BUDGET The United States

Department of the Interior

JUSTIFICATIONS

and Performance Information

Fiscal Year 2014

BUREAU OF 

SAFETY AND 

ENVIRONMENTAL 

ENFORCEMENT

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.

FY 2014 Greenbook

Bureau of Safety and Environmental Enforcement

“References to the 2013 Full Yr. CR signify annualized amounts appropriated in P.L. 112-

175, the Continuing Appropriations Act. These amounts are the 2012 enacted numbers 

annualized through the end of FY 2013 with a 0.612 percent across-the-board increase for 

discretionary programs. Exceptions to this include Wildland Fire Management, which 

received an anomaly in the 2013 CR to fund annual operations at $726.5 million. The 

2013 Full Yr. CR does not incorporate reductions associated with the Presidential 

sequestration order issued in accordance with section 251A of the Balanced Budget and 

Emergency Deficit Control Act, as amended (BBEDCA), 2 U.S.C. 109a. This column is 

provided for reference only.”
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i.

BUREAU OF SAFETY AND ENVIRONMENTAL ENFORCEMENT

FY 2014 GREENBOOK 

Table of Contents

Bureau/Office-Level Presentation ............................................................................................................. x

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

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

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

Table 2: Analysis of Budgetary Changes............................................................................................. 8

Secretarial Initiatives and Agency Priority Goals................................................................................... 13

Performance Summary............................................................................................................................ 17

Table 3: Goal Performance Table...................................................................................................... 19

Table: Budget at a Glance....................................................................................................................... 23

Account-Level Presentation ....................................................................................................................... x

Tables: Summary of Requirements........................................................................................................ 25

Table: Fixed Costs and Internal Realignments...................................................................................... 27

Language Citations ................................................................................................................................. 29

Appropriations Language ................................................................................................................... 29

Justification of Proposed Language Changes ..................................................................................... 29

Mandatory and Offsetting Collections Proposals ................................................................................... 31

Environmental Enforcement Activity-Level Presentation...................................................................... x

Table 4: Introductory ............................................................................................................................. 33

Summary of BY Program Changes......................................................................................................... 33

Justification of BY Program Changes..................................................................................................... 33

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

Program Performance ............................................................................................................................. 34

Operations, Safety and Regulation Activity-Level Presentation ............................................................ x

Table 5: Introductory ............................................................................................................................. 35

Summary of BY Program Changes......................................................................................................... 35

Justification of BY Program Changes..................................................................................................... 35

Program Overview.................................................................................................................................. 40
ii.

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

Table 6: Performance Overview ............................................................................................................ 50

Administrative Operations Activity-Level Presentation ......................................................................... x

Table 7: Introductory ............................................................................................................................. 53

Summary of BY Program Changes......................................................................................................... 53

Justification of BY Program Changes..................................................................................................... 53

Program Overview.................................................................................................................................. 54

General Support Services Activity-Level Presentation ........................................................................... x

Table 8: Introductory ............................................................................................................................. 59

Summary of BY Program Changes......................................................................................................... 59

Justification of BY Program Changes..................................................................................................... 59

Program Overview.................................................................................................................................. 59

Executive Direction Activity-Level Presentation ..................................................................................... x

Table 9: Introductory ............................................................................................................................. 61

Summary of BY Program Changes......................................................................................................... 61

Justification of BY Program Changes..................................................................................................... 61

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

Oil Spill Research Appropriation Presentation ....................................................................................... x

Table 10: Introductory ........................................................................................................................... 65

Summary of BY Program Changes......................................................................................................... 65

Justification of BY Program Changes..................................................................................................... 65

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

Performance Overview ........................................................................................................................... 66

Table 11: Performance Overview .......................................................................................................... 69

Appendices................................................................................................................................................... x

Section 405 Compliance ......................................................................................................................... 71

Table: PER-4 Employee Count by Grade .............................................................................................. 77

MAX Tables/Budget Schedules.............................................................................................................. 79

Authorizing Statutes................................................................................................................................ 83
Director’s Preface

Director’s Preface

Bureau of Safety and Environmental Enforcement 1

FY 2014 PERFORMANCE JUSTIFICATIONS

Bureau of Safety and Environmental Enforcement

Director’s Preface

As the Administration works to expand domestic energy production through President Obama’s “All of 

the Above” strategy, the Bureau of Safety and Environmental Enforcement (BSEE) is taking the 

necessary steps to provide effective oversight of oil and gas development on the U.S. Outer Continental 

Shelf (OCS), promoting compliance with Federal regulations, and leading the offshore oil and gas 

industry toward a culture of safety and environmental protection.

Since BSEE’s establishment on October 1, 2011, we have been working to institutionalize the regulatory 

reforms put into place during the aftermath of the 2010 Deepwater Horizon explosion and oil spill, and 

fully establish the new Bureau. The President’s Fiscal Year (FY) 2014 request will provide the funds to 

substantially complete the Bureau build-out and ensure the tremendous enhancements to safety and 

environmental protection that have been achieved do not become obsolete. Through this request, BSEE 

will continue to put in place the tools necessary to effectively guide industry to safely develop oil and gas 

resources, utilizing both new technologies and sound management practices as operations move into 

deeper water and encounter greater temperatures and pressures. 

Our guiding principle is “Safety at All Levels, at All Times” as we work to lead the industry toward 

offshore excellence. Our efforts are supported by two strategic goals:

• Regulate, enforce, and respond to OCS development using the full range of authorities, policies, 

and tools to compel safety, emergency preparedness, and environmental responsibility, and 

appropriate development and conservation of the offshore oil and natural gas resources, and; 

• 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.

These strategic goals guide our decision-making and investment strategies. The FY 2014 request furthers 

these goals by providing the capacity in existing offices in multiple disciplines to staff regulatory, safety 

management, environmental compliance, structural and technical support, and oil spill response 

programs. We will build independent and dependable inspection capabilities in Alaska to support the 

anticipated growth in exploration, development, and production activities in that Region. We will 

continue to enhance our information systems to support the development of a modern electronic system 

for conducting offshore inspections and real-time monitoring. And, we will address key knowledge and 

technology gaps in oil spill response through a robust technology research agenda.

The President’s commitment to the responsible development of our Nation’s domestic energy resources is 

realized through a clear regulatory framework: an efficient, yet rigorous permitting process; effective 

monitoring and oversight; and the consistent application of a comprehensive enforcement strategy. 

Without these critical elements, supported by the necessary staffing, training, and resources, the industry

will lack the certainty and predictability needed to make decisions, while the risks to worker safety and to 

the environment will unacceptably increase. 
Director’s Preface

2 Bureau of Safety and Environmental Enforcement

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General Statement

General Statement 

Bureau of Safety and Environmental Enforcement 3 

FY 2014 PERFORMANCE BUDGET 

Bureau of Safety and Environmental Enforcement

General Statement

Table 1 : Summary of BSEE Budget Request

Account/Activity

FY 2013 

Full Year 

CR

FY 2012

Enacted

FY 2014

Request

 

Changes 

from FY 

2012 

Offshore Safety and Environmental Enforcement (OSEE)

Environmental Enforcement 4,117 4,108 8,314 +4,206

Operations, Safety and Regulation 132,306 132,079 147,282 +15,203

Administrative Operations 15,576 15,545 19,605 +4,060

General Support Services 12,631 12,607 13,911 +1,304

Executive Direction 18,202 18,117 18,121 +4

Total, OSEE 182,832 182,456 207,233 +24,777

Offsetting Rental Receipts -52,587 -52,587 -50,568 +2,019

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

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

Total, Offsetting Collections -121,081 -121,081 -123,970 -2,889

Net OSEE 61,751 61,375 83,263 +21,888

Oil Spill Research 14,990 14,899 14,899 0

Disaster Relief Appropriations Act, 2013 (P.L. 113-2) 3,000

Current BSEE Funding 79,741 76,274 98,162 +21,888

Total BSEE Funding 200,822 197,355 222,132 +24,777

Full Time Equivalents (FTE)

 Total Direct FTE 585 519 638 +119

 Total Reimbursable FTE (Reimbursable Agreements) 1 125 96 125 +29

Total FTE 2/,3/ 710 615 763 +148

1/ BSEE has changed the manner in which it is reporting FTE funded by offsetting collections to show them in the direct category as of 

FY 2013. 

2/ 2012 FTE amounts reflect actual usage, not 2012 enacted formulation estimates. 

3/ The total FTE increase estimated for FY 2014 is 69 FTE. The technical adjustment of 79 FTE represents the difference between 2012 

actual and enacted FTE as a result of challenges filling vacant technical positions.

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

2011, OCS leases offshore California, Alaska, and in the Gulf of Mexico provided about 501 million 

barrels of oil and 1,892 billion cubic feet of natural gas, accounting for almost 24 percent of the Nation’s 

oil production and over 6 percent of domestic natural gas production. 

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

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

regulation and oversight of Federal offshore resources ensures that the OCS remains a solid contributor to 
General Statement

4 Bureau of Safety and Environmental Enforcement

the Nation’s energy needs through safe and environmentally-responsible oil and gas development and the 

conservation of resources. 

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

development, safety research, environmental compliance and enforcement, oil spill preparedness 

compliance and enforcement, production and development oversight, conservation of resources, and 

operation of a national training program. 

FY 2014 PERFORMANCE BUDGET REQUEST

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

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

missions: ensuring the balanced and responsible development of energy resources on the OCS; ensuring 

safe and environmentally responsible exploration and production and enforcing applicable rules and 

regulations; and ensuring a fair return to the taxpayer from royalty and revenue collection and 

disbursement activities.

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

missions were created. The Office of Natural Resources Revenue began operations on October 1, 2010, 

with the mission of collecting and disbursing revenues from domestic energy production while ensuring a 

fair return to the taxpayer from that production. An interim agency, the Bureau of Ocean Energy 

Management, Regulation and Enforcement (BOEMRE), was responsible for the remaining MMS 

functions during FY 2011. The Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety 

and Environmental Enforcement (BSEE) formally began independent operations on October 1, 2011, with 

distinct concepts, missions, and functions relevant to each Bureau. BOEM’s mission is responsible for 

managing overall development of energy resources on the Outer Continental Shelf (OCS) in an 

environmentally and economically responsible way. BSEE’s mission is to oversee safety and 

environmental enforcement for OCS operations to ensure compliance with applicable rules and 

regulations.

Progress through Reforms

FY 2014 represents the third year of operations for BSEE. This request is guided by the newly developed 

BSEE FY 2012-2015 Strategic Plan which includes two strategic goals to guide the Bureau in 

accomplishing its mission. This strategic plan is a result of a planning process that included a review of 

legacy documents, industry reports, and input from senior leadership. The two goals are: 

• To regulate, enforce, and respond to Outer Continental Shelf (OCS) development using the full 

range of authorities, policies, and tools to compel safety, emergency preparedness and 

BSEE works to promote safety, protect the 

environment, and conserve resources offshore through 

vigorous regulatory oversight and enforcement.
General Statement

Bureau of Safety and Environmental Enforcement 5

environmental responsibility and appropriate development and conservation of the offshore oil 

and natural gas resources. 

• To build and sustain the organizational, technical, and intellectual capacity within and across 

BSEE’s key functions – capacity that keeps pace with the OCS industry’s technological 

improvements, innovates in regulation and enforcement, and reduces risk through systemic 

assessment and regulatory and enforcement actions. 

The BSEE Strategic Plan encapsulates the intent of BSEE to keep pace with the rapidly advancing 

technologies employed by the industry; build and sustain internal organizational, technical, and 

intellectual capacity; and commit to instilling safe practices at all levels of offshore operations, at all 

times.

Below are some of BSEE’s key goals of investments: 

• Continue to enhance offshore safety and environmental performance by promoting a safety 

culture within the offshore oil and gas industry. 

• Promote and support innovation through the use of Best Available and Safest Technology 

(BAST) within the drilling, production and spill response stakeholder communities. 

• Promote compliance through strategic enforcement by fully defining, enhancing, and utilizing the 

Bureau’s enforcement authorities with a specific focus on risk. 

• Invest in BSEE employees through recruiting and training. 

• Promote the use of information, including real time monitoring, to enhance safety and 

environmental protection. 

The Bureau successfully implemented significant reforms in FY 2012 that addressed several of the major 

recommendations resulting from the investigations and reports that followed the tragic explosion of the 

Deepwater Horizon and the subsequent oil spill. The Bureau issued the final drilling safety regulations 

put in place on an interim basis after the spill and also updated oil spill response planning guidance; both 

of these reforms will contribute to the overall safety of the offshore oil and gas industry. In cooperation 

with industry, BSEE also conducted the first ever full-scale deployment drill for a deepwater containment 

system.

The achievements represent important steps to promote offshore safety, protect the environment, and 

conserve resources. As planned, the Bureau continues to implement reforms and to hire the needed 

personnel. These continued reforms and addition of highly qualified staff are essential to establishing a 

culture of safety and achieving the efficiency and effectiveness envisioned. 

Due to the challenges presented by the reorganization and reform efforts, the Bureau ended FY 2012 with 

fewer onboard personnel than anticipated and has developed an execution plan for FY 2013 and FY 2014

that will enable the Bureau to aggressively pursue personnel and system improvements. BSEE will apply 

existing resources to projects and activities that will address its strategic goals while allowing the Bureau 

to continue recruiting critical personnel.

BSEE will focus funding on projects that will enhance the systems and protocols necessary to implement 

real-time monitoring capabilities, risk-based inspections, and advanced inspection technologies. BSEE 

will also pursue incorporation of BAST including technology testing by independent laboratories that will 
General Statement

6 Bureau of Safety and Environmental Enforcement

reduce reliance on industry to verify the efficacy of emerging technology. Additional investments will 

focus on oil spill response and preparedness and major improvements to the Bureau’s data management 

systems. 

Compliance and Inspections

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

BSEE can improve its regulatory, inspection and compliance programs. Based on recommendations from 

investigatory and oversight reports, internal and external review of operations, and reorganization studies, 

BSEE has already implemented a number of improvements to its inspection regime and will continually 

look for improvements to enhance its programs. 

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. 

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. 

In recent years, BSEE has adopted a goal of conducting monthly inspections of OCS drilling facilities, 

and therefore providing additional oversight to these specialized facilities.

These increases in inspection/oversight, most notably on drilling operations, combined with the increase 

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. 

BSEE is also actively working to develop a risk-based inspection methodology for use at various levels 

within the regulatory program. The Bureau plans to use the information gleaned from an ongoing risk 

correlation analysis to learn more about the relative risks posed by discrete offshore oil and gas activities. 

BSEE will then use the updated risk model to identify and focus Bureau inspections on the “riskiest” 

activities. 

Safety and Environmental Management: The Safety and Environmental Management System (SEMS)

is a nontraditional, performance-focused tool for integrating and managing operations on the OCS. 

Following the Deepwater Horizon event, BSEE instituted regulations requiring OCS operators to have 

SEMS systems in place. BSEE continues to make strides in safety and environmental management and 

has recently finalized “Revision to Safety and Environmental Management Systems”, or SEMS II. 

SEMS II addresses safety concerns that were not addressed in the original SEMS rule. 

Real-Time Monitoring: BSEE is also actively reviewing the use of Real Time Monitoring (RTM) as a 

regulatory tool. The intent of RTM is to develop, test, and implement reforms that significantly improve 

the Inspection and Enforcement Program in BSEE by using innovative technologies and using risk-based 

inspection criteria to supplement BSEE’s current inspection program. The use of RTM technology and 

facilities to monitor OCS oil and gas drilling, well-completion, well workover, well servicing and other 

rig related operations is one avenue to help meet the BSEE mission. BSEE is also considering other RTM 

opportunities not associated with onshore monitoring facilities.

BSEE is currently working to determine which available RTM opportunities would provide the best 

return on investment and which activities require on-site inspectors. Initially, the focus will be on high 

risk activities involving deepwater drilling and casing/cementing. The use of RTM will allow BSEE to 

quickly shift technical resources to evaluate these operations wherever they occur.
General Statement

Bureau of Safety and Environmental Enforcement 7

Emerging Technologies (formerly Technology Assessment and Research): BSEE continues to promote 

identification of and use of BAST associated with energy and mineral operations, ranging from the 

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

infrastructure once production operations have ceased. Under the Emerging Technologies Program, 

BSEE promotes the investigation of new technologies to promote safe operations, prevention of oil 

pollution, and the improvement of oil spill response and clean-up.

Beginning in FY2012, BSEE focused its efforts to identify high-risk components and systems, such as 

blowout preventers (BOPs), to ensure that industry was applying BAST in those areas where overall risks 

could be reduced. To take advantage of and leverage expertise from other Federal resources, BSEE has 

entered into an Interagency Agreement (IAA) with the Department of Energy National Laboratory system 

to collaborate on risk-based decision making and applying BAST to offshore components, systems and 

procedures. 

FY 2014 BUDGET HIGHLIGHTS 

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

Spill Research (OSR) appropriations. The OSEE appropriation is partially offset by a portion of OCS 

rental collections, cost recovery fees, and inspection fees. The OSR appropriation is funded through the 

Oil Spill Liability Trust Fund.

In FY 2014, the BSEE budget requests $222.1 million which includes $50.6 million from offsetting rental 

collections, $8.4 million from cost recovery fees, and $65 million from inspection fees.

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

• The Environmental Enforcement Activity funds: environmental compliance activities related to 

issuing permits associated with plans; inspections of environmental measures and enforcement of 

incidences of noncompliance; and monitoring industry compliance with mitigation and other 

environmental requirements through office and field inspections.

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

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

planning and preparedness compliance; accident investigations; civil penalties and operator 

disqualification; operator training and audit programs; annual operator performance reviews; 

verification of oil and gas production levels to help ensure the public receives a fair return; and 

the Emerging Technologies Program (formerly the Technology Assessment and Research 

Program).

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

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

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

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

• The General Support Services Activity funds: shared activities and related support services for 

the Bureau. These include expenses such as: rental and security of office space; workers’ 

compensation and unemployment compensation; voice and data communications; centrally 

provided services funded by the Department’s Working Capital Fund; annual building 

maintenance contracts; mail services; and printing costs. BSEE will continue to provide some of 

these services to BOEM through a reimbursable service agreement.
General Statement

8 Bureau of Safety and Environmental Enforcement

• 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 the 

Regional Director’s Offices are also funded within this activity.

The budget for BSEE in the OSR account funds oil spill research, oil spill response research, the Ohmsett 

facility, as well as oil spill response and planning.

Table 2: FY 2014 Analysis of Budgetary Changes

 

Organization/Category Initiative ($000) FTE 1/,2/

76,274 615

Fixed Costs +50

Management Efficiencies -21

Strengthen Environmental Enforcement Program +4,177 +14

FTE Technical Adjustment +9

Fixed Costs +966

Management Efficiencies -838

Research and Development for Offshore Drilling +2,000

Operational Safety +4,495 +33

National Offshore Training Program +3,685 +7

Wellbore Integrity +1,395 +9

Alaska Program Growth +2,500 +6

Efficiencies in the permitting process: ePermits +1,000

FTE Technical Adjustment +51

Fixed Costs +471

Management Efficiencies -456

Sustain Administrative Operations +4,045

FTE Technical Adjustment +4

Fixed Costs +2,690

Management Efficiencies -1,386

Fixed Costs +118

Management Efficiencies -114

FTE Technical Adjustment +10

Subtotal of OSEE +24,777 +143

Changes in Offsetting Collections -2,889

FTE Technical Adjustment +5

FY 2014 Requested Increase +21,888 +148

BSEE FY 2014 PROPOSAL -- DIRECT APPROPRIATION 98,162 763

1/ 2012 FTE amounts reflect actual usage, not 2012 enacted formulation estimates. 

Oil Spill Research Appropriation

Executive Direction

General Support Services

2/ The total FTE increase estimated for FY 2014 is 69 FTE. The technical adjustment of 79 FTE represents the difference between 2012 actual 

and enacted FTE as a result of challenges filling vacant technical positions.

