2015 – In response to the findings of investigations into the Deepwater Horizon tragedy, 

and following a thorough evaluation of recommendations from industry groups, equipment 

manufacturers, Federal agencies, academia, and environmental organizations, Secretary of the 

Interior Sally Jewell announced proposed regulations to better protect human lives and the 

environment from oil spills. The proposed well control rule: 

•	 Includes more stringent design 

requirements and operational
 

procedures for critical well control
 

equipment used in offshore oil and 

gas operations.
 

•	 Addresses the range of systems and equipment related to well control operations. 

•	 Includes reforms in well design, well control, casing, cementing, real-time monitoring, and 

subsea containment. 

•	 Requires improved controls of all repair and maintenance activities through the lifecycle 

of the blowout preventer and other well control equipment. 

•	 Provides verification of the performance of equipment designs through third party 

verification, enhanced oversight of operations through real-time monitoring viewed 

onshore, and requires operators to, during operations, use engineering best standards that 

reduce risk. 

Compliance, Inspections, and Enforcement 

Based on recommendations from investigatory and oversight reports, internal and external reviews of 

operations, and reorganization studies, BSEE is implementing a number of improvements to its inspection 

regime. BSEE will continue to look for improvements to enhance its investigation, analysis, regulatory, 

inspection, and compliance programs based on risk considerations within those programs. 

10 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Statement 

Risk-based Inspections: The Bureau is actively implementing a risk-based inspection methodology for 

use at various levels within the regulatory program. Through the identification and quantification of risk, 

such as through analyzing leading and lagging indicators, BSEE can better gauge operator performance 

and improve its analysis of the effectiveness of redundant physical controls (barrier analysis) on well 

operations. In the first quarter of FY 2016, BSEE piloted a risk-analysis methodology for production 

facilities. The Bureau is actively deploying this methodology which, when combined with findings from 

our annual inspection program and trends identified in the third party SEMS audits, will enable BSEE to 

effectively focus its attention in the areas or operations which pose the greatest risk to safe operations. 

Inspection strategies which apply this risk methodology to help focus inspections on selected topics are 

currently being pilot tested. Additionally, BSEE is preparing to shift from purely compliance inspections 

to a system that provides a more comprehensive assessment of the overall safety of operations and 

facilities. 

Performance Targets: Safety is a priority for both BSEE staff and for operations that occur under BSEE’s 

jurisdiction. Onsite facility inspections and enforcement actions are important components of BSEE's 

safety program. To ensure a safe working environment, the Bureau has established ambitious 

performance targets for the thousands of inspections of OCS facilities and operations conducted each 

year, which go beyond the coverage of tens of thousands of safety and pollution prevention components, 

and address overall safety management programs that prevent offshore accidents and oil spills. 

Systems and Data Analysis: BSEE is working to refine internal controls and processes and expand the 

use of information and data management systems to enhance continuous offshore safety enforcement and 

environmental enforcement presence. As these reforms are deployed, BSEE is able to strengthen its 

investigation, data analysis, and compliance and enforcement programs to enhance the identification of 

risk and risk-mitigation approaches. New protocols are being advanced to emphasize risk-based oversight 

with the intent of identifying and focusing inspections on the “riskiest” activities and facilities by utilizing 

real-time monitoring technologies to improve and increase the regulatory oversight of critical offshore 

operations and equipment. 

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

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

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

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

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

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

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

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

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

discussions on continuous safety improvement and safety culture policy with other Federal partners 

focused on High Reliability Organizations, such as the Department of Transportation (DOT), Pipeline and 

Hazardous Materials Safety Administration (PHMSA); and the Nuclear Regulatory Commission 

(NRC). BSEE continues to actively seek new opportunities to share information across U.S. government 

agencies and internationally. 

Bureau of Safety and Environmental Enforcement 11 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Statement 

Oil Spill Preparedness and Research 

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

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

when they do occur. The cornerstone of this preparedness posture includes the following: 

Oil Spill Response Plan: The Oil Spill Response Plan (OSRP) is one of the most important aspects of 

ensuring that offshore energy exploration and production activities foster environmental stewardship. An 

OSRP is required of each offshore facility and is approved when the owner/operator of an offshore 

facility has demonstrated the ability to respond to a worst-case discharge to the maximum extent 

practicable. BSEE further ensures the preparedness of the offshore community by assessing the quality 

and performance of response equipment listed in the plans - including skimmers, pumps, booms, and 

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

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

to mobilize both equipment and people quickly and safely. 

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

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

highly sophisticated capping stacks and pollution containment domes for deepwater wells. The training 

associated with the use of subsea containment and control equipment was codified through the BSEE 

initiative to develop a unique set of positions within the Incident Command System structure – positions 

that are now reflected in the USCG Incident Management Handbook. 

Research and Development: The OSRP within BSEE continues to aggressively implement a 

comprehensive, long-term research program dedicated to improving spill response options for oil spills in 

offshore environments, including the Arctic. The program is based upon a strategic plan that recognizes 

the evolving risks in offshore exploration and production and the constant mission of protecting the 

environment. BSEE is focused on improving the methods and technologies used for oil spill detection 

from aerial and subsea platforms and vehicles, smart technologies, surface slick and subsurface plume 

measurement and quantification, surface and subsea containment, treatment with dispersants, recovery 

using mechanical devices, oil and water separation systems, and clean up using various technologies 

including in-situ burning of the oil. During FY 2017, BSEE intends to fund research on advancing new 

technology for in-situ burn efficiency, remote sensing tools for oil spill detection and thickness 

determination, and the development of “smart” skimming technologies. Additionally, BSEE plans to 

undertake additional research projects that will provide science to support the understanding of dispersant 

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

such as the USCG and the National Oceanic and Atmospheric Administration (NOAA), and international 

organizations such as the International Association of Oil and Gas Products (IOGP) to engage in a 

continuous program of global information exchange to help facilitate forward movement on oil spill 

research and the identification of the best technologies available worldwide. 

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

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

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

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

12 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

General Statement 

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

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

oil spill response community. 

FY 2017 BUDGET HIGHLIGHTS 

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

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

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

Oil Spill Liability Trust Fund. 

In FY 2017, BSEE estimates offsetting collections will be comprised of $37.9 million from rental 

collections, $5.6 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 

regulation; 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; investigations; civil penalties; 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 Emerging Technologies Program. 

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

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

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

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

a reimbursable basis. 

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

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

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

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

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

response preparedness and planning activities. 

Bureau of Safety and Environmental Enforcement 13 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Statement 

In FY 2017, the following BSEE budget changes are proposed: 

General Reduction (-$122,000/0 FTE): In order to support BSEE’s highest priority needs in FY 2017, 

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

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

general reduction are the following increases and decreases: 

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

Collections (+7,555,000; 0 FTE): The proposed increase to appropriated funding offsets the 

estimated decrease in rental receipt and cost recovery revenue as discussed below. Although 

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

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

continues to move drilling and production operations into deeper waters and more hostile 

operating environments. 

•	 General Reduction - Changes in Offsetting Collections (-7,677,000; 0 FTE): 

o	 Rental Receipts (-11,477,000; +0 FTE): Rental receipts are the second largest of three 

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

cost of operations. This decrease to rental receipts revenue is the result of two 

compounding factors. First, fewer leases are being sold as the OCS matures in terms of 

exploration prospects and world oil prices decline. Second, the decline in the number of 

leases subject to rentals is expected to accelerate because some of the active leases were 

issued with shorter primary terms than before and a large number of deepwater leases are 

expected to expire around FY 2017. 

o	 Cost Recovery Fees (-$2,200,000; 0 FTE): Cost recovery fees are the smallest of three 

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

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

the trend of actual collections. 

o	 Inspection Fees (+$6,000,000; +0 FTE): Inspection fees are the largest of three 

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

cost of operations. This increase in inspection fees aligns with the Bureau’s FY 2016 

budget request, and reflects an increase of $6,000,000 from FY 2016 Enacted levels 

based on a proposed inspection fee structure that would allow BSEE to charge an 

inspection fee for each visit to certain OCS facilities. 

Fixed Costs (+$531,000): Projected increases for fixed costs such as rent, salary increases, central 

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

by this request. 

Fund Special Pay for Oil and Gas Occupations (+$3,924,000 / -$3,924,000): Sustaining the 

Department’s energy programs requires the ability to attract and retain qualified personnel in fields that 

14 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Statement 

are highly competitive for skilled professionals that are in scarce supply. The Department’s ability to 

compete for talent in this dynamic sector of the economy is a problem across Interior’s oil and gas 

development and inspection programs. The competition with industry to attract and retain talented, 

skilled candidates is intense, and industry does not hesitate to compensate its mission-critical personnel at 

the highest levels possible. As a result, it is very difficult to compete for and retain top tier staff because 

BSEE’s employment package is not competitive with that of industry. Authority provided by Congress 

since 2012 has allowed BOEM and BSEE to offer higher rates of pay to employees within specific job 

series (geophysicists, geologists, inspectors and petroleum engineers) in the Gulf of Mexico Region. In 

August 2015, OPM issued special salary tables expanding on this authority. The OPM salary tables 

applicable to BOEM and BSEE currently cover additional mission critical occupational series in the Gulf 

of Mexico Region, and the Department continues to work actively with OPM to expand this incentive in 

order to meet critical workforce gaps in other BOEM and BSEE regions and for DOI employees engaged 

in onshore energy development and inspection. 

Base funding will be used to support revised pay rates providing for an increase in current locality pay 

rates to “Base + 35%” for each occupation/location approved for the special rates. BSEE expects that the 

recently approved OPM special salary rates will further assist the Bureau with recruitment and retention 

of mission critical technical positions. 

OSR Appropriation - No change from the FY 2016 Enacted level. 

Performance Summary 

In FY 2017, BSEE will focus attention on priority areas and continue implementing its goals to advance 

its regulatory oversight mission. A key component toward achieving this goal is the Bureau’s effort to 

develop a performance management system that will support implementation of the Bureau’s 2016 ­

2019 Strategic Plan. This system, the Performance Management Framework, involves developing and 

refining a suite of meaningful performance measures that managers can use to inform decision making 

and communicate the value of the mission to stakeholders. Measures will be based on outputs and 

outcomes that demonstrate how the Bureau achieves results in implementing its mission. An emphasis on 

data will strengthen BSEE’s overall ability to examine and understand how it achieves results. 

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

effectiveness and priorities. For example, BSEE is currently in the process of implementing an 

enterprise-wide risk management system to help identify and prioritize areas of risk for the Bureau. By 

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

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

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

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

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

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

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

mission performance. 

Bureau of Safety and Environmental Enforcement 15 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Statement 

Performance Results - Evidence and Evaluation 

In FY 2017, BSEE will focus attention on priority areas and refine its outcome measures to assess results 

and to better position the Bureau to achieve its mission in four main categories: 

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

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

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

4)	 Safety culture – including SEMS maturity and corrective actions 

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

through BSEE’s Business Intelligence tools to: 

•	 Make informed management decisions for the Bureau; 

•	 Improve program implementation and motivate performance through increased quality of 

program outputs and efficiency of processes. 

•	 Report performance to government and industry stakeholders in order to enhance accountability 

and transparency; and 

•	 Communicate the value of the mission to stakeholders and support the Strategic Plan and mission 

of the Bureau; 

Description of Plans/Actions Underway to Use Evidence and Innovation: In conjunction with BOEM, 

BSEE continues to reform practices and policies to realize the full vision for OCS management. 

Improving Permit and Plan Review: In FY 2013, BSEE completed the first phase of development for its 

ePermits initiative, which will reduce review processing time by 30-40 percent for permits, plans, and 

other submitted document reviews. BOEM’s ePlans initiative is being conducted in parallel with 

ePermits, and BSEE is working closely with BOEM on this initiative to develop common electronic 

submissions and processes for both ePermits and ePlans and to identify points of interagency information 

exchange. In FY 2014, BSEE completed the second phase of the ePermits initiative, which employed 

BSEE subject-matter experts to document the internal business processes that are used to collect the data 

necessary for permit and plan decision-making by the agency. BSEE will also develop automated 

processes to populate data in BSEE’s Technical Information Management System (TIMS). In FY 2015, 

BSEE and BOEM completed user requirements in the form of user case documentation that will inform 

users and developers in constructing the ePermits and ePlans components. In August 2015, BSEE 

awarded two contracts using the requirement and user case documentation to start development of the 

new ePermits and ePlans components. In October 2015, initial work started on establishing the 

permitting framework and the first permit actions, which relate to the submission of oil spill plans. The 

current schedules call for initiating the remaining five permit categories at approximately six-month 

intervals, with completion of the ePermits project in April, 2018. 

16 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives 

Bureau of Safety and Environmental Enforcement 

Secretarial Initiatives, Agency Priority Goals, and 

Administration Management Initiatives
 

The Bureau fully supports the Secretarial and Administration Initiatives to realize high priority goals and 

implement the President’s Management Agenda. BSEE contributes to these efforts in several ways as 

outlined below. 

Secretarial Initiatives 

Powering Our Future and Responsible Use of the Nation’s Resources 

Through early planning, thoughtful mitigation, and the application of sound science, Interior is working to 

ensure that the Administration’s comprehensive energy strategy includes not only traditional sources, but 

also the further development of low emission energy resources – such as offshore wind – to help mitigate 

the causes of climate change. BSEE’s FY 2017 budget fully supports this strategy with a focus on 

supporting risk-based oversight, assessment of emerging technologies to keep pace with the energy 

sector, and ensuring safe and environmentally responsible development of the Nation’s offshore energy 

resources. Funds will be used to recruit and sustain engineers, inspectors, investigators, and oil spill 

planning and prevention specialists within a robust organization that sustains the technical and intellectual 

capacity to keep pace with BSEE’s energy stakeholders. These activities are described further under the 

Oil and Gas Management Section. 

Building a Landscape-Level Understanding of Our Resources – Science Coordination 

BSEE’s FY 2017 budget continues to promote research and development of new technologies and 

monitoring techniques to best manage the country’s natural resources and heritage. The FY 2017 budget 

supports integrated efforts to achieve sound resource management outcomes. 

BSEE uses applied science and engineering expertise to administer the Nation’s development of offshore 

energy resources. BSEE evaluates current policies and research that address the impacts of extreme 

weather conditions on offshore energy activities and infrastructure. The Bureau also provides 

representation and technical expertise to the National Ocean Council, Climate Change Taskforce, Science 

Advisor and Scientific Integrity Officer Working Groups, the Interagency Coordinating Committee on Oil 

Pollution Research, the National Response Team’s Science and Technology subcommittee, and other 

expert panels to further the Department’s policies for climate adaptation. 

Research and development programs help achieve the Administration’s priority of responsible energy and 

minerals development. With a focus on safety research, BSEE is able to help ensure that conventional 

energy development can occur while mitigating risks and potential adverse impacts. 

Bureau of Safety and Environmental Enforcement 17 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives 

BSEE is participating in the Arctic Council’s Emergency Prevention, Preparedness, and Response 

Working Group to develop strategies to respond quickly and effectively to releases of pollutants from 

vessels or exploration and development activities. The Bureau also participates in the Arctic Council’s 

Protection of the Arctic Marine Environment Working Group and chairs the Arctic Offshore Regulators 

Forum. In collaboration with the other Arctic Nations, research is being conducted to better protect 

resources that could be impacted from spills in Arctic waters. 

Building a 21st Century Department of the Interior 

The FY 2017 BSEE budget supports the Department’s plan to build upon the Accountable Government 

Initiative through a set of integrated enterprise reforms designed to support collaborative, evidence-based 

resource-management decisions; efficient use of information management; optimized programs, business 

processes, and facilities; and a network of innovative cost controlling measures that leverage strategic 

workforce alignment to realize an effective 21st Century Interior organization. 

BSEE is developing and implementing an enterprise-wide risk-management (ERM) system to provide 

deliberate and consistent analysis of internal and external risks that threaten the Bureau's ability to 

achieve its mission. The ERM breaks down silos and provides a holistic view of organizational 

challenges that, when viewed in context, provides better insight about how to most effectively prioritize 

and manage risks to mission delivery. BSEE seeks to integrate ERM into existing organizational 

processes for efficient and effective identification, assessment, and treatment of risks, as well as for 

facilitating continual organizational improvement. 

The Bureau collects a significant amount of data to support its complex regulatory mission. To better 

leverage the use of the data it collects, BSEE is implementing a Data Stewardship Program. The program 

will modernize data systems, standardize definitions, and increase accessibility of Bureau data both 

internally and externally. BSEE’s Data Stewardship Program will facilitate informed decision making 

across the organization and will support the DOI and BSEE strategic plans with common goals and 

objectives. The program will work to implement three strategic goals: provide and maintain an effective 

data stewardship framework to support effective Data Management; enhance the collection, 

standardization, accuracy, completeness, consistency, consolidation and storage of data; and strengthen 

data management and release practices. 

The Data Stewardship Program develops, implements, and updates consistent data definitions, policies, 

procedures, and processes related to organization-wide data administration, data quality, data 

management processes, and technology. It also monitors Bureau-wide adherence to data management, 

data definitions, business rules, validation, and standards. 

Finally, as discussed in a later section, the Bureau continues to pursue initiatives to recruit, retain, and 

train a highly skilled workforce and maintain a work environment that provides a high level of employee 

satisfaction. 

18 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives 

Agency Priority Goals 

Renewable Energy Resource Development 

Goal: By September 30, 2017, increase approved capacity authorized for renewable (solar, wind, 

geothermal, and hydropower) energy resources affecting DOI managed lands, while ensuring full 

environmental review, to at least 16,600 Megawatts (since the end of FY 2009). 

Bureau Contribution: Secretarial Order (S.O.) 3299 directed the creation of BOEM and BSEE to carry 

out separate core missions: BOEM to ensure the balanced and responsible development of energy 

resources on the OCS, and BSEE to provide independent safety and environmental oversight and 

enforcement of offshore activities. In accordance with S.O. 3299, BOEM is in the process of transferring 

the renewable energy responsibilities of environmental oversight, facility permitting, facility inspections, 

and regulatory enforcement to BSEE. 

Implementation Strategy: A BSEE/BOEM transition team is managing the effort to re-designate the 

renewable energy regulations in 30 CFR Part 585 between the two agencies. BSEE is also drafting a 

series of touch-point documents to guide the interdependencies between BOEM and BSEE. Both 

Bureaus together are updating the interagency MOU to clearly define roles and responsibilities when the 

re-designation is published. BSEE is currently a cooperating agency on all NEPA documents related to 

renewable energy projects on the Federal OCS and reviews all offshore wind proposed projects to 

determine if a BSEE approved OSRP will be needed, and provides subject matter expertise for 

engineering and plan review of project planning documents. After the re-designation, BSEE will revise 

the existing renewable energy regulations for OCS operations to incorporate best practices as advised by a 

number of contracted studies, new standards, and lessons learned. 

Performance Metrics: The performance metrics that will be developed are similar to those currently used 

in conventional offshore energy development. 

Oil and Gas Resource Management 

Goal: By September 30, 2017, the Bureau of Land Management (BLM) will complete 100 percent of the 

inspections for Federal and Indian potential high risk oil and gas production cases annually to better 

ensure accountability and safety. 

Bureau Contribution: In 2011, the Government Accountability Office (GAO) added the DOI’s 

management of oil and gas on leased Federal lands and waters to their High Risk List due to lack of 

assurance of collecting a fair share of revenue, the inability to hire, train, and retain staff, and the 

reorganization of Bureaus performing offshore oversight immediately following the Deepwater Horizon 

oil spill. Sufficient progress was made with the establishment of BOEM, BSEE, and the Office of 

Natural Resources Revenue (ONRR), and GAO has declared that the reorganization issues and concerns 

have been addressed. However, Interior’s revenue collection and human capital challenges remain a 

concern. 

Bureau of Safety and Environmental Enforcement 19 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives 

BSEE has taken a number of actions to address long-term hiring and retention challenges raised in the 

January 2014 GAO Report entitled Oil and Gas-Interior Has Begun to Address Hiring and Retention 

Challenges but Needs to Do More. The Bureau is committed to hiring and retaining a highly skilled, 

qualified, and diverse workforce dedicated to accomplishing BSEE’s mission to promote safety, protect 

the environment, and conserve resources offshore through vigorous regulatory oversight and enforcement. 

In FY 2017, BSEE will continue to implement its Human Capital Strategic Plan, which addresses 

anticipated workforce changes and gaps in critical skills and competencies. The plan defines BSEE’s 

goals and strategies to address its most immediate human capital priorities which are to recruit, hire, train, 

and deploy the very best people to accomplish BSEE’S mission. In August 2015, the Office of Personnel 

Management (OPM) approved special pay rates for BSEE’s mission critical positions in the Gulf of 

Mexico Region, including petroleum engineers, civil engineers, geophysicists, geologists, and inspectors. 

It is expected that the recently approved OPM special salary rates will further assist the Bureau with 

recruitment and retention within these core specialized series that are central to BSEE’S mission. 

