Federal Register / Vol. 62, No. 153 / Friday, August 8, 1997 / Rules and Regulations 42669

the penalty or file an appeal with MMS

under part 290 of this chapter. If you do

not either pay the penalty or file a

timely appeal, MMS will take one or

more of the following actions:

(a) MMS will collect the amount you

were assessed, plus interest, late

payment charges, and other fees as

provided by law, from the date of

assessment until the date MMS receives

payment;

(b) MMS may initiate additional

enforcement proceedings including, if

appropriate, cancellation of the lease,

right-of-way, license, permit, or

approval, or the forfeiture of a bond

under this part; or

(c) MMS may bar you from doing

further business with the Federal

Government according to Executive

Orders 12549 and 12689, and section

2455 of the Federal Acquisition

Streamlining Act of 1994, 31 U.S.C.

6101. The Department of the Interior’s

regulations implementing these

authorities are found at 43 CFR part 62,

subpart D.

[FR Doc. 97–21032 Filed 8–7–97; 8:45 am]

BILLING CODE 4310–MR–M

DEPARTMENT OF THE INTERIOR

30 CFR Part 250

RIN 1010–AC12

Safety and Pollution Prevention

Equipment Quality Assurance

Requirements

AGENCY: Minerals Management Service

(MMS), Interior.

ACTION: Final rule.

SUMMARY: This rule amends the

regulations governing the quality

assurance (QA) program for safety and

pollution prevention equipment (SPPE)

used on the Outer Continental Shelf

(OCS). The rule requires lessees to

install only QA certified SPPE after

April 1, 1998. However, the rule allows

the continued use of noncertified SPPE

installed prior to April 1, 1998,

provided the equipment does not

require remanufacturing. Amendments

to the rule reduce the paperwork burden

on both industry and MMS and ensure

that OCS lessees continue to use the

best available and safest equipment.

EFFECTIVE DATE: September 8, 1997. The

incorporation by reference of certain

publications listed in the rule is

approved by the Director of the Federal

Register as of September 8, 1997.

FOR FURTHER INFORMATION CONTACT: Bill

Hauser, Engineering and Research

Branch, at (703) 787–1613.

SUPPLEMENTARY INFORMATION:

Background

MMS proposed revising the

regulations for the SPPE program in a

notice of proposed rulemaking

published in the Federal Register (61

FR 66639) on December 18, 1996. We

received two sets of comments during

the 60-day comment period, which

closed on February 18, 1997. This final

rule amends the regulations found at 30

CFR 250.126.

To fully understand this rule, you

need to know that SPPE consists of the

following equipment: surface safety

valves (SSV) and their actuators;

underwater safety valves and their

actuators; and subsurface safety valves

(SSSV) and associated safety valve locks

and landing nipples. MMS requires

lessees to install SPPE in their wells to

protect the safety of personnel and to

prevent the accidental release of

produced fluids or gases (thus the name

safety and pollution prevention

equipment). Certified SPPE means that

the manufacturer built the equipment

under a QA program recognized by

MMS. Noncertified SPPE is SPPE that

was not manufactured under a

recognized QA program but was in a

lessee’s inventory on April 1, 1988.

MMS required each lessee to submit a

list of this inventory to MMS by August

29, 1988.

Intent of Proposed Rule

The proposed rule had two goals: (1)

to reduce the paperwork associated with

the SPPE QA regulations and (2) to

ensure that lessees continue to use high

quality SPPE on the OCS. To reduce

paperwork, the proposed rule

eliminated the need for companies to

update their list of noncertified SPPE. It

also eliminated the detailed reporting

requirements regarding the installation

and failure of certified equipment.

The proposed rule addressed the

quality of SPPE by limiting the use of

noncertified SPPE. Under the proposed

rule a lessee could not install

noncertified SPPE after April 1, 1998. In

addition, a lessee would have to replace

noncertified SPPE already in service

with certified SPPE when one of the

following conditions occurred:

(1) Noncertified SPPE failed during

normal operations,

(2) Noncertified SPPE failed during

testing, or

(3) Noncertified SPPE was removed

from service for any other reason.

Comments on the Rule

The Offshore Operators Committee

(OOC) and a major oil company were

the only two commenters on the rule.

OOC, an organization that represents 85

companies that operate in the Gulf of

Mexico, commended MMS’ effort to

reduce the paperwork associated with

the program, but strongly objected to

replacing noncertified SPPE with

certified SPPE as proposed by the rule.