Offshore Safety and Environmental Enforcement (OSEE)

Bureau of Safety and Environmental Enforcement

FY 2014 Budget Initiatives

($000)

BSEE FY 2012 ENACTED -- DIRECT APPROPRIATION

Administrative Operations

Environmental Enforcement

Operations, Safety, and Regulation
General Statement

Bureau of Safety and Environmental Enforcement 9

The following funding increases and decreases are proposed:

Fixed Costs (+$4,295,000): Projected fixed costs such as rent, salary increases, central billing, and 

information technology transformation for the Department’s working capital fund, and other items are 

fully funded by this request.

Management Efficiencies (-$2,815,000): Programs will absorb these costs through greater efficiencies, 

cost savings, and administrative adjustments. 

Strengthen Environmental Enforcement Program (+4,177,000; +14 FTE): Funding provided in 

FY 2012 enabled the hiring of initial personnel necessary to develop and manage the program, and ensure 

that the NEPA process requirements necessary to responsibly issue permits to conduct various offshore 

activities were met in each of the OCS regions. BSEE is requesting additional base funding needed to 

continue implementation of the enforcement program.

Research and Development for Offshore Drilling Safety (+$2,000,000; 0 FTE): Requests funding to 

perform additional, and more in-depth, research relating to safety systems and operations. As the industry 

pushes into deeper water and is drilling more high-pressure/high-temperature wells, current safety 

practices and technologies require continuous improvement to better ensure the integrity of equipment 

and operations. 

Operational Safety (+$4,495,000; +33 FTE): Funds will support ongoing reorganization efforts 

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

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

activities such as development of regulations, safety management, structural and technical support, and oil 

spill response. 

National Offshore Training Program (+$3,685,000; +7 FTE): This will provide base funding for the 

National Offshore Training Program (NOTP). The NOTP supports the Bureau’s goals by providing 

upfront and ongoing learning and development opportunities to Bureau engineering and inspection staff. 

The NOTP will provide a wide variety of credible and up-to-date training programs designed to enhance 

the abilities of BSEE staff to address technological advances. Courses are selected and developed with a 

focus on BSEE’s mission and vision of advancing safety and environmental stewardship principles using 

the best science and technology available to evaluate, protect, and preserve the human, marine, and 

coastal environments. 

Wellbore Integrity (+$1,395,000; +9 FTE): Requested funding will provide resources needed for BSEE 

to meet current requirements to evaluate whether operators have submitted adequate information 

demonstrating access and deployment capabilities for surface and subsea containment. 

Alaska Program Growth (+2,500,000; +6 FTE): This budget request will build independent and 

dependable inspection capabilities for significantly expanded drilling activity anticipated on the Alaska 

OCS; build basic engineering support for platform and pipeline functions; build basic engineering and 

geoscience support for unitization, reservoir and conservation functions; and build administrative support 

for the increasing volume of administrative files and complex processes for growth in the Alaska Region.

Efficiencies in the permitting process: ePermits (+$1,000,000; 0 FTE): BSEE requests additional 

funding to continue to enhance the management of the permitting process by providing a means for 

industry to submit permits on-line via the web and to better track the permit review process. In addition 

to web-based receipt of these documents and data, ePermits will provide the capability to track the 

evaluation of permits throughout the review process.
General Statement

10 Bureau of Safety and Environmental Enforcement

Sustain Administrative Operations (+$4,045,000; 0 FTE): Funding is needed to sustain the necessary 

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

personnel that will serve both Bureaus as they recruit new inspectors, engineers, scientists, and other 

disciplines needed to support the Bureaus’ mission. 

FTE Technical Adjustment (+79 FTE): The total FTE increase estimated for FY 2014 is 69 FTE. The 

technical adjustment of 79 FTE represents the difference between 2012 actual and enacted FTE as a result 

of challenges filling vacant technical positions. No additional funding is requested/associated with this 

adjustment.

Changes in Offsetting Collections (-$2,889,000, 0 FTE):

• Rental Receipts (-$2,019,000; 0 FTE): This decrease in rental receipts revenue results from an 

anticipated decrease of $2.0 million from the FY 2012 enacted amount of $52.6 million. This is one 

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

Also, included as offsetting collections are cost recovery and inspection fees.

• Cost Recovery Fees (+$1,908,000; 0 FTE): This increase in cost recovery fee revenue results from 

an anticipated increase of $1.9 million from the FY 2012 enacted amount of $6.5 million. This is one 

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

Also included as offsetting collections are certain rental receipts and inspection fees. 

• Inspection Fees (+$3,000,000; 0 FTE): This increase in offsetting inspection fee revenue results 

from an anticipated increase of $3.0 million from the FY 2012 enacted amount of $62.0 million. This 

is one type of offsetting collection credited to the BSEE OSEE account to help defray the cost of 

operations. Also included as offsetting collections are certain rental receipts and cost recovery fees. 

 

PERFORMANCE SUMMARY 

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

regulatory oversight and enforcement. 

Performance Management

BSEE’s mission directly supports the Department of the Interior’s Strategic Goal and Strategy to Secure 

America’s Energy Resources while ensuring environmental compliance and the safety of energy 

development.

In FY 2013, BSEE undertook the following key strategies to strengthen regulatory oversight and 

enforcement of offshore energy development activities. 

• Continued to reform and implement an expanded inspection and operational oversight regime, 

including the hiring of additional inspectors and the observing of selected high-risk drilling 

activities and tests

• Continued the establishment and implementation of a new environmental enforcement program to 

ensure compliance with relevant laws and to minimize the risk of environmental accidents

• Moved toward proactive enforcement capabilities to catch oil spill under-reporting, nonreporting, and delinquent Oil Spill Response Plan holders for enforcement actions.

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

offshore operational safety
General Statement

Bureau of Safety and Environmental Enforcement 11

• Expanded technical capabilities and resources for reviewing and processing drilling, production, 

and decommissioning permits

• Conducted targeted research on deepwater safety and spill containment utilizing research results 

to inform rulemaking, investigations, and plan reviews

• Expanded technical capabilities for oil spill research, risk analysis, and response planning 

• Worked to begin implementing a mix of performance-based and prescriptive safety and pollution 

prevention standards to better assess and manage risk and to promote continuous improvement 

offshore.

• Continued the development and implementation of an offshore training center program with a 

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

Performance for Key Increases

BSEE’s FY 2014 proposal continues to advance the Secretary’s objectives for strengthening the Nation’s

energy security while ensuring operational safety and environmental compliance. The FY 2014 funding 

increases will be used to:

• Increase Federal oversight of environmental compliance by establishing and maintaining BSEE’s 

field environmental compliance, inspections, SEMS audits, investigations and enforcement 

capabilities;

• Further strengthen regulatory oversight by hiring the personnel needed to maintain up-to-date 

drilling-safety requirements that stay current with industry’s rapidly evolving deepwater 

technology;

• Improve the Nation’s preparedness posture for offshore oil spills by continuing to implement an 

integrated oil spill program that encompasses all aspects of oil discharge research and spill

prevention, planning, and preparedness;

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

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

compliance program;

• Ensure more timely and accurate collection of inspection data by replacing the outdated paperbased inspection process with a modern electronic system, which will also give inspectors 

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

(NTLs), Safety Alerts, and approved permits; and

• Conduct additional wellbore integrity evaluations to determine if casing design is adequate and 

minimizes the likelihood that hydrocarbons could be released to the sea floor in the event a 

blowout results in containment equipment being triggered.

Related program performance metric information can be found within the Goal Performance Table. 
General Statement 

12 Bureau of Safety and Environmental Enforcement 

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Secretarial Initiatives and Agency Priority Goals

Bureau of Safety and Environmental Enforcement 13

Bureau of Safety and Environmental Enforcement

Secretarial Initiatives, Agency Priority Goals, and 

Administration Management Initiatives

The Bureau of Safety and Environmental Enforcement fully supports the Secretarial and Administration 

Initiatives to realize agency goals and implement the Administration’s management initiatives. BSEE 

contributes to these efforts in several ways.

Secretarial Initiative: Information Technology Transformation 

The FY 2014 President’s Budget Request includes $185,500 for BSEE participation in the Department’s 

IT Transformation efforts through the Department’s Working Capital Fund. These funds will support IT 

Transformation project-level planning and coordination and the implementation of enterprise IT services.

Agency Priority Goal: Youth in the Great Outdoors 

Goal: By September 30, 2013, the Department of the Interior will maintain the increased level of 

employment of individuals between the ages of 15 to 25 that was achieved in FY 2010 (35 percent 

increase in total youth employment over FY 2009) to support the Department’s mission of natural and 

cultural resource management. For FY 2014, the Department is expecting to sustain a level of youth 

engagement similar to that achieved in FY 2010 (35 percent increase in total youth employment over 

FY 2009), based on estimated funding and participation from partners through the 21st Century 

Conservation Service Corps (CSC). 

In its first year, BSEE has taken a number of steps to attract, retain, and train younger employees that 

provided management of oil and gas activities on the OCS. These include the following: 

• Recruitment Teams - BSEE has recruitment teams throughout its regional offices that target 

engineers and scientists at the entry level and mid-level grades by visiting universities, 

engineering departments, and conferences. 

• Utilization of existing authority – BSEE has actively used existing authority to offer recruitment, 

retention, and relocation incentives, including student loan repayments, for eligible employees 

whenever appropriate. 

• Partnership - DOI has established a cooperative agreement with the Partnership for Public Service 

(PPS) to fund Student Ambassadors. Students will be selected competitively from each summer’s 

pool of technical interns to return to their campuses for the new academic year and act as 

“ambassadors” to DOI to assist in recruitment efforts and branding recognition. BSEE is 

currently pursuing this partnership and plans to fund two student ambassadors. 

Performance Metrics: BSEE measures its Priority Goals by the Number of Employees Age 15-25 (on 

board) employed by BSEE during the fiscal year. 

Administration’s Management Agenda

The President’s Management Agenda calls for cutting waste and implementing a government that is more 

responsive and open to the needs of the American people. The Department is actively engaged in 

supporting this agenda as detailed in “Promoting Efficient Spending Implementation at the Department of 

the Interior” plan issued December 21, 2011. This implementation strategy outlines some of the ways in 
Secretarial Initiatives and Agency Priority Goals

14 Bureau of Safety and Environmental Enforcement

which the Department intends to meet the President’s goals in seven key areas. BSEE contributes to the 

following efforts: 

Enterprise Reforms

The Department of the Interior supports the President’s Management Agenda to cut waste and implement 

a government that is more responsive and open. The 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 Information 

Technology (IT) Transformation; 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.

As outlined in Secretarial Order 3309, the Department of the Interior is taking steps to align IT resources 

under a single Chief Information Officer (CIO) to minimize redundancies, streamline IT, and enhance 

customer service, while lowering IT costs to the Department. The subsequent IT Transformation 

Strategic Plan, which aligns with OMB’s 25 Point Implementation Plan to Reform Federal Information 

Technology Management, outlines high priority IT service areas for immediate modernization. BSEE is 

committing resources to the planning and implementation of the IT Transformation initiatives for 

enterprise reforms.

Campaign to Cut Waste 

Over the last three years, the Administration has implemented a series of management reforms to curb 

uncontrolled growth in contract spending, terminate poorly performing information technology projects, 

deploy state of the art fraud detection tools, focus agency leaders on achieving ambitious improvements in 

high-priority areas, and open government up to the public to increase accountability and accelerate 

innovation. 

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

management reforms and the achievement of efficiencies and cost-cutting across the government. This 

Executive Order identifies specific savings as part of the Administration’s Campaign to Cut Waste to 

achieve a 20 percent reduction in administrative spending from 2010 to 2013 and sustain these savings in 

2014. Each agency is directed to establish a plan to reduce the combined costs associated with travel, 

employee information technology devices, printing, executive fleet services, and extraneous promotional 

items and other areas.

The Department of the Interior is on target to reduce administrative spending by $217 million from 

2010 levels by the end of 2013, and to sustain these savings in 2014. To meet this goal, the Department is 

leading efforts to reduce waste and create efficiencies by reviewing projected and actual administrative 

spending to allocate efficiency targets for Bureaus and Departmental Offices to achieve the 20 percent 

target. Additional details on the Campaign to Cut Waste can be found at http://www.whitehouse.gov/thepress-office/2011/11/09/executive-order-promoting-efficient-spending. 

As a new Bureau with planned staffing and resource increases and lacking the clear baseline of a more 

established Bureau, the focus for BSEE is to establish preliminary targets that reflect a commitment to 

realizing savings during FY 2013 and sustaining them in FY 2014 wherever possible. BSEE is wholly 

committed to the Campaign to Cut Waste and will participate fully in the Departmental effort to realizing 

administrative savings. For example: 
Secretarial Initiatives and Agency Priority Goals

Bureau of Safety and Environmental Enforcement 15

• BSEE reduced by $2.5 million its initial estimated need for travel. The target for BSEE is now 

$4.5 million in lieu of the original $7 million contained in the FY 2013 Budget projection. This 

decreased baseline figure will be achieved through the increased use of technology, including 

teleconferencing, video conferences, shared web sites, and web conferences as well as enhanced 

management attention and internal controls. 

• BSEE will achieve savings in transportation of things wherever possible by actively monitoring 

and controlling relocation spending through examination and update of permanent change of 

station (PCS) policies, practices, oversight and reporting. 

• BSEE supports the Department’s goal to reduce spending on advisory and assistance contracts by 

20 percent by the end of FY 2013. BSEE will limit its spending for advisory and assistance 

services and other contractual services by monitoring spending, implementing requirements for 

justifications and higher-level approvals, designating a central location for justification 

documentation, and conducting regular review of contracts to identify consolidation 

opportunities. 

• BSEE will achieve savings on supplies and equipment wherever possible by leveraging strategic 

sourcing contracts and the FedBid Reserve Auction tool for the purchases of commercial 

products/services.

BSEE is controlling other administrative expenses by initiating internal controls requiring senior-level 

preapproval of conference-related spending and tracking/reporting funds spent on conferences. Further, 

BSEE is committed to limiting the publication and printing of hard copy documents in support of more 

efficient spending practices, while continuing to effectively communicate necessary data for public 

consumption. 

Real Property

In support of the Administration’s real property cost savings efforts, the Department issued a policy 

restricting the maximum amount of Bureau/Office-leased and GSA-provided space to FY 2010 levels and 

reducing the target utilization rate (square feet per person) for office space by 10 percent. Through 

actions such as consolidations, collocations, and disposals, BSEE plans to achieve a utilization rate of 

180 usable square feet per person by the end of FY 2014 for all new BSEE/BOEM occupancy 

agreements. BSEE and BOEM efforts to consolidate space will result in achieving a net reduction of over 

35,000 rentable square feet.

Data Center Consolidation 

The November 2011 Executive Order also asks agencies to “consider the implementation of appropriate 

agency-wide IT solutions that consolidate activities such as desktop services, email, and collaboration 

tools.” Subsequent OMB budget guidance also directed agencies to reduce Information Technology (IT) 

spending by ten percent compared with the average spending on IT from FY 2010 to FY 2012. The 

Department plans to meet both of these charges through its ambitious Information Technology 

Transformation (ITT) initiative. The ITT will implement a new business model for consolidated delivery 

of information technology services to Interior’s programs and employees and realize both energy and cost 

savings that can be reinvested in innovative IT solutions that will produce a favorable return on 

investment. 

As part of the Administration’s Management Priorities, the Department has initiated a plan for 

Information Technology (IT) Transformation designed to reduce spending by the consolidation of IT 

infrastructure and services under a single Chief Information Officer (CIO). The new IT shared services 
Secretarial Initiatives and Agency Priority Goals

16 Bureau of Safety and Environmental Enforcement

organization will transform the way that IT is delivered to over 70,000 DOI employees, using advances in 

technology to provide better services for less. BSEE supports the Department’s initiative to reduce 

95 data centers by FY 2015 without disruption to mission. As part of this initiative, BSEE has initiated a 

project to reduce its data center footprint and power consumption through the implementation of 

virtualization in its three primary data center locations: Denver, Herndon, and New Orleans. BSEE plans 

to reduce the physical size of its Herndon Data Center in FY 2014 by approximately 40 percent and plans 

a reduction in the size of the Denver Data Center in FY 2016 when the current lease expires. The 

virtualization project will reduce the number of physical servers to the maximum extent practicable, with 

the goal of achieving a reduction of 30 percent to 50 percent, which will result in a corresponding 

reduction in power consumption.
Performance Summary

Strategic Objective Performance Summary

Bureau of Safety and Environmental Enforcement 17

FY 2014 PERFORMANCE BUDGET

Bureau of Safety and Environmental Enforcement

Strategic Objective Performance Summary

The FY 2014 budget request provides the resources needed to carry out the core functions of the Bureau 

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

planning; safety inspections, enforcement and investigations; environmental enforcement and compliance; 

well and production permitting; and production and development.

PERFORMANCE MANAGEMENT

The FY 2011 - 2016 DOI Strategic Plan, in compliance with the principles of the Government 

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

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

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

for FY 2011 – FY 2016 is the foundational structure for the description of program performance 

measurement and planning for the FY 2014 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 2014 are fully consistent with the goals, outcomes, and measures described 

in the FY 2011 - 2016 version of the DOI Strategic Plan and related implementation information in the 

APP&R.

Within the DOI Strategic Plan for FY 2011 – FY 2016, BSEE is aligned under the second mission area: 

Sustainably Manage Energy, Water, and Natural Resources. Specifically, its functions are captured 

within Goal One: 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 OCS. Oil spills which occur from acts of nature (e.g., hurricanes and 

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

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

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

occurred on the Federal OCS).

 The Number of Recordable Injuries per 200,000 Offshore Man Hours Worked (100 man years)

is a safety incident rate of all recordable injuries (including fatalities) that are associated with 

BSEE-regulated activities. 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). 
Strategic Objective Performance Summary

 18 Bureau of Safety and Environmental Enforcement

BSEE strategies also connect to DOI Mission Area 1: Provide natural and cultural resource protection and 

experiences; Mission Area 4: Provide a scientific foundation for decision making; and Mission Area 5: 

Building a 21st century Department of the Interior. 

With the development of its new FY 2012-2015 Strategic Plan, BSEE is currently in the process of 

reviewing and updating its Bureau-level performance measures. BSEE’s current GPRA measures, 

supporting measures, and their respective results are included in the following Goal Performance table. 
Strategic Objective Performance Summary

Bureau of Safety and Environmental Enforcement 19 Target Codes: Type Codes: Supporting Performance Measures Type 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Plan 2012 Actual FY 2013 Plan FY 2014 President's Budget Change from 2013 to 2014 Plan Long-term Target 2016 Amount (in barrels) of operational offshore oil spilled per million barrels produced (excluding Hurricane-related spills) (SP)

A

0.52

(243.8/469 

million)

3.9

(2060/531 

million)

7,600 (est.) 

(4,590369/ 

604 million )

0.42 (est.)

(243/581 

million)

<4.5

0.26 (est.)

(141/547 

million)

<4.5 <4.5 0 <4.5

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

A

12.8

(6007/ 469.1 

million)

3.9

(2060/531 

million)

7,600 (est.) 

(4,590369/ 

604 million )

0.42 (est.)

(243/581 

million)

--

0.26 (est.)

(144/547 

million)

-- -- --

Contributing Programs

Comments

CEnvironmental Enforcement and Operations, Safety and RegulationIn FY 2012, 14 operational spill events greater than 1 barrel were reported resulting in approximately 141 barrels of oil being spilled, with the largest spill reported being approximately 35 barrels. One additional spill of approximately 3 barrels occurred as a result of damage from Hurricane Isaac. Currently production for FY 2012 is estimated to be 547 million barrels resulting in operational and total oil spill ratios of 0.258 and 0.264 respectively. In FY 2010, 

government scientists estimated that 4.9 million barrels of oil were spilled on the OCS following the explosion and sinking of the Deepwater Horizon drilling rig off the coast of Louisiana. The National Incident Command Report estimated that burning, skimming and direct recovery from the wellhead removed one quarter (25%) of the oil released from the wellhead; one quarter (25%) of the total oil naturally evaporated or dissolved, and just less than one quarter (24%) was dispersed (either naturally or as a result of operations) as microscopic droplets into Gulf waters. Although FY 2010 results for the oil spill ratio greatly exceeded the planned target; future targets will remain at the annual target of less than 4.5 barrels spilled per million barrels produced. NOTE: Oil spill data are constantly updated as additional information becomes available through the completion of investigations and/or recovery operations; occasionally, a spill may be deleted or added a year or more later and result in historical data revisions. A final spill volume for the Deepwater Horizon accident 

has not been determined. Therefore the numerator for the FY2010 Operational Oil Spill ratio and the rate itself are both estimates. 