Implementation Strategy and Performance Metrics: The Bureau has undertaken the following strategic 

initiatives to further enhance the management of oil and gas resources on the OCS: 

Regulatory Development - Under the OCSLA, BSEE is responsible for developing and updating 

extensive regulations implementing authority to regulate oil and natural gas exploration, development, 

and production operations on the OCS. BSEE’s regulations and ongoing regulatory development 

activities reflect advancements in technology, and help achieve the goals of regulating and enforcing OCS 

safe operations by reducing risks, strengthening emergency preparedness, and promoting environmental 

stewardship. They also build BSEE’s capacity to keep pace with OCS industry technological 

improvements. 

The foundation of this program is a set of regulations that govern offshore energy operations from 

engineering specifications for offshore facilities to training requirements for OCS workers. BSEE 

continually reviews and revises these regulations to incorporate the most effective requirements for safety 

and environmental protection on the OCS, and continues to improve efficiency in its regulatory program. 

The Bureau has evaluated its regulatory development processes and its process for issuing guidance to 

OCS lessees and has implemented changes to improve the efficiency of those processes. 

The BSEE decommissioning rule was published in the Federal Register on December 4, 2015. This rule 

amends the regulations to require lessees and owners of operating rights to submit summaries of actual 

decommissioning expenditures incurred after completion of certain decommissioning activities for oil and 

gas and sulphur operations on the OCS. This information will help BSEE to better estimate future 

decommissioning costs related to OCS leases, rights-of-way, and rights of use and easement. These 

estimates will provide BOEM with the needed information to ensure that adequate financial assurance is 

in place to protect the Federal Government from being left with significant costs if a lessee files for 

bankruptcy. 

In FY 2016, BSEE’s Office of Offshore Regulatory Programs will continue developing proposed and 

final rules that will improve safety and reduce risks to persons, property, and the environment while 

20 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives 

helping to conserve the resources of the OCS. For additional information on Regulatory Development, 

refer to the Operations, Safety and Regulation Activity chapter. 

Standards Program - BSEE continues to work with industry groups on standards development and 

assessing those standards for possible incorporation into BSEE’s regulations. The Bureau participates on 

nearly 100 different standards development committees with organizations such as the American 

Petroleum Institute (API), the American Society for Testing and Materials (ASTM) International, the 

American Society of Mechanical Engineers (ASME), and the National Association of Corrosion 

Engineers (NACE) International. Most of the standards development organizations are located in 

Houston, Texas. In FY 2016, BSEE opened a Houston office and has made a concerted effort to increase 

staff in Houston to ensure substantial day-to-day communication with these organizations. In addition, 

BSEE has identified subject matter experts from the regional and district offices to attend meetings 

between the Bureau and these organizations to provide input on standards development from a regulator’s 

perspective. The Bureau’s representation at these meetings is critical to ensure the knowledge of the 

content of the standards under development, as well as influencing the direction and extent of the standard 

itself, are being communicated. The incorporation of consensus standards into the regulations provides 

efficiencies for the agency in its regulatory program. Attendance at standards meetings also assists BSEE 

in keeping up with the latest technological advances within industry and develops the intellectual capacity 

of the Bureau’s engineers through interaction with recognized industry experts. 

Risk-Based Inspections - The Risk-Based Inspection (RBI) program seeks to build upon past experience 

by incorporating upfront analysis of select leading risk indicators to more efficiently identify facilities 

likely to have a reportable incident of any kind in the upcoming fiscal year. By applying the Bureau’s 

RBI methodology to specific facilities demonstrating defined risk characteristics, BSEE intends to focus a 

higher portion of its inspection resources on operational areas that present a heightened probability of 

experiencing a safety or environmental incident. 

A pilot program testing the proposed RBI methodology was launched in December 2015. Five facilities 

were identified using the RBI model. The identified facilities have different risk profiles, with different 

risk characteristics contributing to the selection of each for the pilot. The pilot program is anticipated to 

continue through May 2016, after which time, the RBI program will be evaluated for consideration for 

broad application throughout BSEE’s OCS inspection activities. 

Real-Time Monitoring - As described in the Operations, Safety and Regulation Activity chapter, BSEE is 

working to incorporate Real-Time Monitoring (RTM) capabilities in its programs to improve and increase 

regulatory oversight of critical offshore operations and equipment. The intent of RTM is to develop, test, 

and implement reforms that significantly improve BSEE’s Inspection and Enforcement Program by using 

innovative technologies and risk-based inspection criteria. This technology provides an opportunity to 

strengthen Interior’s oversight of OCS operations and substantially enhance the Department’s ability to 

more safely and responsibly manage OCS resources. 

Training - The BSEE Offshore Training Branch (OTB) develops and provides for the delivery of the 

training curriculum for BSEE employees. The OTB works closely with BSEE managers, including at the 

regional and district levels, to ensure that the annual training requirements (as outlined in BSEE policy) 

Bureau of Safety and Environmental Enforcement 21 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives 

for BSEE engineers and inspectors are met. Individual training records are established, maintained, and 

monitored for BSEE personnel. 

The Bureau designs and delivers training that meets the unique and varied needs of BSEE’s technical staff 

and integrates the latest technical expertise and practices of industry. The OTB’s efforts directly support 

the Bureau’s goal to “Build and sustain the organizational, technical, and intellectual capacity within and 

across BSEE’s key functions – capacity that keeps pace with OCS industry technological improvements, 

innovates in regulation and enforcement, and reduces risk through systemic assessment and regulatory 

and enforcement actions.” Throughout FY 2015, 109 courses were offered with 979 participants 

completing 23,980 training contact hours. This reflects a 2.5 percent increase from FY 2014 training 

levels. 

BSEE is also working to establish a leadership development program across all areas within the Bureau. 

The program will be available to BSEE employees across all occupational series and grade levels. By 

utilizing supervisory and managerial competencies, employees will be able to develop the leadership 

skills necessary to grow within the organization and serve as effective leaders. To facilitate the 

development of both leadership and mentoring programs, the Human Resources (HR) Division has 

created an Office for Leadership Development and Engagement, which when fully staffed will strive to 

improve growth opportunities and strategic engagement across the workforce. 

Climate Change Adaptation Management 

Goal: By September 30, 2017, the DOI will mainstream climate change adaptation and resilience 

measures into program and regional planning, capacity building, training, infrastructure, and external 

programs, as measured by scoring 300 of 400 points through the Strategic Sustainability Performance 

Plan scorecard. 

Climate change is a leading threat to natural and cultural resources across the country. Changes in 

climate can exacerbate existing threats from drought, floods, and wildfires and present a growing 

challenge to the resilience of communities. The Bureau’s FY 2017 budget request provides funding to 

improve understanding climate change impacts and will help develop adaptation and/or mitigation 

measures out in the field. 

Bureau Contribution: The Bureau supports the Secretary’s commitment to ensure that agencies are 

integrating climate change adaptation into policies, plans, programs, and operations. 

Implementation Strategy: The Bureau’s efforts to support this initiative include the following: 

•	 Support the Rigs to Reefs policy that helps create new, thriving, and sustainable habitats for 

marine life which could become important aquatic life refuges as climate change impacts arise. 

•	 Assess greenhouse gas venting and flaring offshore and use appropriate technology to identify 

gas emissions in excess of approved venting and flaring requests and decrease such emissions 

when possible. BSEE will also review and comment on API standards that address this. 

22 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives 

•	 Evaluate current policies and research that address the impacts of extreme weather conditions on 

offshore energy activities and infrastructure due to climate change and warming sea trends. 

•	 Continue to coordinate with other Federal partners and stakeholders to explore opportunities to 

research programs and policies that can help incentivize planning for and addressing the impacts 

of climate change. 

Performance Metrics: The Bureau reports on the status of its climate change adaptation initiatives on a 

quarterly basis to the Department. In addition, BSEE will consider ways to incorporate climate change 

adaptation into the Bureau’s performance management framework, which is currently under development. 

Engaging the Next Generation 

Goal: By September 30, 2017, DOI will provide 100,000 work and training opportunities over four fiscal 

years (FY 2014 through FY 2017) for individuals age 15 to 35 to support Interior’s mission. 

Bureau Contribution: In FY 2014, Secretary of the Interior Sally Jewell formalized an ambitious initiative 

to inspire millions of young people to ‘Play, Learn, Serve and Work’ outdoors. For the health of our 

Nation’s economy and public lands, it is critical that the Federal Government work now to establish 

meaningful and deep connections between young people – from every background and every community 

– and America’s great outdoors. To meet this expectation, BSEE has taken a number of steps to 

implement the Department’s youth initiative. The Bureau has identified leaders in each of BSEE's 

Regions to coordinate youth-based activities and programs. A core component of BSEE's youth 

engagement strategy is the support of the development of Science, Technology, Engineering, and Math 

(STEM) programs at schools across the Nation. The goal of the Program is to connect youth with BSEE's 

mission and the skill sets utilized within the Bureau. In particular, BSEE is seeking opportunities to help 

under-resourced areas develop these programs. BSEE’s Youth Representatives are working to create 

partnerships between local schools and facilitating teacher training and/or curriculum design for science 

classes related to oil and gas incidents. These training initiatives are focused on encouraging children to 

explore future learning opportunities within the STEM disciplines. 

Implementation Strategy: When possible, BSEE hosts and participates in youth engagement activities for 

youth of all ages. These events, which are educational in nature, provide participants with an opportunity 

to interact directly with BSEE personnel. In FY 2015, BSEE participated in 35 college recruiting events 

and hosted numerous youth programs and events. For example, BSEE hosted petroleum engineering 

students and faculty from the Colorado School of Mines, met with high school STEM students and 

teachers at the Offshore Technology Conference, and held “Bring a Child to Work Day” with elementary 

school students. In FY 2016, BSEE plans to increase the number of youth program and events by 

20 percent over FY 2015 levels. 

Several internship programs have been implemented across the organization. These programs encourage 

students to become familiar with the mission and functions of the BSEE offshore program and encourage 

career opportunities in the public sector. The Pathways Program allows students to be exposed to the 

Bureau of Safety and Environmental Enforcement 23 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives 

work of the government through Federal internships while pursuing their degree. Every year, BSEE 

attends recruiting opportunities nationwide and promotes engineering internships with colleges/ 

universities across the country. The program allows engineering students to become familiar with the 

mission and functions of BSEE’s offshore program. The Recent Graduates Program provides 

developmental opportunities for those potential employees who have recently completed their studies. 

Performance Metrics: BSEE will follow the Department's guidance for performance metrics in the 

categories of ‘Learn’ and ‘Work.’ The ‘Work’ metrics focuses on the number of work and training 

opportunities provided, and the total number of hours associated with the work and training opportunities 

for individuals 35 years and younger. The ‘Learn’ metrics focuses on capturing the breadth of 

Bureau/office educational programs for K-12 students and teachers. 

President’s Management Agenda 

The Department supports the President’s Management Agenda to build a better government, one that 

delivers continuously improving results for the American people and renews their faith in government. 

The Bureau is actively involved in the government-wide effort to bring forward the most promising ideas 

to improve government effectiveness, efficiency, spur economic growth, and promote people and culture. 

BSEE supports achievement of the President’s Management Agenda objectives in these four pillars as 

described in the following paragraphs. 

Effectiveness: 

Customer Service 

BSEE has several key activities designed to improve services directly provided to citizens. The Bureau 

will continue to modernize the permitting and inspection processes through the development and 

maintenance of eWell, ePermits, and eInspections. These programs will streamline the application 

process, enhance communication, and provide more transparency in operations. The eWell interface will 

allow industry to securely submit permit applications, reports and shut-in information. The ePermit 

interface will enable electronic submission of applications and allow operators to pay any required fees 

online, while providing a workflow tool to track the application process. Lastly, the eInspections program 

will automate the collection and use of inspection support documentation and results. 

Additionally, BSEE recently completed the procurement of tools to expand its Business Intelligence 

capabilities. The expanded use of Business Intelligence allows for the ability to provide information to 

the public more readily, thus giving better insight into the Bureau’s activities and capabilities. It also 

provides managers and leaders the capability to unlock the data the Bureau possesses to drive data driven 

decision making. 

24 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives 

Smarter IT Delivery 

All BSEE and BOEM IT investments follow established Capital Planning and Investment Control and IT 

governance processes to prioritize and select projects that best support the mission in the most costeffective manner. BSEE’s emphasis on improving the Inspection and Enforcement Program and both 

Bureaus’ focus on risk management are factored into investment selection decisions made by the IT 

governance boards. 

TIMS serves as the primary mission IT investment for BOEM and BSEE activities. TIMS has been 

undergoing planned modernization to support improved data accuracy and access as well as enhanced risk 

management. Completed efforts include eWell (FY 2011 - 2012) and eInspections (FY 2013 - 2015). 

Intensive planning efforts are underway for the next enhancements, ePlans (BOEM) and ePermits 

(BSEE), which began development in FY 2015, and will continue through FY 2017. 

The IT Enterprise provides infrastructure and office automation services to BOEM, BSEE, and ONRR, 

with costs for those services shared across the three organizations. The infrastructure and office 

automation services are essential to the operation of the mission systems and the ability of staff in the 

three organizations to perform mission tasks. The services delivered by the Enterprise include Network 

and Telecommunications Services, IT Security Services, IT Service Desk, User Account Services, 

Systems Operations, and Continuity of Operations, and Disaster Recovery Support Services. 

The overall estimated cost for maintaining the shared Enterprise IT Services in FY 2017 is $17 million, 

with BSEE’s portion of this being approximately $7 million. This cost includes a nationwide contract for 

operation and maintenance of all the infrastructure related systems, office automation applications, and 

remote access solutions, as well as software licenses, hardware maintenance, and technology refresh of 

equipment. 

Efficiency: 

Strategic Sourcing 

BSEE’s Acquisition Management Division (AMD) continues to support the use of shared procurement 

services and implementing innovative and creative procurement solutions through the following methods 

and techniques: 

•	 Use of both the General Services Administration (GSA) Multiple Award Schedules and NASA’s 

Solutions for Enterprise-Wide Procurement (SEWP) contracts as part of the Bureau’s day-to-day 

operations. 

•	 Utilize DOI strategic sourcing initiatives, such as the DOI Cloud Hosting Service contract, as 

well as DOI-wide Blanket Purchase Agreements (BPA’s). 

•	 Coordinate with other agencies to leverage expertise for the use of Strategic Sourcing Initiatives 

through interagency agreements with Department of Energy (DOE), NOAA, and GSA. 

Bureau of Safety and Environmental Enforcement 25 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives 

•	 Support DOI’s eFiling and commerce initiative and actively participate in the on-going beta test 

for the filing system that is scheduled to be fully implemented in FY 2017. 

Shared Services 

BSEE provides services to other Bureaus on a cost reimbursable basis. The Bureau has established a 

number of benchmark processes and tools to provide BOEM and BSEE management information that is 

critical to understanding the impacts of funding increases and decreases. The Bureau tracks and reports 

costs and obligations by object class, performance metrics, and workload. Both cost and performance 

data is analyzed against historical data to identify trends, and opportunities for efficiencies. Over the last 

two years, despite significant growth in staffing and activity within the programs and Bureaus supported, 

BSEE has maintained a steady level of operational costs associated with its administrative operations. 

Benchmark and Improve Mission Support Operations 

To enhance program accountability, BSEE uses a combination of funding allocations and a variety of 

program-specific financial codes to ensure the thorough tracking of OCS-related expenditures. Funding 

allocations are calculated by activity and by program. This allows the Bureau to target funding in the 

Financial and Business Management System to specific geographic regions or for a specific purpose. For 

example, BSEE allocations include the targeting of funds for the Alaska, Gulf of Mexico, and Pacific 

OCS Regions, as well as for the Emerging Technologies Program. 

Allocations for OCS-related expenditures are determined at the beginning of each fiscal year and are 

based on the program or region’s past performance, future projected requirements, and new initiatives. 

The allocations can be modified during the fiscal year in response to unforeseen requirements and/or 

developments in OCS technologies, and are continuously monitored through the tracking process 

described above to ensure accuracy and availability of funds to support OCS-related expenditures. 

Economic Growth: 

Open Data 

BSEE continues to develop and maintain its IT investments by enhancing the Bureau’s capability to 

collect and manage data. Through enhanced data use, BSEE will be able to make better decisions, as well 

as make data available to the public in an accessible way while protecting privacy, proprietary, and 

business confidential information. The major initiatives currently underway at BSEE are described 

above. 

BSEE has begun transitioning to a data stewardship framework within the Bureau to facilitate the 

development and implementation of standards, policies and procedures, and improve the quality and 

accessibility of administrative data for analytical purposes. The Bureau works to protect proprietary and 

personally identifiable information through existing policies and procedures, and endeavors to update 

these as appropriate to maintain compliance and provide individuals and organizations the necessary 

26 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives 

assurances regarding the integrity of critical information assets. Furthermore, BSEE is working in concert 

with the Department and other Bureaus to make progress towards a comprehensive inventory of data 

assets as instructed by OMB M-13-13. Finally, BSEE is moving toward substantive increases in access to 

high-value data assets and analytical capacity through the implementation of an Enterprise Risk 

Management framework and relevant software solutions, as well as various data-driven program 

performance evaluation and risk identification tools. 

People and Culture: 

Staffing 

One of BSEE’s six strategic goals is to value, engage and support its people so they can excel. Critical to 

accomplishing this goal is the Bureau’s ability to recruit, develop, and retain a diverse workforce. 

BSEE had 679 employees on board as of October 2012. Through aggressive hiring efforts, BSEE has 

been able to make significant strides toward recruiting and hiring to its full staffing levels, and has 

836 employees onboard through December 2015. However, BSEE still has considerable recruiting and 

hiring to do to reach full staffing levels. The Bureau anticipates achieving full staffing by the end of 

FY 2017. As a result of significant pay and benefit gaps between the Federal compensation structure, and 

what private industry can pay its workforce, it has been challenging for BSEE to recruit and retain staff. 

Competition with private industry to recruit and retain engineers, inspectors, and other scientific job series 

has been especially challenging. The special pay rate authority provided by Congress for certain critical 

job series has helped to meet hiring and retention goals by leveling salaries for technical positions at 

BSEE against the equivalent positions in the industrial sector. 

In August 2015, OPM built upon the legislative authority by approving special pay rates for BSEE’s 

mission critical positions in the Gulf of Mexico Region, including petroleum engineers, civil engineers, 

geophysicists, geologists, and inspectors. As of December 2015, BSEE is in the process of requesting 

OPM approval for similar special salary rates for mission-critical positions within its Alaska and Pacific 

Region offices. It is expected that the recently approved OPM special salary rates will further assist with 

recruitment and retention within these core specialized series that are central to the BSEE mission. BSEE 

will monitor the impact these new rates have on its recruitment and retention efforts, through a newly 

created Office for Workforce Analysis and Planning within the HR Division. 

Additionally, to mitigate the challenges BSEE faces, the Bureau is utilizing all hiring and compensation 

flexibilities available to include recruitment, retention, relocation, superior qualifications, special hiring 

needs appointments, student loan repayment, and creditable non-federal/non-military service for leave 

accrual. The HR Division recently completed a supervisory guide on compensation flexibilities to 

promote usage and clarify regulations. 

Bureau of Safety and Environmental Enforcement 27 
 

 

 

 

 

 

 

 

 

 

 

 

Secretarial Initiatives, Agency Priority Goals, and Administration Management Initiatives 

Job Training and Employment Programs 

BSEE promotes training for potential and current employees who desire professional growth and career 

advancement. The Bureau is also dedicated to advancing talent from within through a wide range of 

training, mentorship, and development opportunities. 

BSEE is currently working to establish a leadership development program across all areas within the 

Bureau. This program will be available to BSEE employees across all occupational series and grade 

levels. By utilizing supervisory and managerial competencies, employees will be able to develop the 

leadership skills necessary to grow within the organization and serve as effective leaders. To facilitate the 

development of both leadership and mentoring programs, the HR Division has created an Office for 

Leadership Development and Engagement, which when fully staffed will strive to improve growth 

opportunities and strategic engagement across the workforce. 

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

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

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

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

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

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

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

education and development that enhances professional competence and personal satisfaction. 

28 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strategic Objective Performance Summary 

FY 2017 PERFORMANCE BUDGET
 

Strategic Objective Performance Summary 

The FY 2017 budget request provides the resources needed to carry out the core functions of BSEE, 

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 oversight. 

STRATEGIC OBJECTIVE PERFORMANCE SUMMARY 

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

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

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

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

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

measurement and planning for the FY 2017 President’s Budget, further details for achieving the Strategic 

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

program specific plans for FY 2017 are fully consistent with the goals, outcomes, and measures described 

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

APP&R. 

Bureau Contribution 

Within the DOI Strategic Plan for FY 2014 – FY 2018, BSEE is aligned under the third mission area: 

Powering Our Future and Responsible Use of the Nation’s Resources. Specifically, its functions are 

captured within Goal One: Secure America’s Energy Resources and 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 Outer Continental Shelf (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). 

