[Federal Register Volume 65, Number 131 (Friday, July 7, 2000)]
[Proposed Rules]
[Pages 41892-41903]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17032]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AC65


Oil and Gas and Sulphur Operations in the Outer Continental 
Shelf--Decommissioning Activities

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend MMS regulations governing oil 
and gas operations in the Outer Continental Shelf (OCS) to update 
decommissioning requirements. The new layout of the rule follows the 
logical sequence of plugging a well, decommissioning the platform and 
pipeline, and clearing the lease site. The proposed rule also updates 
requirements to reflect changes in technology. We restructured the 
requirements to make the regulations easier to read and understand. The 
proposed technical changes will help ensure that lessees decommission 
facilities safely and effectively.

DATES: MMS will consider all comments received by October 5, 2000. We 
will begin reviewing comments at that time and may not fully consider 
comments we receive after October 5, 2000.

ADDRESSES: If you wish to comment, you may mail or hand-carry comments 
(three copies) to the Department of the Interior; Minerals Management 
Service; Mail Stop 4024; 381 Elden Street; Herndon, Virginia 20170-
4817; Attention: Rules Processing Team (RPT). The RPT's e-mail address 
is: <a href="/cdn-cgi/l/email-protection#97e5e2fbf2e4b9f4f8fafaf2f9e3e4d7fafae4b9f0f8e1"><span class="__cf_email__" data-cfemail="c9bbbca5acbae7aaa6a4a4aca7bdba89a4a4bae7aea6bf">[email protected]</span></a>.
    Mail or hand-carry comments with respect to the information 
collection burden of the proposed rule to the Office of Information and 
Regulatory

[[Page 41893]]

Affairs; Office of Management and Budget; Attention: Desk Officer for 
the Department of the Interior (OMB control number 1010-New); 725 17th 
Street, N.W., Washington, D.C. 20503.

FOR FURTHER INFORMATION CONTACT: Sharon Buffington, Engineering and 
Research Branch, at (703) 787-1147.

SUPPLEMENTARY INFORMATION: In recent years, decommissioning practices 
have received more attention, which has resulted in changes in 
technology and practices. In 1996, at the request of MMS, the Marine 
Board of the National Research Council (NRC) published a report titled 
``An Assessment of Techniques for Removing Offshore Structures.'' On 
April 15-17, 1996, MMS convened an International Decommissioning 
Workshop in New Orleans, Louisiana, to discuss the recommendations in 
the NRC report and current decommissioning industry practices. The 
workshop drew over 475 attendees to discuss and make recommendations on 
OCS decommissioning operations. On August 8, 1996, MMS published a 
notice in the Federal Register (61 FR 41422) that requested comments on 
its plans to follow up on recommendations received at the workshop.
    We also sponsored several other public workshops, including one in 
Ventura, California, on September 23-25, 1997. The purpose of the 
workshops was to continue the process of discussing decommissioning 
activities and to receive recommendations.
    The regulations in this proposed rule were updated to incorporate 
the following into one subpart:
    <bullet> Comments from decommissioning workshops;
    <bullet> Comments from the NRC report;
    <bullet> Comments from the annual regulatory reviews;
    <bullet> Applicable Notices to Lessees (NTL);
    <bullet> Lease document requirements pertaining to removals; and
    <bullet> The MMS artificial reef policy.
    We also support the recommendation from the NRC to require that 
lessees only install platforms that can be removed. We will be 
proposing this requirement in a future update of the platform 
installation requirements.
    Research efforts are under way to determine out-of-service pipeline 
flushing requirements. We will incorporate the results of this research 
into future updates of pipeline flushing requirements. We also are 
working on research efforts to improve facility removal technology.

Format of the Proposed Rule

    We have written this proposed rule in a plain-language format with 
frequently asked questions and short answers. We have tried to set out 
these requirements in a straightforward and uncomplicated manner. The 
plain-language format uses the terms ``you'' or ``I,'' which refers to 
the lessee, the owners of operating rights, and pipeline right-of-way 
owners. We encourage your comments on our use of the plain-language 
format in this proposed rule, as well as future rulemaking. We also 
encourage your comments on including all of the decommissioning 
requirements from 30 CFR part 250, subparts G, I, and J into new 
subpart Q (at the end of the current 30 CFR part 250 regulations). We 
received comments at decommissioning workshops that it was difficult to 
find our decommissioning requirements because they were listed in three 
subparts.

New Requirements

    Although the focus of this proposed rule is on the plain-language 
rewrite, and the reorganizing of subpart G into new subpart Q, the rule 
does propose some new requirements. The following paragraphs identify 
and briefly discuss these proposed revisions. We welcome your comments 
on these proposed requirements.

Section 250.1700  What Do the Terms ``Decommissioning'' and 
``Obstructions'' Mean?

    Since we are using the new industry term of ``decommissioning,'' we 
have defined it. Also, we defined ``obstructions'' so that we would not 
need to repeat the list of items that should be removed unless MMS 
waives the removal requirement case-by-case.

Section 250.1704  When Must I Submit Decommissioning Applications?

    We included a new requirement that in the Pacific OCS Region and 
Alaska OCS Region, a lessee must submit an initial decommissioning 
application at least 2 years before production ceases with the general 
information listed in Sec. 250.1705. We are responding to an industry 
trend to plan decommissioning earlier. We encourage this practice 
because industry representatives have mentioned that it is the key to a 
``safe, conscious, and efficient decommissioning project.'' Also, MMS 
will need the information so we can be involved with the review on the 
ground floor planning of the world-class platform removals anticipated 
to occur on the OCS. We only anticipate a few applications a year for 
these areas.

Section 250.1710  How Must I Permanently Plug Wells?

    We put the requirements in tabular format and added more plugging 
options to update technology.

Section 250.1711  What Are the Requirements If I Temporarily Plug a 
Well That I Plan To Re-enter?

    To ensure that temporarily abandoned wells are protected and to 
ensure that those wells do not become an obstruction, we included a 
requirement that subsea domes must be trawled over after they are 
installed.

Section 250.1713  When Might MMS Consider Approving an Alternate 
Removal Depth?

    We listed the conditions under which MMS might waive the 
requirement to clear a well site to 15 feet below the mud line because 
we have received many questions and comments concerning this topic at 
decommissioning workshops. However, MMS still conducts a case-by-case 
analysis of each request. We also added the possibility of allowing an 
alternate removal depth (above the mud line) for wells in more than 800 
meters of water.

Section 250.1714  What Must I Do To Clear a Well Site of Obstructions?

    We added the guidance listed in the Gulf of Mexico (GOM) OCS Region 
NTL 98-26 for site clearance, which was effective on November 30, 1998, 
into this section.
    We also removed the site clearance verification method that uses a 
diver search around the wellbore because it was infrequently used and 
not as successful as other methods.

Section 250.718  What Are the Requirements for Removing Platforms and 
Subsea Facilities?