 - Cumulative Measures 

A - Annual Measures F - Future Measures

Mission Area 2: Sustainably Manage Energy, Water, and Natural ResourcesGoal 1: Secure America's Energy ResourcesGPRA Measures

SP- Strategic Plan measuresHPG- High Performance Goal BUR - Bureau specific measureUNK- Prior year data unavailable

TBD- Targets have not yet been developedNA- Long-term targets are inappropriate to determine at this time

Table 3: Goal Performance Table
Strategic Objective Performance Summary

 20 Bureau of Safety and Environmental Enforcement Supporting Performance Measures Type 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Plan 2012 Actual FY 2013 Plan FY 2014 President's Budget Change from 2013 to 2014 Plan Long-term Target 2016 Number of Recordable Injuries per 200,000 Offshore Man Hours Worked (DOI-Regulated Activities ONLY) (SP)

A N/A N/A N/A 0.30 (revd) (171/569) <0.63 0.28 (est.) (186/657) <0.50 <0.50 0 <0.50

Contributing ProgramsComments

Number of fatalities among workers in DOI permitted activities (BUR)

A 2 2 11 2 4 0 3 3 0 Reduce

Contributing Programs

CommentsLess than X% of total gas produced is 

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

A

0.51%

(11,998,145/ 

2,368,336,009 

MCF)

0.28% (est.)

(5,771,545/ 

1,985,369,034 

MCF)

0.58% (est.)

(9,940,316/ 

1,726,885,112 

MCF)

0.57% (est.)

(7,360,225/ 

1,295,657,228 

MCF)

0.70%

0.72% (est.)

(9,314,529/ 

1,298,371,517 

MCF)

0.70% 0.70% 0% TBD

Contributing Program

Comments

Operations, Safety and RegulationThis 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). In FY 2012, there were 186 recordable injuries reported for activities with BSEE’s jurisdiction and the estimated number of man years worked was 65,761. These 

estimated results indicate that in FY 2012 there was approximately 1 recordable injury in DOI-regulated activities for every 350 full-time offshore workers. Because safety levels are best evaluated as trends over multiple years, targets for FY 2013 and beyond are based on analysis of historical recordable injury rates against an extrapolation of voluntary man hour reporting from operators in previous years. The Safety and Environmental Management System (SEMS) 

regulation that went into effect in November 2010 requires all operators to report offshore man hours worked during the calendar year. FY 2012 results will be finalized after BSEE receives calendar year 2012 reporting from operators in March 2013. 

Operations, Safety and RegulationIn FY 2012, there were no fatalities among offshore workers in DOI-regulated activities. Because safety levels are best evaluated as trends over multiple years, targets for the fatalities are developed based on reducing a rolling 5-year average, which includes the FY 2010 explosion and sinking of the Deepwater Horizon drilling rig off the coast of Louisiana resulted in 11 deaths.Environmental EnforcementIndustry statistics for venting and flaring show worldwide rates ranging from 0.2% to 100%. Due to satellite monitoring and verification, flaring and venting on the OCS is kept to a minimum. Since FY 2008 U.S. rates have ranged from 0.28% to 0.72%. In April of 2010, BSEE published revised flaring and venting 

regulations requiring operators to install flare/vent meters on all OCS facilities that process more than 2,000 bbl of oil per day. Previously operators were allowed to estimate these flare/vent volumes. The revised regulations will improve the accuracy of flaring data but may increase reported volumes. Long-term targets will be determined once data has been collected for multiple years under the revised regulations.
Strategic Objective Performance Summary

Bureau of Safety and Environmental Enforcement 21 Supporting Performance Measures Type 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Plan 2012 Actual FY 2013 Plan FY 2014 President's Budget Change from 2013 to 2014 Plan Long-term Target 2016 Conduct Emerging Technology Research studies on X% of high-priority topics (BUR)

A 93%

(14/15)

100%

(18/18)

89%

(16/18)

94%

(15/16) 94% 95% (18/19) 80% 90% 10% TBD

Contributing ProgramsCommentsAchieve a utilization rate of X% at Ohmsett, the national oil spill response test facility (BUR)

A 90% (217/240) 86.2% (207/240) 93% (222/240) 84% (202/240) 85% 94% (226/240) 85% 85% 0% TBD

Contributing ProgramsCommentsSupporting Performance Measures Type 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Plan 2012 Actual FY 2013 Plan FY 2014 President's Budget Change from 2013 to 2014 Plan Long-term Target 2016Total Number of Compliance Inspections Completed (BUR)

A 25,650 26,978 23,619 20,537 25,000 23,025 24,000 25,000 1,000 TBD

Contributing Programs

Comments

Operations, Safety and RegulationThe Emerging Technologies Program (formally known as Technology Assessment and Research (TA&R)) is a research element encompassed within the BSEE Regulatory Program that addresses technological issues associated with energy and mineral operations, ranging from the drilling of oil and gas exploration wells in search of new reserves to the removal of platforms and related infrastructure once production operations have ceased. This metric looks at the percent of studies conducted on high-priority topics. BSEE has implemented a targeted expansion of its technology research following the Deepwater Horizon event to promote and support innovation through the use of Best Available and Safest Technology (BAST) within the drilling, production and response stakeholder communities.Oil Spill ResearchOhmsett is the National Oil Spill Response Test Facility located in New Jersey. At Ohmsett, clients can test oil spill response equipment in realistic conditions and have training in the use of the equipment. This measure evaluates the utilization level of the facility. The increased focus on oil spill response, as well as expanded uses for the facility such as dispersant training and renewable energy wave tests, have sustained overall utilization rates at around 85%. While the number days Ohmsett will be available in FY 2013 was reduced by Hurricane Sandy, the tank utilization rate of its operational days is not expected to be impacted.Operations, Safety and RegulationOn April 30, 2010, the President directed the Secretary to conduct a 30-day review of the Deepwater Horizon event and to report what additional precautions and technologies should be required to improve the safety of oil and gas exploration and production operations on the outer continental shelf. One of the key recommendations included in that report, as well as other subsequent reports, is that the BSEE needs to increase its oversight and evaluate/ revise the manner in which it conducts its drilling inspections. Since 2010, the inspector/investigator workforce has increased over 40% and BSEE has begun to develop and implement a new inspection strategy that focuses on risk and the use of advanced inspection technologies. Inspection performance trends are not increasing as fast as previously planned due to an increased focus on the witnessing of complex high-risk activities (e.g., BOP testing and cement/casing activities) that consume more resources to inspect and the extended time required to hire and train new inspectors so they can independently conduct inspections and other safety/environmental enforcement work. For these reasons, it is difficult to determine how many inspections will be completed beyond FY 2014. 
Strategic Objective Performance Summary

 22 Bureau of Safety and Environmental Enforcement Supporting Performance Measures Type 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Plan 2012 Actual FY 2013 Plan FY 2014 President's Budget Change from 2013 to 2014 Plan Long-term Target 2016 Conduct full Coast Guard inspections on X% of manned offshore facilities annually (BUR)

A 14.7% (164/1112) 13.6% (141/1035) (revd) 16.5% (169/1021) 14.3% (141/985) 10% 14.3% (133/932) 10% 10% 0% 10%

Contributing ProgramsComments

Operations, Safety and RegulationInspection of U.S. Coast Guard regulated items is a function that was provided for by regulation but one for which BSEE is not reimbursed. Assumption of limited responsibilities by BSEE was pursued following a report by the Inspector General that the U.S. Coast Guard was not conducting inspections of safety items on fixed facilities, as required by law. At this time, BSEE inspectors conduct a limited FPSIP (fixed platform self inspection program) inspection on every platform that they visit and have an annual target of conducting full FPSIP inspections on 10 percent of manned facilities. Although more is done when the resources are available, the targeted percentage of full FPSIP inspections performed by BSEE inspectors has not increased because it would detract from performing inspections of equipment and operations under BSEE jurisdiction.
Budget Tables

Budget at a Glance

Bureau of Safety and Environmental Enforcement 23

Bureau of Safety and Environmental Enforcement

Budget at a Glance Table

FY 2013 

Full Year 

CR

2012 

Enacted Fixed Costs Internal Transfers

Program 

Changes

2014 

Request

Offshore Safety & Environmental Enforcement (OSEE)

Environmental Enforcement 4,117 4,108 +50 - +4,156 8,314

Strengthen Environmental Enforcement Program [+4,177]

Management Efficiencies [-21]

Operations, Safety and Regulation 132,306 132,079 +966 - +14,237 147,282

Research and Development for Offshore Drilling [+2,000]

Operational Safety [+4,495]

National Offshore Training Program [+3,685]

Wellbore Integrity [+1,395]

Alaska Program Growth [+2,500]

Efficiencies in the permitting process: ePermits [+1,000]

Management Efficiencies [-838]

Administrative Operations 15,576 15,545 +471 - +3,589 19,605

Sustain Administrative Operations [+4,045]

Management Efficiencies [-456]

General Support Services 12,631 12,607 +2,690 - -1,386 13,911

Management Efficiencies [-1,386]

Executive Direction 18,202 18,117 +118 - -114 18,121

Management Efficiencies [-114]

Total, OSEE 182,832 182,456 +4,295 - +20,482 207,233

Offsetting Collections

Rental Receipts -52,587 -52,587 - - +2,019 -50,568

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

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

Total, Offsetting Collections -121,081 -121,081 - - -2,889 -123,970

Net, OSEE 61,751 61,375 +4,295 - +17,593 83,263

Oil Spill Research 14,990 14,899 - - 14,899

Disaster Relief Appropriations Act, 2013 (P.L. 113-2) 3,000 - - - - -

Net Appropriations 79,741 76,274 +4,295 - +17,593 98,162

Total BSEE Funding 200,822 197,355 +4,295 - +20,482 222,132

BSEE Budget-at-a-Glance

($000)

Account/Activity
Budget at a Glance

24 Bureau of Safety and Environmental Enforcement

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Summary of Requirements Tables

Bureau of Safety and Environmental Enforcement 25

Bureau of Safety and Environmental Enforcement

Summary of Requirements Tables

Offshore Safety and Environmental Enforcement Appropriation

Oil Spill Research Appropriation

Accounts/Activity

Total 

FTE Amount

Total

FTE1/ Amount

Fixed Costs 

& Related

Internal 

Transfers

Program 

Changes

Requested 

Amount FTE

FTE

Changes 2/

Offshore Safety and Environmental Enforcement

Environmental Enforcement 18 4,117 7 4,108 +50 - +4,156 8,314 30 +23 

Operations, Safety and Regulation 357 132,306 296 132,079 +966 - +14,237 147,282 402 +106 

Administrative Operations 219 15,576 213 15,545 +471 - +3,589 19,605 217 +4 

General Support Services 0 12,631 0 12,607 +2,690 - -1,386 13,911 0 +0 

Executive Direction 94 18,202 82 18,117 +118 - -114 18,121 92 +10 

Total, OSEE 688 182,832 598 182,456 +4,295 - +20,482 207,233 741 +143 

Offsetting Collections

Rental Receipts - -52,587 - -52,587 - - +2,019 -50,568 - 

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

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

Total, Offsetting Collections - -121,081 -121,081 - - -2,889 -123,970 - 

NET TOTAL, OSEE 688 61,751 598 61,375 +4,295 - +17,593 83,263 741 +143 

2/ The total FTE increase estimated for FY 2014 is 69 FTE. The technical adjustment of 79 FTE represents the difference between 2012 actual and enacted FTE as a result of 

challenges filling vacant technical positions.

1/ 2012 FTE amounts reflect actual usage, not 2012 enacted formulation estimates. 

Summary of Requirements for the Bureau of Safety and Environmental Enforcement

(Dollars in Thousands)

2013 Full Yr. CR 

(PL 112-175) 

2012 

Enacted 2014 President's Budget

Accounts/Activity

Total 

FTE Amount

Total

FTE1/ Amount

Fixed Costs 

& Related

Internal 

Transfers

Program 

Changes

Requested 

Amount FTE

FTE

Changes 2/

Oil Spill Research 22 14,990 17 14,899 - - - 14,899 22 +5 

Disaster Relief Appropriations Act, 2013 (P.L. 113-2) - 3,000 - - - - - - - - 

TOTAL FUNDING, Oil Spill Research 22 17,990 17 14,899 - - - 14,899 22 +5 

2/ The total FTE increase estimated for FY 2014 is 69 FTE. The technical adjustment of 79 FTE represents the difference between 2012 actual and enacted FTE as a result of challenges 

filling vacant technical positions.

Summary of Requirements for the Bureau of Safety and Environmental Enforcement

(Dollars in Thousands)

2013 Full Yr. CR 

(PL 112-175) 

2012 

Enacted 2014 President's Budget

1/ 2012 FTE amounts reflect actual usage, not 2012 enacted formulation estimates. 
Summary of Requirements Tables

26 Bureau of Safety and Environmental Management 

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Fixed Costs and Internal Realignments

Bureau of Safety and Environmental Enforcement 27

Bureau of Safety and Environmental Enforcement

Fixed Costs and Internal Realignments

 

Other Fixed Cost Changes and Projections 2012 to 2014 

Change

Change in Number of Paid Days +300

Pay Raise +678

Employer Share of Federal Health Benefit Plans +442

Departmental Working Capital Fund +886

Worker's Compensation Payments +115

Unemployment Compensation Payments -7

Rental Payments +1,881

Total, Fixed Cost Changes +4,295 

Justification of Fixed Costs and Internal Realignments

(Dollars In Thousands)

The adjustment is for changes in the costs of compensating injured employees and dependents of employees who suffer 

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

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

The adjustment is for projected changes in the costs of unemployment compensation claims to be paid to the 

Department of Labor, Federal Employees Compensation Account, in the Unemployment Trust Fund, pursuant to 

Public Law 96-499.

The combined fixed cost estimate includes an adjustment for one additional paid day between FY 2012 and FY 2014. 

The 2014 Change column relects the total pay raise changes between FY 2012 - FY 2014.

The change reflects expected increases in employer's share of Federal Health Benefit Plans.

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

the Working Capital Fund. These charges are displayed in the Budget Justification for Department Management.

The adjustment is for changes in the costs payable to General Services Administration (GSA) and others resulting from 

changes in rates for office and non-office space as estimated by GSA, as well as the rental costs of other currently 

occupied space. These costs include building security; in the case of GSA space, these are paid to 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.

1/ FY 2012 amounts are not shown because this was the first year of operation for BSEE as a separate bureau.
Fixed Costs and Internal Realignments

28 Bureau of Safety and Environmental Enforcement

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Language Citations

Language Citations

Bureau of Safety and Environmental Enforcement 29

Bureau of Safety and Environmental Enforcement

Language Citations

Appropriations Language

Offshore Safety and Environmental Enforcement Appropriation Account

For expenses necessary for the regulation of operations related to leases, easements, rightsof-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, $142,233,000, of 

which $83,263,000 is to remain available until September 30, 2015 and of which $58,970,000 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 2014 appropriation estimated at not more than $83,263,000.

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 non-refundable inspection fees collected in fiscal year 2014, 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 2014, not less than 50 percent of 

the inspection fees expended by the Bureau of Safety and Environmental Enforcement will be 

used to fund personnel and mission-related costs to expand capacity and expedite the orderly 

development, subject to environmental safeguards, of the Outer Continental Shelf pursuant to the 

Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), including the review of applications

for permits to drill.

Note.--A full-year 2013 appropriation for this account was not enacted at the time the budget was 

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

Appropriations Resolution, 2013 (P.L. 112-175). The amounts included for 2013 reflect the 

annualized level provided by the continuing resolution.

Justification of Proposed Language Change

Due to issues with the timing difference between collection of rents, cost recovery, and 

inspection fees and the availability of those amounts for expenditure as offsetting collections, the 

Department is proposing revised language. The new language is modeled after the Bureau of 

Land Management (BLM) offsetting collections language in the Management of Lands and 

Resources Account. The language would derive the funding initially from the general fund of 

the Treasury with amounts returned to the general fund at the end of the year once all collections 

have been received. 
Language Citations

30 Bureau of Safety and Environmental Enforcement

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.

Note.—A full-year 2013 appropriation for this account was not enacted at the time the budget 

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

Appropriations Resolution, 2013 (P.L. 112–175). The amounts included for 2013 reflect the 

annualized level provided by the continuing resolution as well as amounts from P.L. 113–2, the 

Disaster Relief Appropriations Act, 2013 (no language shown).

General Provisions

(See General Provision chapter of the Office of the Secretary 2014 budget justification.)

OUTER CONTINENTAL SHELF INSPECTION FEES

SEC. 106. (a) In fiscal year 2014, 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. Fees for fiscal year 2014 shall be: 

(1) $10,500 for facilities with no wells, but with processing equipment or gathering lines; 

(2) $17,000 for facilities with 1 to 10 wells, with any combination of active or inactive wells; and 

(3) $31,500 for facilities with more than 10 wells, with any combination of active or inactive 

wells. 

(c) Fees for drilling rigs shall be assessed for all inspections completed in fiscal year 2014. Fees 

for fiscal year 2014 shall be: 

(1) $30,500 per inspection for rigs operating in water depths of 500 feet or more; and 

(2) $16,700 per inspection for rigs operating in water depths of less than 500 feet. 

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

payment required within 30 days of billing. The Secretary shall bill designated operators under 

subsection (c) within 30 days of the end of the month in which the inspection occurred, with 

payment required within 30 days of billing. 

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. 

SPECIAL PAY AUTHORITY

SEC. 118. The special pay authority provided to the Bureau of Ocean Energy Management and 

Bureau of Safety and Environmental Enforcement under Section 121(c) of Division E of Public 

Law 112–74 shall remain in effect for fiscal year2014.
Mandatory Budget and Offsetting Collection Proposals

Bureau of Safety and Environmental Enforcement 31

Bureau of Safety and Environmental Enforcement

Proposals for Mandatory Accounts and Offsetting Collections

Federal Oil and Gas Reforms – The Budget includes a package of legislative reforms to bolster 

and backstop administrative actions being taken to reform the management of DOI'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: (1) advancing royalty reforms, (2) encouraging diligent development of oil 

and gas leases, and (3) improving revenue collection processes. Royalty reforms include: 

evaluating minimum royalty rates for oil, gas, and similar products; adjusting onshore oil and gas 

royalty rates; 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 get leases into 

production. Revenue collection improvements include simplification of the royalty valuation 

process, elimination of interest accruals on company overpayments of royalties, and permanent 

repeal of DOI's authority to accept in-kind royalty payments. Collectively, these reforms will 

generate roughly $2.5 billion in net revenue to the Treasury over ten years, of which about 

$1.7 billion would result from statutory changes. Many states will also benefit from higher 

Federal revenue sharing payments.

Transboundary Gulf of Mexico Agreement – The 2014 budget includes a legislative proposal 

to implement the Agreement between the U.S. and the United Mexican States Concerning 

Transboundary Hydrocarbon Reservoirs in the Gulf of Mexico, signed by representatives of the 

U.S. and Mexico on February 20, 2012. The Agreement establishes a framework for the 

cooperative exploration and development of hydrocarbon resources that cross the United StatesMexico maritime boundary in the Gulf of Mexico through BSEE approved unitization. The 

Agreement would also end the moratorium on development along the boundary in the Western 

Gap in the Gulf. The Agreement provides access to an area along the U.S.-Mexico boundary in 

the Gulf of Mexico roughly the size of Delaware, for exploration and production activities. The 

area is estimated to contain up to 172 million barrels of oil and 304 billion cubic feet of natural 

gas. The budget assumes bonus bid revenues from lease sales in this area will generate an 

estimated $50 million for the Treasury in 2014. 