Bureau of Safety and Environmental Enforcement 29 
 

 

 

 

 

 

 

 

 

 

 

Strategic Objective Performance Summary 

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

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

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

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

illness, or that are self-inflicted. The man hours worked count covers all operator and contractor 

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

hours equates to approximately 100 full time workers). 

The BSEE strategies also support DOI mission area 4: Engaging the Next Generation and DOI’s mission 

of Building a 21st Century Department of the Interior. 

The BSEE continues to review, update, and add to its Bureau-level performance measures. The Bureau 

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

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

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

Goal Performance table. In FY 2017 BSEE will continue the work started in FY 2016 to refine and 

expand on program performance measures. 

30 Bureau of Safety and Environmental Enforcement 
 

 

Strategic Objective Performance Summary 

Table 2: Goal Performance Tables Mission Area 2, Goal 1: Secure America's Energy Resources Strategic O bjective Metrics Strategic Plan Measure / Efficiency or other Bureau- Specific Measure 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Enacted 2017 Pres. Budget Request 

Strategic Plan MeasuresAmount (in barrels) of operational offshore oil spilled permillion barrels produced (excluding Hurricane-related spills)(SP)

0.30 

(142/476 million) 

0.099 (est.) 

(47.86/482 

million) 

0.14 

(73.01/506 

million) 

0.034 (est.) 

(19/552 million) 

1.00 1.00 

Comments: The estimated oil spill value for FY 15 does not include any spill volumes associated with the Taylor Energy debris field in the Gulf of Mexico.Contributing Programs: Operations, Safety and Regulation

Number of Recordable Injuries per 200,000 Offshore Man 

Hours Worked (DOI-Regulated Activities ONLY) (SP)

0.332 

(200/602) 

0.379 

(228/601) 

0.342 

(205/599) 

0.241 (est.) 

(155/643) 

0.400 0.400 

Comments: This strategic plan measure is an incident rate of all Recordable Injuries (i.e., injuries that require medical treatment beyond first aid and fatalities) that occurduring DOI-regulated activities in the fiscal year for every 200,000 offshore man hours worked (which is the approximate equivalent of 100 full-time workers). The value forFY 15 is an estimate because final data is not yet available. Contributing Programs: Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 31 
 

Strategic Objective Performance Summary 

Table 2: Goal Performance Tables (Continued) Strategic O bjective Metrics Strategic Plan Measure / Efficiency or other Bureau- Specific Measure 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Enacted 2017 Pres. Budget Request Efficiency or other Bureau-Specific Measures Total Number of Compliance Inspections Completed (BUR) 23,025 24,195 21,033 18,944 (est.) 18,500 18,500 Comments: BSEE's total inspections for FY 2015 are below the target of 21,000. This decrease can be attributed to the following rationale, which focuses on the Gulf of Mexico where the majority of BSEE's inspections occur: First, the total for BSEE's FY 2015 compliance inspections is a rough estimate because not all of the data from BSEE's District Offices in the Gulf of Mexico has been submitted and verified at this tim e. Second, several new technology system s were introduced in the Gulf of Mexico this year which have increased the time per inspection due to a learning curve for users along with the need to resolve defects discovered in the new system s. These new systems allow inspectors to conduct m ore thorough inspections and require the inspector to more accurately document the components and safety devices reviewed and tested, but also require additional time per inspection. Third, BSEE has hired a significant number of new inspectors who need to shadow more experienced inspectors. These new inspectors must also meet core curriculum training requirements

before they are able to work independently (57% of inspectors have less than 3 years with BSEE). Fourth, offshore inspectors continued to undertake more comprehensiveinspections in deeper water (more com plex facilities with m ore process com ponents), which lengthens the tim e associated with inspections. Finally, the level of activity in theGulf is shifting as the total number of platforms has decreased over the last five years from 3,129 in 2011 to 2,345 in 2015. In addition, the amount of shallow water rigactivity in the Gulf of Mexico was significantly reduced in 2015 due to a decline in oil prices. Shallow water activity is currently at the lowest level seen in the last 20 years.Contributing Programs: Operations, Safety and RegulationAchieve a utilization rate of X% at Ohmsett, the nationaloil spill response test facility (BUR)

94% 

(226/240) 

93% 

(206/222) 

87% 

(201/231) 

96%

(228/237) 

85% 85% 

Comments: Ohmsett is the National Oil Spill Response Test Facility located in New Jersey. At Ohmsett, clients can test oil spill response equipment in realistic conditions andhave training in the use of the equipment. This measure evaluates the utilization level of the facility. The increased focus on oil spill response, as well as expanded uses for thefacility such as dispersant training and renewable energy wave tests, have sustained overall utilization rates at around 85 percent. In FY 2015 actual, available days werereduced from 240 to 237 because the tank was frozen for three days. Contributing Programs: Oil Spill Research 

32 Bureau of Safety and Environmental Enforcement 
 

 

 

 

Fixed Internal Program 2015 2016 2017 Costs Transfers Changes Actual Enacted Request (+/-) (+/-) (+/-) 

Appropriation: Operations, Safety, and Environmental Enforcement 

Environmental Enforcement Activity 8,314 8,314 +35 - -35 8,314 

General Reduction [-35] 

Activity Total, Environmental Enforcement 8,314 8,314 +35 - -35 8,314 

Operations, Safety and Regulation Activity 133,597 144,954 +318 - -122 145,150 

General Reduction [-122] 

Activity Total, Operations, Safety and Regulation 133,597 144,954 +318 - -122 145,150 

Administrative Operations Activity 15,676 18,268 +97 - -97 18,268 

General Reduction [-97] 

Activity Total, Administrative Operations 15,676 18,268 +97 - -97 18,268 

General Support Services Activity 13,912 - - - - -

Activity Total, General Support Services 13,912 - - - - -

Executive Direction Activity 18,227 18,236 +81 - -81 18,236 

General Reduction [-81] 

Activity Total, Executive Direction 18,227 18,236 +81 - -81 18,236 

TOTAL, Operations, Safety, and Environmental Enforcement 189,726 189,772 +531 - -335 189,968 

Appropriation: Oil Spill Research 

Oil Spill Research 14,899 14,899 - - - 14,899 

Activity Total, Oil Spill Research 14,899 14,899 - - - 14,899 

TOTAL, Oil Spill Research 14,899 14,899 - - - 14,899 

TOTAL, Bureau of Safety and Environmental Enforcement 204,625 204,671 +531 - -335 204,867 

Budget Table 

Bureau of Safety and Environmental Enforcement 

Budget At A Glance Table 

Dollars in Thousands ($000) 

Bureau of Safety and Environmental Enforcement 33 
 

 

Budget Table 

This page intentionally left blank. 

34 Bureau of Safety and Environmental Enforcement 
 

 

 

Summary of Requirements Table 

Bureau of Safety and Environmental Enforcement 

Summary of Requirements Table 

Summary of Requirements for Bureau of Safety and Environmental Enforcement 

(Dollars in Thousands)

2015 Actual 2016 Enacted 2017 Request 

Amount FTE Amount 

Fixed Costs

& Related

(+/-) 

Internal

Transfers

(+/-) FTE Amount 

Program Changes

(+/-) 

FTE Amount FTE Amount 

Change from 2016

(+/-) 

Offshore Safety & Environmental Enforcement

 Environmental Enforcement

Direct Appropriation 

Offsetting Collections 

3,0275,287

 30 3,027 

- 5,287 

+35 - - -35 

- - - -

30 3,027 - -

- 5,287 - -

Subtotal, Environmental Enforcement 8,314 30 8,314 +35 - - -35 30 8,314 - -

 Operations, Safety and Regulation

Direct Appropriation 

Offsetting Collections 

51,833 81,764

476 51,928 

- 93,026

+318 - - +7,555 

- - - -7,677 

476 59,801 - +7,873 

- 85,349 - -7,677 

Subtotal, Operations, Safety and Regulation 133,597 476 144,954 +318 - - -122 476 145,150 - +196 

 Administrative Operations

Direct Appropriation 

Offsetting Collections 

5,027 

10,649

247 6,016 

- 12,252

+97 - - -97 

- - - -

247 6,016 - -

- 12,252 - -

Subtotal, Administrative Operations 15,676 247 18,268 +97 - - -97 247 18,268 - -

 General Support Services

Direct Appropriation 

Offsetting Collections 

4,4019,511

 - -

- -

- - - -- - - -

- - - -- - - -

Subtotal, General Support Services 13,912 - - - - - - - - - -

 Executive Direction

Direct Appropriation 

Offsetting Collections 

14,056 

4,171

106 12,594 

- 5,642

+81 - - -81 

- - - -

106 12,594 - -

- 5,642 - -

Subtotal, Executive Direction 18,227 106 18,236 +81 - - -81 106 18,236 - -

Total 189,726 859 189,772 +531 - - -335 859 189,968 - +196 

Total Direct Appropriation Total Offsetting Collections 

78,344 

111,382

859 73,565 

- 116,207

+531 - - +7,342 

- - - -7,677 

859 81,438 - +7,873 

- 108,530 - -7,677 

Total, OSEE 189,726 859 189,772 +531 - - -335 859 189,968 - +196 

Bureau of Safety and Environmental Enforcement 35 
 

 

Summary of Requirements Table 

This page intentionally left blank. 

36 Bureau of Safety and Environmental Enforcement 
 

 

Fixed Costs and Internal Realignments 

Bureau of Safety and Environmental Enforcement 

Fixed Costs and Internal Realignment 

Fixed Cost Changes and Projections 2016 

Total 

2017 

Change 

Change in Number of Paid Days n/a -674 

This column reflects changes in pay associated with the change in the number of paid days between 2016 and 2017. 

Pay Raise n/a +1,329 

The change reflects the salary impact of the 1.6% programmed pay raise increases as provided in the June, 2015 

Circular A-11. 

Departmental Working Capital Fund 3,968 +303 

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

through the Working Capital Fund. This includes an assessment for the Department's IT Transformation initiative. 

These charges are detailed in the Budget Justification for Department M anagement. 

Worker's Compensation Payments 264 -91 

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

who suffer accidental deaths while on duty. Costs for 2017 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. 

Unemployment Compensation Payments 11 +1 

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

Department of Labor, Federal Employees Compensation Account, in the Unemployment Trust Fund, pursuant to 

Public Law 96-499. 

Rental Payments 9,290 -337 

The amounts reflect changes in the costs payable to General Services Administration (GSA) and others 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 Department of Homeland Security (DHS). 

Costs of mandatory office relocations, i.e. relocations in cases where due to external events there is no alternative but 

to vacate the currently occupied space, are also included. 

Baseline Adjustments for O&M Increases n/a 0 

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

associated increase to baseline operations and maintenance requirements resulting from movement out of GSA or 

direct-leased (commercial) space and into Bureau-owned space. While the GSA portion of fixed costs will go down 

as a result of these moves, Bureaus often encounter an increase to baseline O&M costs not otherwise captured in 

fixed costs. This category of funding properly adjusts the baseline fixed cost amount to maintain steady-state 

funding for these requirements. 

Internal Realignments and Non-Policy/Program Changes FY 2017 

0 

Total, Fixed Costs and Related Changes in 2017 +531 

Bureau of Safety and Environmental Enforcement 37 
 

Fixed Costs and Internal Realignments 

This page intentionally left blank. 

38 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

Language Citations 

Bureau of Safety and Environmental Enforcement
 

Language Citations 

Appropriations Language 

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, [$124,772,000]$124,968,000, of which [$67,565,000]$81,438,000 is to 

remain available until September 30, [2017]2018 and of which [$57,207,000]$43,530,000 is to remain 

available until expended: Provided, That this total appropriation shall be reduced by amounts collected by 

the Secretary and credited to this appropriation from additions to receipts resulting from increases to lease 

rental rates in effect on August 5, 1993, and from cost recovery fees from activities conducted by the 

Bureau of Safety and Environmental Enforcement pursuant to the Outer Continental Shelf Lands Act, 

including studies, assessments, analysis, and miscellaneous administrative activities: Provided further, 

That the sum herein appropriated shall be reduced as such collections are received during the fiscal year, 

so as to result in a final fiscal year [2016]2017 appropriation estimated at not more than 

[$67,565,000]$81,438,000. 

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

amounts collected by the Secretary and credited to this appropriation, which shall be derived from nonrefundable inspection fees collected in fiscal year [2016]2017, as provided in this Act: Provided, That to 

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

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

Provided further, That for fiscal year [2016]2017, not less than 50 percent of the inspection fees expended 

by the Bureau of Safety and Environmental Enforcement will be used to fund personnel and missionrelated 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. 

(Department of the Interior, Environment, and Related Agencies Appropriations Act, 2016.) 

Bureau of Safety and Environmental Enforcement 39 
 

 

 

 

 

 

 

 

 

 

Language Citations 

General Provisions 

(See General Provisions chapter of the Office of the Secretary 2017 budget justification.) 

OUTER CONTINENTAL SHELF INSPECTION FEES 

SEC. 107. (a) In fiscal year [2016]2017, the Secretary shall collect a nonrefundable inspection fee, which 

shall be deposited in the "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. Facilities that are subject to multiple inspections shall pay 

additional fees for each inspection. Fees for fiscal year [2016]2017 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]related to inspection of drilling rigs shall be assessed for all inspections completed in fiscal 

year [2016]2017. Fees for fiscal year [2016]2017 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 for the annual fees under subsection (b) within 60 days, 

with payment required within 30 days of billing. [The] For all other fees under subsections (b) and (c) 

above, the Secretary shall bill designated operators [under subsection (c)] within 30 days of the end of the 

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

Justification of Proposed Language Changes 

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

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

Explanation of change: The Department proposes to modify the provision to extend the authority to 

charge inspection fees through FY 2017 and to clarify that facilities subject to multiple inspections are 

subject to additional fees for each inspection. 

40 Bureau of Safety and Environmental Enforcement 
 

Language Citations 

BUREAU OF OCEAN ENERGY MANAGEMENT, REGULATION AND ENFORCEMENT
 

REORGANIZATION
 

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

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

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

guidelines described in the report accompanying this Act[for division F in the explanatory statement 

described in section 4 (in the matter preceding division A of this consolidated Act)]. 

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

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

Regulation and Enforcement. 

Explanation of change: The Department proposes to modify the provision to require reporting in 

accordance with the reprogramming guidelines provided by the Appropriations Committees. 

Bureau of Safety and Environmental Enforcement 41 
 

Language Citations 

This page intentionally left blank. 

42 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mandatory Budget and Offsetting Collection Proposals 

Bureau of Safety and Environmental Enforcement 

Mandatory Budget and Offsetting Collections Proposals 

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

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

please refer to the General Provision section of the Office of the Secretary FY 2017 Budget Justification. 

The FY 2017 budget assumes oil and gas reforms proposed for 2016 will continue into 2017. Also 

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

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

and BSEE. 

FEDERAL OIL AND GAS REFORMS 

The 2017 budget includes a package of legislative reforms to bolster and backstop administrative actions 

being taken to reform the management of Interior’s onshore and offshore oil and gas programs, with a key 

focus on improving the return to taxpayers from the sale of these Federal resources. Proposed statutory 

and administrative changes fall into three general categories: advancing royalty reforms, encouraging 

diligent development of oil and gas leases, and improving revenue collection processes. 

Royalty reforms include establishing minimum royalty rates for oil, gas, and similar products; adjusting 

the standard onshore oil and gas royalty rate; analyzing a price-based tiered royalty rate, and repealing 

legislatively-mandated royalty relief for “deep gas” wells. Diligent development requirements include 

shorter primary lease terms, stricter enforcement of lease terms, and monetary incentives to move leases 

into production (for example, a new statutory per-acre fee on nonproducing leases). Revenue collection 

improvements include simplification of the royalty valuation process and permanent repeal of Interior’s 

authority to accept in-kind royalty payments. Collectively, these reforms will generate roughly $1.7 

billion in revenue to the Treasury over ten years, of which about $1.2 billion would result from statutory 

changes. Many states also will benefit from higher Federal revenue sharing payments as a result of these 

reforms. 

PROJECTED DECLINES IN OFFSETTING RENTAL RECEIPTS 

Significant portions of the total budgets for BOEM and BSEE are offset by revenue from rental receipts, 

cost recoveries, and – for BSEE – inspection fees. However, based on current economic assumptions, 

projected declines in rental revenue are predicted to create budgetary shortfalls over the next decade. 

Specifically, the FY 2016 President’s Budget, released in February 2015, included offsetting rental 

projections that assumed higher oil and gas prices (estimates for FY 2016 assumed oil prices of $79 per 

barrel of oil). Using those assumptions, the offsetting rentals were projected to begin a steady decline 

between FY 2017 and FY 2018. However, the outlook one year later has changed significantly, and 

updated projections are for much lower oil and gas prices ($49 per barrel for FY 2016), suggesting a more 

Bureau of Safety and Environmental Enforcement 43 
 

 

 

 

 

 

 

 

Mandatory Budget and Offsetting Collection Proposals 

immediate and substantial decline is likely beginning in FY 2016. The projected decline is illustrated in 

the chart below. 

Figure 1: Projected Decline in Offsetting Rentals 

Projected Decline in Offsetting Rentals 

0 

20 

40 

60 

80 

100 

120 

140 

160 

Total Offset (dollars in millions) 

2016 Baseline $78.69/bbl $49.08/bbl 

Using the offsetting rental amount included in the FY 2016 President’s Budget as a baseline (the solid 

line in the graph above), the updated offsetting rental projections reflect growing shortfalls are likely 

between 2016 and 2025, as demonstrated in Table 3 below. If oil and gas prices recover and exceed 

current projections in future years, this trend may change. 

Table 3: Comparison of Offsetting Rental Receipt Projections 

Comparison of Offsetting Rental Receipt Projections 

(dollars in millions) 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 

FY 2016 Baseline 142.36 142.36 142.36 142.36 142.36 142.36 142.36 142.36 142.36 142.36 

2016 President's Budget ($78.69/bbl) 142.36 142.86 131.16 112.82 111.00 116.38 110.93 108.36 108.86 98.32 

Surplus/Shortfall (vs. 2016 Baseline) 0.00 0.50 -11.20 -29.54 -31.36 -25.98 -31.43 -34.00 -33.50 -44.04 

2017 President's Budget ($49.08/bbl) 131.94 126.41 109.34 86.27 79.45 79.37 70.05 64.19 61.47 60.06 

Surplus/Shortfall (vs. 2016 Baseline) -10.42 -15.95 -33.02 -56.09 -62.91 -62.99 -72.31 -78.17 -80.89 -82.30 

Total rental receipts in a given year are based on the number of active leases subject to rent and the rental 

terms that apply to those leases. These terms vary based on the water depth of the lease and the age of the 

lease. Beginning with Sale 208 in 2009, BOEM established rental rates in the Gulf of Mexico at $7/acre 

in water depths less than 200 meters and $11/acre in water depths of 200+ meters. The offsetting rental 

receipts are calculated by subtracting the total annual rental receipts collected on active leases from the 

amount that would have been paid by these same leases in the same year at rental rates in effect on 

August 5, 1993 ($3/acre). 

44 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mandatory Budget and Offsetting Collection Proposals 

Several factors contribute to the projected accelerating downward trend in rental receipts. First, fewer 

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

Mexico as an oil and natural gas resource basin has been heavily leased and developed for over 50 years. 

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

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

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

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

ten years to a “7+3” year approach, wherein a lessee receives an extended initial period (i.e., ten years) if 

a well is drilled within the first seven years. BOEM anticipates approximately 90 percent of these leases 

to be returned after the primary seven year term, resulting in fewer deepwater rent-generating leases 

around FY 2017. Although many of those are likely to be re-leased, their re-acquisition may not keep 

pace with relinquishment. Third, the downturn is, in some respects, a result of the success of BOEM’s 

leasing strategy. BOEM modified its fiscal policies in the Gulf of Mexico five times since 2007 to 

encourage industry to lease and hold fewer non-producing leases, consistent with the Administration’s 

policy on encouraging diligent development of leases. 

MEASURES TO ADDRESS THE DECLINE IN OFFSETTING RENTAL RECEIPTS 

As noted above, in FY 2017, offsetting rental revenue for BOEM and BSEE is projected to be $15.9 

million below FY 2016 levels. For FY 2017, the Department proposes to change the existing allocation 

of offsetting rental receipt revenue between the two bureaus and provide additional appropriated dollars to 

fill most of the remaining shortfall for both bureaus. Instead of 65 percent of rental receipt revenues 

going to BOEM and 35 percent going to BSEE, the revenues would be split 70 / 30 percent between 

BOEM and BSEE, respectively, as shown below. 

Table 4: Allocation of Offsetting Rentals to BOEM and BSEE 

(dollars in millions) 

2016 2017 

Offsetting Rentals 

BOEM Share 

BSEE Share 

65% 

35% 

92.961 

49.399 

142.360 

70% 

30% 

88.486 

37.922 

126.408 

Because this change still results in a decrease of nearly $11.5 million to BSEE’s budget, the 2017 request 

proposes to offset most of this reduction through an increase of $7.5 million in direct appropriations. 