They stated that the rules should allow

noncertified SPPE to stay in service as

long as it functions properly.

Replacement of an internal seal or

temporary removal from a well during

routine operations should not prohibit

the use of noncertified SPPE after it has

functioned acceptably for many years.

OOC recommended that MMS should

require replacement only when the

noncertified SPPE has to be

remanufactured.

OOC estimated that approximately

3,000 noncertified SSV’s and 1,000

noncertified SSSV’s remain in service

on the OCS. OOC estimated that the cost

to replace these noncertified SPPE

would be $51,000,000. Their estimate

did not include the cost to replace

noncertified landing nipples for the

SSSV.

The major oil company endorsed

OOC’s comments. It reiterated that the

rule should require replacement of

noncertified SPPE only when it must be

re-manufactured or repaired by hot

work, such as welding.

Response to Comments

After review of the comments, MMS

agrees that the rule should not prohibit

the use of noncertified SPPE if it

requires only minor repairs, such as the

replacement of a seal. Therefore, we

have revised the final rule to require

replacement of noncertified SPPE only

when the noncertified SPPE requires

offsite repair, remanufacturing, or hot

work, such as welding. This will allow

lessees to continue using noncertified

SPPE provided the equipment works

properly, and when necessary, requires

only minor repairs. Once noncertified

SPPE requires offsite repair,

remanufacturing, or hot work, it may

not be used on the OCS. MMS believes

this restriction helps ensure that lessees

continue to use high quality SPPE.

MMS plans to examine the

performance of noncertified and

certified SPPE as part of a research

study that will examine leakage rates

and testing criteria for SPPE. This

research will begin this year. We invite

and encourage industry participation in

this research study. The results will

impact future rulemaking on SPPE

testing requirements.

We also clarified § 250.126(b)(2) of the

rule to state that a lessee may not install

additional noncertified SPPE after April

1, 1998.
42670 Federal Register / Vol. 62, No. 153 / Friday, August 8, 1997 / Rules and Regulations

Other Changes to the Regulations

As part of amending the SPPE

regulations, the rule updates the two QA

documents referenced in § 250.1,

Documents Incorporated by Reference,

paragraphs (c)(5)and (d)(1):

(1) American National Standards

Institute/American Society

Mechanical Engineers (ANSI/ASME)

SPPE–1–1994, Quality Assurance and

Certification of Safety and Pollution

Prevention Equipment Used in

Offshore Oil and Gas Operations, and

(2) American Petroleum Institute (API)

Spec Q1, Specification for Quality

Programs, Fifth Edition, December

1994.

These documents update editions that

MMS has previously incorporated by

reference. MMS did not receive any

comments on these documents. ASME

has notified MMS that it will sunset its

SPPE program on June 11, 1999. After

that date, MMS will remove the

reference to SPPE–1–1994 from the

regulations. MMS believes that the

sunset of this program will not have a

significant effect on SPPE quality.

Executive Order (E.O.) 12866

This is a significant rule under E.O.

12866 and has been reviewed by the

Office of Management and Budget

(OMB).

Regulatory Flexibility Act

DOI has determined that this final

rule will not have a significant

economic effect on a substantial number

of small entities. Most entities that

engage in offshore activities as operators

are not small because of the technical

complexities and financial resources

necessary to conduct such activities

safely. Small entities are more likely to

work as contractors to larger entities on

the OCS, or in the case of SPPE, they

may work at repairing SPPE. This rule

will not have a negative effect on small

SPPE repair shops or manufacturers

since it does not impose any new

restrictions on them. This rule should

not change the business practices of

repair and manufacturing SPPE.

Paperwork Reduction Act

OMB has approved the information

collection requirements in 30 CFR Part

250, Subpart H, Oil and Gas Production

Safety Systems, as required by the

Paperwork Reduction Act of 1995 (44

U.S.C. 3501 et seq.). The OMB control

number is 1010–0059. The Paperwork

Reduction Act of 1995 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.

MMS received no comments with

respect to the information collection

aspects in the notice of proposed

rulemaking. There is no significant

change to the information collection

required by the final rule.

The collection of information consists

of applications and approvals for

design, installation, and operation of

subsurface safety devices and surface

production-safety systems and related

requirements; notifying MMS prior to

production and conduct of

preproduction tests and inspections;

approval of QA programs covering

manufacture of SPPE; and related

recordkeeping requirements. The

requirement to respond is mandatory.