Fee Increase for Offshore Oil and Gas Inspections– Through appropriations language, the 

Department proposes to increase inspection fees to $65,000,000 in 2014 for offshore oil and gas 

drilling facilities subject to inspection by BSEE. These fees will support BSEE’s expanded 

inspection program to increase production accountability, human safety, and environmental 

protection.
Mandatory Budget and Offsetting Collections Proposals

32 Bureau of Safety and Environmental Enforcement 

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Environmental Enforcement

Environmental Enforcement 

Bureau of Safety and Environmental Enforcement 33

FY 2014 PERFORMANCE BUDGET REQUEST

Environmental Enforcement Activity 

Table 4: Environmental Enforcement Activity Budget Summary

2014

2013 2012 Program 2014 Changes from 

Full Year Enacted Fixed Costs Changes Budget 2012

CR (+/-) (+/-) Request (+/-)

($000) 4,117 4,108 +50 +4,156 8,314 +4,206

FTE 1/ 18 7 +23 30 +23

Environmental Enforcement

1/ 2012 FTE amounts reflect actual usage, not 2012 enacted formulation estimates.

SUMMARY OF FY 2014 PROGRAM CHANGES 

Request Component Amount

($000) FTE

Strengthen Environmental Enforcement Program +4,177 +14

Management Efficiencies -21

FTE technical adjustment +9

Total: +4,156 +23

JUSTIFICATION OF FY 2014 PROGRAM CHANGES 

The FY 2014 budget request for the Environmental Enforcement Activity is $8,314,000 and 30 FTE, a net 

program increase of $4,156,000 and 23 FTE over the FY 2012 Enacted level.

Strengthen Environmental Enforcement Program (+$4,177,000; +14 FTE)

The Environmental Enforcement Program was established in FY 2012 to foster environmental 

compliance, inspection, investigation and enforcement programs that will assure the highest level of 

environmental standards for all offshore energy activities. Funding provided in that year enabled the 

hiring of initial personnel necessary to develop and manage the program, and ensure that the NEPA 

process requirements necessary to responsibly issue permits to conduct various offshore activities were 

met in each of the OCS regions. 

As BSEE enters its third year, the environmental enforcement program is being evaluated as part of an 

overall enforcement program review. BSEE requests additional base funding to continue implementation 

of the enforcement program, including the currently identified need of 23 FTE. Resources will be used 

to:

• Coordinate and target compliance and enforcement actions to address the greatest areas of risk.

• Acquire enhanced data and technology for tracking, verifying and enforcing compliance. 
Environmental Enforcement

 

Bureau of Safety and Environmental Enforcement 34

Impacts of Not Funding: BSEE will be unable to provide sufficient integrated Federal oversight of 

compliance by owners and operators necessary to minimize the safety and environmental impacts of offshore 

oil and gas development and production operations.

Management Efficiencies (-$21,000): Programs will absorb these costs through greater efficiencies, cost 

savings, and administrative adjustments. 

FTE technical adjustment (+9 FTE)

The technical adjustment of 9 FTE represents the difference between 2012 actual and enacted FTE as a 

result of challenges filling vacant technical positions. No additional funding is requested/associated with 

this adjustment.

PROGRAM OVERVIEW 

The Program includes the headquarters based Environmental Enforcement Division (EED) and other 

enforcement coordination activities centered in regional offices. EED is responsible for both the Bureau’s 

own compliance with requirements and the oversight and enforcement of activities by operators on the 

OCS. These activities include:

• Ensuring BSEE compliance with NEPA and environmental requirements under other statutes and 

regulations;

• 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;

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

environmental compliance and enforcement; and

• Developing new environmental enforcement program activities, including development of 

appropriate compliance and enforcement targeting tools.

PROGRAM PERFORMANCE 

Funding provided in FY 2012 allowed for the timely completion of NEPA review necessary to issue 

BSEE permits. Based on 2011 data, there are approximately 1,270 NEPA actions, including 

determinations of NEPA adequacy (DNAs), categorical exclusion reviews (CERs), findings of no 

significant impact (FONSIs), and environmental assessments (EAs), that the EED is responsible to 

conduct annually in order to process all of the various BSEE-issued permits without delay. 

Though the program’s resources have so far been largely dedicated to ensuring the timely processing of 

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

violation cases detected since October 1, 2011. These include violations associated with NEPA, Outer 

Continental Shelf Lands Act, Clean Air Act, Clean Water Act, Endangered Species Act, Marine Mammal 

Protection Act, Magnuson-Stevens Fishery Conservation and Management Act, and the National Historic 

Preservation Act. 

As stated previously, the environmental enforcement program was created on October 1, 2011; thus, there 

is no baseline performance data to draw from. Performance measures will be developed for the program 

once the program’s activities, processes, and outcomes are more precisely defined.
Operations, Safety, and Regulation

Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 35

FY 2014 PERFORMANCE BUDGET REQUEST

Operations, Safety and Regulation Activity 

Table 5: Operations, Safety and Regulation Activity Budget Summary 

2014 2014

2013 2012 Program Budget Changes from 

Full Year Enacted Fixed Costs Changes Request 2012

CR (+/-) (+/-) (+/-)

($000) 132,306 132,079 +966 +14,237 147,282 +15,203

FTE 1/ 357 296 +106 402 +106 Operations, Safety and Regulation

1/ 2012 FTE amounts reflect actual usage, not 2012 enacted formulation estimates.

SUMMARY OF FY 2014 PROGRAM CHANGES 

Request Component Amount

($000) FTE

Research and Development for Offshore Drilling +2,000 0

Operational Safety +4,495 +33

National Offshore Training Program +3,685 +7

Wellbore Integrity +1,395 +9

Alaska Growth Program +2,500 +6

Efficiencies in the permitting process: ePermits +1,000 0

Management Efficiencies -838 0

FTE technical adjustment +51

Total: +14,237 +106

JUSTIFICATION OF FY 2014 PROGRAM CHANGES 

The FY 2014 budget request for the Operations, Safety and Regulation Activity is $147,282,000 and 

402 FTE, a net program increase of $14,237,000 and 106 FTE over the FY 2012 Enacted.

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

BSEE, through its Emerging Technologies Program (formerly the Technology Assessment and Research 

Program); will use the requested funds for research into important issues that affect the safety and 

environmental compliance of offshore oil and gas activities. The November 16, 2010, National Academy 

of Engineering report to Secretary Salazar as well as other reports of findings on the Deepwater Horizon 

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

contributed to the tragic April 20, 2010, event. These include the lease operator’s use of questionable 

technologies and procedures, lack of effective decision making and lack of understanding of the materials 

being used. There is an increased need to develop, identify, or assess Best Available and Safest 

Technologies (BAST), procedures and materials used for offshore oil and gas activities, particularly in 
Operations, Safety and Regulation

36 Bureau of Safety and Environmental Enforcement

deepwater areas, to safeguard human life and the environment. The requested funds will be used to 

promote identification of and use of BAST associated with energy and mineral operations, ranging from 

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

related infrastructure once production operations have ceased. Although BSEE efforts to advance the 

technology may involve any aspect of energy and mineral operations, particular attention is given to oil 

and gas drilling, workover, production, completions, structures, pipelines, decommissioning, human 

factors/risk assessment, and measurement operations. Under the Emerging Technologies Program, BSEE 

will use the requested funds to investigate new technologies, procedures and materials that would 

promote safe operations, the prevention of oil pollution, and the improvement of oil spill response and 

clean-up.

Starting in FY2012, BSEE focused its funds and efforts to identify high-risk components and systems, 

such as blowout preventers (BOPs), to ensure that industry was applying BAST in those areas where 

overall risks could be reduced. To take advantage of and leverage expertise from other Federal resources, 

BSEE has entered into an Interagency Agreement (IAA) with the Department of Energy National 

Laboratory System to collaborate on risk-based decision making and applying BAST to offshore 

components, systems and procedures. The studies from this collaboration are expected to provide BSEE 

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

tools to improve the way we assess and approve the use of equipment, procedures and materials. If it is 

determined that the new component, system, procedures or material is BAST, then BSEE will formalize 

BAST requirements through NTLs, regulations or conditions of permit, and operators will be required to 

use equipment that meets the BAST requirements. The requested funds will provide lasting positive 

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

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

developing, and incorporating new drilling technologies and safety enhancements into agency regulations 

and operations oversight. Such delays in turn could delay the development of key technological solutions 

to safely find and develop oil and gas resources under more challenging conditions. 

Operational Safety (+$4,495,000; +33 FTE)

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

findings discussed in several important reports, most of which came to the same conclusions: that there 

was an immediate need to improve the safety of offshore operations and to strengthen oil spill response 

and planning capacity. The rules and regulations of the former MMS has not been able to keep up with 

the industry’s expansion into deepwater drilling— with its larger and more demanding technology, 

greater pressures and increasing distance from shore-based infrastructure and environmental and safety 

resources. The agency’s ability to develop and maintain up-to-date technical drilling-safety requirements 

to keep up with industry’s rapidly evolving deepwater technology requires staffing increases in key 

operational areas.

Concurrent with the post-Macondo investigations, DOI developed a three-year plan to identify the 

resources needed to support the reorganization of the former MMS into three separate agencies, and to 

implement reforms and increased capacity. The FTEs requested here are consistent with that plan and 

take into account subsequent recommendations based as presented in the investigatory reports and 

reorganization study. The requested resources will allow BSEE to:

• develop and implement new performance-based risk assessment and management regulatory 

programs;
Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 37

• supplement risk-management programs with rigorous prescriptive safety and pollutionprevention regulations and standards;

• lead the development and adoption of international standards and best practices involving 

drilling and production;

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

enforcement activities; and,

• provide a much better trained response community equipped with better response tools.

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

operational safety regime.

Impacts of Not Funding: Without these additional resources, the agency’s ability to develop and 

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

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

processed in a timely manner, inspections are conducted, incidents are thoroughly investigated, and 

enforcement actions are quickly assessed will be compromised. The proper implementation and 

enforcement of recently instituted safety initiatives such as the SEMS regulation also will be difficult.

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

limiting the Bureau’s capacity to review and approve oil spill response plans thoroughly and in a timely 

manner and hindering the agency’s ability to proactively support activities of the National Response 

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

planning and preparedness.

National Offshore Training Program (NOTP) (+$3,685,000; +7 FTE) 

In FY 2014, BSEE is requesting base funding to support and staff a NOTP to serve as the focal point for 

continuous learning and training of the Bureau’s Safety Inspectors, Environmental Enforcement Officers, 

and Engineers. 

The NOTP supports the Bureau’s goals by providing upfront and ongoing contemporary learning and 

development opportunities to Bureau staff. The NOTP provides a wide variety of recognized and up-todate training programs. The training will be selected and developed with a focus on the BSEE mission 

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

science and technology to evaluate, protect, and preserve the human, marine, and coastal environments.

The major goals of the NOTP are as follows: 

• To design and deliver programs that recognizes and encourages the continued development of 

Safety Inspectors, Environmental Enforcement Officers, and Engineers. 

 

• To develop a structured competency-based technical development curricula to meet the needs of a 

diverse technical audience with an emphasis on BSEE’s mission and a focus on safety. 

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

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

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

Bureau reorganization and post-Deepwater Horizon reform measures. This expanded oversight role 

includes refocusing the existing training program to make better use of the training expertise that is 

currently being offered by third party organizations. This approach gives the agency the flexibility to 
Operations, Safety and Regulation

38 Bureau of Safety and Environmental Enforcement

quickly adjust the training curriculum to address new technological advances in the industry and to make 

changes as the needs of the agency staff change. 

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

consistent inspections and compliance program across the organization by increasing employee skills and 

productivity; reducing attrition through improved job satisfaction; and aiding in the recruiting process. 

Faced with serious hiring shortfalls, the NOTP will serve as a recruiting tool for future employees seeking 

additional skills and career guidance. 

Impacts of Not Funding: This request establishes initial base funding for the NOTP. Without this 

funding, BSEE will not be able to enhance its training policy and training programs to maintain and 

improve the technical and professional capabilities of those employees responsible for ensuring 

operational safety on offshore facilities. Funding is fundamental to the success of the Bureau and the

continued commitment to ensuring safety, environmental protection, and offshore resource conservation 

through vigorous regulatory oversight and enforcement.

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

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

whether operators have submitted adequate information demonstrating access and deployment capabilities 

for surface and subsea containment. Staffing is needed to ensure that BSEE can meet this responsibility, 

which includes the ability to conduct two new types of evaluations related to wellbore integrity:

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

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

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

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

surrounding strata.

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

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

reach the sea floor.

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

that require well containment under the Oil Spill Response regulations. The resulting data will inform 

continuing regulatory reforms and preserve the Bureau’s independence.

Impact of Not Funding: If resources are not sufficient, BSEE cannot ensure that these evaluations will 

receive an adequate level of technical review or that reviews will be completed in a timely manner to 

avoid delay of APD approvals. Operators may face delays in the issuance of drilling permits and other 

important BSEE responsibilities may be deferred as personnel are reassigned to perform this function.

Alaska Program Growth (+$2,500,000; +6 FTE)

The Alaska Region is anticipating significant growth in exploration development, and production 

activities on the Alaska OCS. The likelihood of success for commercial discoveries is high, and multiple 

companies have announced their intent to submit applications for drilling. Commercial discoveries would 

lead to a shift for the Alaska Region from overseeing intermittent exploration and production activities to 

more intensive development and production activities, including pipeline and production facility design 

and unitization and reservoir management.
Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 39

Operators are highly confident their Arctic projects will be a success, and that they will quickly transition 

into a development process. BSEE expects the need to add additional staff to the Alaska Region to keep 

pace with the expected development and production engineering functions for platform design, pipelines, 

unitization, and conservation management. Following a commercial discovery, industry will likely be 

aggressive in engineering design for development facilities and establishing units for managing reservoir 

performance and conservation principles. BSEE’s Alaska Region will have to perform the review and 

analysis for all APDs, evaluate technical analysis on calculations and assumptions, and consult supporting 

maps, diagrams, and studies prior to approval of permits. As future drilling continues, BSEE can expect a 

proportional increase in the amount of information for review and analysis. Commitments made to 

provide full-time inspector coverage on active rigs, as well as the logistical difficulties of getting 

personnel to the Arctic Ocean, will put a significant strain on the existing inspector workforce as the 

number of activities increase. 

This initiative will: 1) build independent and dependable inspection capabilities for significantly 

expanded drilling activity; 2) build basic engineering support for platform and pipeline functions; 3) build 

basic engineering and geoscience support for unitization, reservoir and conservation functions; and 4) 

build administrative support for the increasing volume of administrative files and complex processes. 

The inclusion of funding that anticipates the expansion of offshore oil and gas activities in the Arctic is 

consistent with the Secretary’s direction and reinforces the President’s commitment to providing careful 

oversight of future energy development in the Arctic. 

Benefits: With this funding support, BSEE’s Alaska Region will not be able to provide timely and 

rigorous technical reviews and inspections of anticipated drilling activities, as well as development and 

production activities, and to develop and establish precedent setting polices for safe and environmentally 

protective Arctic development.

Impact of Not Funding: Without this funding, BSEE will not be able to build the technical and 

administrative support to implement its responsibilities for new development activities in the Arctic. This 

will inhibit BSEE’s ability to provide robust technical review and drilling safety oversight and could lead to 

delays in permitting future industry operations.

Efficiencies in the permitting process: ePermits (+$1,000,000; 0 FTE)

Technology and information management investments will allow BSEE to better identify trends and 

statistics critical to assessing the broader indicators of risk, safety, and environmental protection. 

Additionally, the increased use of data management tools will streamline various Bureau processes such 

as the submission and review of permits. Based on a recent review, BSEE is finalizing an information 

management strategic plan and five-year roadmap. BSEE requests additional funding to continue to 

enhance the management of the permitting process by providing a means for industry to submit permits 

on-line via the web and to better track the permit review process. To ensure the maximum leveraging of 

process development, BSEE will partner with BOEM and their ePlans initiative. 

ePermits will be a web-based application for receiving and managing all BSEE permits, applications, and 

reports. In addition to web-based receipt of these documents and data, ePermits will provide the 

capability to track the evaluation of permits throughout the review process. The use of the ePermit tool 

will improve the availability and reliability of information needed to make government decisions that 

ensure compliance with safety and environmental regulations. The tool will also reduce the government 

time to process permits by replacing manual tasks with automated ones, thus allowing more time to be 

focused on environmental compliance and safety.
Operations, Safety and Regulation

40 Bureau of Safety and Environmental Enforcement

Initial funding will be for the design of the ePermit application and development of the first phases. The 

ePermit process will provide a web-based process for lease operators to submit drilling, structure, and 

pipeline permit applications and associated requests and reports to BSEE for approval. In addition to 

streamlining and providing transparency for the permitting process, ePermits will also link to Pay.gov for 

fee payment and tracking, thus providing a more efficient means of verifying the receipt of permit 

application fees. 

Benefits: 

• An increase in data quality regarding fee payments and links to permits and plans, resulting in a

decreased need to issue refunds. 

• Provide Industry and the public a more transparent means of understanding and complying with 

all permitting requirements resulting in faster permit review and approvals. 

• Plans and permits will be available in the Electronic Data Management System (EDMS) resulting 

in: 

o better documentation of the reviews performed for each plan and permit; 

o improved document efficiency for both government agencies and operators; and 

o increased transparency of the permitting process. 

Impact of Not Funding: Without this funding request, BSEE’s efforts to make the process more 

efficient and transparent will be further delayed.

Management Efficiencies (-$838,000): Programs will absorb these costs through greater efficiencies, 

cost savings, and administrative adjustments. 

FTE technical adjustment (+51 FTE)

The technical adjustment of 51 FTE represents the difference between 2012 actual and enacted FTE as a 

result of challenges filling vacant technical positions. No additional funding is requested/associated with 

this adjustment. 

PROGRAM OVERVIEW 

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

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

continually seeks operational improvements that will reduce the risks to offshore personnel and to the 

environment, and continually evaluates procedures and regulations to stay abreast of technological 

advances that will ensure safe and clean operations and conserve the Nation’s natural resources. 

Functions include: 

• Regulatory Development

• Standards Development

• Review of OCS Permits

• Inspections, Investigations, and Risk Management 

• Safety and Environmental Management

• Operator Performance Reviews
Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 41

• Civil and Criminal Penalties & Operator Disqualifications

• Real-Time Monitoring

• Conservation Management

• Regulatory Development

• Emerging Technologies

• Oil Spill Response and Planning.

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 all 

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

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

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

environmental protection on the OCS. BSEE will continue efforts to improve efficiency in its regulatory 

program. These efforts will focus on identification and evaluation of regulatory needs; streamlining the 

regulatory development process to ensure that high quality, enforceable, and legally defensible

regulations are generated in a timely manner; streamlining the incorporation of new and updated industry 

standards into regulations; and effective development and use of guidance documents.

BSEE will continue to develop new regulations and revise existing regulations to ensure safety and 

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

related to drilling and production operations, transportation of oil and gas, the use of Best Available and 

Safest Technology for Blow Out Preventers (BOPs) and the decommissioning of offshore facilities.

These regulations will be based on priorities established from a comprehensive review of the existing oil 

and gas regulations. In addition, BSEE will continue to work with industry groups on standard 

development and assess those standards for possible incorporation into BSEE’s regulations. Regulatory 

efforts will specifically address oil and gas pipeline requirements for the OCS; production measurement 

to ensure an accurate assessment of royalties; updates of requirements for decommissioning to ensure 

that wells and facilities are removed in a timely manner; regulations to address special considerations and 

best practices for oil and gas development in the Arctic; revisions in regulations to ensure operators use 

the BAST; and updates to inspection and enforcement provisions to ensure BSEE can use a full range of 

tools for regulatory compliance.