BSEE’s request also returns the inspection fee offset to $65 million, to include adjusting the fee structure 

by charging a facility inspection fee for each inspection rather than one annual fee, and reduces 

anticipated cost recovery fee collections by $2.2 million. 

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

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

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

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

oil and natural gas production will continue to increase over the coming decade. BOEM anticipates that, 

Bureau of Safety and Environmental Enforcement 45 
 

 

 

 

Mandatory Budget and Offsetting Collection Proposals 

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

reviews and environmental work. While the 2017 Request proposes a solution to address the projected 

2017 shortfall for BOEM and BSEE, further changes will be necessary in 2018 and beyond, if the 

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

and OMB to assess future revenue trends and funding options. 

46 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Environmental Enforcement 

FY 2017 PERFORMANCE BUDGET REQUEST 

Environmental Enforcement Activity 

Table 5: Environmental Enforcement Activity Budget Summary 

2015 

Actual 

2016 

Enacted 

Fixed Costs 

and Related 

Changes 

(+/-) 

Internal 

Transfers 

(+/-) 

Program 

Changes 

(+/-) 

2017 

Request 

Changes from 

2016 

(+/-) 

Environmental Enforcement ($000) 

FTE 

8,314 

21 

8,314 

30

+35 

-

-

-

-35 

-

8,314

30

 -

-

SUMMARY OF 2017 PROGRAM CHANGES 

Amount Request Component FTE ($000) 

General Reduction -35 ­

Total Program Changes: -35 ­

JUSTIFICATION OF 2017 PROGRAM CHANGES 

The 2017 budget request for the Environmental Enforcement Activity is $8,314,000 and 30 FTE; which 

represents no net change from the FY 2016 Enacted level. 

General Reduction (-$35,000/0 FTE): In order to support BSEE’s highest priority needs in FY 2017, the 

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

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

PROGRAM OVERVIEW 

In FY 2016, the Department of the Interior reorganized the management structure within BSEE including 

the realignment of 30 FTE previously assigned to the Environmental Enforcement Division. Of those 

positions, 5 FTE have been assigned to the newly formed Environmental Compliance Division (ECD), 

and 25 FTE have been assigned to BSEE’s Regional Offices to support the Bureau’s environmental 

compliance and enforcement activities. 

The ECD clarifies roles and responsibilities for the development of clear policy on environmental 

compliance and ensures that BSEE complies with all applicable environmental statutes in the exercise of 

its authorities. The realignment identifies leadership for primary functions and enhances transparency, 

consistency, predictability, and accountability within the organization. BSEE is currently focusing its 

efforts on establishing clear and consistent national policies, program performance measures, and 

improving the accountability of major mission areas. 

Bureau of Safety and Environmental Enforcement 47 
 

 

 

 

 

 

 

 

 

 

 

 

Environmental Enforcement 

Operationally, the ECD is responsible for the Bureau’s compliance with the National Environmental 

Protection Act (NEPA), Endangered Species Act (ESA), Marine Mammal Protection Act (MMPA), and 

Tribal consultation requirements. The ECD also maintains oversight of Outer Continental Shelf (OCS) 

operator activity through monitoring and enforcement actions specific to mitigations, conditions of 

approval, and lease stipulations placed on the operators. All ECD responsibilities support the Bureau’s 

mission functions of exploration, production, and decommissioning. The identification of regulatory 

needs for enhanced environmental compliance efforts will be coordinated with the SEMS program. 

To ensure early programmatic success, BSEE’s Environmental Stewardship Collaboration Group is 

determining a Work Plan Priority for FY 2016. The purpose of this effort is to clarify and describe the 

Bureau’s environmental stewardship vision and mission, build upon existing program goals, activities and 

inter-relationships, and focus on identifying new ways of enhancing environmental stewardship within 

BSEE. Environmental stewardship includes: accountability for environmental responsibilities, 

compliance, enforcement, preparedness, prevention, and response research. 

While environmental policies are established by the ECD at BSEE headquarters, the Bureau’s compliance 

and enforcement activities are conducted by personnel located in the Regional Offices. In maintaining 

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

coordinates and focuses its compliance efforts on the riskiest offshore operations. These activities 

include: 

•	 Ensuring BSEE compliance with NEPA and corollary environmental requirements such as the 

Endangered Species Act and Coastal Zone Management Act under other statutes and regulations; 

•	 Establishing and communicating clear objectives and performance measures for the environmental 

stewardship program, including national standard operating procedures and a common 

communication strategy; 

•	 Monitoring industry compliance with mitigation and other environmental requirements; evaluating 

various environmental mitigation measures to determine their adequacy and appropriately 

distributing findings; and evaluating, prioritizing, and coordinating potential non-compliance or 

apparent violations related to environmental requirements; 

•	 Development of a national BOEM/BSEE mitigation structure that incorporates evolving mitigation 

concepts, such as standardized monitoring protocols, landscape-scale planning and DOI’s other 

guiding principles for a mitigation strategy; 

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

environmental compliance and enforcement; and
 

•	 Coordinating and providing subject matter expertise to support compliance and enforcement
 

activities.
 

48 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

Environmental Enforcement 

BSEE’s environmental enforcement programs have pursued over 200 environmental violation cases since 

October 1, 2011. These include violations associated with NEPA, Outer Continental Shelf Lands Act 

(OCSLA), Clean Air Act, Clean Water Act, ESA, MMPA, Magnuson-Stevens Fishery Conservation and 

Management Act, and the National Historic Preservation Act. This also includes the first assessment of 

an environmentally specific civil penalty ($430,000) in the history of offshore regulatory activities that 

did not include a significant oil spill – a case in which a dolphin became fatally entangled with a line 

being used in survey operations. 

Funding received by the ECD in FY 2017 will be used to coordinate and target compliance and 

enforcement actions to address the greatest areas of risk as well as to acquire data and technology for 

tracking, verifying, and enforcing compliance. 

Bureau of Safety and Environmental Enforcement 49 
 

Environmental Enforcement 

This page intentionally left blank. 

50 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

FY 2017 PERFORMANCE BUDGET REQUEST
 

Operations, Safety and Regulation Activity 

Table 6: Operations, Safety and Regulation Activity Budget Summary 

2015 

Actual 

2016 

Enacted 

Fixed Costs 

and Related 

Changes 

(+/-) 

Internal 

Transfers 

(+/-) 

Program 

Changes 

(+/-) 

2017 

Request 

Changes 

from 2016 

(+/-) 

Operations, Safety and Regulation ($000) 

FTE 

133,597 

443 

144,954 

476

+318 

­

­

­

-122 

­

145,150 

476

+196 

­

Major Program IT Investments 

Technical Information Management System 

(TIMS) 1/ 

($000)

FTE

 [18,365]

 ­

 [13,485] 

- - -

[12,023] 

-

-

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

SUMMARY OF 2017 PROGRAM CHANGES 

Amount Request Component	 FTE ($000) 

General Reduction -122 ­

Special Pay for Oil and Gas Occupations +3,924 / -3,924 ­

Total Program Changes: -122 ­

JUSTIFICATION OF 2017 PROGRAM CHANGES 

The 2017 budget request for the Operations, Safety and Regulation Activity is $145,150,000 and 476 FTE; a 

net increase of +$196,000 and 0 FTE over the FY 2016 Enacted level. 

General Reduction (-$122,000/0 FTE): In order to support BSEE’s highest priority needs in FY 2017, the 

Bureau proposes a general reduction in funding for Operations, Safety and Regulation activities that will be 

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

within this general reduction are the following increases and decreases: 

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

Collections (+7,555,000; 0 FTE): The proposed increase to appropriated funding offsets the 

estimated decrease in rental receipt and cost recovery revenue as discussed below. Although 

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

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

continues to move drilling and production operations into deeper waters and more hostile 

operating environments. 

Bureau of Safety and Environmental Enforcement 51 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

•	 General Reduction - Changes in Offsetting Collections (-7,677,000; 0 FTE): 

o	 Rental Receipts (-11,477,000; +0 FTE): Rental receipts are the second largest of three 

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

cost of operations. This decrease to rental receipts revenue is the result of two 

compounding factors. First, fewer leases are being sold as the OCS matures in terms of 

exploration prospects and world oil prices decline. Second, the decline in the number of 

leases subject to rentals is expected to accelerate because some of the active leases were 

issued with shorter primary terms than before and a large number of deepwater leases are 

expected to expire around FY 2017. 

o	 Cost Recovery Fees (-$2,200,000; 0 FTE): Cost recovery fees are the smallest of three 

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

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

the trend of actual collections. 

o	 Inspection Fees (+$6,000,000; +0 FTE): Inspection fees are the largest of three 

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

cost of operations. This increase in inspection fees aligns with the Bureau’s FY 2016 

budget request, and reflects an increase of $6,000,000 from FY 2016 Enacted levels 

based on a proposed inspection fee structure that would allow BSEE to charge an 

inspection fee for each visit to certain OCS facilities. 

Fund Special Pay for Oil and Gas Occupations (+$3,924,000 / -$3,924,000): Sustaining the 

Department’s energy programs requires the ability to attract and retain qualified personnel in fields that 

are highly competitive for skilled professionals that are in scarce supply. The Department’s ability to 

compete for talent in this dynamic sector of the economy is a problem across Interior’s oil and gas 

development and inspection programs. The competition with industry to attract and retain talented, 

skilled candidates is intense, and industry does not hesitate to compensate its mission-critical personnel at 

the highest levels possible. As a result, it is very difficult to compete for and retain top tier staff because 

BSEE’s employment package is not competitive with that of industry. Authority provided by Congress 

since 2012 has allowed BOEM and BSEE to offer higher rates of pay to employees within specific job 

series (geophysicists, geologists, inspectors and petroleum engineers) in the Gulf of Mexico Region. In 

August 2015, OPM issued special salary tables expanding on this authority. The OPM salary tables 

applicable to BOEM and BSEE currently cover additional mission critical occupational series in the Gulf 

of Mexico Region, and the Department continues to work actively with OPM to expand this incentive in 

order to meet critical workforce gaps in other BOEM and BSEE regions and for DOI employees engaged 

in onshore energy development and inspection. 

Base funding will be used to support revised pay rates providing for an increase in current locality pay 

rates to “Base + 35%” for each occupation/location approved for the special rates. BSEE expects that the 

recently approved OPM special salary rates will further assist the Bureau with recruitment and retention 

of mission critical technical positions. 

52 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

PROGRAM OVERVIEW
 

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

environmentally sound manner, with safety being at the forefront of all activity on the Outer Continental 

Shelf (OCS). The Bureau continually seeks operational improvements that will reduce the risks to 

offshore personnel and the environment. Coordinated efforts target the areas of greatest risk for 

compliance and enforcement actions. Additionally, BSEE continues to evaluate procedures and 

regulations to stay abreast of industries’ technological advances to promote safe and clean operations and 

conserve the Nation’s natural resources. These functions include regulatory development, standards 

development, review and approval of OCS permits, inspections, investigations, and risk management, 

Safety and Environmental Management Systems (SEMS), real-time monitoring, conservation 

management, emerging technologies’ evaluations, compliance and enforcement, and oil spill response 

planning and preparedness. 

During FY 2016, BSEE began an effort to strengthen internal controls and to better track and demonstrate 

results for these mission-critical operations. BSEE identified national program managers with direct lines 

of responsibility for managing major program functional areas. The goals of this effort are to promote 

transparency, consistency, predictability, and accountability for national programs, and consistently 

develop program policies, procedures, and accountability and performance measures for major program 

functional areas. 

PERFORMANCE OVERVIEW 

Regulatory Development: The goal of BSEE’s comprehensive management program of 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 

numerous aspects of offshore oil and gas operations, from engineering specifications to training for 

workers on offshore facilities. BSEE will continually review these regulations, and update and revise 

them as necessary, to ensure they include the most effective requirements for safety and environmental 

protection on the OCS. The Bureau will also continue its efforts to improve its rulemaking efficiency. 

These efforts will focus on the identification and evaluation of regulatory needs; streamlining the 

regulatory development process to ensure that risk-based, high quality, enforceable, and legally defensible 

regulations are generated in a timely manner; and streamlining the incorporation of new and updated 

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

United States Coast Guard (USCG) and other agencies to avoid unnecessary duplication and to maximize 

consistent and efficient regulation of OCS activities. Beyond prevention, BSEE is also reviewing oil spill 

abatement and subsea containment to reduce the duration of spills from oil exploration, development, and 

production infrastructure. 

BSEE’s rulemaking efforts will be prioritized based on a comprehensive review of the existing oil and gas 

regulations and on review of safety and environmental risks, new developments in industry practices and 

OCS technology, results of research projects by BSEE and its contractors, and information about other 

changing circumstances. In addition, BSEE will continue to work with industry groups on standards 

Bureau of Safety and Environmental Enforcement 53 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

development and will assess relevant standards for possible incorporation into BSEE’s regulations. The 

regulatory approach will continue to use performance-based regulations wherever they can be effectively 

implemented, which will allow BSEE to take a hybrid approach to regulating industry. 

Specific regulatory efforts will address: installation, maintenance, and decommissioning of DOI-regulated 

OCS pipelines; updating oil spill planning and response requirements; improvements to the SEMS rules 

regarding process safety, performance of audits, and sharing of information; and safety issues related to 

helicopters and helipads on fixed platforms. In addition to new regulations, BSEE will continue issuing 

guidance to operators to ensure the successful implementation of the regulations on well control, arctic 

development, and production safety systems that are anticipated to be issued in 2016. 

BSEE will also be expanding its efforts with respect to offshore renewable energy. BSEE will revise the 

existing renewable energy regulations for OCS operations to incorporate best practices as advised by a 

number of contracted studies, new standards, and lessons learned. BSEE also seeks opportunities to 

incorporate offshore wind industry standards. 

Standards Development: In FY 2017, BSEE will continue to actively participate with external Standards 

Development Organizations (SDOs) to develop new or revised standards for safety and environmental 

protection on the OCS consistent with the National Technology Transfer and Advancement Act of 1995. 

The objective of this activity is to optimize the use of national and international standards in regulations 

for safe and environmentally sound development of OCS resources; collaborate with SDOs to expedite 

the development of industry best practices; increase BSEE’s knowledge and awareness of standards 

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

and facilitate BSEE’s ability to provide input on the standards. BSEE will also continue to take a 

leadership role in establishing more effective communication links between international standards 

organizations and other international regulators to ensure industry best practices continue to improve. 

The new technology center in Houston will ensure that BSEE staff is located near the center of standards 

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

addition, a directory of over 50 subject matter experts has been compiled from all of BSEE’s regional and 

district offices to assist in Standards Development. 

Risk-based Review and Assessment: The foundation of safe operations on the OCS begins with leading 

edge prevention through risk identification, assessment, mitigation, management, and oversight during the 

permit review process. Based upon the risks identified and associated with operators' permit submissions, 

BSEE will be able to focus permit review efforts in FY 2017 on the areas of greatest concern to the public 

and address those areas with improved policy, guidance, and procedures. Using the permit process to 

identify the critical barriers needed for well containment and the associated risks of failure will help 

BSEE identify components and systems to focus on in the new risk-based inspection program. 

BSEE, the Argonne National Laboratory, and industry continue the development of procedures for 

performing barrier analyses of offshore oil and gas structures similar to those performed in the nuclear 

industry. The use of these tools will allow BSEE to better define and interpret the risks associated with 

the various physical barriers and then develop guidance, regulations, or standards that will reduce the 

54 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

associated risks. The barrier analyses will inform BSEE about those systems where there are inadequate 

redundant barriers to accidental release of hydrocarbons and/or identify components that should be the 

focus of additional inspection or could be candidates for review for failure analysis, lifecycle systems 

performance reliability, and/or best available and safest technology (BAST). 

Inspections, Investigations, and Risk Management: Safety is a priority for both BSEE staff and for the 

operations that occur under BSEE’s jurisdiction. Onsite facility inspections and enforcement actions are 

important components of BSEE's safety program. BSEE is working to institutionalize and standardize 

various risk-based approaches to inspection strategies to move from more qualitative analyses of potential 

risks to a more quantitative approach. The Bureau 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’s goal is to conduct annual inspections of 

all oil and gas operations on the OCS to enforce its safety regulations designed to prevent blowouts, fires, 

spills, and other major accidents. 

BSEE is also supplementing the existing inspection program in the Gulf of Mexico with a risk-based 

inspection methodology that allows the Agency to target resources at the “riskiest” facilities and safety 

components. This methodology utilizes information obtained from third party SEMS audits and the 

annual compliance inspections to identify safety trends and concerns. These risk-based inspections go 

beyond the typical compliance review and focus on the performance of comprehensive safety audits with 

multi-discipline teams consisting of engineers and inspectors. These audits evaluate and measure issues 

such as the successful implementation of safety management systems, proper contractor oversight, and 

adequate training of personnel. BSEE is also developing a pilot program for the Pacific Region in 2017 

that will provide for more targeted and flexible approach toward performing inspections. This will 

include elements of risk-based inspections that are being used in the GOM along with new approaches 

such as the use of third-party verification where appropriate for less critical systems. More targeted and 

comprehensive inspection and oversight activities, most notably on drilling operations and higher risk 

facilities, combined with the increased complexity in OCS oil and gas activities in the Gulf of Mexico, 

Pacific, and Alaska Regions have required that BSEE increase its inspector workforce and grow their skill 

base. 

To meet the growing manpower demands, BSEE continues to engage in an aggressive hiring effort to 

ensure that it has the expertise and staffing levels to implement a more comprehensive inspection and risk 

mitigation program. BSEE’s inspection workforce has increased significantly since 2010 to a total of 123 

on board as of November 2015. Engineers have grown to 215 during this timeframe. In response to the 

Bureau’s growing need for inspector and engineering training, as well as employee health and safety 

standards, BSEE established a National Offshore Training Program to improve how it provides the 

inspection and engineering workforce with the tools required to successfully perform oversight 

responsibilities in an efficient manner. To ensure continuous improvement in this training program and to 

ensure that the inspection and engineering workforce has the skill sets and training to properly perform 

risk-based assessments, the program will begin instituting comprehensive cross-training in 2017 on topics 

such as the assessment of safety management systems, risk analysis, use of real-time data during 

inspections, and the management of safety barrier systems. 

Bureau of Safety and Environmental Enforcement 55 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

The identification and collection of key safety data is critical in the identification of safety trends and the 

successful mitigation of risks. Recent rulemakings on well control and production safety systems have 

included provisions designed to increase data sharing across industry. BSEE continues to work with 

industry to develop voluntary programs that collect, analyze, and disseminate this information. For 

example, BSEE has launched the SafeOCS program, which is a voluntary and completely confidential 

system in which the Bureau of Transportation Statistics (BTS) collects and analyzes near-miss reports. 

The data provided through this program summarizes oil and gas activities from the past year, compares 

data to previous years, and analyzes trends. In 2016, BSEE worked closely with the Society of Petroleum 

of Engineers and industry to develop a framework for a single comprehensive international database that 

would collect all safety and reliability data. Refinement of this work and the successful implementation 

of this type of database is proceeding forward in FY 2017. 

Under the Outer Continental Shelf Lands Act (OCSLA), BSEE is required to conduct investigations and 

prepare an investigation report for each major incident associated with OCS development, and also for 

lesser incidents at its discretion. The purpose of an investigation is to identify the cause(s) of an incident 

and to make recommendations to prevent its recurrence and the occurrence of similar incidents. Incidents 

that meet the requirements of 30 CFR 250.188 are required to be reported to BSEE, which reviews each 

incident. Based on a tiered approach, BSEE will determine what type and amount of investigative 

resources will be devoted to an incident depending on the severity and complexity of the event. BSEE 

initiated 71 investigations for incidents which occurred on the OCS during FY 2015. 

As a result of incident investigation report recommendations and other inspections and enforcement 

activities, BSEE publishes Safety Alerts to inform the offshore oil and gas industry of the circumstances 

surrounding an incident or near miss and to provide recommendations that will help prevent the 

recurrence of a similar incident on the OCS. Incident investigation reports may also recommend that the 

Bureau consider new or revised regulatory or inspection actions or other initiatives. Through active 

coordination amongst various government agencies such as the USCG, BSEE promotes effective 

utilization and coordination of respective investigative resources. 

As part of the broader realignment within BSEE implemented at the beginning of FY 2016, BSEE 

realigned the external functions of the Investigations and Review Unit (IRU), which was created in the 

aftermath of the Macondo tragedy, into the Safety and Incident Investigations Division (SIID). 

Establishing this Division better underscores responsibilities for responding and investigating, as 

appropriate, reportable incidents involving the regulated industry on the OCS. The Division reports to the 

Deputy Director and is staffed by six former IRU employees. 

Risk-based Review and Approval of OCS Permits: The foundation of safe operations on the OCS begins 

with leading edge prevention through risk identification, assessment, mitigation, management, and 

oversight during the permit review process. Based upon the risks identified in FY 2016 that are 

associated with operators' permit submissions, BSEE will be able to focus permit review efforts in 

FY 2017 on the areas of greatest concern to the public and address those areas with improved policy, 

guidance, and procedures. Using the permit process to identify the critical barriers needed for well 

containment and the associated risks of failure will help BSEE identify components and systems that will 

be the focus of our new risk-based inspection program. 