MMS uses the information to evaluate

equipment and/or procedures lessees

propose to use during production

operations and to verify compliance

with minimum safety requirements.

MMS will protect information

considered confidential or proprietary

under the Freedom of Information Act

and under regulations at 30 CFR 250.18

(Data and information to be made

available to the public) and 30 CFR Part

252 (OCS Oil and Gas Information

Program).

Respondents are approximately 130

Federal OCS oil, gas, and sulphur

lessees. The frequency of submission

varies. We estimate that the public

reporting burden for this information

averages 1.25 hours per response,

including the time to review

instructions, search existing data

sources, gather and maintain the data

needed, and complete and review the

information collection. MMS estimates

that the total annual burden of this

collection of information to be 352

reporting hours and 2,548

recordkeeping hours. Based on $35 per

hour, the total burden hour cost to

respondents is $101,500.

You may direct comment on the

burden estimate or any other aspect of

this collection to the Information

Collection Clearance Officer, Minerals

Management Service, Mail Stop 4230,

1849 C Street, N.W., Washington, D.C.

20240; and to the Office of Information

and Regulatory Affairs, Office of

Management and Budget, Attn: Desk

Officer for the Department of the

Interior (OMB control number 1010–

0059), Room 10102, 725 17th Street,

N.W., Washington, D.C. 20503. You may

obtain a copy of the collection of

information by contacting the Bureau’s

Information Collection Clearance Officer

at (202) 208–7744.

Takings Implication Assessment

DOI certifies that this final rule does

not represent a governmental action

capable of interference with

constitutionally protected property

rights. Thus, MMS did not need to

prepare a Takings Implication

Assessment pursuant to E.O. 12630,

Governmental Action and Interference

with Constitutionally Protected Property

Rights.

Unfunded Mandates Reform Act of

1995

DOI has determined and certifies

according to the Unfunded Mandates

Reform Act, 2 U.S.C. 1502 et seq., that

this rule will not impose a cost of $100

million or more in any given year on

State, local, and tribal governments, or

the private sector.

E.O. 12988

DOI has certified to OMB that this

rule meets the applicable civil justice

reform standards provided in sections

3(a) and 3(b)(2) of E.O. 12988.

National Environmental Policy Act

DOI has determined that this action

does not constitute a major Federal

action significantly affecting the quality

of the human environment. Therefore,

preparation of an Environmental Impact

Statement is not required.

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, Public

lands—mineral resources, Public

lands—rights-of-way, Reporting and

recordkeeping requirements, Sulphur

development and production, Sulphur

exploration, Surety bonds.

Dated: June 5, 1997.

Bob Armstrong,

Assistant Secretary, Land and Minerals

Management.

For the reasons stated in the

preamble, the Minerals Management

Service (MMS) amends 30 CFR part 250

as follows:

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. 1334.
Federal Register / Vol. 62, No. 153 / Friday, August 8, 1997 / Rules and Regulations 42671

2. Section 250.1 is amended by

revising paragraphs (c)(5) and (d)(1) to

read as follows:

§ 250.1 Documents incorporated by

reference.

* * * * *

(c) * * *

(5) ASME SPPE–1–1994 and ASME

SPPE–1d–1996 ADDENDA, Quality

Assurance and Certification of Safety

and Pollution Prevention Equipment

Used in Offshore Oil and Gas

Operations, Incorporated by Reference

at: § 250.126(a)(2)(A).

* * * * *

(d) * * *

(1) API Spec Q1, Specification for

Quality Programs, Fifth Edition,

December 1994, API Stock No. 811–

00001, Incorporated by Reference at:

§ 250.126(a)(2)(B).

* * * * *

3. MMS revises § 250.126 to read as

follows:

§ 250.126 Safety and pollution prevention

equipment quality assurance requirements.

(a) General requirements. (1) Except

as provided in paragraph (b)(1) of this

section, you may install only certified

safety and pollution prevention

equipment (SPPE) in wells located on

the OCS. SPPE includes the following:

(i) Surface safety valves (SSV) and

actuators;

(ii) Underwater safety valves (USV)

and actuators; and

(iii) Subsurface safety valves (SSSV)

and associated safety valve locks and

landing nipples.

(2) Certified SPPE is equipment the

manufacturer certifies as manufactured

under a quality assurance program MMS

recognizes. MMS considers all other

SPPE as noncertified. MMS recognizes

two quality assurance programs:

(i) ANSI/ASME SPPE–1, Quality

Assurance and Certification of Safety

and Pollution-Prevention Equipment

Used in Offshore Oil and Gas

Operations; and

(ii) API Spec Q1, Specification for

Quality Programs.