Standards Development: In FY 2012, BSEE formed and began to staff a new Standards Development 

Section, under the Regulations and Standards Branch in the Office of Offshore Regulatory Programs in 

response to recommendations related to the Deepwater Horizon event. This organization actively 

participates with external Standards Development Organizations (SDOs) to develop new or revised 

standards for safety and environmental protection on the Outer Continental Shelf (OCS). To minimize 

travel costs associated with SDO meeting attendance, BSEE located two of the Section staff in Houston, 

Texas, where most of the SDO meetings are held. This Section assists BSEE by optimizing the use of 

national and international standards in regulations for safe and environmentally sound development of 

OCS resources; collaborating with SDOs to expedite the incorporation of industry standards into BSEE 

regulations; increasing 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, facilitating BSEE’s ability 

to provide input on the standards. The new organization has also been tasked with establishing more 

effective communication links with international standards organizations that can provide additional 

information to BSEE on the use of BAST standards in international energy development programs.
Operations, Safety and Regulation

42 Bureau of Safety and Environmental Enforcement

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

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

reviews of plans and permits for exploration, development, and production on OCS lands, as well as 

permits for other activities such as the installation of pipelines. The ongoing effort by BSEE to develop 

performance-based operating regulations is expected to generate an increasing number of operator 

requests for approval of alternative compliance programs. Prior to making approval decisions on 

alternative compliance, BSEE must assess the alternatives to ensure they provide equal or greater 

protection than the regulatory requirements they would replace. BSEE will be required to commit a 

substantial and increasing amount of resources to these assessments in order to evaluate an operator’s 

proposed alternative, verify adherence to approved plans, and determine effectiveness of technologies and 

procedures employed.

Inspections, Investigations and Risk Management: The OCSLA amendments mandate that annual 

inspections be performed on each permanent structure and drilling rig that conducts drilling, completion, 

or workover operations. Safety is a priority for both BSEE staff and for the operations that occur under 

BSEE jurisdiction, and onsite facility inspections and enforcement actions are important components of 

BSEE's safety program. 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. BSEE'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. In recent years, BSEE has adopted a goal of conducting monthly inspections of 

OCS drilling facilities, and therefore providing additional oversight to these specialized facilities. 

These increases in inspection/oversight, most notably on drilling operations, combined with the increase 

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. Additionally, changes in BSEE's inspection 

philosophy is evolving to promote a focus on the higher risk oil and gas activities in addition to fulfilling 

the annual inspection requirements mandated in OCSLA amendments.

BSEE is also actively working to develop a risk-based inspection methodology for use at various levels 

within the regulatory program. The Bureau plans to use the information gleaned from an ongoing risk 

correlation analysis to learn more about the relative risks posed by discrete offshore oil and gas activities. 

BSEE will then use the updated risk model to identify and focus Bureau inspections on the “riskiest” 

activities. Once identified, the Bureau can then hone in on the components used to perform those 

activities and determine if the relevant Potential Incidence of Non-Compliance (PINCs) and supporting 

regulations effectively target the risks BSEE would like to guard against. BSEE developed an 

Interagency Agreement in FY 2012 with Argonne National Laboratory to help develop protocols for a 

risk-based inspection process for identifying trends in recurring Incidents of Non-Compliance (INCs), 

defining the inspection elements that correspond to high-risk activities or equipment and identifying 

potential leading indicators for equipment failures or incidents. 

To meet the growing manpower demands, BSEE has engaged in an aggressive hiring effort to ensure its 

capability to achieve our scheduled and unscheduled inspections. BSEE’s inspection workforce has 

essentially doubled since 2010. This current and anticipated growth in the inspector’s ranks will increase 

the demand and costs associated with our medical standards program for inspectors and inspector training

program, both for new hires and refresher training for experienced personnel. In response to this 

need, BSEE has established a National Offshore Training Program to improve how we provide the 

inspection workforce with the tools required to successfully perform their inspection duties. 
Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 43

An e-inspection pilot program was launched in selected locations within the Gulf of Mexico Region to 

test a computer based tool for documenting the inspection process and results. The pilot is being 

expanded and new capabilities are being considered. BSEE plans to expand the development of

additional e-inspections modules to address inspections of fixed platforms as well as for floating rigs.

Additional initiatives were established in 2012 to maintain and improve the efficiencies and effectiveness 

of the inspection program. In response to growing demands on the aviation resources (e.g., size and 

number of helicopters necessary to transport our growing inspection workforce) and increase in remote 

deepwater facilities (i.e., longer travel times), BSEE has recently joined an industry working group to 

update standards for helideck design for offshore facilities, and is also assessing the availability and 

placement of offshore refueling facilities. The anticipated decommissioning of the older near-shore 

offshore facilities and an increase in remote deepwater drilling and production facilities will impact the 

footprint of available refueling facilities. 

During FY 2012 and FY 2013, BSEE started initiatives in risk management to identify leading and 

lagging indicators to support risk-based inspections and to develop next-generation enforcement tools. 

BSEE has started collaboration with Argonne National Laboratory to evaluate historic PINCs/INCs to 

assess patterns that may be a gauge for identifying leading or lagging indicators of safety deficiencies. In 

addition, BSEE has initiated discussions with the National Aeronautics and Space Administration 

(NASA) to determine if their existing near-miss database model can be used effectively as a tell-tale of 

potential risk for the OCS oil and gas industry. BSEE has also held meetings with the Bureau of 

Transportation Statistics and the International Association of Fire Chiefs, both of which have near-miss 

reporting programs that have provided them with valuable data on areas of potential risk.

Through these initiatives, BSEE will:

• Study how other regulatory authorities identify and utilize leading/lagging/near miss information

and identify best practices.

• Coordinate with other regulators to identify and analyze leading/lagging/near miss information.

• Conduct focused/targeted technical study to identify potential indicators related to high-risk 

activities (e.g., early kick detection during drilling).

• Conduct studies on best practices for leading/lagging indicators and near misses.

• Work with academia, the private sector and organizations such as NASA to identify and 

implement a Near Miss Reporting system for the OCS.

• Work with the International Regulators Forum to expand their Performance Indicator Program.

• Review system/component failure information from INCs and other sources to identify 

applicability to leading/lagging indicators.

• Develop a framework for integrating leading/lagging/near miss information into BSEE risk 

management activities.

BSEE has the responsibility under OCSLA to conduct investigations and prepare a report of incidents 

associated with OCS mineral development. The purpose of the investigation is to identify the cause(s) of 

the incident and to make recommendations to prevent their recurrence and the occurrence of similar 

incidents. BSEE conducts an initial onsite investigation for many of the incidents reported and reviews 

all incidents reported to determine whether or not they will be investigated. In FY 2012, 55 incident 

investigations were conducted. 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 
Operations, Safety and Regulation

44 Bureau of Safety and Environmental Enforcement

initiatives. Through active participation in industry activities such as the American Petroleum Institute’s 

Center for Offshore Safety and aggressively establishing and maintaining relationships with other 

Government Agencies such as the United States Coast Guard, BSEE promotes effective utilization and 

coordination of respective investigative resources. Incident investigation reports are published on the 

BSEE website. 

Safety and Environmental Management: The Safety and Environmental Management System (SEMS)

is a nontraditional, performance-focused tool for integrating and managing operations on the OCS. All 

operators on the OCS are required to have a functioning SEMS program in an effort to:

• focus on the influences that human error and poor organization have on accidents;

• seek continuous improvement;

• encourage the use of performance-based operating practices; and

• collaborate with industry in efforts that promote the public interests of offshore worker safety and 

environmental protection.

According to the current SEMS regulations, all OCS operators must perform their first comprehensive 

SEMS audit within two years of implementation, i.e. by November 2013. The rule affects lessees and 

operators of leases and pipeline right-of-way holders on the OCS. This group includes approximately 

130 active Federal oil and gas lessees. An estimated 65 percent of these companies are considered small. 

BSEE is working to provide an effective and comprehensive coverage of this requirement. BSEE must 

accept and review all audit plans, audit reports, and corrective action plans from approximately 

100 operators. This often involves regular correspondence and onsite participation.

BSEE is also involved with several regulatory development initiatives. On December 20, 2012, BSEE 

published the “Draft Safety Culture Policy Statement” which summarizes the Bureau’s expectation that 

individuals and organizations performing or overseeing activities regulated by BSEE establish and 

maintain a positive safety culture commensurate with the significance of their activities and the nature 

and complexity of their organizations and functions. Comments are being accepted through March 2013 

and a final policy statement will follow.

BSEE has also revised its original “Safety and Environmental Management” rule and published the new 

SEMS II rule on April 5, 2013. The SEMS II rule addresses safety concerns that were not covered in the 

original SEMS rule issued in October 2010. In addition to the current regulatory requirements, operators 

would be required under the proposed rule to improve the following elements in their SEMS:

• Job Safety Analysis (JSA) – Provide additional requirements for conducting a JSA.

• Auditing - Utilize independent third party auditors to conduct all SEMS audits. The auditors 

must meet criteria specified in the rule.

• Reporting Unsafe Working Conditions - Empower all facility personnel to report to BSEE 

possible violations of safety or environmental regulations and requirements and threats of danger.

The SEM II rule includes the following additional SEMS elements:

• Stop Work Authority (SWA) - Creates SWA procedures and authorizes any and all personnel 

who witness an imminent risk or dangerous activity to stop work.

• Ultimate Work Authority (UWA) - Requires operators to clearly define who has the UWA on the 

facility for operational safety and decision-making at any given time.
Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 45

• Employee Participation Plan (EPP) - Provides an environment that promotes participation by 

employees and management to eliminate or mitigate hazards on the OCS.

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

The APR process captures compliance and accident information gathered through the OCS Inspection 

Program and weighs that information to arrive at a final Operator Performance Index, as well as 

composite indices that are used as performance indicators for the OCS Regulatory and Compliance 

program. The Bureau meets with those operators performing at the highest levels to solicit ideas for best 

operating practices. With the operator’s concurrence, BSEE shares these success stories with others 

through workshops, conferences, and other safety-related meetings. Additionally, BSEE focuses 

compliance efforts on those operators whose performance does not meet certain targets.

Civil and Criminal Penalties and Operator Disqualification: BSEE, where appropriate, pursues civil 

and criminal penalty actions against those in violation of Federal regulations, especially when such 

violations result in, or have the potential to result in, injuries, loss of life, or damage to environmental 

resources. If an operator exhibits excessively poor, dangerous, or threatening performance, BSEE can 

assess a civil penalty. BSEE can also issue civil penalties to operators who fail to correct items identified 

by field inspectors. In calendar year 2012, 31 civil penalty assessments were paid for a total of 

$2.0 million. BSEE’s OCS Civil Penalties Program encourages compliance with OCS statutes and 

regulations through the pursuit, assessment, and collection of civil penalties (and referrals for the 

consideration of criminal penalties where warranted). BSEE is committed to strengthening its 

enforcement programs; this may mean higher civil penalty assessments for poorly performing operators in 

the future. Should an operator continue to perform poorly, BSEE may place an operator on probation or 

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

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

life and the OCS environment.

The cost of administering the Civil Penalties Program is monitored in the Bureau’s Activity Based 

Costing (ABC) system and although the Civil Penalties Program is responsible for less than one percent 

of Regulatory spending, it is an important enforcement tool on the OCS.

Real-Time Monitoring: The purpose of the Real Time Monitoring (RTM) is to develop, test, and 

implement reforms that significantly improve the Inspection and Enforcement Program in BSEE by using 

innovative technologies and using risk-based inspection criteria to supplement BSEE’s current inspection 

program. The use of RTM technology and facilities to monitor OCS oil and gas drilling, wellcompletion, well workover, well servicing and other rig related operations is one avenue to help meet the 

BSEE mission. BSEE is also developing a risk-based strategy to determine which available real-time 

monitoring opportunities would provide the best return on investment and which activities require on-site 

inspectors. Initially, the focus will be on high-risk activities involving deepwater drilling and casing/

cementing. The overall objective is to increase regulatory oversight over critical operations and 

equipment. The use of real time monitoring will allow BSEE to quickly shift technical resources to 

evaluate these operations wherever they occur.

As technology advances, RTM is being used more and more by the oil companies, particularly for their 

higher risk drilling operations such as those in deepwater. This gives companies the opportunity to 

engage a significantly higher number of experts without the expense of having them actually on the rig or 

platform. It also allows operators to use expert advisors to participate in an advisory capacity; to provide

the offshore drilling personnel with “a second set of eyes.” Providing BSEE technical experts’ access to 

this information during high-risk activities would also give BSEE access to their on-shore experts, 

allowing real-time queries into the decision processes as activities progress.
Operations, Safety and Regulation 

46 Bureau of Safety and Environmental Enforcement 

To evaluate the current state of monitoring technology, BSEE sent technical engineering staff to review 

the activities in three RTM centers to determine which of these real-time monitoring capabilities could 

feasibly be incorporated into BSEE’s regulatory regime and inspection program. BSEE took the available 

information gathered during these meetings and in FY 2012 contracted for an independent assessment of 

the various types of real-time data monitoring systems available for offshore oil and gas operations. The 

assessment will focus on drilling and production technologies and include a cost benefit analysis that 

would detail potential costs to industry; potential increases in safety performance; government resources 

needed for implementation; and necessary training for all parties involved. The assessment will identify 

what automation systems are available or being developed, the potential they have to increase offshore 

drilling safety, and any negative impacts they have on operations. The final report is due in August, 2013.

In FY 2012, BSEE also ran ground truth tests in two OCS Regions to determine the effectiveness of RTM 

for Blowout Preventer (BOP) witnessing. BSEE placed personnel on-site as well as in on-shore offices 

reviewing real-time data streaming. In these tests, inspectors found that, with the current technology, onsite witnessing appeared to have greater benefits than RTM. However, it was also indicated that RTM of 

the data could be a substitute if offshore trips were precluded by weather or other circumstances. 

Additional investigations are being planned to determine if additional training or improvements in 

technology in RTM evaluations could improve the benefits of onshore RTM.

As part of the BSEE 2015 Strategic Plan Initiative that was developed in FY 2012 and is being 

implemented in FY 2013, the agency is placing increased emphasis on evaluating and initiating real-time 

monitoring and risk-based inspection strategies. Some of the planned activities include collaboration and 

use of the Department of Energy’s National Laboratory System. These proposed studies include:

• Real time early kick detection at the drill bit using routine attenuated acoustic data.

• Intelligent Casing/Intelligent Telemetry. Exploring the feasibility of increasing bandwidth for 

smart pipe that will allow better real-time determination of down-hole conditions. 

• Identification of a multi-layered, real-time monitoring system to allow automated well control 

and maintenance of down-hole well conditions with data transfer capabilities for real-time kick 

detection. 

• Identification of leading indicators that either should be monitored in real time or need to have 

real time monitoring protocols developed to decrease the risk of drilling operations. 

BSEE is also investigating the potential use and costs of using unmanned aerial systems and satellites to 

enhance RTM efforts for inspection, enforcement, and damage assessment. Aircraft and satellites can 

provide images and data for a wide range of BSEE missions, such as spotting pollution; monitoring for 

illegal venting or flaring activity; conducting post-hurricane damage assessments; monitoring for marine 

mammals; and enforcing lease/permit stipulations. One possible RTM application is to use Unmanned 

Aircraft Systems (UASs) to monitor drilling and production operations, such as monitoring pipeline 

routes in the Arctic and thereby eliminate the risk to personnel of having to fly offshore in this remote and 

hostile environment. The Federal government, NASA, and the private sector have UAS technology that 

could meet BSEE’s needs for integrating RTM into BSEE’s safety and enforcement mission. Evaluations 

are being conducted on the possible sensor packages that could be available and an analysis of the costbenefit is being developed. 

Access to relevant real-time data and the ability to visualize the data could be a valuable tool in BSEE’s 

inspection program. BSEE is currently evaluating how to phase in available RTM technology and stay 

abreast of emerging RTM technology. BSEE will be: 
Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 47 

• Focusing its regulatory oversight on the most significant data by collaborating with international 

regulators and the industry to identify leading and lagging indicators that can be used, along with 

appropriate models, to predict unsafe conditions based on real-time data. 

• Evaluating the cost of advanced RTM technology and how to prioritize RTM requirements and 

incorporate some of the higher risk and larger deepwater activities.

• Identifying and defining the type of data that operators must collect and analyze and assessing 

which regulations would need to be modified to allow BSEE to use RTM technology to enhance 

its inspection capabilities.

• Ascertaining the necessary training that BSEE engineers and inspectors will need to attain the 

different skill sets for applying RTM to our inspection and oversight programs. 

Conservation Management: As a steward of the Nation’s OCS 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 the BSEE 

regulatory program. To promote conservation, BSEE monitors development and production activities on 

the OCS and enforces regulations that require operators to avoid waste and maximize the ultimate 

recovery of OCS minerals once access has been granted. 

In FY 2013, BSEE initiated a detailed field study for the Point Arguello Field offshore California using 

all relevant data, including seismic surveys; well logs and well files drilling and development histories; 

existing literature; and production histories. The study will provide BSEE with information on the 

reserves estimates using volumetric calculations and analysis of production performance history. The 

study will also yield an assessment of the reserves that are economically recoverable under existing 

economic conditions and also provide an estimate of reserves if the economic conditions improve 

significantly (e.g., 50 percent increase in oil price). The study will also determine if there are any 

incremental reserves that can be gained by drilling additional wells/sidetracks, using enhanced recovery 

techniques, and identifying wells that could be used for water and/or gas injection, if applicable. 

BSEE is encouraged that this study will help define a template for additional studies of reservoir 

dynamics that will allow BSEE to fulfill its responsibilities under OCSLA to maximize the production of 

U.S. owned oil and gas resources from end-of-life reservoirs and serve as a model for mid-life and endof-life reservoir analyses. 

Emerging Technologies (formerly Technology Assessment and Research): BSEE continues to promote 

identification of and use of BAST associated with energy and mineral operations, ranging from the 

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

infrastructure once production operations have ceased. Although BSEE efforts to advance the technology 

may involve any aspect of energy and mineral operations, particular attention is given to oil and gas 

drilling; workover; production; completions; structures; pipelines; decommissioning; human factors/risk 

assessment; and measurement operations. Under the Emerging Technologies program, BSEE furthers the 

investigation of new technologies to promote safe, pollution-free operations and prevention of oil 

pollution and the improvement of oil spill response and clean-up. 

Starting in FY 2012, BSEE focused its efforts to identify high-risk components and systems, such as 

blowout preventers BOPs, to ensure that industry was applying BAST in those areas where overall risks 

could be reduced. To take advantage of and leverage expertise from other Federal resources, BSEE has 

entered into an Interagency Agreement (IAA) with the Department of Energy’s National Laboratory 

System to collaborate on risk-based decision making and applying BAST to offshore components, 

systems and procedures. The studies from this collaboration are expected to provide BSEE with 
Operations, Safety and Regulation 

48 Bureau of Safety and Environmental Enforcement 

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

tools to improve the way the use of BOPs are assessed and approved since these devices are considered to 

be the last line of defense for well containment. These studies and other 2012 and 2013 studies will

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

BSEE has also developed BAST protocols that are being implemented and will be used to focus its 

funding resources on the most beneficial BAST opportunities. This includes the establishment of a 

technical panel comprising outside experts that will evaluate potential BAST, work with standards 

organizations/industry to develop testing protocols for technologies, identify accredited laboratories to 

perform required testing and generate a test and evaluation plan for the Director of BSEE. For those 

technologies that are determined sufficient and economically feasible, BSEE will move them into a 

testing phase using accredited test laboratories under the supervision of the technical panel and BSEE. 

If it is determined that the new component, system or procedures are BAST, then BSEE will formalize 

BAST requirements through NTLs, regulations, or conditions of permits, and operators will be required to 

use equipment that meets the BAST requirements. 

BSEE has also contracted with the National Academy of Sciences (NAS), which has formed a committee 

to identify options that BSEE could use for improving the implementation of the BAST requirement in 

the OCSLA. The NAS committee will review various options including the feasibility and 

appropriateness of establishing a formal industry committee to make BAST determinations about new and 

improved technologies; whether BSEE will need to develop test protocols for every technology it 

evaluates in order to fairly compare competing technologies; how to determine economic feasibility in a 

manner that is independent of industry; whether BSEE should rely on the development of consensus 

standards; and whether BSEE should initiate a more vigorous process with various possible 

improvements to blowout preventers. The committee will include consideration of the following in its 

report:

• Other relevant safety requirements that bear upon technologies for offshore oil and gas 

operations; 

• Relevant reports of previous National Response Center (NRC) committees and other 

organizations; 

• The potential role of neutral third parties in making BAST assessments;

• The role of human factors in the safe use of technologies by industry; and 

• Resource requirements of Federal agencies for BAST implementation. 