56 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

Real-Time Monitoring: In FY 2017, the inspection program will utilize real-time monitoring 

technologies and facilities to improve and increase the regulatory oversight of critical offshore operations 

and equipment in deepwater drilling operations. Pending regulations seek to ensure that the agency has 

complete access to industry real-time onshore monitoring facilities. This gives the agency an alternative 

or supplemental approach to inspect drilling activities that are occurring many miles offshore. It also 

provides a mechanism for BSEE engineers and subject matter experts to monitor higher risk drilling 

operations from onshore locations on a continuous basis. 

Engineering Technology Assessment Center (ETAC): The ETAC is located in Houston, Texas, close to 

industry centers, to provide a Bureau-wide focal point for emerging oil and gas exploration and 

production technology evaluation. Finalizing the establishment of this center into a fully-operational 

engineering asset is a strategic priority for FY 2016. An acting ETAC manager has been appointed to 

identify the engineering skill sets and cutting edge expertise that BSEE will need to make the ETAC fully 

functional. Having top-level engineering talent and leveraging internal expertise with contract support 

will provide BSEE a ready means for interaction with the Ocean Energy Safety Institute (OESI) on 

technology projects. The Center will provide an additional capability for BSEE to augment current 

technology assessment functions within the regions. Each region will be able to utilize the Center to 

support its needs. In FY 2017, the ETAC will provide the Director with a nationally-based engineering 

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

environments. It will establish and manage a flexible base of engineering contracts that provide BSEE 

up-to-date experts in offshore oil and gas technology, equipment development, failure analysis, and 

testing protocols. It will also provide technical expertise and liaison capabilities with OESI. The ETAC 

is establishing professional relationships with equipment manufacturers in the Houston area to keep 

abreast with the latest developments in offshore oil and gas equipment technology. Finally, the ETAC 

will provide engineering expertise for the development of new offshore oil and gas regulations and 

evaluation of proposed industry standards, as well as expertise for evaluating and using the information 

being developed by the industry’s real-time monitoring centers. 

Safety and Environmental Management Systems: It has been approximately six years since BSEE first 

promulgated regulations that required regulated parties on the OCS to develop and implement SEMS. 

This performance-based program, the cornerstone in BSEE’s move toward a hybrid regulatory approach, 

is designed to help drive the safety and environmental performance of OCS oil and gas operators and 

contractors beyond attaining full compliance to BSEE’s regulations. BSEE’s SEMS program, which is 

modeled after international programs for quality, safety, and environmental management systems, 

incorporates the elements of American Petroleum Institute’s (API) Recommended Practice 75 to focus 

both industry’s and BSEE’s attention, resources, and initiatives on recognizing and managing the impacts 

of human behavior, organizational structure, leadership, monitoring of critical equipment and processes, 

adoption of standards, processes and procedures, as well as an underlying safety culture to promote 

continuous improvements in safety and environmental performance. 

In FY 2016, BSEE focused on ensuring continuous improvement within the Agency by incorporating 

elements of SEMS into the risk-based inspection program and increasing SEMS training. BSEE also 

proactively worked to increase the quality of SEMS programs by supporting and participating in updating 

API Recommended Practice 75 on Development of a Safety and Environmental Management Program for 

Bureau of Safety and Environmental Enforcement 57 
 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

Offshore Operations and Facilities, which provides the key requirements for the programs. The objective 

of this activity is to ensure that SEMS programs used by operators take a comprehensive approach 

toward: 

•	 Addressing human factors and human behavior. 

•	 Process safety and the management of barriers. 

•	 Management of contractors. 

The revisions to this voluntary document will become part of BSEE’s regulatory program in FY 2017 

once a new SEMS rule is issued and an effective date is established. Additional training within the 

Agency and the industry will be instituted to successfully implement these new requirements. 

Finally, the Bureau will continue work begun in FY 2016 to improve its definition and internal adoption 

of processes and standard procedures so that every regional office in the Bureau will approach its SEMS 

oversight responsibilities and operator interactions in the same way. These efforts will include the 

following: 

•	 Use and enhancement of tools first developed in FY 2016, to assess the maturity level of an 

operator’s management system based on inspector and investigator observations, the depth 

and breadth of information in each SEMS audit report, and the quality of other interactions 

between an operator and the Bureau. 

•	 Promote and implement in a consistent way a Regulatory Interpretations process that was 

developed in FY 2016 to answer questions raised by industry and others on how BSEE 

interprets its regulatory requirements. 

•	 Use BSEE personnel as audit observers and to independently assess SEMS implementation 

and overall safety culture on OCS facilities. 

•	 Use BSEE personnel to verify the implementation and efficacy of Corrective Actions 

proposed after each SEMS audit. 

•	 Investigate, develop, promote, and implement methods to document the role of human factors 

in improving the effectiveness of an operator’s SEMS. 

•	 Conduct focused SEMS audits on critical process elements. 

•	 Use of SEMS subject matter experts on risk-based inspections and incorporate SEMS 

elements into the annual compliance inspections. 

Renewable Energy Inspection Program: Secretarial Order 3299 directed the creation of the Bureau of 

Ocean Energy Management (BOEM) and BSEE to carry out separate core missions: BOEM to ensure the 

balanced and responsible development of energy resources on the OCS, and BSEE to provide 

58 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

independent safety and environmental oversight, oil spill preparedness, and enforcement of offshore 

activities. While BOEM continues to implement an expanding renewable energy program, there are 

currently no operational units on the OCS; however, to date there are several offshore wind energy 

projects scheduled to be completed by 2019. BSEE will continue to monitor the progress of these 

projects. 

A BSEE/BOEM transition team is managing the effort to re-designate the renewable energy regulations in 

30 CFR Part 585 between the two agencies. BSEE will also draft a series of touch-point documents to 

guide the interdependencies between BOEM and BSEE before the re-designation is complete. After the 

re-designation, BOEM and BSEE will revise the existing renewable energy regulations for OCS 

operations and update existing interagency Memorandum of Understandings (MOU) accordingly. 

As part of the transition and in collaboration with BOEM, BSEE participated in the review of the Facility 

Design Report (FDR) and Fabrication and Installation Report (FIR) for the Sea2Shore subsea 

transmission cables. These transmission cables were authorized as part of a Right of Way (ROW) grant 

for an eight nautical mile-long, 200-foot wide corridor in Federal waters on the OCS to connect the Block 

Island Wind Farm, located in Rhode Island State waters, to the Rhode Island mainland via a substation 

located on Block Island. The proposed offshore transmission connection will also transmit power from 

the existing onshore transmission grid to Block Island. The first offshore wind farm in the U.S., the 30 

megawatt, 5-turbine Block Island Wind Farm is scheduled to be online in 2016. Soon, the Block Island 

Wind Farm will not only supply most of Block Island’s power, but also reduce air pollution across 

southern New England for years to come. 

BSEE has provided subject matter expertise for reviews of two Department of Energy (DOE) Offshore 

Wind Advanced Technology Demonstration Projects in Federal waters; (1) the Virginia Offshore Wind 

Technology Advancement Project (VOWTAP) Site Assessment Plan and the description of their Safety 

Management System, and (2) the preliminary submittal of their WindFloat Pacific Project Construction 

and Operations Plan. BSEE also reviews all offshore wind proposed projects to determine if a BSEE 

approved Oil Spill Response Plan (OSRP) will be needed. To date, three projects have met the criteria 

and submitted an OSRP. 

In addition, the Bureau is actively developing and refining a methodology for including facility inspection 

capabilities into existing inspection and compliance programs and developing the appropriate regulatory 

authorities and appropriations language to support safe and environmentally responsible renewable 

energy development on the OCS. In 2015, BSEE received the final report from a contracted study to 

assess current onshore and international offshore inspection practices related to wind turbine facilities and 

associated electrical transmission systems. The Bureau will use this assessment to inform the 

development of regulations, inspection guidelines, procedures, and criteria for inspections of offshore 

renewable energy facilities so that the appropriate regulatory structure will be in place to protect the 

safety of the facilities, any personnel working on them, and any surrounding structures. 

Ocean Energy Safety Institute: The OESI was established in early FY 2014 and is managed by the 

Texas A&M Engineering Experiment Station’s (TEES) Mary Kay O’Connor Process Safety Center, in 

partnership with the University of Houston and the University of Texas. The OESI, established under a 

Bureau of Safety and Environmental Enforcement 59 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

five-year cooperative agreement, provides a forum for dialogue, shared learning, and cooperative research 

among academia, government, industry, and other non-government organizations in offshore-related 

technologies and activities that ensure safe operations with limited impact to the environment. The 

Institute will provide recommendations and technical assistance to BSEE related to emerging 

technologies and BAST. In addition, it will develop and maintain an equipment failure monitoring 

system and train Federal employees to enable them to remain current on state-of-the-art technology. The 

Institute will also promote collaboration among Federal agencies, States, industry, standards 

organizations, academia, and the NAS. 

OESI has already hosted several forums, including Risk Awareness and Eliminating Barriers to Data 

Sharing. The forums provided an environment for shared learning, collaboration, and demonstrated 

opportunities for all parties to work together for the greater good of improving safety on the OCS. During 

FY 2015, OESI conducted additional forums on the topics of research, human factors, and shallow-water 

hazards. 

Conservation Management: As a steward of the Nation’s OCS oil, gas, and mineral resources, BSEE 

must provide for conservation of natural resources by preventing waste and ensuring ultimate recovery of 

the resources, as well as protecting the correlative rights of OCS lessees and the government. 

Conservation of oil and gas resources is an integral part of the Nation’s energy policy and a primary 

objective for BSEE’s regulatory program. To promote conservation, BSEE monitors development and 

production activities on the OCS and enforces regulations that require operators to avoid waste and 

maximize the ultimate recovery of OCS minerals once access has been granted. 

Emerging Technologies and BAST: BSEE is focused on ensuring that existing and new facilities are 

using the best available and safest technology for critical equipment that is needed to prevent major 

accidents or environmental damage. This process is mandated by the OCSLA. The completion and 

publication of the formal BAST determination procedure in FY 2016 allows the Agency, for the first 

time, to have a transparent and data driven process for making these determinations in a timely manner. 

The BAST determination process is a multi-year procedure and makes it possible that evaluation of 

technologies that were initiated in FY 2016 may be completed in FY 2017. 

BSEE has implemented a variety of processes and programs to ensure that it adequately identifies and 

mitigates risks in the use of new and emerging technology that is needed to develop deepwater and/or 

high pressure/high temperature resources. The opening of the technology center in Houston in 2016 

provides the Bureau with supplemental technical expertise to address these complex issues and also 

ensure that BSEE has staff located near key technology development and research centers. BSEE 

initiated an aggressive recruiting program for the technology center in FY 2016 and anticipates having it 

fully staffed by the end of FY 2017. 

In FY 2016, BSEE also began working with NASA to develop a probabilistic risk assessment tool that 

can be used by the agency and operators to quantify the relative risks of a particular technology or system. 

This tool will be based on the process that is currently being used to assess the cutting edge technology 

that is used in the space industry. This work will be supplemented by work which is currently being 

performed for BSEE by the DOE National Laboratories and through BSEE-initiated research projects and 

60 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

joint industry projects involving high temperature/high pressure technology and risk-informed decisionmaking. 

The ongoing effort by BSEE to develop performance-based operating regulations can reasonably be 

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 regulations would provide. BSEE 

will be required to commit a substantial and increasing amount of resources to these assessments to 

evaluate an operator’s proposed alternative, verify adherence to approved plans, and determine 

effectiveness of technologies and procedures employed. The Houston-based Technology Center, the 

DOE Laboratory System, BSEE’s research program, and NASA will all be used to assist in making these 

assessments. 

BSEE continues to actively seek opportunities for joint projects to leverage available funds and 

disseminate research findings. Participation in jointly funded projects with industry, other Federal and 

State agencies, academia, and international regulatory organizations has become an important mechanism 

for BSEE to improve its understanding of important safety issues. In FY 2016, BSEE continued to 

participate in several joint projects and plans to continue to seek opportunities to leverage available funds 

through joint projects with other organizations. For example, BSEE is working with DOE on projects 

such as early kick detection and advanced downhole signaling transmission. 

Compliance and Enforcement: An essential part of any regulatory program is the provision of 

compliance assistance and enforcement in cases where safety and environmental regulations are not 

complied with. BSEE employs a number of tools, including issuance of incidents of non compliance, 

penalties and orders to underscore the importance of safe operations and environmental stewardship to 

create a level playing field for all operators. BSEE also conducts annual performance reviews of each 

operator as a way to address recurring safety and environmental concerns. 

A key component of the reorganization and reform efforts is the identification of how BSEE can improve 

its investigation, analysis, regulatory, inspection, and compliance programs based on risk considerations. 

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 continue to look for improvements to enhance its programs. 

BSEE is actively working to develop a risk-based inspection methodology for use at various levels within 

the regulatory program. Through the identification and quantification of risk, BSEE can identify key 

leading and lagging indicators, and better gauge operator effectiveness in employing redundant physical 

controls (barrier analysis). In the first quarter of FY 2016, BSEE pilot-tested a risk-analysis methodology 

for production facilities. Preliminary data analyses indicates that the 410 highest-risk platforms in the 

Gulf of Mexico OCS Region (GOMR), which represents about 20 percent of GOMR platforms, 

accounted for 80 percent of all accident or pollution events that were reported to BSEE during FY 2014. 

These platforms also accounted for 84 percent of all major incidents such as fires, explosions, spills, 

fatalities, and blowouts. The Bureau is actively investigating the deployment and use of this methodology 

which, when combined with findings from our annual inspection program and trends identified in the 

Bureau of Safety and Environmental Enforcement 61 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

third party SEMS audits, will enable BSEE to effectively focus its attention in the areas or operations 

which pose the greatest risk to safe operations. Inspection strategies which apply this risk methodology to 

help focus inspections on selected topics are currently being piloted. Additionally, BSEE is preparing to 

shift its role as an observer of third party SEMS audits to auditor, as BSEE begins to focus on the status 

and ultimate closure of the corrective action plans. 

In FY 2016, BSEE established the Safety and Enforcement Division to promote consistency in the 

implementation of the Bureau's enforcement responsibilities and strategy. This Division is responsible 

for developing national policies and procedures for the enforcement of safety and environmental rules and 

regulations that govern activities on the OCS, consistent with guidance from the Department and BSEE's 

Director. The goal is to achieve a high level of compliance, compel safe and environmentally sound 

results, and ensure that all operators conduct activities in a safe and responsible manner. In implementing 

the compliance and enforcement program, BSEE will be guided by safety and environmental protection 

performance goals and adhere to clear, systemic and fair processes. The program will also promote a 

culture of professionalism throughout the workforce and establish consistent, transparent, and clear 

processes that will guide program implementation. 

Information Technology (IT) and Data Stewardship: BSEE has been working to develop and maintain 

its IT investments by enhancing the Bureau’s capability to collect and manage data. Through enhanced 

data use, BSEE will be able to make better decisions, as well as make data available to the public in an 

accessible way while protecting privacy, proprietary information, and business confidential information. 

To enhance the Bureau’s capabilities, BSEE has deployed eWell to all regions, expanded eInspections 

functionality to include both platforms and rigs, and begun phase 1 development of the ePermits system. 

BSEE has incorporated the implementation of the Business Intelligence Tool as an IT and data 

stewardship goal. This would include the construction of an integrated Business Intelligence environment 

including software and hardware components that consolidates data from a broad spectrum of data 

repositories. BSEE data will be presented through a logical data model that reflects business processes 

using a metadata-driven approach. This will allow the transition from a canned or custom report-driven 

approach to data analysis and discovery to give users the power to independently obtain the information. 

The metadata layer will allow for the development of a web-enabled, role-based dashboard built on 

Oracle’s Business Intelligence Foundation Suite and the mapping of current users to the newly developed 

security model. 

BSEE has begun transitioning to a data stewardship framework within the Bureau to facilitate the 

development and implementation of standards, policies and procedures, and improve the quality and 

accessibility of data for analytical purposes. The Bureau works to protect proprietary and personally 

identifiable information (PII) through existing policies and procedures, and updates these to maintain 

compliance and provide individuals and organizations the necessary assurances regarding the integrity of 

critical information assets. Furthermore, BSEE is working in concert with the Department to make 

progress towards a comprehensive inventory of data assets as instructed by the Office of Management and 

Budget (OMB) in OMB M-13-13. 

62 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations, Safety and Regulation 

Finally, BSEE has implemented project cost accounting around IT spending. After a successful pilot of 

the eInspections project, BSEE will now use project cost accounting for all IT development initiatives. 

This approach captures spending for Federal labor, contract labor, other contracts, hardware, software, 

and other costs for projects, thus allowing BSEE to accurately capture the full life-cycle costs for IT 

spending. 

Oil Spill Response Planning and Preparedness: Environmental stewardship refers to responsible use 

and protection of the natural environment through conservation, enforcement, and sustainable practices. 

By ensuring offshore facility owners/operators meet the oil spill response preparedness standards set forth 

by the Clean Water Act, Oil Pollution Act of 1990, and 30 CFR §254, BSEE plays a key role in 

supporting the Nation’s response posture for oil spills that can impact public health and the environment. 

The Oil Spill Response Plan (OSRP) is one method of ensuring the American public that offshore energy 

exploration and production is an activity that fosters environmental stewardship. OSRPs are approved 

when an offshore facility has demonstrated the ability to respond to a worst-case discharge to the 

maximum extent practicable. In FY 2015, OSPD conducted 246 plan review activities to ensure the 134 

approved OSRPs remain updated and in compliance with the regulations. As such, BSEE ensures that the 

strategies and resources listed in OSRPs are regularly exercised. Exercises allow personnel from facility 

operators, spill response contractors, and regulatory officials to validate the efficacy of an OSRP. These 

exercises provide training and practice of strategic and tactical preparedness, protection, response, and 

recovery capabilities in a risk-reduced environment. In FY 2015, OSPD conducted 18 governmentinitiated unannounced exercises and audited 81 training and industry exercise activities. 

Additionally, BSEE manages the compliance process for monitoring the preparedness and readiness 

levels of oil spill response equipment owned or contracted by offshore facilities owners/operators. 

Therefore, BSEE personnel periodically verifies and ensures that equipment listed within the OSRP is 

properly maintained, ready to be operated, and performs as specified by the manufacturer. In FY 2015, 

the OSPD conducted 71 separate site visits to verify the location and condition of thousands of pieces of 

oil spill response equipment. 

Bureau of Safety and Environmental Enforcement 63 
 

 

Operations, Safety and Regulation 

Table 7: Performance Overview Table - Operations, Safety and Regulation Mission Area 2, Goal 1: Secure America's Energy Resources Strategic O bjective Metrics Strategic Plan Measure / Efficiency or other Bureau- Specific Measure 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Enacted 2017 Pres. Budget Request Strategic Plan Measures Amount (in barrels) of operational offshore oil spilled per million barrels produced (excluding Hurricane-related spills) (SP) 0.30 (142/476 million) 0.099 (est.) (47.86/482 million) 0.14 (73.01/506 million) 0.034 (est.) (19/552 million) 1.00 1.00 Comments: The estimated oil spill value for FY 15 does not include any spill volumes associated with the Taylor Energy debris field in the Gulf of Mexico. Contributing Programs: Operations, Safety and Regulation Number of Recordable Injuries per 200,000 Offshore Man Hours Worked (DOI-Regulated Activities ONLY) (SP) 0.332 (200/602) 0.379 (228/601) 0.342 (205/599) 0.241 (est.) (155/643) 0.400 0.400 Comments: This strategic plan measure is an incident rate of all Recordable Injuries (i.e., injuries that require medical treatment beyond first aid and fatalities) that occur during DOI-regulated activities in the fiscal year for every 200,000 offshore man hours worked (which is the approximate equivalent of 100 full-time workers). The value for FY 15 is an estimate because final data is not yet available. Contributing Programs: Operations, Safety and Regulation Efficiency or other Bureau-Specific Measures Total Number of Compliance Inspections Completed (BUR) 23,025 24,195 21,033 18,944 (est.) 18,500 18,500 Comments: BSEE's total inspections for FY 2015 are below the target of 21,000. This decrease can be attributed to the following rationale, which focuses on the Gulf of Mexico where the majority of BSEE's inspections occur: First, the total for BSEE's FY 2015 compliance inspections is a rough estimate because not all of the data from BSEE's District Offices in the Gulf of Mexico has been submitted and verified at this time. Second, several new technology systems were introduced in the Gulf of Mexico this year which have increased the time per inspection due to a learning curve for users along with the need to resolve defects discovered in the new systems. These new systems allow inspectors to conduct more thorough inspections and require the inspector to more accurately document the components and safety devices reviewed and tested, but also require additional time per inspection. Third, BSEE has hired a significant number of new inspectors who need to shadow more experienced inspectors. These new inspectors must also meet core curriculum training requirements before they are able to work independently (57% of inspectors have less than 3 years with BSEE). Fourth, offshore inspectors continued to undertake more comprehensive inspections in deeper water (more complex facilities with more process components), which lengthens the time associated with inspections. Finally, the level of activity in the

Gulf is shifting as the total number of platforms has decreased over the last five years from 3,129 in 2011 to 2,345 in 2015. In addition, the amount of shallow water rig activity in the Gulf of Mexico was significantly reduced in 2015 due to a decline in oil prices. Shallow water activity is currently at the lowest level seen in the last 20 years.Contributing Programs: Operations, Safety and Regulation 

64 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative Operations 

FY 2017 PERFORMANCE BUDGET REQUEST
 

Administrative Operations Activity 

Table 8: Administrative Operations Activity Budget Summary 

2015 

Actual 

2016 

Enacted 

Fixed Costs 

and Related 

Changes 

(+/-) 

Internal 

Transfers 

(+/-) 

Program 

Changes 

(+/-) 

2017 

Request 

Changes from 

2016 

(+/-) 

Administrative Operations ($000) 

FTE 

15,676 

207 

18,268 

247

+97 

-

-

-

-97 

-

18,268

247

 -

-

SUMMARY OF 2017 PROGRAM CHANGES 

Amount Request Component FTE ($000) 

General Reduction -97 ­

Total Program Changes: -97 ­

JUSTIFICATION OF 2017 PROGRAM CHANGES 

The 2017 budget request for the Administrative Operations Activity is $18,268,000 and 247 FTE, which 

results in no net change from the FY 2016 Enacted level. 