    To be consistent with lease stipulations, we clarified that within 
1 year after a lease terminates, a lessee must remove all platforms and 
subsea facilities according to the approved final decommissioning 
application. However, a lessee may receive approval to maintain the 
facilities to conduct operations or a waiver to conserve the structure 
as an artificial reef.
    We also clarified that a lessee must remove subsea facilities in 
addition to removing the platform, since many additional facilities are 
used for field development.

Section 250.1719  What Information Must I Include in My Final Platform 
Removal Application?

    We included the guidance from the GOM OCS Region NTL 99-G21, dated

[[Page 41894]]

September 13, 1999, to specify what information MMS needs in a platform 
removal application.

Section 250.1721  When Might MMS Consider Approving an Alternate 
Removal Depth?

    We listed the conditions under which MMS might waive the 
requirement to clear a platform site to 15 feet below the mud line 
because we have received questions concerning this topic at 
decommissioning workshops. However, MMS still conducts a case-by-case 
analysis of each request.

Section 250.1722  What Is MMS' Policy on Converting a Platform or Other 
Facility to an Artificial Reef or Other Use?

    Because we have received questions concerning MMS' policy on 
artificial reefs, and in response to a recommendation from the NRC, we 
propose to codify our policy on converting a platform to an artificial 
reef.

Section 250.1723  When Might MMS Approve Partial Structural Removals 
for Conversion to an Artificial Reef or Other Use?

    We clarified the criteria that MMS uses to evaluate partial 
structure removals because we have received questions on the subject. 
We also added a requirement that the lessee must provide an 
unobstructed water column to respond to recommendations from the NRC.

Section 250.1726  What Are the Requirements for Removing a Pipeline?

    We clarified the requirements concerning information to include in 
the pipeline decommissioning plan.

Derivation Table

    The derivation table below shows where the proposed requirements 
originate from in the current regulations. The table also provides the 
section numbers that were used from 1988 up to mid-1998, when MMS 
assigned new section numbers to assist us in making regulatory updates 
(see 63 FR 29478, May 29, 1998).

----------------------------------------------------------------------------------------------------------------
        Proposed new section             Current section                       Previous number
----------------------------------------------------------------------------------------------------------------
250.1700...........................  New definitions.......  New definitions.
250.1701...........................  250.700(b)(2).........  250.110(b)(2).
250.1702...........................  250.700(b)(1).........  250.110(b)(1).
250.1703...........................  250.700(a); 250.913(a)  250.110(a); 250.143(a).
250.1704...........................  250.701; 250.901(a);    250.111; 250.131(a); 250.150(b).
                                      250.1000(b).
250.1705...........................  New requirement.......  New requirement.
250.1706...........................  250.700(a)............  250.110(a).
250.1707...........................  250.700(a)............  250.110(a).
250.1708...........................  250.700(a)............  250.110(a).
250.1709...........................  250.701...............  250.111.
250.1710...........................  250.702...............  250.112.
250.1711...........................  250.703...............  250.113.
250.1712...........................  250.702(i)............  250.112(i).
250.1713...........................  250.702(i)............  250.112(i).
250.1714-1717......................  250.704; 250.913(c)...  250.114; 250.143(c).
250.1718...........................  250.913(a)............  250.143(a).
250.1719...........................  250.913(a)............  250.143(a).
250.1720...........................  250.913(b)............  250.143(b).
250.1721...........................  250.913(b)............  250.143(b).
250.1722...........................  New policy statement..  New policy statement.
250.1723...........................  New policy statement..  New policy statement.
250.1724...........................  250.1006(a)(1)........  250.156(a)(1).
250.1725...........................  250.1006(a)(1);         250.156(a)(1); 250.157(c).
                                      250.1007(c).
250.1726...........................  250.1006(a)(2);         250.156(a)(2); 250.157(c).
                                      250.1007(c).
----------------------------------------------------------------------------------------------------------------

Procedural Matters

    Public Comment Procedure: Our practice is to make comments, 
including names and home addresses of respondents, available for public 
review during regular business hours. Individual respondents may 
request that we withhold their home address from the rulemaking record, 
which we will honor to the extent allowable by law. There may be 
circumstances in which we would withhold from the rulemaking record a 
respondent's identity, as allowable by law. If you wish us to withhold 
your name and/or address, you must state this prominently at the 
beginning of your comment. However, we will not consider anonymous 
comments. We will make all submissions from organizations or 
businesses, and from individuals identifying themselves as 
representatives or officials of organizations or businesses, available 
for public inspection in their entirety.

Federalism (Executive Order 13132)

    According to Executive Order 13132, this rule does not have 
Federalism implications. This rule does not substantially and directly 
affect the relationship between the Federal and State governments. The 
proposed rule revises existing operation regulations. It does not 
prevent any lessee, operator, or drilling contractor from performing 
operations on the OCS, provided they follow the regulations. This rule 
updates decommissioning requirements and will not impose costs on 
States or localities.

Regulatory Planning and Review (Executive Order 12866)

    This document is not a significant rule and is not subject to 
review by the OMB under Executive Order 12866.
    (1) This rule will not have an effect of $100 million or more on 
the economy. It will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities. The new or expanded requirements are written in plain 
language and designed to ensure that lessees decommission facilities to 
protect the environment and minimize obstructions to other uses of the 
OCS. The economic effects of this rule will be minimal. Lessees 
planning decommissioning activities in the

[[Page 41895]]

Pacific OCS Region and Alaska OCS Region would be required to plan 
these activities at least 2 years before production ceases and submit 
an initial decommissioning application. This will impact an estimated 
two lessees a year, as shown in Table 1. The yearly cost to submit an 
initial decommissioning plan is estimated at $1,000 per plan.

    Table 1.--New Reporting Cost for the Initial Decommissioning Plan Submitted in the Pacific and Alaska OCS
                                                     Regions
----------------------------------------------------------------------------------------------------------------
                                                                   Yearly cost @      Yearly
                                                                    $1,000 per        lessees      Yearly plans
                                                                      report         affected        submitted
----------------------------------------------------------------------------------------------------------------
Small Businesses................................................          $1,000               1               1
Other Lessees...................................................           1,000               1               1
                                                                 -----------------------------------------------
    Totals......................................................           2,000               2               2
----------------------------------------------------------------------------------------------------------------

    Also, lessees who use domes to protect temporarily abandoned wells 
would be required to trawl over those domes after they install them. We 
estimate the cost for trawling would be $3,000 for each of the 45 
existing domes and $3,000 to trawl each of the 10 additional domes 
installed each year. We estimate that 30 lessees will be required to 
trawl the 45 existing domes, and 5 lessees will trawl the additional 10 
domes each subsequent year as shown in Table 2 (located in the 
Regulatory Flexibility Act section). The total costs are shown in Table 
3 (located in the Regulatory Flexibility Act section).
    (2) This rule will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency. The new or 
expanded requirements are minimal and apply only to the OCS 
decommissioning activities.
    (3) This rule does not alter the budgetary effects or entitlements, 
grants, user fees, or loan programs or the rights or obligations of 
their recipients. The new requirements and costs are minimal, and the 
main purpose of the rule is to write it in plain language.
    (4) This rule does not raise novel legal or policy issues. The new 
requirements are based on the legal authority of the OCS Lands Act and 
other laws.