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 2012, BSEE participated in 14 joint 

projects and plans to continue to seek opportunities to leverage available funds through joint projects with 

other organizations. 

Oil Spill Response and Planning: The Oil Spill Response Division (OSRD) has the responsibility for 

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

trained personnel, and established plans to carry out an effective, efficient response to a worst case 

discharge from an offshore source. Division staff fully integrates into activities of the National Response 

System through appointment to positions on the National Response Team Preparedness Subcommittee, 

and Scientific and Technical Committee, Regional Response Teams affecting policy for the Gulf of 

Mexico, Pacific, and Alaska Regions, and applicable Area Committees. 
Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 49 

The OSRD compliance staff (10 FTE nationally), 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. OSRD conducts over 160 plan reviews a year which are required 

to maintain oversight responsibilities for the nearly 200 approved Oil Spill Response Plans (OSRPs) as 

operators maintain or revise their content. OSRD staff also conducts equipment validation inspections at 

over 60 locations, attend 35 industry led exercises, and initiate 25 unannounced government led exercises 

each year to validate readiness nationwide. OSRD is also developing procedures to move toward a more 

proactive enforcement program that will require daily monitoring, tracking, and investigation into 

approximately 4,000 self-reported offshore spills a year to ensure operator compliance. 

Internal and external coordination is imperative to strengthening the Nation’s readiness for an oil spill. 

BSEE collaborates with other Federal and State response agencies when reviewing oil spill response 

plans. BSEE also collaborates with international partners. Internally, OSRD is working with other BSEE 

divisions to proactively identify spills that were not reported 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.

Work will continue to improve preparedness as OSRD develops oil spill plan regulatory revisions. The 

recent completion of a joint BSEE and United States Coast Guard (USCG) project to develop new 

national response planning standards will influence both agencies’ regulations. Coordination with the 

USCG will continue through the Response Workgroup on projects involving a national response resource 

database, an update to the National Preparedness for Response and Exercise Program (NPREP), Area 

Contingency Plan revisions through chairing the offshore Worst Case Discharge (WCD) sub teams of 

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

continue to respond to recommendations from the Incident Specific Preparedness Review and similar 

response-focused reports to ensure that lessons learned are fully implemented to improve overall 

operations. 

BSEE will continue to support the Federal On-Scene Coordinator (FOSC) during a spill response with 

subject matter expertise to the Incident Command System structure for offshore drilling and source 

control. Activities during the Macondo well blowout revealed the critical skill sets that BSEE staff 

possesses in well completion and design and their value in well containment and relief well operations. 

OSRD staff will deploy to incident command posts to provide expert assistance to the FOSC on offshore 

operations and to coordinate the deployment of BSEE engineering, technical, and/or scientific staff to 

support spill abatement and response activities for spills originating from facilities under the jurisdiction 

of BSEE.
Operations, Safety and Regulation 

50 Bureau of Safety and Environmental Enforcement Supporting Performance Measures Type 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Plan 2012 Actual FY 2013 Plan FY 2014 President's Budget Change from 2013 to 2014 Plan Long-term Target 2016 Number of Recordable Injuries per 200,000 Offshore Man Hours Worked (DOI-Regulated Activities ONLY) (SP)

A N/A N/A N/A 0.30 (revd) (171/569) <0.63 0.28 (est.) (186/657) <0.50 <0.50 0 <0.50

Contributing ProgramsCommentsNumber of fatalities among workers in DOI permitted activities (BUR) A 2 2 11 2 4 0 3 3 0 ReduceContributing ProgramsCommentsConduct Emerging Technology Research studies on X% of high-priority topics (BUR)

A 93%

(14/15)

100%

(18/18)

89%

(16/18)

94%

(15/16) 94% 95% (18/19) 80% 90% 10% TBD

Contributing ProgramsComments

Operations, Safety and RegulationThis 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). In FY 2012, there were 186 recordable injuries reported for activities with BSEE’s jurisdiction and the estimated number of man years worked was 65,761. These estimated results indicate that in FY 2012 there was approximately 1 recordable injury in DOI-regulated activities for every 350 full-time offshore workers. Because safety levels are best evaluated as trends over multiple years, targets for FY 2013 and beyond are based on analysis of historical recordable injury rates against an extrapolation of voluntary man hour reporting from operators in previous years. The Safety and Environmental Management System (SEMS) regulation that went into effect in November 2010 requires all operators to report offshore man hours worked during the calendar year. FY 2012 results will be finalized after BSEE receives calendar year 2012 reporting from operators in March 2013. Operations, Safety and RegulationIn FY 2012, there were no fatalities among offshore workers in DOI-regulated activities. Because safety levels are best evaluated as trends over multiple years, targets for the fatalities are developed based on reducing a rolling 5-year average, which includes the FY 2010 explosion and sinking of the Deepwater Horizon drilling rig off the coast of Louisiana resulted in 11 deaths.Operations, Safety and RegulationThe Emerging Technologies Program (formally known as Technology Assessment and Research (TA&R)) is a research element encompassed within the BSEE Regulatory Program that addresses technological issues associated with energy and mineral operations, ranging from the drilling of oil and gas exploration wells in search of new reserves to the removal of platforms and related infrastructure once production operations have ceased. This metric looks at the percent of studies conducted on high-priority topics. BSEE has implemented a targeted expansion of its technology research following the Deepwater Horizon event to promote and support innovation through the use of Best Available and Safest Technology (BAST) within the drilling, production and response stakeholder communities.

Table 9: Performance Overview Table- Operations, Safety and Regulation
Operations, Safety and Regulation 

Bureau of Safety and Environmental Enforcement 51 Supporting Performance Measures Type 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Plan 2012 Actual FY 2013 Plan FY 2014 President's Budget Change from 2013 to 2014 Plan Long-term Target 2016 Total Number of Compliance Inspections Completed (BUR) A 25,650 26,978 23,619 20,537 25,000 23,025 24,000 25,000 1,000 TBD Contributing Programs Comments Supporting Performance Measures Type 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Plan 2012 Actual FY 2013 Plan FY 2014 President's Budget Change from 2013 to 2014 Plan Long-term Target 2016 Conduct full Coast Guard inspections on X% of manned offshore facilities annually (BUR)

A 14.7% (164/1112) 13.6% (141/1035) (revd) 16.5% (169/1021) 14.3% (141/985) 10% 14.3% (133/932) 10% 10% 0% 10%

Contributing ProgramsComments

Operations, Safety and RegulationOn April 30, 2010, the President directed the Secretary to conduct a 30-day review of the Deepwater Horizon event and to report what additional precautions and technologies should be required to improve the safety of oil and gas exploration and production operations on the outer continental shelf. One of the key recommendations included in that report, as well as other subsequent reports, is that the BSEE needs to increase its oversight and evaluate/ revise the manner in which it conducts its drilling inspections. Since 2010, the inspector/investigator workforce has increased over 40% and BSEE has begun to develop and implement a new inspection strategy that focuses on risk and the use of advanced inspection technologies. Inspection performance trends are not increasing as fast as previously planned due to an increased focus on the witnessing of complex high-risk activities (e.g., BOP testing and cement/casing activities) that consume more resources to inspect and the extended time required to hire and train new inspectors so they can independently conduct inspections and other safety/environmental enforcement work. For these reasons, it is difficult to determine how many inspections will be completed beyond FY 2014. Operations, Safety and RegulationInspection of U.S. Coast Guard regulated items is a function that was provided for by regulation but one for which BSEE is not reimbursed. Assumption of limited responsibilities by BSEE was pursued following a report by the Inspector General that the U.S. Coast Guard was not conducting inspections of safety items on fixed facilities, as required by law. At this time, BSEE inspectors conduct a limited FPSIP (fixed platform self inspection program) inspection on every platform that they visit and have an annual target of conducting full FPSIP inspections on 10 percent of manned facilities. Although more is done when the resources are available, the targeted percentage of full FPSIP inspections performed by BSEE inspectors has not increased because it would detract from performing inspections of equipment and operations under BSEE jurisdiction.
Operations, Safety and Regulation 

52 Bureau of Safety and Environmental Enforcement 

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Administrative Operations 

Administrative Operations 

Bureau of Safety and Environmental Enforcement 53 

FY 2014 PERFORMANCE BUDGET REQUEST

Administrative Operations Activity 

Table 10: Administrative Operations Activity Budget Summary 

2014 2014

2013 2012 Program Budget Changes from 

Full Year Enacted Fixed Costs Changes Request 2012

CR (+/-) (+/-) (+/-)

($000) 15,576 15,545 +471 +3,589 19,605 +4,060

FTE 1/ 219 213 +4 217 +4 Administrative Operations

1/ 2012 FTE amounts reflect actual usage, not 2012 enacted formulation estimates.

SUMMARY OF FY 2014 PROGRAM CHANGES 

Request Component Amount

($000) FTE

Sustain Administrative Operations +4,045 0

Management Efficiencies -456

FTE technical adjustment +4

Total: +3,589 +4

JUSTIFICATION OF FY 2014 PROGRAM CHANGES 

The FY 2014 budget request for the Administrative Operations Activity is $19,605,000 and 217 FTE, a 

net program increase of $3,589,000 and 4 FTE from the FY 2012 Enacted. 

Sustain Administrative Operations (+$4,045,000; 0 FTE)

Prior to the reorganization of the former MMS, funding provided through the Administrative Operations 

activity supported more than 1,700 FTEs in three major program areas – Minerals Revenue Management, 

Offshore Energy Minerals Management, and General Administration.

This funding provided the ability to provide a full suite of services, including general administration, 

ethics, equal employment opportunity, emergency management, finance, human resources, procurement, 

and information management. 

The reorganization and reform efforts begun in FY 2011, and continuing into FY 2012 and FY 2013, have 

successfully changed the organizational structure, its processes, and supporting financial practices. It has 

also required new budget structures with new appropriations and activities, and the need to develop new 

accounting nomenclatures. Although more than 600 positions were transferred, along with administrative 

support funding to ONRR, the projected FTEs for BOEM and BSEE are expected to increase to more 

than 1,300. 
Administrative Operations

54 Bureau of Safety and Environmental Enforcement 

BSEE is requesting $4,045,000 to sustain the necessary level of support services for these organizations. 

This is a request to adjust the base to provide sufficient administrative services to support the BSEE and 

BOEM workforce. Before making this request, opportunities to be more efficient and to minimize costs 

were studied. Through this review, BSEE determined additional funds are needed to address the demands 

of servicing two organizations that are projected to grow. 

The funding will be used to retain the expertise and personnel that will serve BOEM and BSEE as the 

Bureaus recruit new inspectors, engineers, and scientists and conduct additional environmental and 

technological studies. It will support BSEE’s ability to advertise critical vacancies for inspectors, 

engineers, and other professionals in a timely manner. Many of these actions are time-consuming and 

involve multiple grade levels, and numerous personnel actions are needed when advertising both within 

and outside the Federal government. Similarly, in the acquisition services area, funding support will 

enable BSEE to continue the procurement of mission-critical environmental and engineering studies in a 

timely manner. 

Impacts of Not Funding: Without a funding adjustment, both Bureaus are likely to encounter delays in 

filling critical vacancies and in supporting our program personnel appropriately. This often results in the 

best candidates finding other employment during the prolonged recruitment process. Procurement leadtime required for complex contracts could increase by 35 percent, delaying the Bureaus’ ability to 

perform mission critical work, while the lead-time for smaller procurement actions could increase by 

50 – 100 percent. 

Financial services could be compromised as well, increasing the processing time for financial 

transactions, including the processing of vouchers and invoices that will delay the completion of 

environmental and engineering studies, the performance of offshore facility inspections, and other 

mission critical functions. The requested funding for these administrative activities is imperative to 

support the mission of these new organizations. 

Management Efficiencies (-$456,000): Programs will absorb these costs through greater efficiencies, 

cost savings, and administrative adjustments. 

FTE technical adjustment (+4 FTE)

The technical adjustment of 4 FTE represents the difference between 2012 actual and enacted FTE as a 

result of challenges filling vacant technical positions. No additional funding is requested/associated with 

this adjustment.

PROGRAM OVERVIEW

The Administrative Operations Activity consists of the following functions: Administrative Direction and 

Coordination, Finance, Equal Employment Opportunity, Human Resources, Acquisition Management, 

and Information Management. 

Acquisition Management Division: The Acquisition Management Division is responsible for the 

execution and administration of BSEE and BOEM contracts and financial assistance agreements. By 

collaborating with the customer organizations, they 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. They 

conduct acquisition management and other internal control reviews of procurement activities. They also 

administer the purchase line of the BSEE and BOEM charge card programs as well as their competitive 
Administrative Operations 

Bureau of Safety and Environmental Enforcement 55 

sourcing programs. In addition, they manage the Business and Economic Development Program to 

maximize opportunities for small, disadvantaged, and women-owned businesses, as well as historically 

black colleges and universities as both prime contractors and subcontractors. They also oversee all 

acquisition career management programs.

Equal Employment Opportunity Division (EEOD): The EEOD develops, monitors, and 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, 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 (FD) provides a full range of accounting and financial 

management services to BSEE and BOEM. The FD manages and oversees the Bureau-level CFO related 

audit as conducted by an independent audit firm with oversight from the Department’s Office of Inspector 

General (OIG). The FD develops Bureau financial policies, procedures, and guidelines. The Division 

maintains liaison with departmental policy offices, including the Office of Financial Management and the 

Office of Acquisition and Property Management. It also coordinates with the Bureau 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 

FD manages the administrative accounting system; audits and schedules bills for payments; collects 

debts; develops financial data; prepares financial reports; provides advice and guidance on financial 

matters; and maintains liaison with departmental offices and other Federal agencies. 

Human Resources Division: The Human Resources (HR) Division develops and implements policies, 

procedures, guidelines, and standards relating to general personnel management, recruitment and 

employment, position management and classification, and employee development. Work includes 

performing all operational personnel services for BSEE and client organizations, and providing assistance 

and guidance related to personnel matters for all regional and field installations. 

The HR Division also leads all BSEE and BOEM workforce-planning initiatives, which include analyzing 

the current workforce, identifying future workforce needs, and preparing plans for building the workforce 

needed in the future. The long-term benefits of workforce-planning initiatives include the ability of 

BSEE and BOEM to meet their mission and performance goals. 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 
Administrative Operations

56 Bureau of Safety and Environmental Enforcement 

conduct, and administering incentive awards programs, family friendly programs, the Federal Equal 

Opportunity Recruitment Program, and Senior Executive Service program. In addition, the Division is 

responsible for the development of training policy and oversight of a Bureau-wide Learning Management 

System that will serve as a valuable workforce planning and management tool. The HR Division also 

coordinates all departmental mandated employee development initiatives for implementation in BSEE 

and BOEM. 

Technology Services Division: The Technology Services Division (TSD) ensures the efficient and 

effective planning, management and acquisition of information technology and information resources 

within BSEE, BOEM, and ONRR and ensures compliance with all DOI and Federal information 

resources management policies and guidelines. In alignment with the Department's IT Transformation, 

the Division clearly distinguishes the information technology needs of the Bureau’s mission and 

enterprise functions. 

The TSD provides a central foundation to manage the large volume of information and data used in the 

scientific, engineering, and management activities of the BSEE and BOEM programs. At the core of the 

IT capabilities is the Technical Information Management System (TIMS). TIMS automates the business 

and regulatory functions of BSEE and BOEM and brings diverse information into a central database. 

This enables BSEE and BOEM Regions and Headquarters to share and combine data; to standardize 

processes, forms, reports, and maps; to promote the electronic submission of data; to enforce data 

integrity through relational database technology; and to release accurate, consistent information to the 

public sector. 

In support of the strategic goals of the 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 agency-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 (3-D), fully 

integrating geophysical and geological data analysis, and reducing risks and uncertainty in decisionmaking 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 us 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 

vigorous 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 the 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, and recommending mitigation. 
Administrative Operations 

Bureau of Safety and Environmental Enforcement 57 

Management Support Division: The Management Support Division (MSD) provides direct assistance to 

BSEE’s Associate Director for Administration, as well as to BSEE and BOEM personnel. MSD’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 and the general 

support services budgets; 

• Maintains accountability records of all system-controlled property in the possession and control 

of custodial property officers and contractors and manages the vehicle fleet and the museum 

property, including an Arts and Artifacts program. 
Administrative Operations

58 Bureau of Safety and Environmental Enforcement 

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General Support Services

General Support Services 

Bureau of Safety and Environmental Enforcement 59

FY 2014 PERFORMANCE BUDGET REQUEST

General Support Services Activity

Table 11: General Support Services Budget Summary 

2014 2014

2013 2012 Program Budget Changes from 

Full Year Enacted Fixed Costs Changes Request 2012

CR (+/-) (+/-) (+/-)

($000) 12,631 12,607 +2,690 -1,386 13,911 +1,304

FTE 0 0 - 0 - General Support Services

SUMMARY OF FY 2014 PROGRAM CHANGES 

Request Component Amount

($000) FTE

Management Efficiencies -1,386

Total: -1,386 0

JUSTIFICATION OF FY 2014 PROGRAM CHANGES

The FY 2014 budget request for the General Support Services Activity is $13,911,000 and 0 FTE, a net 

program decrease of $1,386,000 compared with the FY 2012 Enacted. 

Management Efficiencies (-$1,386,000): Programs will absorb these costs through greater efficiencies, 

cost savings, and administrative adjustments. 

PROGRAM OVERVIEW 

The General Support Services Activity provides Bureau-wide infrastructure support to both BSEE and 

BOEM. This activity funds actual infrastructure costs associated with office space, security, utilities, and 

voice/data communications for all organizational needs to carry out the Bureaus’ primary missions. 

Funding for shared activities and related support services for both BSEE and BOEM is used for: 

• Rental and security of office space

• Workers’ compensation and unemployment compensation 

• Voice and Data Communications 

• The Department’s Working Capital Fund (WCF) 

• Annual building maintenance contracts

• Mail services

• Printing costs
General Support Services

60 Bureau of Safety and Environmental Enforcement 

The two major program objectives are to provide safe and secure facilities that will contribute to the 

productivity and efficiency of the employees in achieving goals and objectives, and to provide appropriate 

services in support of the BSEE and BOEM operating programs. 
Executive Direction

Executive Direction 

Bureau of Safety and Environmental Enforcement 61

FY 2014 PERFORMANCE BUDGET REQUEST

Executive Direction Activity

Table 12: Executive Direction Budget Summary

2014 2014

2013 2012 Program Budget Changes from 

Full Year Enacted Fixed Costs Changes Request 2012

CR (+/-) (+/-) (+/-)

($000) 18,202 18,117 +118 -114 18,121 +4

FTE 1/ 94 82 0 +10 92 +10

1/ 2012 FTE amounts reflect actual usage, not 2012 enacted formulation estimates.

Executive Direction

 

SUMMARY OF FY 2014 PROGRAM CHANGES 

Request Component Amount

($000) FTE

Management Efficiencies -114

FTE technical adjustment +10

Total: -114 +10

JUSTIFICATION OF FY 2014 PROGRAM CHANGES 

The FY 2014 budget request for the Executive Direction Activity is $18,121,000 and 92 FTE, a net program 

change of -$114,000 and +10 FTE over the FY 2012 Enacted. 

Management Efficiencies (-$114,000): Programs will absorb these costs through greater efficiencies, 

cost savings, and administrative adjustments. 

FTE technical adjustment (+10 FTE)

The technical adjustment of 10 FTE represents the difference between 2012 actual and enacted FTE as a 

result of challenges filling vacant technical positions. No additional funding is requested/associated with 

this adjustment.