General Reduction (-$97,000/0 FTE): In order to support BSEE’s highest priority needs in FY 2017, the 

Bureau proposes a general reduction in funding for Administrative Operations activities to be realized through 

administrative savings such as increasing oversight and setting limitations on travel. 

PROGRAM OVERVIEW 

The Administrative Operations Activity consists of the following divisions and support teams: 

Acquisition Management Division, Equal Employment Opportunity Division, Finance Division, Human 

Resources Division, Management Support Division, Technology Services Division, Data Stewardship 

Team and Records, and Delegations and Directives Team. BSEE provides the full suite of administrative 

services to BOEM through a reimbursable service agreement. The Bureau also provides a partial set of 

shared services to the Office of the Secretary under tailored shared services agreements. BSEE is 

continually working to advance its administrative support posture in order to improve services and 

provide the Bureaus’ programs with the tools needed to meet mission requirements effectively. Through 

the use of program funding provided to meet targeted administrative initiatives to include human capital, 

data stewardship, and records management, and the utilization of shared service partnerships with BOEM, 

and other parts of the Department, the Office of Administration can continue to establish best practices 

and enhance efficiencies. 

Bureau of Safety and Environmental Enforcement 65 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative Operations 

Acquisition Management Division (AMD): The AMD is responsible for the execution and 

administration of BSEE and BOEM contracts and financial assistance agreements. By collaborating with 

its customer organizations, this Division can create quality business solutions that help to accomplish the 

mission goals of the Bureaus. The Division provides acquisition and financial assistance policy guidance, 

cost and price analysis, and advice to procurement and program personnel. AMD conducts acquisition 

management and other internal control reviews of procurement activities throughout the year. AMD 

administers the purchase line of the BSEE and BOEM charge card programs, as well as the competitive 

sourcing programs. In addition, the Business and Economic Development Program maximizes 

opportunities for small, disadvantaged, and women-owned businesses, as well as historically black 

colleges and universities as both prime contractors and subcontractors. Work includes overseeing and 

managing all career management programs for acquisition purposes. 

Equal Employment Opportunity Division (EEOD): The EEOD develops, monitors, and operates the 

Equal Employment Opportunity (EEO) program for BSEE and BOEM in compliance with 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 workforce 

activities are inclusive, and that they promote the full utilization and exchange of skills and talents. 

The Division provides advice and guidance to managers, supervisors, and employees regarding EEO 

policies and procedures. EEOD provides technical advice and consultation to managers on recruitment 

strategies for affirmative employment designed to improve low participation rates of various groups in 

BSEE and BOEM. EEOD provides oversight of special initiative programs designed to involve more 

women, minorities, and people with disabilities throughout all levels of 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 provides a full range of accounting and financial management 

services to BSEE and BOEM. The Division manages and oversees the Chief Financial Officer audit as 

conducted by an independent audit firm with oversight from the Department’s Office of Inspector General 

(OIG). The Finance Division develops Bureau financial policies, procedures, and guidelines. The 

Division liaises with departmental policy offices, including the Office of Financial Management and the 

Office of Acquisition and Property Management. It also coordinates with the Bureau’s Office of Budget 

and with the Department’s Office of Budget. Staff members may also represent the Bureau on a variety 

of departmental and government-wide teams dealing with financial issues. 

This Division is responsible for the administrative accounting operations of both BSEE and BOEM. The 

Finance Division manages the administrative accounting system; audits and schedules bills for payments; 

collects debts; develops financial data; prepares financial reports; provides advice and guidance on 

financial matters; and liaises with departmental offices and other Federal agencies. 

Human Resources (HR) Division: The HR Division develops and implements policies, procedures, 

guidelines, and standards relating to general personnel management, recruitment and employment, 

position management and classification, and employee development. Work includes performing all 

operational personnel services for BSEE, BOEM, and other client organizations including the Department 

66 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative Operations 

of the Interior’s Office of the Secretary, and providing assistance and guidance related to personnel 

matters for all regional and field installations. 

HR also leads all BSEE 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 Division tailors these services to meet the specific needs of its diverse customers. The 

long-term benefits of workforce-planning initiatives include the ability of BSEE and BOEM to meet their 

mission and performance goals. As regulators, BSEE must be able to keep pace with the latest 

technological advances. In support of these efforts, the Division works with its customers to adopt a 

comprehensive recruitment and training system in order to attract the best talent to the public service, 

while continuing to provide the training and education necessary to keep its workforce at the leading edge 

of industry innovation. 

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. HR also coordinates all 

department mandated employee development initiatives for implementation in BSEE and BOEM. 

Management Support Division: The Management Support Division provides direct assistance to 

BSEE’s Associate Director for Administration, as well as to BSEE and BOEM personnel. The Division’s 

responsibilities include: 

•	 Emergency management, physical security, personnel security; 

•	 Evaluations and studies; 

•	 Delegation of authority, directives management, program management, providing high-level 

administrative support; and management and organization analysis activities; 

•	 Occupational safety and health; 

•	 Support services, including facilities management, property management, space management, 

printing and publications activity, and general office services; 

•	 Continuity of operations program; plans, implements, and directs the physical and personnel 

security programs, including development and implementation of policy, procedures, methods, 

and techniques for protection of proprietary and national security information; 

•	 Budget planning, execution, and formulation for the administrative operations budget; and 

•	 Maintains accountability records of all system-controlled property in the possession and control 

of custodial property officers and contractors; and manages the vehicle fleet and museum 

property, including the Arts and Artifacts program. 

Technology Services Division (TSD): The TSD ensures the efficient and effective planning, 

management and acquisition of information technology (IT) and information resources within BSEE, 

BOEM, and ONRR. The Division ensures compliance with all Federal Information Technology 

Acquisition Reform Act (FITARA) requirements, as well as other government-wide and departmental 

Bureau of Safety and Environmental Enforcement 67 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative Operations 

priorities. TSD clearly defines the information technology needs of the Bureaus’ mission and enterprise 

functions, and fulfills those needs as appropriate. 

The TSD provides a central foundation to manage the large volume of information and data used in the 

scientific, engineering, and management activities of BSEE’s and BOEM’s programs. The Technical 

Information Management System (TIMS) is the Bureau’s core mission application, and provides the tools 

needed to manage the wide array of data and information needed to accomplish the Bureaus day-to-day 

mission requirements effectively. TIMS automates the business and regulatory functions of BSEE and 

BOEM and brings diverse information into a central database. This enables BSEE and BOEM regions 

and headquarters to share and combine data; to standardize processes, forms, reports, and maps; to 

promote the electronic submission of data; to enforce data integrity through relational database 

technology; and to release accurate, consistent information to the public sector. 

In support of the strategic goals of each Bureau, TSD through a collaborative effort with its customer base 

will redesign its information and knowledge management tools, and enhance the collection, 

standardization, accuracy, completeness, consistency, and storage of data. These efforts will increase the 

Bureau’s ability to collaborate across current divisions of process and software. Improved data 

management and analysis will allow the Bureau to better identify trends and statistics critical to assessing 

broader indicators of risk. A more collaborative and streamlined knowledge management system will 

also better enable bureau-wide innovation and adaptation in all aspects of offshore safety, response 

preparedness, and environmental protection. 

The TSD also manages and maintains the Geological Interpretive Tools (GIT) system, which represents 

the basis of essentially all BOEM determinations requiring geoscience analysis. GIT allows BOEM to 

improve productivity by quantifying analyses, analyzing digital data in three-dimensions, fully integrating 

geophysical and geological data analysis, and reducing risks and uncertainty in decision-making 

processes. In addition, TSD has developed an extensive Geographic Information System (GIS) capability 

for nearly all BSEE and BOEM offshore maps and leasing processes, providing the means to define, 

describe, analyze, and account for every acre of Federal offshore-submerged lands. 

The Division provides direction and coordination for Bureau-wide IT activities such as the IT 

Capital/Strategic Planning, with an emphasis on IT investment planning and monitoring through a 

rigorous governance process. They also provide support for the overall infrastructure, including the 

shared services budget, enterprise help desk, network management, and other essential infrastructure for 

office automation. The TSD implements and supports the Bureau’s IT security program by working 

collaboratively with BSEE and BOEM offices as well as with the DOI’s Office of the CIO to review and 

improve security plans, policies, procedures, and standards to reflect technological changes. The IT 

security efforts include participating in risk assessments and management reviews of systems and 

networks, identifying security issues, recommending mitigation, and promoting compliance with 

FITARA. 

Data Stewardship Team: The Data Stewardship Team organizes and facilitates data sharing with 

program offices, Bureaus, and public stakeholders, as well as coordinates data stewardship activities with 

DOI data teams. In addition, the team works with the Programs and Divisions to develop and maintain 

68 Bureau of Safety and Environmental Enforcement 
 

 

 

Administrative Operations 

overall data architecture, data resource model, data strategies, and manages the data as a corporate 

resource. 

Records, Delegations, and Directives Team: The Records, Delegations, and Directives Team provide 

effective management of the creation, maintenance, use, preservation, and disposition of all BSEE and 

BOEM records. The Team also coordinates and manages the Bureau’s delegations of authority and 

directives management programs. 

Bureau of Safety and Environmental Enforcement 69 
 

Administrative Operations 

This page intentionally left blank. 

70 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

General Support Services 

FY 2017 PERFORMANCE BUDGET REQUEST
 

General Support Services Activity 

Table 9: General Support Services Budget Summary 

2015 

Actual 

2016 

Enacted 

Fixed Costs 

and Related 

Changes 

(+/-) 

Internal 

Transfers 

(+/-) 

Program 

Changes 

(+/-) 

2017 

Request 

Changes from 

2016 

(+/-) 

General Support Services ($000) 

FTE

13,912

 -

-

-

-

-

-

-

-

-

-

-

-

-

INTERNAL TRANSFERS
 

The FY 2017 budget request for the General Support Services Activity (GSS) is $0 and 0 FTE, which results 

in no net change from the FY 2016 Enacted level. 

GSS Activity Realignment 

The FY 2016 budget realigned funds from BSEE’s General Support Services (GSS) Activity funding into 

the supported programs based on current FTE levels. 

Bureau of Safety and Environmental Enforcement 71 
 

General Support Services 

This page intentionally left blank. 

72 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

Executive Direction 

FY 2017 PERFORMANCE BUDGET REQUEST 

Executive Direction Activity 

Table 10: Executive Direction Budget Summary 

2015 

Actual 

2016 

Enacted 

Fixed Costs 

and Related 

Changes 

(+/-) 

Internal 

Transfers 

(+/-) 

Program 

Changes 

(+/-) 

2017 

Request 

Changes from 

2016 

(+/-) 

Executive Direction ($000) 

FTE 

18,227 

97 

18,236 

106

+81 

-

-

-

-81 

-

18,236

106

 -

-

SUMMARY OF 2017 PROGRAM CHANGES 

Amount Request Component FTE ($000) 

General Reduction -81 ­

Total Program Changes: -81 ­

JUSTIFICATION OF 2017 PROGRAM CHANGES 

The 2017 budget request for the Executive Direction Activity is $18,236,000 and 106 FTE, which results in 

no net change from the FY 2016 Enacted level. 

General Reduction (-$81,000/0 FTE): In order to support BSEE’s highest priority needs in FY 2017, the 

Bureau proposes a general reduction in funding for Executive Direction activities to be realized through 

administrative savings such as increasing oversight and setting limitations on travel. 

PROGRAM OVERVIEW 

The Executive Direction Activity provides Bureau-wide leadership, direction, management, coordination, 

communications strategies, and outreach for the entire organization to carry out its primary mission. In 

FY 2016, BSEE undertook a functional realignment which has resulted in changes to the activity. In 

FY 2017, the Executive Direction Activity will fund the Office of the Director, the Integrity and 

Professional Responsibility Advisor Unit, the Office of Budget, the Office of Policy and Analysis, the 

Office of Public Affairs, and a combined Office of Congressional and International Affairs. 

Office of the Director 

The Office of the Director includes the Director, the Deputy Director, and their immediate staff. This 

office is responsible for providing general policy guidance and overall leadership within the BSEE 

organization, as well as managing all of the official documents of the Office of the Director. 

Bureau of Safety and Environmental Enforcement 73 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive Direction 

Integrity and Professional Responsibility Advisor (IPRA) Unit 

In FY 2016, BSEE created an IPRA position within the Office of the Director. The IPRA is responsible 

for promptly and credibly responding to allegations or evidence of misconduct, unethical behavior, and 

unlawful activities by BSEE and BOEM employees. Investigations into the activities of private entities 

that BSEE regulates will be performed by the Safety and Incident Investigations Division. The IPRA 

shares allegations of internal misconduct with the DOI's Office of the lnspector General, determining 

jointly which office conducts an investigation of those allegations. The IPRA manages the process by 

which allegations of misconduct are reported and investigated and disseminates results to the appropriate 

officials when tasked with investigating the allegations. 

Office of Budget 

The Office of Budget provides budget analysis and guidance for the formulation, congressional and 

execution phases of the budget cycle. During the budget formulation cycle, the office develops and 

maintains all budgetary data to support BSEE’s budget requests to the Department, the Office of 

Management and Budget (OMB), and Congress. During the congressional phase, the Office of Budget 

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 Office of Budget works closely with the 

Office of Policy and Analysis and program level performance staff to integrate performance data and 

information into all aspects of budget formulation and execution. 

Office of Policy and Analysis 

The Office of Policy and Analysis serves as the principal office to provide the Director with independent 

review and analysis of programmatic and management issues. Additionally, the office leads, coordinates, 

and monitors many cross-program initiatives, ensuring a consistent BSEE-wide implementation that 

directly supports congressional, presidential and departmental directives, laws, mandates and guidance. 

The Office of Policy and Analysis fulfills the Director’s responsibilities in several critical areas including 

strategic and performance planning, policy and program evaluation, enterprise risk management, and 

internal controls. It is also responsible for ensuring that programmatic plans and policies are consistent 

with and integrated into the overall Bureau mission and responsibilities, as well as with Department and 

Administration policy frameworks. In addition, the office administers and coordinates internal reviews as 

well as oversees and ensures the implementation of recommendations made by oversight groups such as 

the Government Accountability Office and the Office of the Inspector General. 

Associate Director of Strategic Engagement 

This position serves as a senior advisor to the Director on key mission-critical issues, initiatives, and 

Bureau functions. In FY 2014, BSEE consolidated management of external affairs under the Associate 

74 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Executive Direction 

Director of Strategic Engagement. The Office of Public Affairs, along with the Office of Congressional 

and International Affairs, reports to this position. 

Office of Public Affairs (OPA) 

OPA is responsible for BSEE’s communication strategies and outreach. The goal of OPA is to inform the 

public, and ensure coordinated communication, consistent messages, and the effective exchange of 

information with all customers and stakeholders. OPA coordinates the implementation of an effective 

and inclusive outreach program to numerous target audiences, including state and local governments, the 

energy industry, related trade associations, the environmental community, Tribal Nations, energy 

consumer groups, and the public. 

Office of Congressional and International Affairs (OCIA) 

OCIA serves as BSEE’s primary point of contact for the U.S. Congress and BSEE’s international 

counterparts. The OCIA is responsible for the coordination of all communication and engagements as 

well as ensuring consistent messaging and effective exchanges of information in these areas. 

OCIA manages and analyzes all congressional and legislative matters that pertain to the Bureau. The 

responsibilities that facilitate these engagements include the analysis of proposed, pending, and enacted 

legislation for impacts on BSEE’s mission, priorities, and goals; preparation of Bureau statements and 

witnesses before Congress; actively informing Congress of Bureau issues and activities; and providing 

timely responses to questions from the House, Senate, Congressional Budget Office, and Congressional 

Research Service. OCIA maintains an open line of communication regarding BSEE’s programs and 

policies with BSEE’s authorizing committees, as well as other relevant committees’ members and support 

offices. The OCIA serves as the Bureau’s liaison with Congress, the Department, and other Federal 

executive agencies. 

OCIA manages and analyzes the Bureau’s international programs and policies to ensure initiatives are 

consistent with BSEE’s mission, priorities, and goals. The responsibilities that facilitate these 

engagements include structuring international cooperation agreements; organization of technical 

exchanges; advising BSEE’s international travelers on matters of security, protocol, and travel 

requirements; and, support of BSEE’s engagement in international regulatory fora. OCIA maintains an 

open line of communication regarding BSEE’s programs and policies with the Department’s Office of 

International Affairs, the Department of State, and the international programs within all relevant U.S. 

agencies, such as the Department of Energy, the Department of Commerce, and the Department of the 

Treasury. 

Bureau of Safety and Environmental Enforcement 75 
 

Executive Direction 

This page intentionally left blank. 

76 Bureau of Safety and Environmental Enforcement 
 

 

Summary of Requirements Table 

Bureau of Safety and Environmental Enforcement 

Summary of Requirements Table Summary of Requirements for Bureau of Safety and Environmental Enforcement (Dollars in Thousands) Account 2015 Actual 2016 Enacted 2017 Request Amount Total FTE Amount Fixed Costs & Related (+/-) Internal Transfers (+/-) FTE Amount Program Changes (+/-) FTE Amount FTE Amount Change from 2016 (+/-) Oil Spill Research 14,899 22 14,899 - - - - 22 14,899 - - TOTAL FUNDING, Oil Spill Research 14,899 22 14,899 - - - - 22 14,899 - -

Bureau of Safety and Environmental Enforcement 77 
 

Summary of Requirements Table 

This page intentionally left blank. 

78 Bureau of Safety and Environmental Enforcement 
 

Language Citations 

Bureau of Safety and Environmental Enforcement
 

Language Citations 

Appropriations Language
 

Oil Spill Research Appropriation Account
 

For necessary expenses to carry out title I, section 1016, title IV, sections 4202 and 4303, title VII, and 

title VIII, section 8201 of the Oil Pollution Act of 1990, $14,899,000, which shall be derived from the Oil 

Spill Liability Trust Fund, to remain available until expended. 

(Department of the Interior, Environment, and Related Agencies Appropriations Act, 2016.) 

Bureau of Safety and Environmental Enforcement 79 
 

Language Citations 

This page intentionally left blank. 

80 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil Spill Research Appropriation 

FY 2017 PERFORMANCE BUDGET REQUEST
 

Oil Spill Research Appropriation 

Table 11: Oil Spill Research Budget Summary 

2015 

Actual 

2016 

Enacted 

Fixed Costs 

and Related 

Changes 

(+/-) 

Internal 

Transfers 

(+/-) 

Program 

Changes 

(+/-) 

2017 

Request 

Changes from 

2016 

(+/-) 

Oil Spill Research ($000) 

FTE 

14,899 

17 

14,899

22

 -

-

-

-

-

-

14,899

22

 -

-

JUSTIFICATION OF 2017 PROGRAM CHANGES
 

The FY 2017 budget request for the Oil Spill Appropriation is $14,899,000 and 22 FTE; which represents no 

net change from the FY 2016 Enacted level. 

PROGRAM OVERVIEW 

The Oil Spill Research (OSR) appropriation funds oil spill response research at Ohmsett (National Oil 

Spill Response Research and Renewable Energy Test Facility) and oil spill prevention, abatement, 

planning, preparedness, and response functions for all facilities seaward of the coastline of the U.S. that 

handle, store, or transport oil. These activities support BSEE’s strategic mission overseeing the 

development of oil and gas resources from the Outer Continental Shelf (OCS) in a safe and 

environmentally protective manner. 