Clarity of This Regulation

    Executive Order 12866 requires each agency to write regulations 
that are easy to understand. We invite your comments on how to make 
this proposed rule easier to understand, including answers to questions 
such as the following:
    (1) Are the requirements in the rule clearly stated?
    (2) Does the rule contain technical language or jargon that 
interfere with its clarity?
    (3) Does the format of the rule (grouping and order of sections, 
use of headings, paragraphing, etc.) aid or reduce its clarity?
    (4) Would the rule be easier to understand if it were divided into 
more (but shorter) sections?
    (5) Is the description of the rule in the Supplementary Information 
section of this preamble helpful in understanding the rule? What else 
can we do to make the rule easier to understand?
    Send a copy of any comments that concern how we could make this 
rule easier to understand to: Office of Regulatory Affairs, Department 
of the Interior, Room 7229, 1849 C Street, N.W., Washington, D.C. 
20240. You may also e-mail the comments to this address: 
<a href="/cdn-cgi/l/email-protection#fabf82899f99ba939589d49e9593d49d958c"><span class="__cf_email__" data-cfemail="15506d667076557c7a663b717a7c3b727a63">[email protected]</span></a>.

Civil Justice Reform (Executive Order 12988)

    According to Executive Order 12988, the Office of the Solicitor has 
determined that this rule does not unduly burden the judicial system 
and meets the requirements of Secs. 3(a) and 3(b)(2) of the Order.

Unfunded Mandate Reform Act (UMRA) of 1995 (Executive Order 12866)

    This rule does not impose an unfunded mandate on State, local, or 
tribal governments or the private sector of more than $100 million per 
year. This rule was mainly updated to include plain language and to 
give additional guidance. It contains very few new requirements, and it 
will not have a significant or unique effect on State, local, or tribal 
governments or the private sector. Therefore, a statement containing 
the information required by the UMRA (2 U.S.C. 1531 et seq.) is not 
required.

National Environmental Policy Act (NEPA) of 1969

    This rule does not constitute a major Federal action significantly 
affecting the quality of the human environment. A detailed statement 
under the NEPA is not required.

Takings Implication Assessment

    According to Executive Order 12630, the proposed rule does not 
represent a governmental action capable of interference with 
constitutionally protected property rights. The new requirements are 
minor and deal with minimizing obstructions to other uses of the OCS. 
Thus, a Takings Implication Assessment need not be prepared according 
to Executive Order 12630, Government Action and Interference with 
Constitutionally Protected Property Rights.

Regulatory Flexibility (RF) Act

    The Department certifies that this proposed rule will not have a 
significant economic effect on a substantial number of small entities 
under the RF Act (5 U.S.C. 601 et seq.). The changes proposed in 30 CFR 
250, subpart Q, will not have a significant economic effect on offshore 
lessees and operators, including those that are classified as small 
businesses. The Small Business Administration (SBA) defines a small 
business as having:
    <bullet> Annual revenues of $5 million or less for exploration 
service and field service companies.
    <bullet> Fewer than 500 employees for drilling companies and for 
companies that extract oil, gas, or natural gas liquids.
    Under the Standard Industrial Classification (SIC), 1381, Drilling 
Oil and Gas Wells, MMS estimates that there is a total of 1,380 firms 
that drill oil and gas wells onshore and offshore. Of these, 
approximately 130 companies are offshore lessees/operators, based on 
current estimates. According to SBA estimates, 39 companies qualify as 
large firms, leaving 91 companies qualified as small firms with fewer 
than 500 employees.
    Where there are some additional new or expanded reporting 
requirements in this rule, they do not impose extensive burdens. The 
cost to comply with the new requirements is a one-time cost of

[[Page 41896]]

approximately $3,000 paid to a trawling organization to trawl over 
domes of temporarily abandoned wells in shallow water. The OCS has 
approximately 45 of these domes. In subsequent years, we predict that 
10 new domes will be trawled over.
    We estimate that 20 of the 30 lessees that will trawl over the 45 
existing domes are small businesses and 3 out of the 5 lessees that 
will trawl over domes in subsequent years will be small businesses. The 
cost to the small businesses will be $60,000 the first year and $6,000 
each subsequent year, as shown in Table 2. However, the fishing 
industry, another small business, will benefit by having less loss to 
their fishing equipment.

                                                       Table 2.--New Requirement Cost for Trawling
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            First Year                                   Subsequent Years
                                                         -----------------------------------------------------------------------------------------------
                                                           Total cost @                                    Total cost @
                                                             $3000 per        Lessees      Domes trawled     $3000 per        Lessees      Domes trawled
                                                               trawl         affected                          trawl         affected
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Businesses........................................         $60,000              20              20          $9,000               3               3
Other Lessees...........................................          75,000              10              25           6,000               2               2
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Totals..............................................         135,000              30              45          15,000               5               5
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                        Table 3.--Total Costs for Both the New Plan and New Trawling Requirement
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            First year                                   Subsequent Years
                                                         -----------------------------------------------------------------------------------------------
                                                                                           Domes trawled                                   Domes trawled
                                                            Total cost        Lessees         + plans       Total cost        Lessees         + plans
                                                                             affected        submitted                       affected        submitted
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Businesses........................................         $61,000              21              21         $10,000               4               4
Other Lessees...........................................          76,000              11              26           7,000               3               3
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Totals..............................................         137,000              32              47          17,000               7               7
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Also, about 2 lessees per year in the Pacific OCS Region or Alaska 
OCS Region will need to submit an initial decommissioning plan for a 
cost of approximately $1,000 each as shown in Table 1 in the Regulatory 
Planning and Review section.
    We estimate that one of these lessees will be a small business. 
These plans are necessary to ensure that early planning is occurring 
for these upcoming world-class decommissioning activities.
    Based on these calculations, this rule has no significant economic 
impact on small entities.
    Your comments are important. The Small Business and Agriculture 
Regulatory Enforcement Ombudsman and 10 Regional Fairness boards were 
established to receive comments from small businesses about Federal 
agency enforcement actions. The Ombudsman will annually evaluate the 
enforcement activities and rate each agency's responsiveness to small 
businesses. If you wish to comment on the enforcement actions of MMS, 
call toll-free (888) 734-3247.

Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This rule is not a major rule under the SBREFA (5 U.S.C. 804(2)). 
This rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more. The main purpose of this rule is to reorganize the 
requirements and write them in plain language. The new requirements are 
minimal and will only affect a few lessees.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions. The cost to comply with the new 
requirements is minor and will minimize conflicts with other uses of 
the OCS.
    (c) Does not have a significant adverse effect on competition, 
employment, investment, productivity, innovation, or ability of U.S.-
based enterprises to compete with foreign-based enterprises. The 
regulation contains a few new requirements that are not burdensome and 
ensure that decommissioning operations in the OCS are conducted 
properly.