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. The 

Executive Direction Activity funds the Office of the Director, the Office of Budget, the Office of Public 

Affairs, the Office of Policy and Analysis, and the Office of Congressional Affairs. 
Executive Direction

 Bureau of Safety and Environmental Enforcement 62

Office of the Director

The Office of the Director includes the Director, the Deputy Directors, and their immediate staff. This 

office is responsible for providing general policy guidance and overall leadership within the BSEE 

organization, as well as managing all of the official documents of the Office of the Director.

Office of Budget 

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 with submission of the 

Budget Proposal, to the Office of Management and Budget with submission of the Budget Estimates, and 

to the Congress with submission of the Budget Justifications. During the congressional phase, the Office 

of Budget prepares capability and effect statements, provides answers to House and Senate questions and 

drafts testimony and oral statements for congressional hearings. Throughout the execution phase, the 

Budget Division tracks spending against line item budgets, analyzes budgetary and expense data, and 

provides regular updates to BSEE executives on the status of funds. The 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 Public Affairs (OPA)

The OPA is responsible for BSEE’s communication strategies and outreach. The goal of OPA is to 

inform the public, ensure coordinated communication, consistent messages, and the effective exchange of 

information with all customers and stakeholders. The OPA coordinates the implementation of an 

effective and inclusive outreach program to numerous target audiences, including state and local 

governments, the energy industry, related trade associations, the environmental community, Indian tribes, 

energy consumer groups and the public. 

Office of Policy and Analysis

The Office of Policy and Analysis serves as the principle office to provide the Director with independent 

review and analysis of programmatic and management issues. Additionally, the office leads, coordinates, 

and monitors many cross-program initiatives, assuring a consistent, BSEE-wide implementation that 

directly supports congressional, Presidential and departmental directives, laws, mandates and guidance. 

The Office of Policy and Analysis fulfills the Director’s responsibilities in several critical areas including 

strategic and performance planning, policy and program evaluation and internal controls. It is also 

responsible for ensuring that programmatic plans and policies are consistent with and integrated into the 

overall Bureau mission and responsibilities, as well as with Department and Administration policy 

frameworks. In addition, the office administers and coordinates internal reviews, and oversees and 

assures implementation of recommendations made by oversight groups such as the Government 

Accountability Office and the Office of Inspector General (OIG). 

Office of Congressional Affairs (OCA)

The OCA serves as the primary point of contact with Congress, and is responsible for the coordination of 

all communication and outreach with congressional offices, as well as ensuring a consistent message and 
Executive Direction 

Bureau of Safety and Environmental Enforcement 63

the effective exchange of information. The OCA serves as the liaison for BSEE on all congressional and 

legislative matters that affect BSEE with Congress, the Department, and other Federal executive 

agencies. 

Investigations and Review Unit (IRU)

The IRU serves as a team of professionals with law enforcement backgrounds or technical expertise 

whose mission is to: promptly and credibly respond to allegations or evidence of misconduct and 

unethical behavior by Bureau employees; pursue allegations of misconduct by oil and gas companies 

involved in offshore energy projects; and assure the Bureau's ability to respond swiftly to emerging issues 

and crises, including significant incidents such as spills and accidents. The IRU evaluates all information 

submitted and where appropriate conducts further investigation. The IRU shares allegations of 

misconduct with the DOI’s OIG, and determining jointly which office conducts any investigation of those 

allegations.

Office of International Programs

The Office of International Programs serves as the primary point of contact between BSEE and the U.S. 

Department of State (DOS) and its Embassies and the international programs within the Department and 

other Federal agencies such as the Department of Energy, Department of Commerce, Department of 

Treasury, etc. The office becomes involved in international initiatives, trends, and developments which 

promote best practices and better integration of safety, environmental protection, and resource 

management in offshore energy activities. The office facilitates technical and information exchanges with 

key national offshore safety authorities across the world and coordinates technical advice to developing 

countries at the request of DOS. Once the "Agreement between the United States of America and the 

United Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the Gulf of Mexico" is 

executed, BSEE’s responsibilities will include the approval of unitization agreements, allocation of 

production, metering of production, inspection of facilities, and safety and environmental enforcement. 

Under this Agreement, BSEE will also have responsibilities for the data sharing provisions. 

Responsibilities also include reporting all BSEE international engagements; advising BSEE and 

international travelers on matters of security, protocol, and travel requirements; structuring international 

Memoranda of Understanding and other international cooperation agreements; and coordinating BSEE 

programs for visiting international delegations. The office maintains an open line of communication 

regarding BSEE programs and policies to DOS and all relevant U.S. agencies and maintains close liaison 

with the Department’s Office of International Affairs. The Office of International Programs also provides 

the same functions to the Bureau of Ocean Energy Management. 
Executive Direction

 Bureau of Safety and Environmental Enforcement 64

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Oil Spill Research

Oil Spill Research Appropriation 

Bureau of Safety and Environmental Enforcement 65 

FY 2014 PERFORMANCE BUDGET REQUEST

Oil Spill Research Appropriation

Table 13: Oil Spill Research Budget Summary 

2014 2014

2013 2012 Program Budget Changes from 

Full Year Enacted Fixed Costs Changes Request 2012

CR (+/-) (+/-) (+/-)

($000) 14,990 14,899 - - 14,899 -

FTE 1/ 22 17 - +5 22 +5 Oil Spill Research

1/ 2012 FTE amounts reflect actual usage, not 2012 enacted formulation estimates.

SUMMARY OF FY 2014 PROGRAM CHANGES 

Request Component Amount

($000) FTE

FTE technical adjustment - +5

Total: +0 +5

JUSTIFICATION OF FY 2014 PROGRAM CHANGES 

The FY 2014 budget request for the Oil Spill Appropriation is $14,899,000 and 22 FTE, a net increase of 

5 FTE over the FY 2012 Enacted. 

FTE technical adjustment (+5 FTE)

The technical adjustment of 5 FTE represents the difference between 2012 actual and enacted FTE as a 

result of challenges filling vacant technical positions. No additional funding is requested/associated with 

this adjustment. 

PROGRAM OVERVIEW 

The Oil Spill Research (OSR) appropriation funds oil spill response research, Ohmsett – the National Oil 

Spill Response & Renewable Energy Test Facility, and oil spill prevention, planning, preparedness, and 

response functions for all facilities seaward of the coastline of the United States that handle, store, or 

transport oil. These activities support the DOI strategic mission of protection of environmental resources 

and economic interests of the Nation. 

Funding for OSR activities is appropriated from the Oil Spill Liability Trust Fund (OSLTF). As intended 

by the Oil Pollution Act of 1990, the companies that produce and transport oil are supporting research to 

improve oil spill response capabilities.
Oil Spill Research Appropriation 

66 Bureau of Safety and Environmental Enforcement

PERFORMANCE OVERVIEW 

In October 2011, BSEE formally came into existence and established the Oil Spill Response Division 

(OSRD). This division maintains two focuses; oil spill response research (OSRR) and oil spill response 

compliance. These two areas support the Strategic Plan BSEE is currently establishing and are influenced 

by this plan’s direction. 

The research mission involves coordination with other federal partners. This is achieved through 

representation in the Interagency Coordinating Committee on Oil Pollution Research (ICCOPR) to 

identify national priorities for oil spill response research and working with Canadian partners who are 

developing a Five-Year Strategic Plan for Oil Spill Research in Canadian Arctic Waters. Internally, 

BSEE, through the Response Research Unit is conducting the foundational work to move research and 

development projects into innovative new methods to respond to an oil spill. 

The OSR funding is used to improve the ability to effectively remove oil from water and protect the 

environment when oil is discharged from offshore oil facilities. This need is highlighted in the many 

lessons learned from the Deepwater Horizon incident. Weaknesses and gaps specifically in mechanical 

and alternative response technologies are noted in the Incident Specific Preparedness Review, the 

Deepwater Horizon Federal On-Scene Coordinator report, and a report by the National Incident 

Commander during this spill of national significance. Research will be focused on improving those 

response tactics such as offshore in situ burn and subsea dispersant use that were found to be viable 

options. Funding will also be dedicated to finding new and more efficient ways to locate oil and 

communicate a common operations picture during spill responses. Responding to an oil spill in the Arctic 

environment presents many unique challenges and funding will be utilized to understand these 

implications and advance response technologies and procedures to ensure the least impact to the 

environment and to human safety.

In addition to the oil spill research described below, BSEE Safety and Engineering Research in the 

Emerging Technologies (formerly the Technology Assessment and Research) program includes technical 

studies to understand the technology that industry employees use to prevent an oil spill from happening 

such as blow-out preventers (BOPs) and well- bore cementing procedures. 

Oil Spill Response and Planning: BSEE is responsible for ensuring offshore operators have the capability 

to respond to some of the largest potential oil spills in the Nation. The OSRD compliance staff (10 FTE 

nationally), 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. 

OSRD conducts over 160 plan reviews a year which are required to maintain oversight responsibilities for 

the nearly 200 approved Oil Spill Response Plans (OSRPs) as operators maintain their content. OSRD 

staff also conducts equipment validation inspections at over 60 locations, attend 35 industry led exercises, 

and initiate 25 unannounced government led exercises each year to validate readiness nationwide. 

Internal and external coordination is imperative to strengthening the Nation’s readiness for an oil spill. 

BSEE staff participates in Area Committees, Regional Response Teams, and in the National Response 

Team to represent issues pertaining to offshore. BSEE collaborates with other federal and State response 

agencies when reviewing oil spill response plans. BSEE also collaborates with international partners. 

Internally, OSRD is working with other BSEE divisions to proactively identify spills that were not 

reported 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.
Oil Spill Research Appropriation 

Bureau of Safety and Environmental Enforcement 67 

Oil Spill Response Research (OSRR): BSEE is the principal federal agency funding offshore oil spill 

response research and has maintained a comprehensive, long-term research program to improve oil spill 

response technologies and procedures since the 1970’s. The OSRR program provides research leadership 

and funding to improve the knowledge and capability for the detection, containment, and cleanup of oil 

spills that may occur on the OCS. The program seeks to develop communication technologies such as the 

use of satellite imagery, side looking infrared radar, and other remote sensing tools. Specific research 

efforts focused on geographic challenges include Arctic environments due to the anticipated increase in 

offshore drilling. 

The OSRR program is responsive to the information and technological needs of the Bureau’s regional and 

district offices and to specific requirements and limitations in the BSEE authority. Information derived 

from the OSRR program is directly integrated into BSEE’s operations and is used in making regulatory 

decisions pertaining to permit and plan approvals, safety and pollution prevention inspections, 

enforcement actions, and training requirements. Research results are also transferred to rule writers, 

investigators, plan reviewers, and others that need this information to ensure safe operations and will 

assist BSEE in its efforts to independently keep pace with industry’s technological advancements. 

Response technologies identified by the OSRR program focus on preventing offshore operational spills 

from reaching sensitive environments and habitats.

The OSRR program is cooperative in nature, bringing together funding and expertise from research 

partners in government agencies, the oil industry, and the international community through cooperative 

research arrangements and participation in concurrent research and development projects. Many OSRR 

projects are Joint Industry Projects (JIP), where BSEE partners with other stakeholders to maximize 

research dollars. 

The current OSRR projects cover a wide spectrum of oil spill response issues and include laboratory, 

meso-scale and full-scale field experiments. Recent oil spill response research examples include methods 

to: 

- determine the dispersant effectiveness when applied via subsea injection methods, its impact on 

worker safety by reducing the Volatile Organic Compounds (VOC) that rise to the surface of the 

water, and modeling efforts to forecast how the dispersed oil will travel through the water column 

- enhance in situ burning including how to estimate the burn potential in icy waters

- detect and quantify oil in the water column in addition to detecting, quantifying, and mapping oil 

in and under ice 

- enhance communication of a common operating picture to all responders 

- reduce the impact of hydrate formations on capping stack operations. 

In FY 2014, BSEE will continue research to: 

- develop, test, and evaluate enhanced mechanical recovery technologies, especially those designed 

for use in Arctic conditions 

- refine capabilities to detect and recover oil in and under ice 

- work with our federal and industry partners to establish a viable research plan for an intentional 

release of oil/gas in the marine environment

- develop command and control systems that incorporate and automate science into the decisionmaking process during a response. 

BSEE disseminates research results and development projects as widely as possible in publications 

through appropriate scientific and technical journals, technical reports, public information documents, and 

publication on the BSEE website. The intent is to make this information widely available to oil spill 

response personnel and organizations world-wide. 
Oil Spill Research Appropriation 

68 Bureau of Safety and Environmental Enforcement

Ohmsett - The National Oil Spill Response and Renewable Energy Test Facility: Ohmsett is one of the 

world’s largest tow/wave tanks, designed to test and evaluate full scale equipment detection for the 

cleanup of oil spill containment. Ohmsett is the only facility where oil spill response testing, training, and 

research can be conducted with a variety of crude oils and refined products in varying wave conditions. 

The heart of Ohmsett is a large outdoor, above ground concrete test tank that is 667 feet long, 65 feet 

wide, 11 feet deep and filled with 2.6 million gallons of crystal clear saltwater. Ohmsett also has the 

capability to test scaled renewable energy systems such as wave generating systems. No other agency 

operates a facility like Ohmsett. 

Ohmsett plays an important role in developing the most effective response technologies, as well as 

preparing responders with 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. Major federal clients such as the United States Coast Guard (USCG) and the United States 

Navy (USN) rely on Ohmsett for their training needs. 

Many of today’s commercially available oil spill cleanup products have been tested at Ohmsett and a 

considerable body of performance data and information on mechanical response equipment has been 

obtained there. This information is used by response planners 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 tests, wave energy conversion device tests, skimmer and boom tests, dispersant tests, 

alternative fuel recovery tests, and industry oil spill response training classes.

Due to the facility’s coastal location, the effects of Hurricane Sandy were unavoidable. Damage 

sustained from wind, storm surge, and debris caused the facility to temporarily leave operational status. 

The facility was returned to operational status within 3 weeks. While the number of days Ohmsett will be 

available in FY 2013 was reduced by the storm, the tank utilization rate of its operational days is not 

expected to be impacted. BSEE is coordinating its construction efforts with the National Park Service in 

order to return the facility to pre Hurricane Sandy condition. 

The Ohmsett facility requires constant maintenance, and periodic upgrades. The FY 2013 feasibility 

studies will determine the necessary upgrades to add the capability for conducting research associated 

with subsea dispersant injection, and containment of the particulate matter generated by burning oils. 

Information on Ohmsett can be found at www.ohmsett.com. 

Figure 2: Ohmsett Facility in New Jersey
Oil Spill Research Appropriation 

Bureau of Safety and Environmental Enforcement 69 Supporting Performance Measures Type 2008 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Plan 2012 Actual FY 2013 Plan FY 2014 President's Budget Change from 2013 to 2014 Plan Long-term Target 2016 Achieve a utilization rate of X% at Ohmsett, the national oil spill response test facility (BUR)

A 90% (217/240) 86.2% (207/240) 93% (222/240) 84% (202/240) 85% 94% (226/240) 85% 85% 0% TBD

Contributing ProgramsComments

Oil Spill ResearchOhmsett is the National Oil Spill Response Test Facility located in New Jersey. At Ohmsett, clients can test oil spill response equipment in realistic conditions and have training in the use of the equipment. This measure evaluates the utilization level of the facility. The increased focus on oil spill response, as well as expanded uses for the facility such as dispersant training and renewable energy wave tests, have sustained overall utilization rates at around 85%. While the number days Ohmsett will be available in FY 2013 was reduced by Hurricane Sandy, the tank utilization rate of its operational days is not expected to be impacted.

Table 14: Performance Overview Table- Oil Spill Research Appropriation
Oil Spill Research Appropriation 

70 Bureau of Safety and Environmental Enforcement

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Appendices

Section 405 Compliance 

Bureau of Safety and Environmental Enforcement 71 

Bureau of Safety and Environmental Enforcement

Section 405 Compliance 

FY 2014 

Deductions, Reserves, or Holdbacks ($ Millions)

General Support Services

 Working Capital Fund Centralized Billing 3.5 

 Working Capital Fund Direct Billing 1.2 

Total Assessments of Bureau Programs: $4.7 million

Working Capital Fund - The estimated cost from the Department in providing BSEE with 

centralized business and administrative services. These charges are paid from the General 

Support Services activity for the entire Bureau. 

BSEE direct bills its activities for support costs and is reimbursed by BOEM for providing 

administrative services.
Section 405 Compliance 

72 Bureau of Safety and Environmental Enforcement 

Bureau of Safety and Environmental Enforcement

Working Capital Fund Centralized Bill

(Dollars in thousands)

2012 2013 2014 

Actual Estimate Estimate Account

Document Management Unit 2.1 42.5 0.0 

FOIA Tracking & Reporting System 14.9 16.1 52.9 

Alaska Affairs Office 7.4 7.5 8.9 

Alaska Resources Library and Information Services 43.2 41.0 43.6 

Departmental News and Information 8.4 9.0 7.8 

Departmental Museum 12.7 15.2 13.0 

FedCenter 2.2 2.1 2.2 

Compliance Support ESF-11/ESF-11 Website 0.0 2.3 2.3 

Invasive Species Council 17.9 17.2 18.0 

Invasive Species Coordinator 3.2 3.2 3.3 

Passport and Visa Services 0.0 8.6 8.3 

CPIC 1.7 2.2 2.5 

Financial Internal Controls & Performance Reporting 10.5 9.6 8.8 

Travel Management Center 0.8 0.9 0.8 

e-Travel (Formerly: e-Gov Travel) 3.5 14.8 8.4 

Interior Collections Management System 2.2 2.1 2.1 

Space Management Initiative 3.3 3.6 3.7 

FBMS Master Data Systems & Hosting 0.5 14.1 10.9 

Planning and Performance Management 11.3 13.6 12.2 

Department-wide OWCP Coordination 3.0 2.9 2.7 

OPM Federal Employment Services 4.2 4.2 4.2 

Accessible Technology Center 3.3 3.5 3.6 

Accountability Team 4.9 6.9 5.4 

Employee and Labor Relations Tracking System 0.3 0.3 0.3 

Veterans Disabilities Hiring Programs 0.0 0.0 2.5 

EEO Complaints Tracking System 0.6 0.6 0.6 

Special Emphasis Program 0.5 0.5 0.5 

Occupational Safety and Health 16.8 19.0 17.2 

Safety Management Information System 13.3 14.6 12.5 

DOI Learn 15.3 0.0 0.0 

Leadership Development (Formerly: DOI Executive 1.3 8.7 8.2 Forums) 

SESCDP & Other Leadership Programs 1.8 0.0 0.0 

Dept-Wide Training Programs (including Online 5.0 24.7 21.8 Learning)

Learning and Performance Center Management 4.1 0.0 0.0 

Albuquerque Learning & Performance Center 2.8 2.7 2.7 

Anchorage Learning & Performance Center 5.1 0.0 0.0 
Section 405 Compliance 

Bureau of Safety and Environmental Enforcement 73 

Bureau of Safety and Environmental Enforcement

Working Capital Fund Centralized Bill

(Dollars in thousands)

2012 2013 2014 

Actual Estimate Estimate Account

Washington Learning & Performance Center 12.1 11.9 11.9 

DOIU Management 5.8 8.2 8.3 

Security (Classified Information Facility) 5.5 5.5 6.0 

Law Enforcement Coordination and Training 10.6 10.1 9.0 

Security (MIB/SIB Complex) 144.7 144.7 157.6 

Victim Witness 2.0 2.0 1.9 

Interior Operations Center 30.3 24.6 21.9 

Emergency Preparedness 9.8 9.3 10.3 

Emergency Response 13.6 12.9 15.6 

MIB Health and Safety 2.4 2.9 3.3 

Federal Executive Board 0.0 3.4 3.1 

Aviation Management 0.0 386.0 858.7 

Electronic Records Management 8.2 12.7 19.6 

TELECOM - Enterprise Services Network 186.1 174.8 180.6 

INFO ASSURANCE - Web & Internal/External Comm 5.5 5.0 4.4 

Enterprise Architecture 37.1 31.6 34.5 

IT Security-IVV 24.2 19.1 21.0 

Capital Planning 17.9 23.1 25.7 

INFO ASSURANCE - Privacy (Information Management 7.2 4.1 8.2 Support) 