(3) All SSV’s and USV’s must meet

the technical specifications of API Spec

14D or API Spec 6A and 6AV1. All

SSSV’s must meet the technical

specifications of API Spec 14A.

(b) Use of noncertified SPPE. (1)

Before April 1, 1998, you may continue

to use and install noncertified SPPE if

it was in your inventory as of April 1,

1988, and was included in a list of

noncertified SPPE submitted to MMS

prior to August 29, 1988.

(2) On or after April 1, 1998:

(i) You may not install additional

noncertified SPPE; and

(ii) When noncertified SPPE that is

already in service requires offsite repair,

remanufacturing, or hot work such as

welding, you must replace it with

certified SPPE.

(c) Recognizing other quality

assurance programs. The MMS will

consider recognizing other quality

assurance programs covering the

manufacture of SPPE. If you want MMS

to evaluate other quality assurance

programs, submit relevant information

about the program and reasons for

recognition by MMS to the Chief,

Engineering and Operations Division;

Minerals Management Service; Mail

Stop 4700; 381 Elden Street; Herndon,

Virginia 20170–4817.

[FR Doc. 97–21037 Filed 8–7–97; 8:45 am]

BILLING CODE 4310–MR–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Parts 100 and 165

[CGD 97–051]

Safety Zones, Security Zones, and

Special Local Regulations

AGENCY: Coast Guard, DOT.

ACTION: Notice of temporary rules

issued.

SUMMARY: This document provides

required notice of substantive rules

adopted by the Coast Guard and

temporarily effective between April 1,

1997 and June 30, 1997, which were not

published in the Federal Register. This

quarterly notice lists temporary local

regulations, security zones, and safety

zones, which were of limited duration

and for which timely publication in the

Federal Register was not possible.

DATES: This notice lists temporary Coast

Guard regulations that became effective

and were terminated between April 1,

1997 and June 30, 1997, as well as

several regulations which were not

included in the previous quarterly list.

ADDRESS: The complete text of these

temporary regulations may be examined

at, and is available on request, from

Executive Secretary, Marine Safety

Council (G–LRA), U.S. Coast Guard

Headquarters, 2100 Second Street, SW.,

Washington, DC 20593–0001.

FOR FURTHER INFORMATION CONTACT:

Lieutenant Christopher S. Keane at (202)

267–6004 between the hours of 8 a.m.

and 3 p.m., Monday through Friday.

SUPPLEMENTARY INFORMATION: District

Commanders and Captains of the Port

(COTP) must be immediately responsive

to the safety needs of the waters within

their jurisdiction; therefore, District

Commanders and COTPs have been

delegated the authority to issue certain

local regulations. Safety zones may be

established for safety or environmental

purposes. A safety zone may be

stationary and described by fixed limits

or it may be described as a zone around

a vessel in motion. Security zones limit

access to vessels, ports, or waterfront

facilities to prevent injury or damage.

Special local regulations are issued to

enhance the safety of participants and

spectators at regattas and other marine

events. Timely publication of these

regulations in the Federal Register is

often precluded when a regulation

responds to an emergency, or when an

event occurs without sufficient advance

notice. However, the affected public is

informed of these regulations through

Local Notices to Mariners, press

releases, and other means. Moreover,

actual notification is provided by Coast

Guard patrol vessels enforcing the

restrictions imposed by the regulation.

Because mariners are notified by Coast

Guard officials on-scene prior to

enforcement action, Federal Register

notice is not required to place the

special local regulation, security zone,

or safety zone in effect. However, the

Coast Guard, by law, must publish in

the Federal Register notice of

substantive rules adopted. To discharge

this legal obligation without imposing

undue expense on the public, the Coast

Guard periodically publishes a list of

these temporary special local

regulations, security zones, and safety

zones. Permanent regulations are not

included in this list because they are

published in their entirety in the

Federal Register. Temporary regulations

may also be published in their entirety

if sufficient time is available to do so

before they are placed in effect or

terminated. These safety zones, special

local regulations and security zones

have been exempted from review under

E.O. 12866 because of their emergency

nature, or limited scope and temporary

effectiveness.

The following regulations were placed

in effect temporarily during the period

April 1, 1997 and June 30, 1997, unless

otherwise indicated.

Dated: August 5, 1997.

Pamela M. Pelcovits,

Chief, Office of Regulations and

Administrative Law.