Paperwork Reduction Act (PRA) of 1995

    The proposed rule contains a collection of information that has 
been submitted to OMB for review and approval under Sec. 3507(d) of the 
PRA. As part of our continuing effort to reduce paperwork and 
respondent burdens, MMS invites the public and other Federal agencies 
to comment on any aspect of the reporting and recordkeeping burden. You 
may submit your comments directly to the Office of Information and 
Regulatory Affairs, OMB. Send a copy of your comments to MMS. Refer to 
the ``Addresses'' section for mailing instructions.
    The PRA provides that an agency may not conduct or sponsor and a 
person is not required to respond to a collection of information unless 
it displays a currently valid OMB control number. OMB is required to 
make a decision concerning the collection of information contained in 
these proposed regulations between 30 to 60 days after publication of 
this document in the Federal Register. Therefore, a comment to OMB is 
best assured of having its full effect if OMB receives it by August 7, 
2000. This does not affect the deadline for the public to comment to 
MMS on the proposed regulations.
    The title of the collection of information for this proposed rule 
is ``Proposed Rulemaking--30 CFR 250, Subpart Q--Decommissioning 
Activities'' (OMB control number 1010-NEW). Respondents include 
approximately 130 Federal OCS oil and gas or sulphur lessees. The 
frequency of response is on occasion or annually, depending upon the 
requirement. Responses to this collection of information are mandatory. 
MMS will protect proprietary information according to the Freedom of 
Information Act and 30 CFR 250.196, ``Data and

[[Page 41897]]

information to be made available to the public.''
    This rulemaking consolidates information collection requirements on 
decommissioning from our current regulations in 30 CFR 250, subparts G, 
I, and J (approved under OMB control numbers 1010-0079, 1010-0058, and 
1010-0050, respectively). These approved burdens will be 
correspondingly reduced when the new subpart Q regulations become 
final.
    This rulemaking imposes only one new information collection burden. 
Section 250.1705 requires submission of an initial decommissioning plan 
in the Pacific OCS Region and Alaska OCS Region, which we estimate will 
require 20 burden hours per plan.
    We estimate the total annual reporting ``hour'' burden for the 
proposed rule to be 3,222 hours, representing an average burden of 25 
hours per respondent. There are no recordkeeping requirements. 
Following is a breakdown of this burden estimate.

                                                Burden Breakdown
----------------------------------------------------------------------------------------------------------------
                                                                                                         Annual
    Citation 30 CFR 250 subpart Q              Requirement            Average number per      Burden     burden
                                                                             year             hours      hours
----------------------------------------------------------------------------------------------------------------
1703; 1704..........................  Request approval for                Burden included below                0
                                       decommissioning.
1705 (New)..........................  Submit initial                2 plans...............         20         40
                                       decommissioning plan in the
                                       Pacific OCS and Alaska OCS
                                       Regions.
1709; 1711(g); 1712; 1713; 1714(b)..  Submit form MMS-124 to plug    Burden included under 1010-0045.          0
                                       wells; provide subsequent
                                       report; request alternate
                                       depth departure; request
                                       procedure to protect
                                       obstructions above
                                       seafloor; or certify area
                                       cleared of obstructions.
1711(e), (d); 1717(b)...............  Identify and report subsea      U.S. Coast Guard requirement.            0
                                       wellheads, casing stubs, or
                                       other obstructions; mark
                                       wells protected by a dome;
                                       mark location to be cleared
                                       as navigation hazard.
1711(f).............................  Submit annual report on       75 reports............          2        150
                                       plans for re-entry to
                                       complete or permanently
                                       abandon the well..
1714(a).............................  Request approval of well      125 requests..........          4        500
                                       site clearance method.
1715; 1716; 1717(a), (g)............  Verify facility and pipeline  120 verifications.....         12      1,440
                                       sites cleared of
                                       obstructions and submit
                                       certification letter.
1718; 1719; 1720; 1721; 1723........  Submit final application to   120 applications......          6        720
                                       remove platform or other
                                       subsea facility structures
                                       (including alternate depth
                                       departure) or approval to
                                       maintain, to conduct other
                                       operations, or to conserve
                                       as artificial reef.
1722; 1723..........................  Artificial reef permitting     U.S. Army Corps of Engineers and          0
                                       and re-use plan.                     NARP requirements.
1724; 1725; 1726....................  Submit application to         186 applications......          2        372
                                       decommission pipeline in
                                       place or remove pipeline.
                                                                   ---------------------------------------------
    Total Reporting.................  ............................  628 responses.........  .........      3,222
----------------------------------------------------------------------------------------------------------------

    MMS will summarize written responses to this notice and address 
them in the final rule preamble. All comments will become a matter of 
public record.
    1. MMS specifically solicits comments on the following questions:
    (a) Is the proposed collection of information necessary for MMS to 
properly perform its functions, and will it be useful?
    (b) Are the estimates of the burden hours of the proposed 
collection reasonable?
    (c) Do you have any suggestions that would enhance the quality, 
clarity, or usefulness of the information to be collected?
    (d) Is there a way to minimize the information collection burden on 
those who are to respond, including the use of appropriate automated 
electronic, mechanical, or other forms of information technology?
    2. In addition, the PRA requires agencies to estimate the total 
annual reporting and recordkeeping ``non-hour cost'' burden resulting 
from the collection of information. We have not identified any, and we 
solicit your comments on this item. For reporting and recordkeeping 
only, your response should split the cost estimate into two components: 
(a) Total capital and start-up cost component and (b) annual operation, 
maintenance, and purchase of services component. Your estimates should 
consider the costs to generate, maintain, and disclose or provide the 
information. You should describe the methods you use to estimate major 
cost factors, including system and technology acquisition, expected 
useful life of capital equipment, discount rate(s), and the period over 
which you incur costs. Capital and start-up costs include, among other 
items, computers and software you purchase to prepare for collecting 
information; monitoring, sampling, drilling, and testing equipment; and 
record storage facilities. Generally, your estimates should not include 
equipment or services purchased: before October 1, 1995; to comply with 
requirements not associated with the information collection; for 
reasons other than to provide information or keep records for the 
Government; or as part of customary and usual business or private 
practices.

List of Subjects in 30 CFR Part 250

    Continental shelf, Environmental impact statements, Environmental 
protection, Government contracts, Incorporation by reference, 
Investigations, Mineral royalties, Oil and gas development and 
production, Oil and gas exploration, Oil and gas reserves, Penalties, 
Pipelines, Natural gas, Petroleum, Public lands--mineral resources, 
Public lands--rights-of-way, Reporting and recordkeeping requirements, 
Sulphur, Surety bonds.

    Dated: June 22, 2000.
Sylvia V. Baca,
Assistant Secretary, Land and Minerals Management.
    For the reasons stated in the preamble, MMS proposes to amend 30 
CFR part 250 as follows:

[[Page 41898]]

PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER 
CONTINENTAL SHELF

    1. The authority citation for part 250 continues to read as 
follows:

    Authority: 43 U.S.C. 1331, et seq.