IT Security – Information Assurance Division 50.9 10.5 12.1 

END USER SVCS - Active Directory 33.5 34.0 25.2 

Enterprise Resource Management 4.7 11.1 17.5 

INFO ASSURANCE - DOI Access & Personnel Security 12.8 11.5 12.6 

Data at Rest 0.6 0.0 0.0 

END USER SVCS - IT Asset Management 3.4 8.6 9.3 

OCIO Project Management Office 8.2 0.0 0.0 

INFO ASSURANCE - Threat Management 9.0 25.1 25.5 

END USER SVCS - IOS Collaboration 9.3 8.4 9.6 

END USER SVCS - Unified Messaging 19.4 17.4 7.9 

TELECOM - Federal Relay Service 0.4 0.3 0.3 

IT Transformation (ITT) 0.0 0.0 185.5 

HOSTING - Cloud Services 0.0 0.0 14.6 

ITD IT Security Improvement Plan 0.0 0.0 7.6 

ITD MIB Data Networking 0.0 0.0 10.7 

ITD Information Management - Records Management 0.0 0.0 15.3 

ITD Telecommunication Services 0.0 0.0 24.6 

ITD Integrated Digital Voice Communications System 0.0 0.0 17.4 

ITD Desktop Services 0.0 0.0 3.4 
Section 405 Compliance 

74 Bureau of Safety and Environmental Enforcement 

Bureau of Safety and Environmental Enforcement

Working Capital Fund Centralized Bill

(Dollars in thousands)

2012 2013 2014 

Actual Estimate Estimate Account

FBMS Help Desk – Customer Support Center 0.0 0.0 126.1 

Alternative Dispute Resolution (ADR) Training 0.6 0.6 0.5 

Mail and Messenger Services 0.0 32.0 42.7 

Health Unit 0.0 6.2 6.4 

Special Event Services 0.0 1.0 0.9 

Safety and Environmental Services 0.0 10.2 10.5 

Shipping and Receiving 0.0 7.1 7.3 

Vehicle Fleet 0.0 1.9 1.8 

Property Accountability Services 0.0 13.5 14.0 

Family Support Room 0.0 0.6 0.6 

Interior Complex Management & Services 0.0 18.8 19.5 

Departmental Library 0.0 28.6 10.0 

Mail Policy 0.0 4.2 3.7 

Moving Services 0.0 5.1 5.3 

Passport and Visa Services 0.0 0.0 0.0 

Audio Visual Services 0.0 26.3 28.7 

Federal Executive Board 0.0 0.0 0.0 

Space Management Services 0.0 6.8 7.0 

Conservation and Education Partnerships 3.2 2.9 2.7 

Contingency Reserve 1.9 1.8 1.6 

Cooperative Ecosystem Study Units 10.0 10.0 21.2 

CFO Financial Statement Audit 538.6 542.2 535.9 

e-Government Initiatives (WCF Contributions Only) 32.9 48.8 51.1 

Ethics 7.4 6.6 5.6 

FOIA Appeals 11.6 10.4 22.0 

IBC IT Security Improvement Plan 7.5 7.5 0.0 

MIB Data Networking 9.9 9.8 0.0 

Information Management - Records Management 6.2 6.2 0.0 

Telecommunication Services 37.2 22.4 0.0 

Integrated Digital Voice Communications System 18.6 17.3 0.0 

Desktop Services 4.6 3.4 0.0 

Interior Complex Cabling O&M 1.3 0.0 0.0 

Audio Visual Services 7.1 0.0 0.0 

FPPS/Employee Express - O&M 139.9 136.8 136.8 

Departmental Library 29.3 0.0 0.0 

Interior Complex Management & Services 18.3 0.0 0.0 

Family Support Room 0.7 0.0 0.0 

Property Accountability Services 13.7 0.0 0.0 

Vehicle Fleet 2.0 0.0 0.0 
Section 405 Compliance 

Bureau of Safety and Environmental Enforcement 75 

Bureau of Safety and Environmental Enforcement

Working Capital Fund Centralized Bill

(Dollars in thousands)

2012 

Actual Estimate Estimate Account

Moving Services 5.2 0.0 0.0 

Shipping and Receiving 7.2 0.0 0.0 

Safety and Environmental Services 10.3 0.0 0.0 

Space Management 6.9 0.0 0.0 

Federal Executive Board 3.4 0.0 0.0 

Health Unit 6.3 0.0 0.0 

Mail & Messenger Services 28.2 0.0 0.0 

Mail Policy 4.3 0.0 0.0 

Special Events Services 1.1 0.0 0.0 

Passport and Visa Services 8.7 0.0 0.0 

Transportation Services (Household Goods) 1.6 1.7 1.7 

IDEAS 8.4 7.0 2.9 

FBMS Master Data Management 0.4 0.4 0.5 

IBC FBMS Conversion 3.4 0.0 0.0 

Consolidated Financial Statement System 8.4 8.4 6.7 

Aviation Management 431.9 0.0 0.0 

Aviation Management System - O&M 23.2 0.0 0.0 

Boise Acquisition Office 0.0 70.0 196.3 

FBMS Hosting / Applications Management 184.5 64.5 68.3 

FBMS Redirect - IDEAS 27.6 29.1 33.2 

FBMS Help Desk – IBC Customer Support Center 0.0 120.2 0.0 

OTAL 2,576.4 2,623.9 3,463.9 

2013 2014 

T
Section 405 Compliance 

76 Bureau of Safety and Environmental Enforcement 

Bureau of Safety and Environmental Enforcement

Working Capital Fund Direct Bill

(Dollars in thousands)

2012 2013 2014 

Account Actual Estimate Estimate

Ocean Coastal Great Lakes Activities 20.8 0.0 0.0 

Federal Assistance Award Data System 0.5 0.0 0.0 

e-OPF 0.0 18.2 39.9 

EAP Consolidation 0.0 7.1 8.7 

Worker’s Comp Nurse Case Management 0.0 0.0 2.0 

Equal Employment Opportunity (EEO) Training 12.3 12.3 12.3 

Albuquerque Learning & Performance Center 2.2 2.4 2.4 

Online Learning 6.0 6.0 6.0 

Washington Leadership & Performance Center 6.3 6.3 6.3 

Anchorage Learning & Performance Center 0.2 0.0 0.0 

INFO ASSURANCE – Anti-virus Software Licenses 53.4 19.0 16.4 

END USER SVCS – Unified Messaging 264.2 171.6 178.4 

INFO ASSURANCE – DOI Access 0.0 44.8 90.0 

Data at Rest Initiative 6.0 2.4 2.4 

HOSTING – Hosting/Cloud Services 0.0 0.0 17.1 

ITD Customer Support Services Division 0.0 0.0 1.1 

TELECOM – Enterprise Services Network 311.4 126.8 126.8 

Microsoft Enterprise Licenses 306.1 0.0 0.0 

Creative Communications Services (CCS) 0.0 5.0 4.9 

e-Mail Archiving (Cobell Litigation) 66.5 0.0 0.0 

Federal Flexible Savings Account (FSA) Program 9.9 10.1 10.1 

ESRI Enterprise Licenses 117.1 47.6 47.6 

FBMS Change Orders 11.5 10.2 10.0 

Enterprise Technology Division 72.2 0.0 0.0 

Customer Support Services Division 2.0 1.1 0.0 

Payroll & HR System 108.7 227.8 238.4 

Facilities Reimbursable Services 27.6 0.0 0.0 

Creative Communications 3.2 0.0 0.0 

Reimbursable Mail Services 1.5 0.0 0.0 

TOTAL 1,409.6 718.6 820.7 
PER-4 Employee Count By Grade 

Bureau of Safety and Environmental Enforcement 77

Bureau of Safety and Environmental Enforcement

Employee Count by Grade

2012 

Actuals

2013 

Estimates

2014 

Estimates

 Executive Level V ................................................ 1 1 1

 SES ................................................................ 5 5 5

Subtotal .............................................. 6 6 6

SL - 00 ............................................................. 0 0 0

ST - 00 ............................................................. 0 0 0

Subtotal .............................................. 0 0 0

 GS/GM -15 ....................................................... 44 44 44

 GS/GM -14 ....................................................... 120 120 120

 GS/GM -13 ....................................................... 178 178 178

 GS -12 ............................................................. 83 83 100

 GS -11 ............................................................. 80 116 152

 GS -10 ............................................................. 4 4 4

 GS - 9 ............................................................. 50 50 50

 GS - 8 ............................................................. 21 21 21

 GS -7 ............................................................. 34 34 34

 GS - 6 ............................................................. 19 19 19

 GS - 5 ............................................................. 20 20 20

 GS - 4 ............................................................. 13 13 13

 GS - 3 ............................................................. 2 2 2

 GS - 2 ............................................................. 0 0 0

 GS -1 ............................................................. 0 0 0

Subtotal .............................................. 668 704 757

 Other Pay Schedule Systems .................................. 0 0 0

 Total employment (actuals & estimates) .................. 674 710 763

Employee Count by Grade

(Total Employment)
PER-4 Employee County By Grade 

78 Bureau of Safety and Environmental Enforcement 

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MAX Tables and Budget Schedules 

Bureau of Safety and Environmental Enforcement 79 

Bureau of Safety and Environmental Enforcement

Offshore Safety and Environmental Enforcement (OSEE)

MAX Tables and Budget Schedules

Program and Financing

(dollars in millions)

FY 2012 FY 2013 FY 2014 

Treasury Account ID: 14-1700 Actual Estimate Estimate

Obligations by program activity -Direct program

0001 Appropriations 60 62 83 

0002 Offsetting Collections 121 124

0789 Total direct obligations 60 183 207

Obligations by program activity -Reimbursable program

0801 Offsetting collections & Reimbursable Receipts 133 

0802 Reimbursable Service Agreements 33 33

0899 Total reimbursable obligations 133 33 33

0900 Total new obligations (direct & reimbursable) 193 216 240

Budgetary resources

1000 Unobligated balance brought forward, Oct 1 69 69

Unobligated balance transfer from account 

1011 [14-1917] * 36 

1050 Unobligated balance (total) 36 69 69

Budget authority

1160 Appropriation, discretionary 61 62 83

Spending authority from offsetting collections, discretionary

1700 Spending authority from offsetting collections (Cost 6 8 

Recovery)

1700 Spending authority from offsetting collections 59 53 51

(Rents-Cost Recovery)

1700 Collected (Inspection Fees) 23 65

1701 Change in uncollected payments, Federal sources 21 

1700 Spending authority from offsetting collections 33 33

(Reimbursable Service Agreements)

1711 Spending authority from offsetting collections 62 62

transferred from account [14-1917]

1750 Total spending authority from offsetting 165 154 157

collections, discretionary

1900 Budget authority (total) 226 216 240

1050 Unobligated balance 36 69 69

1930 Total budgetary resources 262 285 309

0900 Obligations incurred, unexpired accounts -193 -216 -240

1941 Unobligated balance carried forward, end of year 69 69 69

Net budget authority and outlays

4180 Budget authority, net (total) 123 124 83

4190 Outlays, net (total) 43 129 79

* Unobligated Balance of $36M was brought forward from BOEMRE and transferred from 

BOEM to BSEE. FY 2012 is the first year of BSEE.
MAX Tables and Budget Schedules 

80 Bureau of Safety and Environmental Enforcement 

Bureau of Safety and Environmental Enforcement

Offshore Safety and Environmental Enforcement (OSEE)

Object Classification

(dollars in millions)

FY 2012 FY 2013 FY 2014 

Treasury Account ID: 14-1700 Actual Estimate Estimate

OSEE (Direct Obligations) 

11 Personnel Compensation: Full-time permanent 32 46 52 

12 Civilian personnel benefits 11 16 17 

21 Travel and transportation of persons 1 4 4 

23 Rental payments to GSA 1 8 8 

25 Other services 9 105 122 

26 Supplies and materials 1 1 1 

31 Equipment 5 3 3 

OSEE (Reimbursable Obligations)

11 Personnel Compensation: Full-time permanent 16 10 10 

12 Civilian personnel benefits 5 4 4 

21 Travel and transportation of persons 1 

23 Rental payments to GSA 14 6 6 

25 Other services 91 13 13 

26 Supplies and materials 1 

31 Equipment 5 

99.0 Total OSEE 193 216 240 
MAX Tables and Budget Schedules 

Bureau of Safety and Environmental Enforcement 81 

Bureau of Safety and Environmental Enforcement

Oil Spill Research (OSR)

Program and Financing

(dollars in millions)

FY 2012 FY 2013 FY 2014 

Treasury Account ID: 14-8370 Actual Estimate Estimate

Obligations by program activity -Direct program

0001 Direct program activity 12 15 15

0900 Total new obligations 12 15 15

Budgetary resources 

1000 Unobligated balance brought forward, Oct 1 3 6 6 

1101 Appropriation (special or trust fund) 15 15 15

1930 Total budgetary resources 18 21 21

0900 Obligations incurred, unexpired accounts 12 15 15

1941 Unobligated balance carried forward, end of year 6 6 6 

Net budget authority and outlays

4180 Budget authority, net (total) 15 15 15

4190 Outlays, net (total) 10 14 15

Object Classification

(dollars in millions) 

FY 

2012 FY 2013 FY 2014 

Treasury Account ID: 14-8370 Actual Estimate Estimate

OSR (Direct Obligations)

11 Personnel Compensation: Full-time permanent 2 2 2 

12 Civilian Personnel Benefits 1 1 

25 Other services 8 12 12 

94 Financial Transfers* 1 

OSR (Reimbursable Obligations)

25 Other services 1 

99.0 Total OSR 12 15 15 

*Transfer of $1M to BOEM. 
MAX Tables and Budget Schedules 

82 Bureau of Safety and Environmental Enforcement 

Bureau of Safety and Environmental Enforcement

Oil Spill Research (OSR)

Disaster Relief Appropriations Act, 2013 (P.L. 113-2)

Program and Financing

(dollars in millions)

FY 2012 FY 2013 FY 2014 

Treasury Account ID: 14-1920 Actual Estimate Estimate

Obligations by program activity -Direct program

0001 Direct program activity 3 

0900 Total new obligations 3 

Budgetary resources 

1100 Appropriation 3 

1930 Total budgetary resources 3 

Net budget authority and outlays

4180 Budget authority, net (total) 3 

4190 Outlays, net (total) 1 2 

Object Classification

(dollars in millions) 

FY 2012 FY 2013 FY 2014 

Treasury Account ID: 14-1920 Actual Estimate Estimate

OSR (Direct Obligations)

25 Other services 3 
Authorizing Statutes

Bureau of Safety and Environmental Enforcement 83

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.

43 U.S.C. 4321, 4331-4335, The National Environmental Policy Act of 1969 required 

4341-4347 that federal agencies consider in their decisions the 

environmental effects of proposed activities and that Agencies 

prepare environmental impact statements for Federal actions 

having a significant effect on the environment. 

16 U.S.C. 1451, et seq. The Coastal Zone Management Act of 1972, as amended, 

established goals for ensuring that Federal and industry activity 

in the coastal zone be consistent with coastal zone plans set by 

the States.

16 U.S.C. 1531-1543 The Endangered Species Act of 1973 established procedures to 

ensure interagency cooperation and consultations to protect

endangered and threatened species.

42 U.S.C. 7401, et seq. The Clean Air Act, as amended, was applied to all areas of the 

OCS except the central and western Gulf of Mexico. OCS 

activities in those non-excepted areas will require pollutant 

emission permits administered by the EPA or the States. 

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.
Authorizing Statutes

84 Bureau of Safety and Environmental Enforcement 

16 U.S.C. 470-470W6 The National Historic Preservation Act established procedures to 

ensure protection of significant archaeological resources. 

30 U.S.C. 21(a) The Mining and Minerals Policy Act of 1970 set forth the 

continuing policy of the Federal Government to foster and 

encourage private enterprise in the orderly and economic 

development of domestic mineral resources and reserves.

30 U.S.C. 1601 The Policy, Research and Development Act of 1970 set forth the 

continuing policy et seq. of the Federal Government to foster and 

encourage private enterprise in the orderly and economic 

development of domestic mineral resources and reserves.

33 U.S.C. 2701, et seq. The Oil Pollution Act of 1990 established a fund for 

compensation of damages resulting from oil pollution and 

provided for interagency coordination and for the performance of 

oil spill prevention and response research. It also expanded 

coverage of Federal requirements for oil spill response planning 

to include State waters and the transportation of oil. The Act 

also addressed other related regulatory issues. 

43 U.S.C. 1301 The Marine Protection, Research, and Sanctuaries Act of 1972

provided that the Secretary of Commerce must consult with the 

Secretary of the Interior prior to designating marine sanctuaries. 

BSEE provides oversight and enforcement for potential impacts 

from all OCS activities that may be located in or in proximity to 

marine sanctuaries and protected areas. 

16 U.S.C. 1361-1362, The Marine Mammal Protection Act of 1972 provides for

1371-1384, 1401-1407 the protection and welfare of marine mammals.

 

P.L. 104-58 The Deepwater Royalty Relief Act provides royalty rate relief 

for offshore drilling in deepwater of the Gulf of Mexico (GOM). 

31 U.S.C. 9701 Fees and Charges for Government Services and Things of 

Value. It establishes authority for Federal agencies to collect 

fees for services provided by the Government. Those fees must 

be fair and based on the costs to the Government; the value of 

the services or thing to the recipient; public policy or interest 

served; and other relevant facts.

General Administration

31 U.S.C. 65 Budget and Accounting Procedures Act of 1950

31 U.S.C. 3901-3906 Prompt Payment Act of 1982

31 U.S.C. 3512 Federal Managers Financial Integrity Act of 1982

5 U.S.C. 552 Freedom of Information Act of 1966, as amended
Authorizing Statutes

Bureau of Safety and Environmental Enforcement 85

31 U.S.C. 7501-7507 Single Audit Act of 1984

41 U.S.C. 35045 Walsh Healy Public Contracts Act of 1936

41 U.S.C. 351-357 Service Contract Act of 1965 

41 U.S.C. 601-613 Contract Disputes Act of 1978

44 U.S.C. 35 Paperwork Reduction Act of 1980

44 U.S.C. 2101 Federal Records Act 1950

40 U.S.C. 4868 Federal Acquisition Regulation of 1984

31 U.S.C. 3501 Privacy Act of 1974

31 U.S.C. 3501 Accounting and Collection

31 U.S.C. 3711, 3716-19 Claims

31 U.S.C. 1501-1557 Appropriation Accounting

5 U.S.C. 1104 et seq. Delegation of Personnel Management Authority

31 U.S.C. 665-665(a) Anti-Deficiency Act of 1905, as amended

41 U.S.C. 252 Competition in Contracting Act of 1984

18 U.S.C. 1001 False Claims Act of 1982

18 U.S.C. 287 False Statements Act of 1962

41 U.S.C. 501-509 Federal Grant and Cooperative Agreement Act of 1977

41 U.S.C. 253 Federal Property and Administrative Services Act of 1949

41 U.S.C. 401 Office of Federal Procurement Policy Act of 1974, as 

amended

15 U.S.C. 631 Small Business Act of 1953, as amended

15 U.S.C. 637 Small Business Act Amendments of 1978

10 U.S.C. 137 Small Business and Federal Competition Enhancement Act of 

1984

15 U.S.C. 638 Small Business Innovation Research Program of 1983

10 U.S.C. 2306(f) Truth in Negotiations Act of 1962 Authorization
Authorizing Statutes

86 Bureau of Safety and Environmental Enforcement 

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 9505 of 

the Internal Revenue Code of 1986, for oil spill research. 

33 U.S.C. 2701, et seq. Title I, Section 1016, of the Oil Pollution Act of 1990 requires a 

certification process which ensures that each responsible 

company, with respect to an offshore facility, has established, 

and maintains, evidence of financial responsibility in the amount 

of at least $150,000,000 to meet potential pollution liability.

43 U.S.C. 1331, et seq. Section 21(b) of the Outer Continental Shelf Lands Act, as 

amended, requires the use of the best available and safety 

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).