Funding for OSR activities is appropriated from the Oil Spill Liability Trust Fund (OSLTF) which is 

sustained by an industry excise tax that for 2017 is nine cents per barrel of crude oil produced or imported 

into the U.S. The excise tax, which is authorized under Section 405 of the Energy Improvement and 

Extension Act of 2008, expires December 31, 2017. As intended by the Oil Pollution Act of 1990, the 

companies that produce and transport oil are supporting research and activities to improve the country’s 

offshore oil spill preparedness and response posture and capabilities. Research conducted with 

appropriated funds is either: 

•	 Awarded through a competitive process to academia, regulators, and qualified companies from 

throughout the U.S. which possess scientific and engineering expertise necessary to meet the 

research goals of BSEE; or 

•	 Conducted by BSEE staff utilizing the Ohmsett facility, with the ultimate goal of improving all 

phases of offshore oil spill preparedness and response. 

Bureau of Safety and Environmental Enforcement 81 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil Spill Research Appropriation 

PERFORMANCE OVERVIEW 

The Oil Spill Preparedness Division (OSPD) integrates all aspects of oil spill preparedness, response, and 

research activities in order to emphasize the Bureau’s mission of ensuring that industry is prepared to 

respond to an offshore oil spill as quickly and effectively as possible. BSEE maintains two focus areas: 

oil spill response research (OSRR) and oil spill preparedness verification. These two areas support 

BSEE’s Strategic Plan Goal of Operational Excellence and are influenced by this plan’s goals and 

objectives. 

BSEE supports the foundational work to advance research and development projects into innovative new 

methods to respond to an oil spill and identify the best available technologies for both mechanical and 

alternative spill response. In the pursuit of these objectives, BSEE has engaged with Federal research 

institutions such as the U.S. Coast Guard’s (USCG), Research and Development Center; the Department 

of Energy’s (DOE), National Energy Technology Laboratory; the National Oceanic and Atmospheric 

Administration (NOAA); the Environmental Protection Agency; the U.S. Navy; and the U.S. Army to 

leverage the subject matter expertise of these agencies and to help develop core understandings about 

offshore spill response and the skills that each agency can bring to an offshore spill response. BSEE is 

also working with Federal partners, researchers, manufacturers, and the larger oil spill response 

community to define the Technology Readiness Levels (TRL) for oil spill response equipment. This new 

metric will define expectations as new technology is developed, and serve as a screening tool for allowing 

new technology to participate in an actual oil spill response. Through application of TRLs to research, 

BSEE will be able to help move technology forward in a measureable, logical way while providing a 

visible means for the response community to monitor new technologies that may be ready for 

commercialization. 

BSEE’s oil spill response research mission involves coordination with other Federal partners in both adhoc and formal settings. Formal engagements are achieved through representation in groups such as the 

congressionally-mandated Interagency Coordinating Committee on Oil Pollution Research (ICCOPR), 

which identifies national priorities for oil spill response research, provides a forum for Federal entities to 

engage in information transfer of the latest science and engineering related to oil spill prevention, 

preparedness, and response, and works with other research organizations such as the National Academy 

of Sciences’ new Gulf Research Program and the Gulf of Mexico Research Initiative. BSEE plays a 

crucial role in ICCOPR by routinely providing updates on research of importance to ICCOPR members 

with response authorities thereby facilitating awareness of new tools and strategies that can and should be 

used in offshore spill responses. 

In FY 2015, BSEE was a key participant in the development of the ICCOPR Oil Pollution Research and 

Technology Plan. This Plan identifies the priority research needs in 25 Standing Research Areas. Prior to 

prioritization, more than 900 research needs were extracted from various sources including the Deepwater 

Horizon Incident Specific Preparedness Review and the Deepwater Horizon Federal On-Scene 

Coordinator report. These prioritized research needs will be utilized to guide new research projects over 

the next several years. Research continues on improving mechanical recovery but is also focused on 

improving those response tactics such as offshore in situ burn and subsea dispersant use. Funding will 

also be dedicated to finding new and more efficient ways to locate spilled oil, recover or treat oil that is 

82 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil Spill Research Appropriation 

spilled, and communicate a common operations picture to both the spill responders and the public during 

spill responses. Responding to an oil spill in the Arctic environment presents many unique challenges 

and funding will continue to be utilized to understand these implications and advance response 

technologies and procedures to ensure the least impact to the environment and to human safety. 

Oil Spill Response and Planning: The Bureau is the lead agency for ensuring that companies meet the 

highest oil spill response preparedness standard in the offshore environment through its regulatory 

oversight programs. BSEE’s Oil Spill Preparedness Division (OSPD) compliance staff provides 

continuous Federal oversight that requires reoccurring compliance actions during the entire lifecycle of 

offshore oil and gas facilities, from drilling a well to decommissioning and removal. In FY 2015, OSPD 

conducted 246 plan review activities to ensure the 134 approved OSRPs remained updated. OSPD also 

conducted 71 equipment validation inspections, audited 81 industry-led exercises and training activities, 

and initiated 18 unannounced government-led exercises to ensure plans were executable. Additionally, 

the Bureau commits time to monitoring, tracking, and investigating approximately 1,500 self-reported 

offshore spills per year. 

Internal and external coordination is imperative to strengthening the Nation’s readiness to respond to an 

oil spill. BSEE staff participates in Area Committees, Regional Response Teams, and in the National 

Response Team and its subcommittees to represent issues pertaining to offshore preparedness and 

response. The Bureau collaborates with other Federal and State response agencies when reviewing oil 

spill response plans. The Bureau also collaborates with international partners. Internally, OSPD is 

working with other BSEE divisions to proactively identify spills that were not reported by the operator in 

order to take enforcement actions for notification violations. During responses to incidents offshore, 

BSEE supports all levels of response organizations as subject matter experts in offshore oil spill response 

and source control. 

Oil Spill Response Research (OSRR): BSEE is the principal Federal agency funding OSRR and 

maintains a comprehensive, long-term research program to improve oil spill response technologies and 

procedures. The OSRR program provides research leadership and funding to improve the technology and 

procedures for the detection, containment, treatment, and/or cleanup of oil spills that may occur on the 

OCS. The program seeks to enhance communication capabilities, develop computer enhanced “smart” 

technologies, remote sensing tools; and remotely operated technologies that will reduce the risk to 

responders and increase the potential operating window in areas such as the Arctic where the harsh 

environment and prolonged periods of low light present challenges to current technology. Specific 

research efforts focused on geographic challenges include Arctic environments, high pressure wells, and 

the ever-challenging deep water areas of the Gulf of Mexico. 

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 BSEE authority. Information derived from 

the OSRR program is directly integrated into BSEE’s operations and is used in making regulatory 

decisions pertaining to plan approvals, safety and pollution prevention inspections, enforcement actions, 

and training requirements. Research results are also transferred to rule writers, investigators, plan 

reviewers, and others that need this information to ensure safe operations and assist BSEE in its efforts to 

independently keep pace with industry’s fast paced technological advancements. Response technologies 

Bureau of Safety and Environmental Enforcement 83 
 

 

 

 

 

 

 

Oil Spill Research Appropriation 

identified by the OSRR program focus on preventing offshore operational spills from reaching sensitive 

environments and habitats. 

In 2017, BSEE will continue research to: 

•	 Develop, test, and evaluate enhanced mechanical recovery technologies; 

•	 Locate oil during low light conditions, track oil within an ice field, and remove oil; 

•	 Optimize storing recovered fluid; 

•	 Refine capabilities to detect and recover oil in and under ice, including technological advances in 

remotely controlled operations to reduce risk to personnel and increase the operational window; 

•	 Understand the impact of a cold, stratified deep sea setting on biodegradation and toxicity of 

crude oil following dispersant application; 

•	 Better understand the potential effectiveness of chemical dispersants in various operational 

environments; 

•	 Develop a tool to quantify the amount of oil remediated by offshore in situ burning; 

•	 Develop a tool for rapid measurement of the amount of oil emanating from a submerged oil 

release; and 

•	 Develop realistic oil simulants that will replicate the behavior of oil droplets in the subsea 

environment, in conjunction with BSEE’s Federal partners. 

BSEE disseminates research results and development projects as widely as possible in publications 

through appropriate scientific and technical journals, conferences, technical reports, public information 

documents, and publication on BSEE’s website. The intent is to make this information widely available 

to oil spill response personnel and organizations worldwide. 

Ohmsett - The National Oil Spill Response Research and Renewable Energy Test Facility: Ohmsett is 

one of the world’s largest tow/wave tanks designed to test and evaluate full scale equipment for the 

detection and response to spilled oil. Ohmsett is one of the only facilities where oil spill response testing, 

training, and research can be conducted with a variety of crude and refined oil products in varying wave 

conditions. The heart of Ohmsett is a large, outdoor, above-ground concrete test tank that is 667 feet 

long, 65 feet wide, 11 feet deep and filled to a depth of 8 feet with 2.6 million gallons of crystal clear 

saltwater. Ohmsett also has the capability to test scaled renewable energy systems such as current and 

wave energy converters. 

84 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

Oil Spill Research Appropriation 

Ohmsett plays an important role in developing the most effective response technologies as well as 

preparing responders by using the most realistic training available. The facility provides testing and 

research capabilities to help the government fulfill its regulatory requirements and meet its goal of clean 

and safe operations. Many of today’s commercially available oil spill cleanup equipment and products 

have been tested at Ohmsett and a considerable body of performance data and information on mechanical 

response equipment has been obtained there. Response planners use this information in reviewing and 

approving facility response and contingency plans. Ohmsett is also the premier training site for 

government agency and private industry oil spill response personnel to test their own full-scale 

equipment. Some of the more recent testing activities included oil spill response equipment testing in a 

simulated Arctic environment, remote sensing of spilled oil, wave energy conversion device tests, 

skimmer and boom tests, dispersant tests, alternative fuel recovery tests, and industry oil spill response 

training classes. The facility is also used for oil spill responder training. Through both classroom 

exercises and hands-on use of response equipment deployed in and near the test tank, students are able to 

learn and practice best practices in spill response. 

The Ohmsett facility sustained damage during Hurricane Sandy. BSEE with the help of the National Park 

Service and the U.S. Navy have undertaken a number of mitigation measures to reduce any future damage 

from occurring during storm events. These mitigation efforts include elevating vulnerable equipment and 

hardening/protecting assets that cannot be relocated. 

The Ohmsett facility requires constant maintenance and periodic upgrades. During FY 2015, the Ohmsett 

facility completed a scheduled five-year test tank renovation as well as the construction of a new 

warehouse to replace the one destroyed during Hurricane Sandy. Mitigation efforts to harden and protect 

Ohmsett assets from future extreme weather events were completed concurrently. Information on 

Ohmsett can be found at www.ohmsett.com. 

Figure 2: Ohmsett Facility in New Jersey 

Bureau of Safety and Environmental Enforcement 85 
 

 

Oil Spill Research Appropriation 

Table 12: Performance Overview Table - Oil Spill Research Appropriation Strategic O bjective Metrics Strategic Plan Measure / Efficiency or other Bureau- Specific Measure 2012 Actual 2013 Actual 2014 Actual 2015 Actual 2016 Enacted 2017 Pres. Budget Request Achieve a utilization rate of X% at Ohmsett, the national oil spill response test facility (BUR) 94% (226/240) 93% (206/222) 87% (201/231) 96% (228/237) 85% 85% Comments: Ohmsett is the National Oil Spill Response Test Facility located in New Jersey. At Ohmsett, clients can test oil spill response equipment in realistic conditions and have training in the use of the equipment. T his measure evaluates the utilization level of the facility. T he increased focus on oil spill response, as well as expanded uses for the facility such as dispersant training and renewable energy wave tests, have sustained overall utilization rates at around 85 percent. In FY 2015 actual, available days were reduced from 240 to 237 because the tank was frozen for three days. Contributing Programs: Oil Spill Research 

86 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

Section 403 Compliance 

Bureau of Safety and Environmental Enforcement 

Appendix A - Section 403 Compliance 

Section 403 of Public Law 114-113, the Consolidated Appropriations Act, 2016, states: 

DISCLOSURE OF ADMINISTRATIVE EXPENSES 

SEC. 403. The amount and basis of estimated overhead charges, deductions, reserves or 

holdbacks, including working capital fund and cost pool charges, from programs, 

projects, activities and subactivities to support government-wide, departmental, agency, 

or bureau administrative functions or headquarters, regional, or central operations shall 

be presented in annual budget justifications and subject to approval by the Committees 

on Appropriations of the House of Representatives and the Senate. Changes to such 

estimates shall be presented to the Committees on Appropriations for approval. 

To improve efficiency across the Department, BSEE offers a full array of administrative functions to 

Bureaus and Department offices to help meet their administrative needs. BSEE implements this shared 

services approach through reimbursable services agreements with each agency. Under these agreements, 

BSEE provides specific services to meet the agency’s needs including acquisition management, equal 

employment opportunity, finance, human resources, information technology management, management 

support, personnel security, and facilities support services. Maintaining these critical administrative 

functions within the Department provides the following benefits: 

•	 Minimizing duplication of administrative entities across multiple organizations while optimizing 

efficiency. 

•	 Providing a centralized administrative function that can, over time, allow the Department to 

pursue additional efficiencies. 

The Department has strongly supported the expansion of business cross-servicing for more than 30 years. 

These efforts have the added benefit of implementing standardized practices that will further increase the 

productivity for highly skilled resources, improve best practices and maximize the use of administrative 

funds in the future. 

BSEE regularly evaluates these support arrangements jointly with each customer agency. BSEE’s costs 

to provide these services are also carefully managed and jointly approved by the respective agencies. 

Changes between cost allocations to BSEE and the customer agency may change to reflect actual 

agreements signed annually, and these changes would not be presented as a reprogramming. The Internal 

Bureau Assessment reported for 2017 reflects the alignment of the Bureau’s administrative support 

requirements based on estimated FTE allocations between BSEE and its customers. Customer payments 

are recorded as reimbursable funding to BSEE. 

Bureau of Safety and Environmental Enforcement 87 
 

 

 

 

 

 

Section 403 Compliance 

FY 2017 

Dollars in Thousands 

($000) 

External Administrative Costs 

Various Activities 

Working Capital Fund Centralized Billing 4,271 

Working Capital Fund Direct Billing 1,840 

Subtotal 6,111 

Internal Bureau Assessments 

Operations, Safety and Regulation 9,415 

Administrative Operations 2,345 

Executive Direction 2,152 

Subtotal 13,912 

Total Assessments of Bureau Programs 19,513 

The following tables provide the actual WCF billings to BSEE for 2015 and 2016 and estimates for 2017. 

88 Bureau of Safety and Environmental Enforcement 
 

 

Section 403 Compliance 

Bureau of Safety and Environmental Enforcement 

Working Capital Fund Centralized Bill 

(Dollars in thousands) 

2015 2016 2017 

Actual Actual Estimate Account 

FBMS Infrastructure Hosting & Support 212.0 267.1 270.8 

FBMS Master Data Management 0.5 0.0 0.0 

Aviation Management 840.4 1,144.6 1,300.4 

Mail and Messenger Services 51.8 50.5 50.0 

Safety, Environmental, and Health Services 27.5 26.8 26.5 

Shipping/Receiving & Moving Services 16.4 16.7 16.5 

Vehicle Fleet 2.1 2.6 2.6 

Personal Property Accountability Services 22.9 20.7 20.4 

Interior Complex Management & Services 24.5 18.9 18.7 

Departmental Library 10.2 8.9 1.6 

Mail Policy 3.3 3.2 3.3 

Conference & Special Events Services 38.7 38.4 38.0 

Space Management Services 13.5 12.0 11.8 

FOIA Tracking & Reporting System 49.0 50.7 50.6 

Alaska Affairs Office 6.4 6.5 4.4 

Alaska Resources Library and Information Services 43.2 43.2 43.2 

Departmental News and Information 9.5 14.7 15.0 

Departmental Museum 10.3 14.0 14.2 

FedCenter 1.9 1.9 1.9 

Compliance Support ESF-11/ESF-11 Web site 2.3 2.3 2.3 

Invasive Species Council 17.9 18.0 18.0 

Invasive Species Coordinator 3.2 3.3 3.3 

Passport and Visa Services 4.9 1.9 6.9 

CPIC 2.7 2.6 2.4 

Financial Statement, Internal Controls & Perform. Report 5.2 8.0 8.1 

Travel Management Center 1.6 1.5 2.5 

e-Travel 9.1 15.8 13.3 

Interior Collections Management System 2.1 2.1 0.0 

Space Management Initiative 3.7 4.3 4.4 

Interior Asset Disposal System O&M 2.5 2.5 2.5 

Planning and Performance Management 12.4 14.3 14.6 

Department-wide Worker’s Compensation Program 2.8 2.1 2.1 

OPM Federal Employment Services 3.9 4.5 4.6 

Accessibility & Special Hiring Programs 6.5 7.4 7.5 

Human Resources Accountability Team 6.9 7.9 8.1 

Employee and Labor Relations Tracking System 0.3 0.4 0.4 

Consolidated Employee Assistance Program 8.1 8.8 8.9 

EEO Complaints Tracking System 0.4 0.4 0.6 

Special Emphasis Program 0.4 0.5 0.5 

Occupational Safety and Health 15.9 18.3 18.7 

Bureau of Safety and Environmental Enforcement 89 
 

 

Section 403 Compliance 

Bureau of Safety and Environmental Enforcement 

Working Capital Fund Centralized Bill 

(Dollars in thousands) 

2015 2016 2017 

Actual Actual Estimate Account 

Safety Management Information System 12.8 14.7 14.9 

Leadership Development Programs 9.8 11.4 11.6 

Department-Wide Train Programs (incl. Online Learning) 23.4 23.3 24.6 

Learning and Performance Center Management 10.0 10.1 14.6 

DOIU Management 6.9 7.9 8.1 

Security (Classified Information Facility) 5.1 6.2 6.4 

Law Enforcement Coordination and Training 7.2 8.4 8.5 

Security (MIB/SIB Complex) 196.0 205.4 203.1 

Victim Witness Coordinator 1.9 2.3 2.3 

OLES Detailees – Training and Compliance 0.0 0.0 8.4 

Interior Operations Center 23.0 26.5 27.1 

Emergency Preparedness (COOP) 9.9 11.3 11.5 

Emergency Response 12.4 14.4 17 

MIB Emergency Health and Safety 4.6 4.8 4.8 

Federal Executive Board 2.8 3.3 3.4 

Alternative Dispute Resolution (ADR) Training 0.5 0.6 0.6 

Conservation and Education Partnerships 3.2 3.6 3.7 

Cooperative Ecosystem Study Units 21.2 0.0 0.0 

CFO Financial Statement Audit 259.4 242.4 129.3 

Ethics 5.5 6.3 6.4 

FOIA Appeals 22.0 22.1 7.5 

IT Transformation Planning (ITT) 185.5 168.0 221.5 

Enterprise Directory Services 30.8 124.9 76.0 

IT Asset Management 7.7 10.4 12.7 

IOS Collaboration 9.7 12.6 11.6 

Unified Messaging 9.9 13.4 18.6 

Privacy and Civil Liberties 14.9 13.0 24.4 

Identity Credential Access Management (ICAM) 12.7 13.3 10.6 

Threat Management 15.8 94.2 126.1 

Information Systems Security Operations (ISSO) 7.6 5.0 8.9 

ITD PPCD Privacy Records 15.3 0.0 0.0 

Office of Information Assurance (OIA) 19.5 15.6 35.0 

Assessment & Authorization Services 6.6 5.8 8.1 

IT Security 5.7 4.1 28.1 

Enterprise Continuous Diagnostics and Monitoring 11.9 11.4 10.7 

Enterprise Security Info & Event Mgmt Solution (SIEM) 25.8 24.8 22.9 

Hosting Services 8.7 19.9 12.7 

Electronic Records Management 45.9 56.0 91.3 

Solutions, Design & Innovation (SDI) 4.4 13.4 13.2 

Geospatial Services 0.0 2.9 3.0 

90 Bureau of Safety and Environmental Enforcement 
 

Section 403 Compliance 

Bureau of Safety and Environmental Enforcement 

Working Capital Fund Centralized Bill 

(Dollars in thousands) 

2015 2016 2017 

Actual Actual Estimate Account 

E-Forms 0.0 0.0 23.0 

Enterprise Services Network 73.8 114.3 71.1 

Federal Relay Service 0.6 3.0 3.0 

MIB Data Networking 10.7 16.3 16.3 

ITD Telecommunication Services 24.6 41.6 41.8 

ITD Integrated Digital Voice Communications System 17.4 34.6 34.2 

Enterprise Services Network – Central Bill Pass Through 109.8 222.4 301.3 

Enterprise Service Desk 0.0 10.0 0.0 

Enterprise Resource Management 17.7 0.0 0.0 

Architecture & IT Portfolio Performance Management 100.7 97.6 114.4 

Independent Verification and Validation – Risk Mgmt 38.3 33.8 55.4 

IT Budget Formulation & Portfolio Development 75.2 60.6 92.2 

e-Government Initiatives (WCF Contributions Only) 32.0 26.3 26.6 

FPPS 176.7 176.1 175.1 

Employee Express (Pass through) 0.0 5.8 8.0 

HR Systems Integration Framework 0.0 8.0 8.4 

Transportation Services (Household Goods) 1.7 1.7 1.7 

Boise Acquisition Office 24.9 26.5 29.1 

TOTAL 3,277.3 3,980.6 4,270.6 

Bureau of Safety and Environmental Enforcement 91 
 

 