Subpart G--[Removed and Reserved]

    2. Subpart G (Secs. 250.700-250.704) is removed and reserved.

Subpart I--Platforms and Structures

    3. Section 250.913 is revised to read as follows:


Sec. 250.913  Platform removal and location clearance.

    Refer to Sec. 250.1714 through Sec. 250.1723.

Subpart J--Pipelines and Pipeline Rights-of-Way

    4. Section 250.1006 is revised to read as follows:


Sec. 250.1006  What are the requirements for taking a pipeline out of 
service?

    If you take a pipeline out of service, you must:
    (a) Blind flange or isolate the pipeline with a closed block valve 
at each end;
    (b) Flush and fill with inhibited seawater any pipelines taken out 
of service for more than 1 year; and
    (c) Return the pipeline to service within 5 years or decommission 
the pipeline according to Sec. 250.1724 through Sec. 250.1726.


Sec. 250.1007  [Amended]

    5. In Sec. 250.1007 paragraph (c) is removed.
    6. Subpart Q is added to read as follows:
Subpart Q--Decommissioning Activities

General Requirements

Sec.
250.1700   What do the terms ``decommissioning'' and 
``obstructions'' mean?
250.1701   Who must meet the obligations in this subpart?
250.1702   When do I accrue decommissioning obligations?
250.1703   What are the general requirements for decommissioning?
250.1704   When must I submit decommissioning applications?
250.1705   What information must I include in my initial platform 
removal application for the Pacific OCS Region or Alaska OCS Region?

Well Plugging Requirements

250.1706   Within what timeframe must I permanently plug all wells 
on a lease?
250.1707   When may MMS order me to permanently plug a well?
250.1708   What must I accomplish with well plugs?
250.1709   What information must I include to plug wells?
250.1710   How must I permanently plug wells?
250.1711   What are the requirements if I temporarily plug a well 
that I plan to re-enter?
250.1712   To what depth below the mud line must I clear a well site 
when it will no longer be used for oil, gas, or sulphur operations?
250.1713   When might MMS consider approving an alternate removal 
depth?

Site Clearance and Platform Decommissioning

250.1714   3What must I do to clear a well site of obstructions?
250.1715   What must I do to clear a facility of obstructions?
250.1716   What must I do to clear a buried pipeline of 
obstructions?
250.1717   What must I do to clear a trawling operation of 
obstructions?
250.1718   What are the requirements for removing platforms and 
subsea facilities?
250.1719   What information must I include in my final platform 
removal application?
250.1720   To what depth below the mud line must I remove a platform 
or other facility?
 250.1721   When might MMS consider approving an alternate removal 
depth?
250.1722   What is MMS' policy on converting a platform or other 
facility to an artificial reef or other use?
250.1723   When might MMS approve partial structural removals for 
conversion to an artificial reef or other use?

Pipeline Decommissioning

250.1724   When may I decommission a pipeline in place?
250.1725   What are the requirements for decommissioning a pipeline 
in place?
250.1726   What are the requirements for removing a pipeline?

    Authority: 43 U.S.C. 1331. et seq.

Subpart Q--Decommissioning Activities

General Requirements


Sec. 250.1700  What do the terms ``decommissioning'' and 
``obstructions'' mean?

    (a) Decommissioning means:
    (1) Ending oil, gas, or sulphur operations; and
    (2) Returning the lease or right-of-way to a condition that meets 
the requirements of regulations of MMS and other agencies that have 
jurisdiction over decommissioning activities.
    (b) Obstructions are objects that were used in oil, gas, or sulphur 
operations and that, if left behind or abandoned in place, would hinder 
other users of the OCS. Obstructions include, but are not limited to, 
wellheads, casing stubs, mud line suspensions, subsea trees, jumper 
assemblies, umbilicals, manifolds, termination skids, production and 
export risers, platforms, templates, pilings, pipeline valves, and 
power cables (in the Pacific OCS Region).


Sec. 250.1701  Who must meet the obligations in this subpart?

    The lessee, the owners of operating rights, and pipeline right-of-
way owners are jointly and severally responsible for meeting the 
obligations as they accrue and until each obligation is met. In this 
subpart, the terms ``you'' and ``I'' refer to each lessee, owner of 
operating rights, and pipeline right-of-way owner.


Sec. 250.1702  When do I accrue decommissioning obligations?

    You accrue the decommissioning obligations when you do any of the 
following:
    (a) Drill a well;
    (b) Install a platform, pipeline, or other facility;
    (c) Create an obstruction to other users of the ocean;
    (d) Become a lessee or the owner of operating rights of a lease on 
which there is a well that has not been plugged according to this 
subpart, a platform or other facility, or an obstruction; or
    (e) Re-enter a well that was previously plugged according to this 
subpart.


Sec. 250.1703  What are the general requirements for decommissioning?

    When the facilities are no longer useful for operations, you must:
    (a) Get approval from the District Supervisor before 
decommissioning wells and from the Regional Supervisor before 
decommissioning facilities and pipelines;
    (b) Squeeze or isolate all open perforations, plug all wellbores, 
sever all casings, and remove the wellhead;
    (c) Remove all platforms and other facilities (including subsea 
equipment) to the depth required by Sec. 250.1720 of this subpart;
    (d) Decommission all pipelines; and
    (e) Clear the seafloor of all obstructions created by lease and/or 
right-of-way operations.


Sec. 250.1704  When must I submit decommissioning applications?

    You must submit decommissioning applications according to the 
following table.

[[Page 41899]]



                  Decommissioning Application Schedule
------------------------------------------------------------------------
Decommissioning applications     When to submit         Instructions
------------------------------------------------------------------------
(a) Initial platform removal  In the Pacific OCS    Include information
 application [not required     Region or Alaska      required under Sec.
 in the Gulf of Mexico OCS     OCS Region, submit     250.1705.
 Region].                      the application to
                               the Regional
                               Supervisor at least
                               2 years before
                               production ceases.
------------------------------------------------------------------------
(b) Final platform removal    Before removing a     Include information
 application.                  platform.             required under Sec.
                                                      250.1719.
------------------------------------------------------------------------
(c) Pipeline decommissioning  Before you            Include information
 application.                  decommission the      required under Sec.
                               pipeline.              250.1725(a) or
                                                     Sec.  250.1726(a),
                                                     as applicable.
------------------------------------------------------------------------
(d) Form MMS-124, Sundry      (1) Before you plug   (i) Include
 Notices and Reports on        each well; and.       information
 Wells.                                              required under Sec.
                                                      250.1709(a).
------------------------------------------------------------------------
                              (2) Within 30 days    (i) Include
                               after you plug a      information
                               well.                 required under Sec.
                                                      250.1709(b).
------------------------------------------------------------------------

Sec. 250.1705  What information must I include in my initial platform 
removal application for the Pacific OCS Region or Alaska OCS Region?

    You must include the following information in your initial platform 
removal application for the Pacific OCS Region or Alaska OCS Region:
    (a) Platform or other facility removal procedures, including the 
types of vessels and equipment to be used;
    (b) Facilities (including pipelines) you plan to remove or leave in 
place;
    (c) Platform or other facility transportation and disposal plans;
    (d) Plans to protect marine life and the environment during 
decommissioning operations, including a brief assessment of the 
environmental impacts of the operations, and procedures and mitigation 
measures that you will take to minimize the impacts;
    (e) Projected decommissioning schedule; and
    (f) The consistency of the proposed project with that described in 
the Development and Production Plan.

Well Plugging Requirements


Sec. 250.1706  Within what timeframe must I permanently plug all wells 
on a lease?

    You must plug all wells within 1 year after the lease terminates.


Sec. 250.1707  When may MMS order me to permanently plug a well?

    MMS may order you to permanently plug a well if that well:
    (a) Poses a hazard to safety or the environment; or
    (b) Is not useful for lease operations and is not capable of 
profitable oil, gas, or sulphur production.


Sec. 250.1708  What must I accomplish with well plugs?

    You must ensure that all well plugs:
    (a) Provide downhole isolation of hydrocarbon and sulphur zones;
    (b) Protect freshwater aquifers; and
    (c) Prevent migration of formation fluids within the wellbore or to 
the seafloor.


Sec. 250.1709  What information must I include to plug wells?

    (a) Before you plug a well, you must submit the following 
information on form MMS-124 and receive approval:
    (1) The reason you are plugging the well;
    (2) Applicable well logs and test data;
    (3) Maximum possible surface pressure, and how it was determined;
    (4) Type and weight of well-control fluid you will use;
    (5) A description of the work; and
    (6) A current and proposed well schematic and description that 
include:
    (i) Well depth;
    (ii) All perforated intervals;
    (iii) Casing and tubing depths and details;
    (iv) Subsurface equipment;
    (v) Estimated tops of cement (and the basis of the estimate) in 
each casing annulus;
    (vi) Plug locations;
    (vii) Plug types;
    (viii) Plug lengths;
    (ix) Mud and cement use;
    (x) Perforating and casing cutting plans;
    (xi) Plug testing plans;
    (xii) Casing removal (including information on explosives, if 
used); and
    (xiii) Proposed casing removal depth.
    (b) Within 30 days after you plug a well, you must submit form MMS-
124 (subsequent report) and include the following information:
    (1) Information included in paragraph (a) of this section with a 
final well schematic;
    (2) Description of the plugging work;
    (3) Nature and quantities of material used in the plugs; and
    (4) If you cut and pulled any casing string, you must include the 
following:
    (i) A description of the methods used (including information on 
explosives, if used);
    (ii) Size and amount of casing removed; and
    (iii) Casing removal depth.


Sec. 250.1710  How must I permanently plug wells?

    You must permanently plug wells according to the table in this 
section. The District Supervisor may require additional well plugs as 
necessary.

                  Permanent Well Plugging Requirements
------------------------------------------------------------------------
            If you have                       Then you must use
------------------------------------------------------------------------
(a) Zones in open hole............  Cement plugs from at least 100'
                                     below the bottom to 100' above the
                                     top of oil, gas, and fresh-water
                                     zones to isolate fluids in the
                                     strata.
------------------------------------------------------------------------
(b) Open hole.....................  (1) Cement plugs, by the
                                     displacement method, at least 100'
                                     above and below deepest casing
                                     shoe;

[[Page 41900]]

 
                                    (2) Cement retainers with effective
                                     back-pressure control 50' to 100'
                                     above the casing shoe and a cement
                                     plug to extend at least 100' below
                                     the shoe and at least 50' above the
                                     retainer; or
                                    (3) Bridge plugs 50' to 100' above
                                     the shoe with 50' of cement on top
                                     of the bridge plug, for expected or
                                     known lost circulation conditions.
                                     You must test these plugs by one of
                                     the methods shown in paragraphs
                                     (k)(1) and (k)(2) of this section.
------------------------------------------------------------------------
(c) Perforated zones that are       (1) A squeeze method to cement;
 currently open and not previously  (2) Cement plugs, by the
 squeezed or isolated.               displacement method, at least 100'
                                     above to 100' below the perforated
                                     interval, or down to a casing plug,
                                     whichever is less. If the
                                     perforated zones are isolated from
                                     the hole below, you may use any of
                                     the plugs specified in paragraphs
                                     (c)(3) through (c)(7) of this
                                     section instead of those specified
                                     in paragraphs (c)(1) and (c)(2) of
                                     this section.
                                    (3) Cement retainers with effective
                                     back-pressure control 50' to 100'
                                     above the top of the perforations
                                     and a cement plug that extends at
                                     least 100' below the bottom of the
                                     perforations with 50' of cement
                                     above the retainer;
                                    (4) Bridge plugs set within 50' to
                                     100' of top of the perforations and
                                     50' of cement on top of the bridge
                                     plug;
                                    (5) Cement plugs at least 200' in
                                     length, set by the displacement
                                     method, with the bottom of the plug
                                     100' above the perforated interval;
                                    (6) Through-tubing basket plugs
                                     within 100' of the perforated
                                     interval topped with 50' of cement;
                                     or
                                    (7) Tubing plugs within 100' of the
                                     perforated interval topped with 50'
                                     of cement and a minimum of 300' of
                                     cement in the tubing and casing
                                     immediately above the uppermost
                                     packer in the wellbore.
------------------------------------------------------------------------
(d) Casing stubs where the stub     (1) Cement plugs at least 100' above
 ends within casing.                 and below the stub;
                                    (2) Cement retainers or permanent
                                     bridge plugs at least 50' to 100'
                                     above the stub and 100' below with
                                     at least 50' cement on top of the
                                     retainer; or
                                    (3) Cement plugs at least 200' long
                                     with the bottom of the plug within
                                     100' above the stub.
------------------------------------------------------------------------
(e) Casing stubs where the stub     Plugs specified in paragraph (a) or
 ends below the casing.              (b) of this section, as applicable.
------------------------------------------------------------------------
(f) Annular space that              Cement plugs at least 200' long in
 communicates with an open hole      the annular space. For surface
 and extends to the mud line.        wells, pressure test each casing
                                     annulus to verify isolation.
------------------------------------------------------------------------
(g) Subsea wells with unsealed      A cutter to sever the casing and you
 annuli.                             must set a stub plug.
------------------------------------------------------------------------
(h) Cement displacement plugs.....  Tags to verify the position of each
                                     plug.
------------------------------------------------------------------------
(i) To set a surface plug (all      A cement surface plug at least 150'
 wells except temporarily plugged    long in the smallest casing that
 wells).                             extends to the mud line with the
                                     top of the plug within the first
                                     150' below the mud line.
------------------------------------------------------------------------
(j) Permafrost areas..............  (1) A fluid to be left in the hole
                                     that has a freezing point below the
                                     temperature of the permafrost, and
                                     a treatment to inhibit corrosion;
                                     and
                                    (2) Cement plugs set before freezing
                                     and have a low heat of hydration.
------------------------------------------------------------------------
(k) To test a plug (required for    (1) A test to verify plug integrity
 the first plug below the surface    with 15,000 pounds of pipe weight
 plug and/or lost circulation area   on the cement plug, cement
 plugs in open hole).                retainer, or bridge plug; or
                                    (2) 1,000 pounds per square inch
                                     pump pressure with a result of 10
                                     percent or less pressure drop
                                     during 15 minutes. The District
                                     Supervisor may require testing
                                     other plugs to prevent fluid
                                     migration.
------------------------------------------------------------------------
(l) Fluid left in the hole........  Fluid in the intervals between the
                                     plugs dense enough to exert a
                                     hydrostatic pressure that is
                                     greater than the respective
                                     formation pressures.
------------------------------------------------------------------------

Sec. 250.1711  What are the requirements if I temporarily plug a well 
that I plan to re-enter?