Section 403 Compliance 

Bureau of Safety and Environmental Enforcement 

Working Capital Fund Direct Bill 

(Dollars in thousands) 

2015 2016 2017 

Account Actual Actual Estimate 

Reimbursable Mail Services 0.0 0.9 0.9 

Creative Communications 4.0 3.7 3.7 

Ocean Coastal Great Lakes Activities 20.0 20.0 20.2 

e-OPF 39.9 49.7 49.7 

Equal Employment Opportunity (EEO) Investigations 0.0 3.9 3.9 

Equal Employment Opportunity (EEO) Training 1.0 1.0 1.0 

SESCDP 0.0 9.1 0.0 

Online Learning 6.1 5.6 5.6 

Consolidated Direct Billed Leadership & Perf Centers 8.6 8.7 8.8 

OLES BSEE Detailee 0.0 236.9 236.9 

Federal Flexible Savings Account (FSA) Program 3.3 3.6 3.6 

Unified Messaging 217.4 246.2 117.1 

Anti-Virus Software Licenses 49.1 49.1 49.1 

Identity, Credential Access Management (ICAM) 94.5 103.6 103.6 

Data at Rest Initiative 6.8 6.7 6.9 

End Point Manager Licenses 0.0 0.0 148.2 

Data Center consolidation and Cloud Planning, Analysis 

& Integration 13.3 16.9 17.1 

ESRI Enterprise Licenses 108.7 110.7 113.8 

Electronic Records Management 104.5 117.6 55.9 

Enterprise Services Network 609.1 608.8 608.8 

ISSO ITD Telecommunications 4.4 4.9 4.9 

Payroll & HR Systems 263.6 43.5 45.2 

Payroll & HR Systems (Pass through) 0.0 228.1 235.3 

TOTAL 1,554.3 1,879.3 1,840.2 

92 Bureau of Safety and Environmental Enforcement 
PER-4 Employee Count By Grade 

Bureau of Safety and Environmental Enforcement 

Appendix B – Employee Count by Grade 

Employee Count by Grade 

(Total Employment) 

FY 2015 FY 2016 FY 2017 

Actuals Enacted Request

 Executive Level V ................................................ 1 1 1

 SES ................................................................ 6 6 6
 

Subtotal .............................................. 7 7 7 

SL - 00 ............................................................. 0 0 0 

ST - 00 ............................................................. 0 0 0 

Subtotal .............................................. 0 0 0

 GS/GM -15 ....................................................... 52 52 52

 GS/GM -14 ....................................................... 144 146 146

 GS/GM -13 ....................................................... 221 224 224

 GS -12 ............................................................. 103 120 120

 GS -11 ............................................................. 125 136 136

 GS -10 ............................................................. 5 5 5

 GS - 9 ............................................................. 46 68 68

 GS - 8 ............................................................. 14 16 16

 GS - 7 ............................................................. 53 57 57

 GS - 6 ............................................................. 15 15 15

 GS - 5 ............................................................. 17 28 28

 GS - 4 ............................................................. 3 7 7

 GS - 3 ............................................................. 0 0 0

 GS - 2 ............................................................. 0 0 0

 GS - 1 ............................................................. 0 0 0 

Subtotal .............................................. 798 874 874

 Other Pay Schedule Systems .................................. 0 0 0

 Total employment (actuals & estimates) ............... 805 881 

Bureau of Safety and Environmental Enforcement 93 

881 
 

PER-4 Employee County By Grade 

This page intentionally left blank. 

94 Bureau of Safety and Environmental Enforcement 
 

 

 

MAX Tables and Budget Schedules 

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 

2015 

Actual 

2016 

Estimate 

2017 

Estimate 

Obligations by program activity 

0001 Appropriations 71 67 73 

0002 Offsetting Collections 73 76 70 

0003 Inspection Fee 83 48 65 

0192 Total direct program 227 191 208 

0799 Total direct obligations 227 191 208 

0802 Reimbursable Service Agreements 41 37 37 

0900 Total new obligations 268 228 245 

Budgetary resources: Unobligated balance: 

1000 Unobligated balance brought forward, Oct 1 93 65 64 

1010 

Unobligated balance transfer to other accounts 

[014-0102] * -2 0 0 

1021 Recoveries of prior year unpaid obligations 1 0 0 

1050 Unobligated balance (total) 92 65 64 

Budget authority: Appropriations, discretionary: 

1100 Appropriation 78 77 81 

1160 Appropriation, discretionary (total) 78 77 81 

Spending authority from offsetting collections, discretionary 

1700 Offsetting Collections (Cost Recovery) 6 8 6 

1700 Offsetting Collections (Rental Receipts) 50 49 38 

1700 Collected (Inspection Fee) 55 56 54 

1700 Reimbursable Service Agreements 40 37 37 

1700 Collected (Increase in Inspection Fee) 0 0 11 

1701 Change in uncollected payments, Federal sources 12 0 0 

1750 Spending authority from offsetting collections, 

discretionary (total) 

163 150 146 

1900 Budget authority (total) 241 227 227 

1930 Total budgetary resources available 333 292 291 

Memorandum (non-add) entries: 

1941 Unexpired unobligated balance, end of year 65 64 46 

Change in obligated balance: Unpaid obligations: 

3000 Unpaid obligations, brought forward, Oct 1 130 168 158 

3010 Obligations incurred, unexpired accounts 268 228 245 

3020 Outlays (gross) -228 -238 -241 

Bureau of Safety and Environmental Enforcement 95 
 

 

 

MAX Tables and Budget Schedules 

Bureau of Safety and Environmental Enforcement 

Offshore Safety and Environmental Enforcement (OSEE) 

Program and Financing (continued) 

(dollars in millions) 

Treasury Account ID: 14-1700 

2015 

Actual 

2016 

Estimate 

2017 

Estimate 

3040 Recoveries of prior year unpaid obligations, 

unexpired 

-1 0 0 

3041 Recoveries of prior year unpaid obligations, expired -1 0 0 

3050 Unpaid obligations, end of year 168 158 162 

Uncollected payments: 

3060 Uncollected payments, Federal sources, brought 

forward, Oct 1 

-23 -35 -35 

3070 Change in uncollected payments, Federal sources, 

unexpired 

-12 0 0 

3090 Uncollected payments, Federal sources, end of 

year 

-35 -35 -35 

Memorandum (non-add) entries: 

3100 Obligated balance, start of year 107 133 123 

3200 Obligated balance, end of year 133 123 127 

Budget authority and outlays, net: Discretionary: 

4000 Budget authority, gross 241 227 227 

Outlays, gross: 

4010 Outlays from new discretionary authority 117 159 160 

4011 Outlays from discretionary balances 111 79 81 

4020 Outlays, gross (total) 228 238 241 

Offsets against gross budget authority and outlays: 

Offsetting collections (collected) from: 

4030 Federal sources -40 -37 -37 

4033 Non-Federal sources -111 -113 -109 

4040 Offsets against gross budget authority and outlays 

(total) 

-151 -150 -146 

Additional offsets against gross budget authority only: 

4050 Change in uncollected payments, Federal sources, 

unexpired 

-12 0 0 

4070 Budget authority, net (discretionary) 78 77 81 

4080 Outlays, net (discretionary) 77 88 95 

4180 Budget authority, net (total) 78 77 81 

4190 Outlays, net (total) 77 88 95 

Memorandum (non-add) entries 

5090 Unexpired unavailable balance, SOY: Offsetting 

collections 

6 6 6 

5092 Unexpired Unavailable balance, EOY: Offsetting 

collections 

6 6 6 

* Unobligated Balance of $1.5M was transferred from BSEE to the Office of the Secretary. 

96 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

MAX Tables and Budget Schedules 

Bureau of Safety and Environmental Enforcement 

Offshore Safety and Environmental Enforcement (OSEE) 

Object Classification 

(dollars in millions) 

Treasury Account ID: 14-1700 

2015 

Actual 

2016 

Estimate 

2017 

Estimate 

OSEE (Direct Obligations) 

Personnel compensation: 

1111 Full-time permanent 61 70 72 

1121 Civilian personnel benefits 20 19 23 

1210 Travel and transportation of persons 2 3 3 

1231 Rental payments to GSA 8 9 10 

1251 Advisory and assistance services 10 2 2 

1252 Other services from non-Federal sources 85 33 60 

1253 Other goods and services from Federal sources 14 11 9 

1255 Research and development contracts 9 24 14 

1257 Operation and maintenance of equipment 8 14 8 

1258 Subsistence and support of persons 0 1 1 

1260 Supplies and materials 1 1 1 

1310 Equipment 9 4 5 

1990 Subtotal, obligations, Direct Obligations 227 191 208 

OSEE (Reimbursable Obligations) 

Personnel compensation: 

2111 Full-time permanent 11 11 11 

2121 Civilian personnel benefits 3 3 3 

2231 Rental payments to GSA 6 6 6 

2251 Advisory and assistance services 6 3 3 

2252 Other services from non-Federal sources 3 3 3 

2253 Other goods and services from Federal sources 2 2 2 

2257 Operation and maintenance of equipment 9 8 8 

2310 Equipment 1 1 1 

2990 Subtotal, obligations, Reimbursable obligations 41 37 37 

9999 Total new obligations 268 228 245 

Bureau of Safety and Environmental Enforcement 97 
 

 

 

 

MAX Tables and Budget Schedules 

Bureau of Safety and Environmental Enforcement 

Oil Spill Research (OSR) 

Program and Financing 

(dollars in millions) 

Treasury Account ID: 14-8370 

2015 

Actual 

2016 

Estimate 

2017 

Estimate 

Obligations by program activity 

0001 Direct program activity 17 16 16 

0900 Total new obligations 17 16 16 

Budgetary Resources : Unobligated balance: 

1000 Unobligated balance brought forward, Oct 1 4 3 2 

1021 Recoveries of prior year unpaid obligations 1 0 0 

1050 Unobligated balance (total) 5 3 2 

Budget Authority: Appropriations, discretionary 

1101 Appropriation (special or trust fund) 15 15 15 

1160 Appropriation, discretionary (total) 15 15 15 

1930 Total budgetary resources available 20 18 17 

Memorandum (non-add) entries: 

1941 Unexpired unobligated balance, end of year 3 2 1 

Change in obligated balance: Unpaid obligations: 

3000 Unpaid obligations, brought forward, Oct 1 23 22 16 

3010 Obligations incurred, unexpired accounts 17 16 16 

3020 Outlays (gross) -17 -22 -22 

3040 Recoveries of prior year unpaid obligations, 

unexpired -1 0 0 

3050 Unpaid obligations, end of year 22 16 10 

Memorandum (non-add) entries: 

3100 Obligated balance, start of year 23 22 16 

3200 Obligated balance, end of year 22 16 10 

Budget authority and outlays, net: Discretionary: 

4000 Budget authority, gross 15 15 15 

Outlays, gross: 

4010 Outlays from new discretionary authority 4 8 8 

4011 Outlays from discretionary balances 13 14 14 

4020 Outlays, gross (total) 17 22 22 

98 Bureau of Safety and Environmental Enforcement 
 

 

 

MAX Tables and Budget Schedules 

Bureau of Safety and Environmental Enforcement 

Oil Spill Research (OSR) 

Program and Financing (continued) 

(dollars in millions) 

Treasury Account ID: 14-8370 

2015 

Actual 

2016 

Estimate 

2017 

Estimate 

Offsets against gross budget authority and outlays: 

Offsetting collections (collected) from: 

4070 Budget authority, net (discretionary) 15 15 15 

4080 Outlays, net (discretionary) 17 22 22 

4180 Budget authority, net (total) 15 15 15 

4190 Outlays, net (total) 17 22 22 

Object Classification 

(dollars in millions) 

Treasury Account ID: 14-8370 

2015 

Actual 

2016 

Estimate 

2017 

Estimate 

OSR (Direct Obligations) 

Personnel compensation: 

1111 Full-time permanent 1 2 2 

1121 Civilian Personnel Benefits 1 1 1 

1252 Other services from non-Federal sources 9 2 2 

1255 Research and development contracts 6 11 11 

9999 Total new obligations 17 16 16 

Bureau of Safety and Environmental Enforcement 99 
 

 

 

MAX Tables and Budget Schedules 

Bureau of Safety and Environmental Enforcement 

Oil Spill Research (OSR)
 

Hurricane Sandy Disaster Relief Supplemental
 

Appropriations Act of 2013
 

Program and Financing 

(dollars in millions) 

Treasury Account ID: 14-1920 

2015 

Actual 

2016 

Estimate 

2017 

Estimate 

Budgetary resources: Budget authority: Appropriations, discretionary: 

1160 Appropriations, discretionary (total) 0 0 0 

Change in obligated balance: Unpaid obligations: 

3000 Unpaid obligations, brought forward, Oct 1 1 1 1 

3050 Unpaid obligations, end of year 1 1 1 

Memorandum (non-add) entries: 

3100 Obligated balance, start of year 1 1 1 

3200 Obligated balance, end of year 1 1 1 

Budget authority and outlays, net: Discretionary: 

4180 Budget authority, net (total) 0 0 0 

4190 Outlays, net (total) 0 0 0 

100 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

Authorizing Statutes 

Bureau of Safety and Environmental Enforcement 

Authorizing Statutes 

Outer Continental Shelf (OCS) Lands Program 

43 U.S.C. 1331, et seq. The Outer Continental Shelf (OCS) Lands Act of 1953, as 

amended, extended the jurisdiction of the United States to the 

OCS and provided for granting of leases to develop offshore 

energy and minerals. 

P.L. 109-432 The Gulf of Mexico Energy Security Act of 2006 required 

leasing certain areas in the Central and Eastern Gulf of Mexico 

Planning Areas within one year of enactment (December 20, 

2006); and established a moratoria on leasing in remaining areas 

in the eastern planning area and a portion of the central planning 

area until 2022. 

P.L. 109-58 The Energy Policy Act of 2005 amended the OCS Lands Act to 

give authority to the Department of the Interior to coordinate the 

development of an alternative energy program on the OCS and 

also to coordinate the energy and non-energy related uses in 

areas of the OCS where traditional oil and natural gas 

development already occur. 

P.L. 113-067 The Bipartisan Budget Act of 2013 contained provisions which 

approved the Agreement between the U.S. and the United 

Mexico States concerning Transboundary Hydrocarbon 

Reservoirs in the Gulf of Mexico, and amended the OCS Lands 

Acts to authorize the Secretary of the Interior to implement the 

U.S.-Mexico Agreement and any future transboundary 

hydrocarbon reservoir agreements entered into by the President 

and approved by Congress. 

43 U.S.C. 4321, 4331-4335, 

4341-4347 

The National Environmental Policy Act of 1969 required 

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. 

Bureau of Safety and Environmental Enforcement 101 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Authorizing Statutes 

42 U.S.C. 7401, et seq. The Clean Air Act, as amended, was applied to all areas of the 

OCS except the central and western Gulf of Mexico. OCS 

activities in those non-excepted areas will require pollutant 

emission permits administered by the EPA or the States. 

P. L. 112-42, Section 432 Consolidated Appropriations Act of 2012, amended the Clean 

Air Act by transferring air quality jurisdiction from the EPA to 

DOl for OCS activities in the Beaufort Sea and Chukchi Sea 

OCS Planning Areas of the Arctic OCS. 

16 U.S.C. 470-470W6 The National Historic Preservation Act established procedures to 

ensure protection of significant archaeological resources. 

30 U.S.C. 21(a) The Mining and Minerals Policy Act of 1970 set forth the 

continuing policy of the Federal Government to foster and 

encourage private enterprise in the orderly and economic 

development of domestic mineral resources and reserves. 

30 U.S.C. 1601 The Policy, Research and Development Act of 1970 set forth the 

continuing policy et seq. of the Federal Government to foster and 

encourage private enterprise in the orderly and economic 

development of domestic mineral resources and reserves. 

33 U.S.C. 2701, et seq. The Oil Pollution Act of 1990 established a fund for 

compensation of damages resulting from oil pollution and 

provided for interagency coordination and for the performance of 

oil spill prevention and response research. It also expanded 

coverage of Federal requirements for oil spill response planning 

to include State waters and the transportation of oil. The Act 

also addressed other related regulatory issues. 

43 U.S.C. 1301 The Marine Protection, Research, and Sanctuaries Act of 1972 

provided that the Secretary of Commerce must consult with the 

Secretary of the Interior prior to designating marine sanctuaries. 

BSEE provides oversight and enforcement for potential impacts 

from all OCS activities that may be located in or in proximity to 

marine sanctuaries and protected areas. 

16 U.S.C. 1361-1362, 

1371-1384, 1401-1407 

The Marine Mammal Protection Act of 1972 provides for 

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 to the recipient; public policy or interest 

served; and other relevant facts. 

102 Bureau of Safety and Environmental Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Authorizing Statutes 

General Administration 

31 U.S.C. 65
 

31 U.S.C. 3901-3906
 

31 U.S.C. 3512
 

5 U.S.C. 552
 

31 U.S.C. 7501-7507
 

41 U.S.C. 35045
 

41 U.S.C. 351-357
 

41 U.S.C. 601-613
 

44 U.S.C. 35
 

44 U.S.C. 2101
 

40 U.S.C. 4868
 

31 U.S.C. 3501
 

31 U.S.C. 3501
 

31 U.S.C. 3711, 3716-19
 

31 U.S.C. 1501-1557
 

5 U.S.C. 1104 et seq.
 

31 U.S.C. 665-665(a)
 

41 U.S.C. 252
 

18 U.S.C. 1001
 

18 U.S.C. 287
 

41 U.S.C. 501-509
 

41 U.S.C. 253
 

41 U.S.C. 401
 

15 U.S.C. 631
 

Budget and Accounting Procedures Act of 1950
 

Prompt Payment Act of 1982
 

Federal Managers Financial Integrity Act of 1982
 

Freedom of Information Act of 1966, as amended
 

Single Audit Act of 1984
 

Walsh Healy Public Contracts Act of 1936
 

Service Contract Act of 1965
 

Contract Disputes Act of 1978
 

Paperwork Reduction Act of 1980
 

Federal Records Act 1950
 

Federal Acquisition Regulation of 1984
 

Privacy Act of 1974
 

Accounting and Collection
 

Claims
 

Appropriation Accounting
 

Delegation of Personnel Management Authority
 

Anti-Deficiency Act of 1905, as amended
 

Competition in Contracting Act of 1984
 

False Claims Act of 1982
 

False Statements Act of 1962
 

Federal Grant and Cooperative Agreement Act of 1977
 

Federal Property and Administrative Services Act of 1949
 

Office of Federal Procurement Policy Act of 1974, as
 

amended 

Small Business Act of 1953, as amended 

Bureau of Safety and Environmental Enforcement 103 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Authorizing Statutes 

15 U.S.C. 637 Small Business Act Amendments of 1978 

10 U.S.C. 137 Small Business and Federal Competition Enhancement Act of 

1984 

15 U.S.C. 638 Small Business Innovation Research Program of 1983 

10 U.S.C. 2306(f) Truth in Negotiations Act of 1962 Authorization 

Secretarial Order No. 3299 Directed the creation of the Bureau of Ocean Energy 

Management, the Bureau of Safety and Environmental 

Enforcement, and the Office of Natural Resources Revenue in 

May 2010, under the authority provided by Section 2 of 

Reorganization Plan No. 3 of 1950 (64 Stat. 1262). 

Secretarial Order No. 3302 Changed the Name of the Minerals Management Service to the 

Bureau of Ocean Energy Management, Regulation and 

Enforcement in June 2010, under the authority provided by 

Section 2 of Reorganization Plan No. 3 of 1950 (64 Stat. 1262). 

Oil Spill Research 

33 U.S.C. 2701, et seq. Title VII of the Oil Pollution Act of 1990 authorizes the use of 

the Oil Spill Liability Trust Fund, established by Section 9509 of 

the Internal Revenue Code of 1986 (26 U.S.C. 9509), for oil spill 

research. 

33 U.S.C. 2701, et seq. Title I, Section 1016, of the Oil Pollution Act of 1990 requires a 

certification process which ensures that each responsible 

company, with respect to an offshore facility, has established, 

and maintains, evidence of financial responsibility in the amount 

of at least $150,000,000 to meet potential pollution liability. 

43 U.S.C. 1331, et seq. Section 21(b) of the Outer Continental Shelf Lands Act, as 

amended, requires the use of the best available and safety 

technologies (BAST) and assurance that the use of up-to-date 

technology is incorporated into the regulatory process. 

Executive Order 12777 Signed October 18, 1991, assigned the responsibility to ensure 

oil spill financial responsibility for OCS facilities to the 

Secretary of the Interior (Bureau of Safety and Environmental 

Enforcement). 

104 Bureau of Safety and Environmental Enforcement