    You must do the following:
    (a) Set plugs for permanently plugged wells listed in the table in 
Sec. 250.1710; however, you do not need to sever the casings, remove 
the wellhead, or clear the site;
    (b) Set a bridge plug or a cement plug at least 100 feet long at 
the base of the deepest casing string unless the casing string has been 
cemented and has not been drilled out. If a cement plug is set, it is 
not necessary for the cement plug to extend below the casing shoe into 
the open hole;
    (c) Set a retrievable or a permanent-type bridge plug or a cement 
plug at least 100 feet long in the casing within the first 200 feet 
below the mud line;
    (d) Identify and report subsea wellheads, casing stubs, or other 
obstructions that extend above the mud line according to U.S. Coast 
Guard (USCG) requirements;
    (e) Mark wells protected by a dome in less than 100 feet of water 
with a buoy installed according to USCG requirements;
    (f) Provide annual reports to the Regional Supervisor describing 
your plans for well re-entry to complete or to permanently plug; and
    (g) Except in deep water areas or other locations where there are 
no commercial fishing activities, protect subsea wellheads, casing 
stubs, mud line suspensions, or other obstructions remaining above the 
seafloor to allow fishing gear to pass over the structure without 
damage to the structure or fishing gear by using one of the following 
or other procedure, as

[[Page 41901]]

approved by the Regional or District Supervisor:
    (1) A caisson designed according to Sec. 250.906 and equipped with 
aids to navigation;
    (2) A jacket designed according to Sec. 250.906 and equipped with 
aids to navigation; or
    (3) A subsea dome that does not extend more than 10 feet above the 
seafloor and over which you trawl when you install it and inspect 
annually.


Sec. 250.1712  To what depth below the mud line must I clear a well 
site when it will no longer be used for oil, gas, or sulphur 
operations?

    Unless the District Supervisor approves an alternate depth, you 
must clear all wellheads and casings to at least 15 feet below the mud 
line.


Sec. 250.1713  When might MMS consider approving an alternate removal 
depth?

    MMS may allow you to depart from the requirement for removing 
subsea wellheads and casings to 15 feet below the mud line when:
    (a) The wellheads and casings would not become hazards to other 
users of the seafloor or area and geotechnical and other information 
you provide demonstrates that erosional processes capable of exposing 
the obstructions are not expected; or (b) The water depth is greater 
than 800 meters.

Site Clearance and Platform Decommissioning


Sec. 250.1714  What must I do to clear a well site of obstructions?

    For each well site you must verify clearance and certify your 
verification.
    (a) For wells, you must verify site clearance by one or more of the 
following methods as approved by the District Supervisor:
    (1) Drag a trawl in a grid-like pattern across a 300-foot-radius 
circle centered on an exploration or delineation well drilled with a 
Mobile Offshore Drilling Unit;
    (2) Scan across the location with a sonar search of at least 500 
kHz frequency; or (3) Use other radii or methods based on particular 
site conditions.
    (b) You must certify that the area was cleared of all obstructions 
and submit the following information on form MMS-124 within 30 days 
after you complete the verification activities:
    (1) The date the work was performed;
    (2) The extent of the area surveyed around the location; and (3) 
The survey method.


Sec. 250.1715  What must I do to clear a facility of obstructions?

    To clear a facility of obstructions, you must comply with the 
Regional Supervisor's clearance requirements and, at minimum:
    (a) Clear obstructions from:
    (1) A 1,320-foot-radius circle centered on the geometric center of 
the facility; or (2) A 600-foot-radius circle centered on a single well 
caisson and well protectors.
    (b) In less than a 300-foot water depth, trawl 100 percent of the 
limits described in paragraph (a) of this section in two directions, 
and in greater than a 300-foot water depth, scan across the location 
with a sonar of at least 500 kHz frequency;


Sec. 250.1716  What must I do to clear a buried pipeline of 
obstructions?

    For buried active pipelines, you must trawl without any 
restrictions; however, you must contact the pipeline owner or operator 
to determine the condition of the pipelines to be trawled.


Sec. 250.1717  What must I do to clear a trawling operation of 
obstructions?

    For trawling operations for both facilities and pipelines, you must 
do all of the following to clear obstructions:
    (a) Complete site clearance verification to the specifications of 
the Regional Supervisor within 60 days after you complete the structure 
removal;
    (b) Mark the location to be cleared as a hazard to navigation 
according to USCG requirements until you complete the site clearance 
procedures;
    (c) Use a vessel to verify site clearance that is equipped with a 
navigational positioning system capable of providing position accuracy 
of ( <plus-minus>30 feet and a calibrated navigation system;
    (d) Use a trawling contractor with a valid commercial trawling 
license and no corporate or other financial ties to the company that 
performed the salvage work;
    (e) Use a trawling net that is representative of those used in the 
commercial fishing industry and having a net strength equal to that 
provided by No. 18 twine;
    (f) Not trawl closer than 300 feet to a shipwreck; and (g) Ensure 
that the company performing the location clearance sends a letter to 
the Regional Supervisor certifying it cleared the location of all 
obstructions. The company must send the letter within 30 days after 
site clearance is verified and must include the following information:
    (1) The date the work was performed and the vessel involved;
    (2) The extent of the area surveyed;
    (3) The survey method used;
    (4) The results of the survey, including a list of any debris 
removed or statement from the trawling contractor that no objects were 
recovered;
    (5) A post-trawling job plot or map showing trawled area; and (6) 
An additional letter signed by an authorized lessee/operator company 
representative stating that they witnessed the trawling survey.


Sec. 250.1718  What are the requirements for removing platforms and 
subsea facilities?

    (a) You must submit a final platform removal application to the 
Regional Supervisor with the information listed in Sec. 250.1719 before 
removing a platform;
    (b) You must remove all platforms and subsea facilities in a manner 
approved by the Regional Supervisor to ensure that the location has 
been cleared of all obstructions to other activities in the area;
    (c) You must retrieve all mooring lines, anchors, and all related 
equipment that constitute an obstruction;
    (d) You must remove subsea trees, jumper assemblies, umbilicals, 
manifolds, and termination skids in conjunction with well plugging 
activities;
    (e) You must flush and remove all production and export risers with 
seawater from the seabed; and
    (f) Within 1 year after lease termination or right-of-way 
relinquishment, you must remove all platforms and subsea facilities, 
including those listed in paragraphs (c) and (d) of this section, 
according to the approved final platform removal application. This 
paragraph does not apply if you receive either:
    (1) Approval to maintain the platform and subsea facilities to 
conduct other operations; or
    (2) A waiver to conserve the structure as an artificial reef.


Sec. 250.1719  What information must I include in my final platform 
removal application?

    You must submit three copies of the final platform removal 
application if you are proposing to use explosives or two copies if you 
are not using explosives to the Regional Supervisor. Include all of the 
following information:
    (a) Identification of the responsible party including:
    (1) Lease operator/right-of-way holder;
    (2) Address;
    (3) Contact person and telephone number; and

[[Page 41902]]

    (4) Shore base.
    (b) Identification of the structure you are removing including:
    (1) Platform Name/Complex ID Number;
    (2) Location (lease/right-of-way, area, block, and block 
coordinates);
    (3) Date installed (year);
    (4) Proposed date of removal (Month/Year); and
    (5) Water depth.
    (c) Description of the structure you are removing including:
    (1) Configuration (attach a photograph or a diagram);
    (2) Size;
    (3) Number of legs/casings/pilings;
    (4) Diameter and wall thickness of legs/casings/pilings;
    (5) Piles grouted inside or outside;
    (6) Brief description of soil composition and condition;
    (7) The sizes and weights of the jacket, topsides (by module), 
conductors, and pilings;
    (8) The maximum removal lift weight and estimated number of main 
lifts to remove the structure; and
    (9) A description of the vessel(s) that you will use to remove the 
structure.
    (d) Identification of the purpose, including:
    (1) Lease expiration/right-of-way relinquishment date; and
    (2) Reason for removing the structure.
    (e) A description of the removal method including:
    (1) Brief description of the method to be used; and
    (2) If you are using explosives, provide the following:
    (i) Type of explosives;
    (ii) Number and sizes of charges;
    (iii) List whether you are using single shot or multiple shots;
    (iv) If multiple shots, list sequence and timing of detonations;
    (v) List whether you are using a bulk or shaped charge;
    (vi) Depth of detonation below mud line; and
    (vii) List whether you are placing the explosives inside or outside 
the pilings.
    (3) If you will use divers or acoustic devices to conduct a pre-
removal survey to detect the presence of turtle and marine mammals, 
describe the proposed detection method.
    (4) A statement telling whether or not you will use transducers to 
measure the pressure and impulse of the detonations.
    (5) A statement telling whether or not you will use divers to 
survey the area after removal to determine any effects on marine life.
    (f) If available, provide the results of any recent biological 
surveys conducted in the vicinity of the structure and recent 
observations of turtles or marine mammals at the structure site.


Sec. 250.1720  To what depth below the mud line must I remove a 
platform or other facility?

    Unless the Regional Supervisor approves an alternate removal depth, 
you must remove all platforms or other facilities (including templates, 
and pilings) to at least 15 feet below the mud line.


Sec. 250.1721  When might MMS consider approving an alternate removal 
depth?

    The Regional Supervisor may approve an alternate removal depth if:
    (a) The remaining structure or other facility would not become a 
hazard to other users of the seafloor or area and geotechnical and 
other information you provide demonstrates that erosional processes 
capable of exposing the obstructions are not expected; or
    (b) The water depth is greater than 800 meters.


Sec. 250.1722  What is MMS' policy on converting a platform or other 
facility to an artificial reef or other use?

    MMS supports and encourages the re-use of obsolete offshore 
petroleum structures as artificial reefs in U.S. waters.
    (a) The structure must not pose an unreasonable impediment to 
existing facilities such as active pipelines or future mineral 
development.
    (b) The re-use plan must comply with the artificial reef permitting 
requirements of the U.S. Corps of Engineers (Corps) and the criteria in 
the National Artificial Reef Plan (NARP).
    (c) The state agency responsible for managing marine fisheries 
resources must accept title and liability for the structure before MMS 
will release the Federal lessee from obligations in the lease 
instrument.
    (d) As appropriate, MMS may facilitate cooperation between Federal 
lessees, States, and other Federal agencies concerning the re-use of 
the structure. MMS will share information with others concerning the 
environmental, social, and economic consequence of re-using the 
structure.


Sec. 250.1723  When might MMS approve partial structural removals for 
conversion to an artificial reef or other use?

    The Regional Supervisor may approve a partial structural removal if 
you meet all of the following conditions:
    (a) The remaining structure becomes part of the NARP and the State 
agency responsible for managing marine fisheries resources acquires a 
Corps permit and accepts title and liability for the structure; and
    (b) You provide an unobstructed water column above the structure 
sufficient to ensure safety of navigation.

Pipeline Decommissioning


Sec. 250.1724  When may I decommission a pipeline in place?

    You may decommission a pipeline in place when the Regional 
Supervisor determines:
    (a) The pipeline does not constitute a hazard to navigation and 
commercial fishing operations, unduly interfere with other uses of the 
OCS, or have adverse environmental effects; and
    (b) Technical and environmental information shows that pipelines 
are not likely to interfere with other uses of the OCS.


Sec. 250.1725  What are the requirements for decommissioning a pipeline 
in place?

    You must do the following to decommission a pipeline in place:
    (a) Submit a pipeline decommissioning application in triplicate to 
the Regional Supervisor that includes the following information:
    (1) Reason for the operation;
    (2) Proposed procedures;
    (3) Length (feet) of segment to be decommissioned; and
    (4) Length (feet) of segment remaining.
    (b) Pig the line, unless the Regional Supervisor determines that 
pigging is not practical;
    (c) Flush the line;
    (d) Fill the line with seawater;
    (e) Cut and plug each end;
    (f) Bury each end at least 3 feet below the seafloor or cover with 
protective concrete mats, if required by the Regional Supervisor;
    (g) Remove all valves and other appurtenances that could unduly 
interfere with other uses of the OCS;
    (h) Within 1 year after lease termination or right-of-way 
relinquishment, decommission the pipeline(s); and
    (i) Remove a previously decommissioned pipeline if MMS subsequently 
determines that a pipeline is a hazard.


Sec. 250.1726  What are the requirements for removing a pipeline?

    Before removing a pipeline, you must:
    (a) Submit a pipeline removal application in triplicate to the 
Regional Supervisor that includes the following information:
    (1) Proposed removal procedures, including the types of vessels and 
equipment to be used;
    (2) Pipeline transportation and disposal plans;
    (3) Plans to protect marine life and the environment during removal 
operations,

[[Page 41903]]

including a brief assessment of the environmental impacts of the 
removal operations and procedures and mitigation measures that will be 
taken to minimize such impacts; and
    (4) Projected removal schedule and duration.
    (b) Pig the line, unless the Regional Supervisor determines that 
pigging is not practical; and
    (c) Flush the line.

[FR Doc. 00-17032 Filed 7-6-00; 8:45 am]
BILLING CODE 4310-MR-P


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